NET INCOME PER SHARE COMPUTATIONS

12 Months Ended

Dec. 31, 2019

NET INCOME PER SHARE COMPUTATIONS

NET INCOME PER SHARE COMPUTATIONS

6.    NET INCOME PER SHARE COMPUTATIONS

The following is a reconciliation of the numerator and denominator of the net income per common share computations for the years ended December 31, 2019 and 2018

	Year Ended December 31,
	2019		2018
Net income (numerator) amounts used for basic and diluted per share computations:	$	2,718,274	$	5,718,444
Weighted average shares (denominator) of common stock outstanding:
Basic		4,594,118		4,481,667
Plus dilutive effect of stock options		13,691		53,269
Diluted		4,607,809		4,534,936
Net income per common share:
Basic	$	0.59	$	1.28
Diluted		0.59		1.26

Options to purchase 9,000 shares of common stock at an average price of $13.30 per share were outstanding but not included in the computation of diluted net income per share for the year ended December 31, 2019 because the exercise price of the options exceeded the market price of the Company’s common stock at December 31, 2019.

There were no out of the money options at December 31, 2018, thus, all outstanding options to purchase shares of common stock were included in the computation of diluted net income per share.