Note 11 - Earnings (loss) per Share

12 Months Ended

Dec. 31, 2015

Note 11. Earnings 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 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 (loss). Share numbers have been adjusted for the 1-for-15 reverse split effective on July 23, 2015.

	2015		2014
Numerator:
Numerator for basic and diluted earnings per share, net income available to common shareholders	$	1,016,088	$	3,838,288
Denominator:
Denominator for basic earnings per share, weighted average shares outstanding		7,389,177		6,472,071
Effect of dilutive securities-stock options and restricted awards		4,599,003		2,784,322
Denominator for diluted earnings per share, adjusted weighted average shares and assumed conversion		11,988,180		9,256,393
Basic earnings per common share	$	0.14	$	0.59
Diluted earnings per common share and common share equivalent	$	0.08	$	0.41

There were no awards or options to purchase shares of common stock that were outstanding at December 31, 2015 and 2014 that were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive.