Note 6 - Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 6. Net Income (Loss) Per Share

Basic income (loss) per share (EPS) was 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. Holders of unvested restricted stock awards have the right to receive nonforfeitable dividends on the same basis as common shares; therefore, unvested restricted stock is considered a participating security for the purpose of calculating EPS. The following is a reconciliation of the numerators and the denominators of the basic and diluted per share computations for net income (loss) for the three and nine months ended September 30, 2024 and September 30, 2023.

	Three Months Ended September 30,					Nine Months Ended September 30,
	2024		2023			2024		2023
Numerator:
Numerator for basic and diluted income (loss) per share, net income (loss) available to common shareholders	$	2,851,267	$	(720,913	)	$	2,676,571	$	(501,039	)
Denominator:
Denominator for basic income (loss) per share, weighted average shares outstanding		27,322,497		26,383,144			26,747,277		26,386,586
Effect of dilutive securities		—		—			—		—
Denominator for diluted earnings per share, adjusted for weighted average shares and assumed conversion		27,322,497		26,383,144			26,747,277		26,386,586
Basic income (loss) per common share	$	0.10	$	(0.03	)	$	0.10	$	(0.02	)
Diluted income (loss) per common share and common share equivalent	$	0.10	$	(0.03	)	$	0.10	$	(0.02	)

The warrants to purchase shares of common stock that were outstanding at September 30, 2024 and September 30, 2023 that were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive, are as follows:

	Nine Months Ended September 30,
	2024		2023
Anti-dilutive warrants		945,599		945,599