Note 10 - Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 10:     EARNINGS PER SHARE

As per the FASB ASC Section 260, basic earnings per share are computed by dividing net earnings available to common shareholders (the numerator) by the weighted average number of common shares (the denominator) for the period presented. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued.

Stock options to purchase 199,380 shares of common stock were outstanding and 161,880 were exercisable during the three and nine months ended September 30, 2013. Stock options to purchase 204,580 shares were outstanding and 154,580 were exercisable during the three and nine months ended September 30, 2012. At September 30, 2013, none of the outstanding options were included in the earnings per share calculation as their effect would have been anti-dilutive. At September 30, 2012, all outstanding options were included in the diluted earnings per share calculation because the average market price was higher than the exercise price.

The dilutive potential common shares from warrants and options is calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of warrants and options are used to repurchase common stock at market value. The amount of shares remaining after the proceeds are exhausted represents the potential dilutive effect of the securities.