Earnings Per Common Share

12 Months Ended

Dec. 31, 2025

Basic net earnings per common share is computed by dividing net income by the weighted-average number of shares of Common Stock outstanding. Diluted earnings per common share reflects, in periods in which it has a dilutive effect, the impact of common shares issuable upon exercise of stock options and warrants as well as non-vested restricted stock awards. The computation of diluted earnings per common share excludes those options and warrants with an exercise price in excess of the average market price of the Company’s Common Stock during the periods presented. For the years ended December 31, 2025 and 2024, there were -0- and 2,828 options, respectively, with an exercise price in excess of the average market price of the Company’s Common Stock during the period. For the years ended December 31, 2025 and 2024, there were no warrants with an exercise price in excess of the average market price of the Company’s Common Stock during the period.

The computation of diluted earnings per common share excludes outstanding options, warrants and non-vested restricted stock awards in periods where the exercise of such options and warrants or vesting of such restricted stock awards would be anti-dilutive. For the years ended December 31, 2025 and 2024, there were no options, warrants or restricted stock awards that were anti-dilutive for the relevant periods.

The reconciliation of the weighted average number of shares of Common Stock used in the calculation of basic and diluted earnings per common share follows:


	Years ended December 31,
	2025	2024

Weighted average number of shares outstanding	13,926,024	11,478,899

Effect of dilutive securities, common share equivalents:
Stock options	171,449	205,961
Warrants	-	554,516
Restricted stock awards	45,700	184,393

Weighted average number of shares outstanding,
used for computing diluted earnings per share	14,143,173	12,423,769