EARNINGS /(LOSS) PER SHARE

3 Months Ended

Mar. 31, 2023

EARNINGS /(LOSS) PER SHARE

EARNINGS /(LOSS) PER SHARE

NOTE 2 - EARNINGS /(LOSS) PER SHARE

Basic earnings (loss) per common share is based only on the weighted average number of shares of Common Stock outstanding for the periods. Diluted earnings (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 earnings (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.

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

	Three months ended
	March 31,
	2023		2022
Numerator for basic and diluted earnings (loss) per common share:
Net income (loss)	$	337,000	$	(618,000)
Denominator:
Denominator for basic earnings (loss) per share - weighted average common shares outstanding		3,195,000		3,169,000
Dilutive securities (1)		—		—
Denominator for diluted earnings (loss) per share - weighted average common shares outstanding		3,195,000		3,169,000

(1)Dilutive securities consist of the “in the money” stock options. There were no “in the money” stock options at March 31, 2023.  In the event of a loss, options are considered anti-dilutive and are therefore not included in the calculation of diluted loss per share.