EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2018

4.	EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period increased to include all additional common shares that would have been outstanding assuming potentially dilutive common shares, resulting from option exercises, had been issued and any proceeds thereof used to repurchase common stock at the average market price during the period.

	2018		2017		2016

Net income	$	20,053,269	$	11,328,266	$	11,372,239

Weighted average shares:
Basic		7,242,212		7,170,701		7,061,404
Effect of dilutive securities:
Stock options		91,156		151,104		221,858

Diluted		7,333,368		7,321,805		7,283,262

Net income per share:
Basic	$	2.77	$	1.58	$	1.61
Diluted	$	2.73	$	1.55	$	1.56

We exclude from earnings per share the weighted-average number of securities whose effect is anti-dilutive. There were 50,000 and 20,000 options to purchase shares excluded from the calculation of earnings per share for the periods ended December 31, 2018 and December 31, 2016, respectively, because their effect is anti-dilutive.