NOTE 15 - EARNINGS PER SHARE (EPS)

Basic EPS is computed by dividing reported earnings available to stockholders by the weighted average shares outstanding. Diluted EPS also includes the effect of stock options that would be dilutive. The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations, as required under FASB ASC 260, for the three months ended:

	June 30,		June 30,
	2017		2016
Basic EPS
Net Income	$	424,502	$	445,303
Weighted average shares		28,824,593		27,324,593
Basic Income per share	$	0.01	$	0.02
Diluted EPS
Net Income	$	424,502	$	445,303
Dilutive effect of stock options		942,073		387,326
Diluted weighted average shares		29,766,666		27,711,919
Diluted Income per share	$	0.01	$	0.02

All potential common share equivalents that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There were 502,668 of potential common stock equivalents that were out-of-the-money and were not included in the EPS calculations above for the three months ended June 30, 2017. For the three months ended June 30, 2016 there were 428,500 of potentially anti-dilutive stock options, none of which were included in the EPS calculations above.