Note 3 - Net Income Per Share

6 Months Ended

Jun. 30, 2015

Note 3. Net Income Per Share

Basic earnings per share (EPS) were computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted EPS differs from basic EPS due to the assumed conversion of potentially dilutive awards and options that were outstanding during the period. The following is a reconciliation of the numerators and the denominators of the basic and diluted per share computations for net income for the three and six months ended June 30, 2015 and 2014. All of the share numbers used are after the 1-for-15 reverse split effected on July 23, 2015 by using the June 30, 2015 share numbers and dividing by 15. Any fractional shares were rounded up.

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Numerator:
Numerator for basic and diluted earnings per share, net income available to common shareholders	$	24,850	$	486,801	$	733,465	$	648,540
Denominator:
Denominator for basic earnings per share, weighted average shares outstanding		7,369,329		8,334,304		7,369,329		8,333,949
Effect of dilutive securities		4,712,425		521,255		4,733,590		503,067
Denominator for diluted earnings per share, adjust weighted average shares and assumed conversion		12,081,754		8,855,559		12,102,919		8,837,016
Basic earnings (loss) per common share	$	0.00	$	0.06	$	0.10	$	0.08
Diluted earnings (loss) per common share and common share equivalent	$	0.00	$	0.05	$	0.06	$	0.07