STOCKHOLDERS’ EQUITY

Basic and diluted weighted-average shares outstanding for the periods ended

September 30, 2019

and

2018

were as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018

Basic and diluted		19,191,848		19,102,889		19,172,772		19,084,242
Potentially dilutive		2,500		27,500		8,382		27,500

Basic net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding. Diluted net loss per common share is computed similar to basic net loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares from share-based compensation arrangements had been issued.

Potentially dilutive shares arise from non-qualified stock options to purchase common stock. The treasury stock method is utilized to determine the number of potentially dilutive shares related to the outstanding non-qualified stock options.

March 6, 2019,

the Company’s Chairman & Chief Executive Officer exercised a non-qualified stock option to acquire

25,000

shares of the Company’s stock at an exercise price of

$5.20

per share. The stock option was granted on

March 9, 2009

and vested

20%

annually beginning

March 9, 2010

through

March 9, 2014.

The stock option had an expiration date of

March 9, 2019.