Note 3 - Net Income Per Share

9 Months Ended

Sep. 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 nine months ended September 30, 2015 and 2014. Share numbers have been adjusted for the 1-for-15 reverse split effected on July 23, 2015.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Numerator:
Numerator for basic and diluted earnings per share, net income available to common shareholders	$	117,780	$	688,560	$	851,246	$	1,337,101
Denominator:
Denominator for basic earnings per share, weighted average shares outstanding		7,373,656		8,334,303		7,373,656		8,334,065
Effect of dilutive securities		4,683,599		606,906		4,683,599		537,800
Denominator for diluted earnings per share, adjust weighted average shares and assumed conversion		12,057,255		8,941,209		12,057,255		8,871,865
Basic earnings per common share	$	0.02	$	0.08	$	0.12	$	0.16
Diluted earnings per common share and common share equivalent	$	0.01	$	0.08	$	0.07	$	0.15