Note 3 - Net Income Per Share

6 Months Ended

Jun. 30, 2016

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, 2016 and 2015. 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,
	2016			2015		2016			2015
Numerator:
Numerator for basic and diluted earnings per share, net income available to common shareholders	$	(355,301	)	$	24,850	$	(387,303	)	$	733,465
Denominator:
Denominator for basic earnings per share, weighted average shares outstanding		7,738,759			7,369,329		7,729,003			7,369,329
Effect of dilutive securities		-			4,712,425		-			4,733,590
Denominator for diluted earnings per share, adjust weighted average shares and assumed conversion		7,738,759			12,081,754		7,729,003			12,102,919
Basic earnings (loss) per common share	$	(0.05	)	$	0.00	$	(0.05	)	$	0.10
Diluted earnings (loss) per common share and common share equivalent	$	(0.05	)	$	0.00	$	(0.05	)	$	0.06

The awards and options to purchase shares of common stock that were outstanding at June 30, 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:

	Six Months Ended June 30,
	2016		2015
Anti-dilutive awards and options		4,325,711		-