Earnings Per Share

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements

Earnings Per Share

NOTE 3 – EARNINGS PER SHARE

The following table represents the reconciliation of the Company's basic earnings per share and diluted earnings per share computations reported on the Consolidated Statements of Operations for the three and six months ended June 30, 2014 and 2013:

	Three Months Ended				Six Months Ended
	June 30				June 30
	2014		2013		2014		2013
Basic earnings per share
Net income	$	270,006	$	250,207	$	861,789	$	258,543
Weighted average shares outstanding		5,341,147		5,341,147		5,341,147		5,341,147
Basic earnings per share	$	0.05	$	0.05	$	0.16	$	0.05
Diluted earnings per share
Net income	$	270,006	$	250,207	$	861,789	$	258,543
Weighted average shares outstanding		5,341,147		5,341,147		5,341,147		5,341,147
Effect of dilutive securities		3,935		3,332		4,133		3,324
Diluted shares outstanding		5,345,082		5,344,479		5,345,280		5,344,471
Diluted earnings per share	$	0.05	$	0.05	$	0.16	$	0.05

Basic earnings 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.