Earnings Per Common Share (EPS)

6 Months Ended

Jun. 30, 2015

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
	June 30, 2015	June 30, 2014

Weighted average common shares outstanding	2,018,253	2,016,885
Dilutive effect of stock options	539	2,836

Weighted average common and common equivalent shares outstanding	2,018,792	2,019,721

	Six Months Ended
	June 30, 2015	June 30, 2014

Weighted average common shares outstanding	2,018,253	2,014,836
Dilutive effect of stock options	—	1,938

Weighted average common and common equivalent shares outstanding	2,018,253	2,016,774

For three months ended June 30, 2015, options to purchase 6,250 shares of common stock with a weighted average price of $18.28 were outstanding but were excluded from the computation of common share equivalents because they were anti-dilutive. Options to purchase 1,250 shares of common stock with a weighted average price of $28.25 were outstanding during the three and six months ended June 30, 2014, but were excluded from the computation of common share equivalents because they were anti-dilutive.

If the Company was in a net income position for the first six months of 2015, 5,918 options with a weighted average exercise price of $12.49 would have been included as part of the weighted average common and common equivalent shares outstanding as the options would have been dilutive while 6,250 options with a weighted average exercise price of $18.28 would have remained excluded as the options were anti-dilutive.