Note 7 - Basic and Diluted Earnings Per Common Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Text Block]

7.             Basic and Diluted Earnings Per Common Share

The following table provides a reconciliation of both net income and the number of shares used in the computation of “basic” earnings per common share (“EPS”), which utilizes the weighted average number of common shares outstanding without regard to potential shares, and “diluted” EPS, which includes all such dilutive shares for the three and nine months ended September 30, 2012 and 2011.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2012		2011		2012		2011
Net income (numerator)	$	414,000	$	386,000	$	859,000	$	578,000
Shares (denominator):
Basic weighted average common shares outstanding		20,674,335		22,052,822		20,839,266		22,303,561
Add: Dilutive effect of common stock options		-		-		-		587,748
Diluted weighted average common shares outstanding		20,674,335		22,052,822		20,839,266		22,891,309
Earnings per common share:
Basic	$	0.02	$	0.02	$	0.04	$	0.03
Diluted	$	0.02	$	0.02	$	0.04	$	0.03