EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2013

Earnings per common share

EARNINGS PER SHARE

NOTE 6. EARNINGS (LOSS) PER SHARE

Basic earnings per share includes no dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the periods presented. The calculation of basic earnings per share for the six months ended June 30, 2013 includes the weighted average of common shares outstanding.  Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity, such as convertible preferred stock, stock options, warrants or convertible securities.  The calculation of diluted earnings per share for the six months ended June 30, 2013 does not include options to purchase 1,571,662 shares and warrants to purchase 13,499 shares due to their anti-dilutive effect.

The following is a reconciliation of the numerator and denominator for basic and diluted earnings per share for the six months ended June 30, 2013 and 2012:

	2013		2012
Basic Earnings per Share
Numerator:
Net income  available to common shareholders	$	2,974,865	$	1,415,248
Denominator:
Weighted-average shares outstanding		17,243,762		9,781,851
Basic earnings per share	$	0.17	$	0.14
Diluted Earnings per Share
Numerator:
Net income available to common shareholders	$	2,974,865	$	1,415,248
Denominator:
Weighted-average shares outstanding		17,243,762		9,781,851
Effect of dilutive securities
Stock options and warrants		1,210,007		1,211,779
Preferred stock		1,345,220		3,211,328
Diluted weighted-average shares outstanding		19,798,989		14,204,958
Diluted earnings per share	$	0.15	$	0.10