Earnings Per Common Share

6 Months Ended

Jun. 30, 2026

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 shares of Common Stock 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 three months and six months ended June 30, 2026 and 2025, there were no options or warrants with an exercise price in excess of the average market price of the Company’s Common Stock during the periods.

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 three months and six months ended June 30, 2026 and 2025, 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:


	Three months ended June 30		Six months ended June 30
	2026	2025	2026	2025

Weighted average number of shares outstanding	14,480,305	13,925,707	14,467,100	13,700,308

Effect of dilutive securities, common share equivalents:
Stock options	132,673	181,646	132,003	180,620
Warrants	-	230,381	-	229,951
Restricted stock awards	58,649	49,804	39,696	37,869

Weighted average number of shares outstanding, used for computing diluted earnings per share	14,671,627	14,387,538	14,638,799	14,148,748