NOTE

–

NET EARNINGS

PER SHARE

Basic net earnings per share has been computed by dividing net income by the weighted average number of common shares outstanding. Diluted net earnings per share has been computed by dividing net earnings by the weighted average common shares outstanding plus dilutive securities or other contracts to issue common stock as if these securities were exercised or converted to common stock.

The following table sets forth the computation of basic and diluted net income per share for the periods indicated, in thousands, except per share amounts.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
In thousands (except per share amounts):
Net income	$	49	$	405	$	179	$	1,469
Weighted average outstanding shares of common stock		1,922		2,048		1,967		2,048
Dilutive potential common shares from employee stock options		-		17		-		40
Common stock and common stock equivalents		1,922		2,065		1,967		2,088
Income per share:
Basic net income per share	$	0.03	$	0.20	$	0.09	$	0.72
Diluted net income per share	$	0.03	$	0.20	$	0.09	$	0.70

Outstanding stock options that were excluded from the calculation of diluted net income per share, as their inclusion would have been anti-dilutive, were

161,333

and

1,333

stock options for the

three

months ended

September 30, 2019

and

2018,

respectively, and were

176,000

and

1,333

stock options for the

nine

months ended

September 30, 2019

and

2018,

respectively.