Earnings Per Common Share (EPS)

6 Months Ended

Jun. 30, 2017

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
	Jun 30, 2017	Jun 30, 2016

Weighted average common shares outstanding	2,018,466	2,018,753
Dilutive effect of stock options	—	80
Weighted average common and common equivalent shares outstanding	2,018,466	2,018,833


	Six Months Ended
	Jun 30, 2017	Jun 30, 2016

Weighted average common shares outstanding	2,018,609	2,018,544
Dilutive effect of stock options	—	—
Weighted average common and common equivalent shares outstanding	2,018,609	2,018,544

Options to purchase 11,418 shares of common stock with a weighted average price of $15.99 were outstanding during the three months ended June 30, 2016, 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 three months ended June 30, 2017, all 18,168 options outstanding with a weighted average exercise price of $13.81 would have remained excluded from the computation of common share equivalents as the options were anti-dilutive.

If the Company was in a net income position for the first six months of 2017, 2,250 options outstanding with a weighted average exercise price of $8.91 would have been included as part of the weighted average common and common equivalent shares outstanding as the options would have been dilutive while 15,918 options outstanding with a weighted average exercise price of $14.51 would have remained excluded as the options were anti-dilutive.

If the Company was in a net income position for the first six months of 2016, 4,750 options outstanding with a weighted average exercise price of $10.59 would have been included as part of the weighted average common and common equivalent shares outstanding as the options would have been dilutive while 11,418 options outstanding with a weighted average exercise price of $15.99 would have remained excluded as the options were anti-dilutive.