INCOME PER COMMON SHARE

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

INCOME PER COMMON SHARE

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:

		2021		2020
Net income	$	1,668,684	$	1,501,023
Weighted average shares outstanding		5,528,835		5,529,632
Effect of dilutive shares		157,191		184,489
Weighted average shares outstanding - diluted		5,686,026		5,714,121
Earnings per share - basic	$	0.30	$	0.27
Earnings per share - diluted	$	0.29	$	0.26

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

		2021		2020
Net income	$	3,478,759	$	3,022,204
Weighted average shares outstanding		5,525,291		5,529,944
Effect of dilutive shares		164,733		178,774
Weighted average shares outstanding - diluted		5,690,024		5,708,718
Earnings per share - basic	$	0.63	$	0.55
Earnings per share - diluted	$	0.61	$	0.53