INCOME (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2022

INCOME (LOSS) PER SHARE

INCOME (LOSS) PER SHARE

NOTE 3 -INCOME (LOSS) PER SHARE

Basic loss per common share is based only on the weighted average number of shares of Common Stock outstanding for the periods. Diluted loss per common share reflects the effect of shares of Common Stock issuable upon the exercise of options unless the effect on earnings is anti-dilutive.

Diluted loss per common share is computed using the treasury stock method. Under this method, the aggregate number of shares of Common Stock outstanding reflects the assumed use of proceeds from the hypothetical exercise of any outstanding options to purchase shares of Common Stock. The average market value for the period is used as the assumed purchase price.

NOTE 3 -INCOME (LOSS) PER SHARE – (Continued)

The following table sets forth the elements of basic and diluted loss per common share:

	Three months ended				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
Numerator for basic and diluted (loss) income per common share:
Net (loss) income	$	(237,000)	$	(733,000)	$	(876,000)	$	1,383,000
Denominator:
Denominator for basic (loss) income per share - weighted average common shares outstanding		3,195,000		3,181,000		3,183,000		3,177,000
Dilutive securities (1)		—		—		—		14,000
Denominator for diluted (loss) income per share - weighted average common shares outstanding		3,195,000		3,181,000		3,183,000		3,191,000

(1)Dilutive securities consist of the “in the money” stock options. In the event of a loss, options are considered anti-dilutive and are therefore not included in the calculation of diluted loss per share.At September 30, 2022 and 2021, there were outstanding stock options whose exercise prices were higher than the average market values of the underlying Common Stock for the period. The weighted average of anti-dilutive stock options outstanding was as follows:

	Three months ended		Nine months ended
	September 30,		September 30,
	2022	2021	2022	2021
Weighted average anti-dilutive stock options outstanding	134,000	135,000	134,000	138,000