NOTE 12. COMMON STOCK AND EARNINGS PER SHARE

Basic earnings per common share were computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share were determined based on the assumption of the conversion of stock options and vesting of restricted stock using the treasury stock method at average market prices for the periods.


		Year Ended
		December 31, 2018		December 31, 2017		December 31, 2016
Income Available to Common Shareholders:
Net Income	$	37,167,790	$	41,719,424	$	16,251,248
Weighted Average Shares Outstanding		5,495,792		5,538,859		5,680,165
Common Shares Applicable to Stock
Options Using the Treasury Stock Method		33,529		40,933		13,697
Total Shares Applicable to Diluted Earnings Per Share		5,529,321		5,579,792		5,693,862

Per Share Information:
Basic
Net Income from Continuing Operations Attributable to Consolidated-Tomoka Land Co.	$	7.09	$	7.42	$	2.93
Net Income (Loss) from Discontinued Operations Attributable to Consolidated-Tomoka Land Co. (Net of Tax)		(0.33)		0.11		(0.07)
Net Income	$	6.76	$	7.53	$	2.86

Diluted
Net Income from Continuing Operations Attributable to Consolidated-Tomoka Land Co.	$	7.04	$	7.37	$	2.92
Net Income (Loss) from Discontinued Operations Attributable to Consolidated-Tomoka Land Co. (Net of Tax)		(0.32)		0.11		(0.07)
Net Income	$	6.72	$	7.48	$	2.85

In addition to the dilutive securities presented above, the effect of 15,000, 57,750, and 85,500, potentially dilutive securities were not included for the years ended December 31, 2018, 2017, and 2016, respectively, as the effect would be antidilutive.

The Company intends to settle its 4.50% Convertible Senior Notes due 2020 in cash upon conversion with any excess conversion value to be settled in shares of our common stock. Therefore, only the amount in excess of the par value of the Notes will be included in our calculation of diluted net income per share using the treasury stock method. As such, the Notes have no impact on diluted net income per share until the price of our common stock exceeds the current conversion price of $68.51. The average price of our common stock during the years ended December 31, 2018, 2017, or 2016 did not exceed the conversion price which resulted in no additional diluted outstanding shares.