Earnings Per Common Share (EPS)

3 Months Ended

Mar. 31, 2013

Earnings Per Common Share (EPS)

Earnings Per Common Share (EPS)

4. Earnings Per Common Share (EPS)

Basic EPS is calculated using net income (loss) divided by the weighted average of common shares outstanding.  Diluted EPS is similar to Basic EPS except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if the potential dilutive common shares, such as those shares subject to options, had been issued.

Shares used in the calculation of diluted EPS are summarized below:

	Three Months Ended
	Mar 31, 2013	Mar 31, 2012
Weighted average common shares outstanding	2,000,555	1,984,695
Dilutive effect of stock options	—	—
Weighted average common and common equivalent shares outstanding	2,000,555	1,984,695

If the Company was in a net income position in the first quarter of 2013, 14,252 options with a weighted average exercise price of $7.19 would have been included as part of the weighted average common and common equivalent shares outstanding as the options would have been dilutive.  If the Company was in a net income position in the first quarter of 2012, 29,000 options with a weighted average exercise price of $6.37 would have been included as part of the weighted average common and common equivalent shares outstanding as the options would have been dilutive.