Earnings Per Share

6 Months Ended

Jun. 30, 2015

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 six months ended June 30, 2015 and 2014:

	Three Months Ended				Six Months Ended
	June 30				June 30
	2015		2014		2015			2014
Basic Earnings (Loss) Per Share
Net income (loss)	$	112,381	$	270,006	$	(284,404	)	$	861,789
Weighted average shares outstanding		5,339,392		5,341,147		5,340,270			5,341,147
Basic earnings (loss) per share	$	0.02	$	0.05	$	(0.05	)	$	0.16
Diluted Earnings (Loss) Per Share
Net income (loss)	$	112,381	$	270,006	$	(284,404	)	$	861,789
Weighted average shares outstanding		5,339,392		5,341,147		5,340,270			5,341,147
Effect of dilutive securities		3,552		3,935		—			4,133
Diluted shares outstanding		5,342,944		5,345,082		5,340,270			5,345,280
Diluted earnings (loss) per share	$	0.02	$	0.05	$	(0.05	)	$	0.16

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, stock options are excluded from the calculation of diluted (loss) per share, as the inclusion of stock options would have an anti-dilutive effect. As of June 30, 2015, the Company had 5,523 common share equivalents which were excluded in the six months diluted (loss) per share calculation.