Note 9 - Basic and Diluted Earnings Per Common Share

6 Months Ended

Jun. 30, 2015

9.	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 dilutive shares, and “diluted” EPS, which includes all such dilutive shares, for the three and six months ended June 30, 2015 and 2014.

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Net income (numerator)	$	288,000	$	895,000	$	436,000	$	1,164,000

Shares (denominator):
Basic weighted average common shares outstanding		18,208,947		18,321,432		18,254,188		18,594,118
Add: dilutive effect of common stock options		99,859		276,034		134,040		247,900

Diluted weighted average common shares outstanding		18,308,806		18,597,466		18,388,228		18,842,018

Earnings per common share:
Basic	$	0.02	$	0.05	$	0.02	$	0.06
Diluted	$	0.02	$	0.05	$	0.02	$	0.06