Note 8 - Basic and Diluted Earnings Per Common Share

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

8. 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 nine months ended September 30, 2022 and 2021:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Net income (numerator)	$	503,000	$	766,000	$	2,718,000	$	6,156,000
Shares (denominator):
Basic weighted average common shares outstanding		12,615,187		13,177,520		12,834,505		13,255,125
Add: dilutive effect of common stock options		73,194		241,965		75,365		300,800
Diluted weighted average common shares outstanding		12,688,381		13,419,485		12,909,870		13,555,925
Earnings per common share:
Basic	$	0.04	$	0.06	$	0.21	$	0.46
Diluted	$	0.04	$	0.06	$	0.21	$	0.45