Income Per Common Share

9 Months Ended

Sep. 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 September 30:

	2020		2019
Net income	$	1,703,271	$	2,014,791
Weighted average shares outstanding		5,527,696		5,526,233
Effect of dilutive shares		168,551		68,823
Weighted average shares outstanding - diluted		5,696,247		5,595,056
Earnings per share - basic	$	0.31	$	0.36
Earnings per share - diluted	$	0.30	$	0.36

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

	2020		2019
Net income	$	4,725,425	$	5,544,902
Weighted average shares outstanding		5,529,189		5,519,337
Effect of dilutive shares		166,425		69,195
Weighted average shares outstanding - diluted		5,695,614		5,588,532
Earnings per share - basic	$	0.85	$	1.00
Earnings per share - diluted	$	0.83	$	0.99