Earnings Per Common Share (EPS)

9 Months Ended

Sep. 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
	Sep 30 2015	Sep 30 2014

Weighted average common shares outstanding	2,018,253	2,018,412
Dilutive effect of stock options	321	1,394
Weighted average common and common equivalent shares outstanding	2,018,574	2,019,806


	Nine Months Ended
	Sep 30 2015	Sep 30 2014

Weighted average common shares outstanding	2,018,253	2,016,789
Dilutive effect of stock options	—	1,448
Weighted average common and common equivalent shares outstanding	2,018,253	2,018,237

For three months ended September 30, 2015, options to purchase 8,500 shares of common stock with a weighted average price of $17.16 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 nine months ended September 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 nine 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.