Earnings Per Share

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Earnings Per Share

NOTE 3 – EARNINGS (LOSS) PER SHARE

The following table represents the reconciliation of the Company's basic earnings (loss) per share and diluted earnings (loss) per share computations reported on the Consolidated Statements of Operations for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended					Nine Months Ended
	September 30					September 30
	2013			2012		2013			2012
Basic earnings (loss) per share
Net  income (loss)	$	(368,366	)	$	745,595	$	(109,823	)	$	1,402,740
Weighted average shares outstanding		5,341,147			5,337,913		5,341,147			5,341,296
Basic earnings (loss) per share	$	(0.07	)	$	0.14	$	(0.02	)	$	0.26
Diluted earnings (loss) per share
Net income (loss)	$	(368,366	)	$	745,595	$	(109,823	)	$	1,402,740
Weighted average shares outstanding		5,341,147			5,337,913		5,341,147			5,341,296
Effect of dilutive securities		—			12,008		—			15,455
Diluted shares outstanding		5,341,147			5,349,921		5,341,147			5,356,751
Diluted earnings (loss) per share	$	(0.07	)	$	0.14	$	(0.02	)	$	0.26

Basic earnings (loss) per share exclude the impact of common share equivalents and are based upon the weighted average common shares outstanding. Diluted earnings per share utilize the average market price per share when applying the treasury stock method in determining common share dilution. When outstanding stock options are dilutive, they are treated as common share equivalents for purposes of computing diluted earnings per share and represent the difference between basic and diluted weighted average shares outstanding. In loss periods, options are excluded from the calculation of diluted earnings per share, as the inclusion of such options would have an anti-dilutive effect.