EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2011

Earnings Per Share

EARNINGS PER SHARE

NOTE 8. EARNINGS 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 year ended December 31, 2011 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 year ended December 31, 2011 does not include options to purchase 1,786,239 shares and warrants to purchase 1,068,387 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 years ended December 31, 2011 and 2010:

	2011		2010
Basic Earnings per Share
Numerator:
Income  available to common shareholders	$	5,753,515	$	1,228,426
Denominator:
Weighted-average shares outstanding		8,884,681		8,294,436
Basic earnings per share	$	0.65	$	0.15
Diluted Earnings per Share
Numerator:
Income	$	5,753,515	$	1,228,426
Denominator:
Weighted-average shares outstanding		8,884,681		8,294,436
Effect of dilutive securities
Stock options and warrants		1,464,019		558,712
Preferred stock		4,426,639		5,275,716
Diluted weighted-average shares outstanding		14,775,339		14,128,864
Diluted earnings per share	$	0.39	$	0.09