Note 4 - Income Per Share

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Earnings Per Share [Text Block]

Note

4

–

Income

Per

Share

Net income per common share information is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Basic earnings per common share:
Net income	$	76,224		$	7,987		$	166,532		$	9,833
Discount upon exchange of Preferred Stock, net of related fees		-			1,103,597			-			1,103,597
		76,224			1,111,584			166,532			1,113,430
Portion allocable to common shareholders		100.0	%		99.3	%		100.0	%		99.3	%
Net income available to common shareholders	$	76,224		$	1,103,803		$	166,532		$	1,105,636
Weighted average basic shares outstanding		35,528,094			32,419,016			35,091,624			32,224,577
Basic (loss) income per common share	$	-		$	0.03		$	-		$	0.03
Dilutive earnings per common share:
Net income allocable to common shareholders	$	76,224		$	1,103,803		$	166,532		$	1,105,636
Add: undistributed earnings allocated to participating securities		-			7,781			-			7,794
Numerator for diluted earnings per common share		76,224			1,111,584			166,532			1,113,430
Weighted average shares outstanding - basic		35,528,094			32,419,016			35,091,624			32,224,577
Diluted effect:
Stock options		88,380			7,636			74,317			7,636
Unvested restricted stock units		228,608			1,818			201,195			1,818
Conversion equivalent of dilutive Series B Convertible Preferred Stock		-			2,865,477			-			3,086,388
Conversion equivalent of dilutive Convertible Preferred Stock		-			212,967			-			233,984
Weighted average dilutive shares outstanding		35,845,082			35,506,914			35,367,136			35,554,403
Dilutive income per common share	$	-		$	0.03		$	-		$	0.03

The table below sets forth the calculation of the percentage of net earnings allocable to common shareholders under the

 

two

-class method in

2016.

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Numerator:
Weighted average participating common shares		35,528,094			32,419,016			35,091,624			32,224,577
Denominator:
Weighted average participating common shares		35,528,094			32,419,016			35,091,624			32,224,577
Add: Weighted average shares of Convertible Preferred Stock		-			212,967			-			233,984
Weighted average participating shares		35,528,094			32,631,983			35,091,624			32,458,561
Portion allocable to common shareholders		100.0	%		99.3	%		100.0	%		99.3	%

Diluted net income per share for the

three

and

nine

months ended

June 30, 2017

and

2016

does

not

reflect the following potential common shares, as the effect would be antidilutive.

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Stock options		335,000		610,000		335,000		610,000
Unvested restricted stock		60,000		-		60,000		-