EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

EARNINGS PER SHARE

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 three months ended March 31, 2014 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 three months ended March 31, 2014 does not include options to purchase 817,667 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 three months ended March 31, 2014 and 2013: 

	2014		2013
Basic Earnings per Share
Numerator:
Net income available to common shareholders	$	862,165	$	1,083,595
Denominator:
Weighted-average shares outstanding	21,232,949		17,079,242
Basic earnings per share	$	0.04	$	0.06
Diluted Earnings per Share
Numerator:
Net income available to common shareholders	$	862,165	$	1,083,595
Denominator:
Weighted-average shares outstanding	21,232,949		17,079,242
Effect of dilutive securities
Stock options and warrants	1,225,727		1,631,017
Preferred stock	1,279,342		1,428,923
Diluted weighted-average shares outstanding	23,738,018		20,139,182
Diluted earnings per share	$	0.04	$	0.05