Note 9 - Basic and Diluted Earnings Per Common Share

3 Months Ended

Mar. 31, 2017

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

months ended

March

31,

2017

and

2016.

	For the Three Months Ended
	March 31,
	2017		2016
Net income (numerator)	$	550,000	$	507,000

Shares (denominator):
Basic weighted average common shares outstanding		15,207,659		17,669,331
Add: dilutive effect of common stock options		94,142		-

Diluted weighted average common shares outstanding		15,301,801		17,669,331

Earnings per common share:
Basic	$	0.04	$	0.03
Diluted	$	0.04	$	0.03