Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share

Note 3 –Earnings per Share

Basic earnings per common share are computed by dividing net income by the weighted average number of shares of stock outstanding. The Company’s diluted earnings per common share give effect to all potential shares of Common Stock outstanding during a period that are not anti-dilutive. In computing the diluted earnings per share, the treasury stock and if converted methods are used in determining the number of shares assumed to be purchased from the conversion of Common Stock equivalents.

Note 3 – Earnings per Share – Continued

The following summarizes the amounts included in the dilutive shares as disclosed on the face of the consolidated condensed statements of operations:

	Three Months Ended June 30,			Six Months Ended June 30,
		2013	2012		2013	2012
Weighted average number of shares for calculation of basic EPS – Common Stock		32,658,311	29,567,545		33,698,083	27,023,219
Impact of stock options outstanding under the 1997, 2006 and 2011 Stock Option Plans		508,917	535,918		445,175	617,704
Weighted average number of shares for calculation of diluted EPS		33,167,228	30,103,463		34,143,258	27,640,923

The accompanying table represents Common Stock issuable upon the exercise of certain stock options, the Series C Convertible Preferred Stock and potential dividends paid in common stock that have been excluded from the diluted shares calculation because the effect of their inclusion would be anti-dilutive.

	Three Months Ended June 30,			Six Months Ended June 30,
		2013	2012		2013	2012
Stock options outstanding under the 2006, 2011 and 2013 Stock Option Plans		58,000	84,000		58,000	84,000
Series C Convertible Preferred Stock		444,953	2,637,085		444,953	2,637,085
		502,953	2,721,085		502,953	2,721,085