Note 3 - Net Income Per Share

3 Months Ended

Mar. 31, 2016

Note 3. Net Income Per Share

Basic earnings per share (EPS) were computed by dividing net income (loss) 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 months ended March 31, 2016 and 2015.

	Three Months Ended March 31,
	2016			2015
Numerator:
Numerator for basic and diluted earnings per share, net income available to common shareholders	$	(32,002	)	$	708,617
Denominator:
Denominator for basic earnings per share, weighted average shares outstanding		7,719,248			7,359,314
Effect of dilutive securities		-			4,763,117
Denominator for diluted earnings per share, adjusted weighted average shares and assumed conversion		7,719,248			12,122,431
Basic earnings per common share	$	0.00		$	0.10
Diluted earnings per common share and common share equivalent	$	0.00		$	0.06

The awards and options to purchase shares of common stock that were outstanding at March 31, 2016 and 2015 that were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive, are as follows:

	Three Months Ended March 31,
	2016		2015
Anti-dilutive awards and options		4,325,676		-