Net Income / (Loss) Per Common Share

3 Months Ended

Mar. 31, 2017

Note C – Net Income / (Loss) Per Common Share

Basic net income / (loss) per common share is calculated by dividing the net income / (loss) by the weighted average number of outstanding common shares during the period. Diluted net income / (loss) per common share includes the weighted average dilutive effect of stock options and warrants. Potential common shares outstanding as of March 31, 2017 and 2016:

	March 31, 2017		March 31, 2016

Warrants		2,060,000		2,385,000
Options		2,107,000		2,185,000
		4,167,000		4,570,000

The number of securities not included in the diluted net loss per share for the First Quarter 2017 was 4,167,000, as their effect would have been anti-dilutive due to the net loss in the First Quarter 2017.

The number of securities not included in the diluted net loss per share for the First Quarter 2016 was 3,540,000, since the inclusion of such securities would have an anti-dilutive effect because the securities’ exercise prices were greater than the average market price of the common shares.