Income Per Common Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Income Per Common Share

Note 6: Income Per Common Share 

Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and potential common shares outstanding. Potential common shares consist of dilutive stock options determined using the treasury stock method and the average market price of common stock. 

The following table is a summary of the reconciliation of weighted average shares outstanding for the three months ended June 30: 

	2020		2019
Net income	$	1,501,023	$	1,840,847
Weighted average shares outstanding		5,529,632		5,517,236
Effect of dilutive shares		184,489		70,749
Weighted average shares outstanding - diluted		5,714,121		5,587,985
Earnings per share - basic	$	0.27	$	0.33
Earnings per share - diluted	$	0.26	$	0.33

The following table is a summary of the reconciliation of weighted average shares outstanding for the six months ended June 30: 

	2020		2019
Net income	$	3,022,154	$	3,530,111
Weighted average shares outstanding		5,529,944		5,515,832
Effect of dilutive shares		178,774		70,981
Weighted average shares outstanding - diluted		5,708,718		5,586,813
Earnings per share - basic	$	0.55	$	0.64
Earnings per share - diluted	$	0.53	$	0.63