NOTE

10:

EARNINGS PER SHARE

In accordance with ASC

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

381,930

shares of common stock were outstanding and

146,930

were exercisable during the

three

and

six

months ended

June 30, 2017.

Stock options to purchase

159,730

shares were outstanding and

79,230

were exercisable during the

three

and

six

months ended

June 30, 2016.

For the

three

and

six

months ended

June 30, 2017,

options to purchase

34,517

and

33,205

shares were included in the diluted earnings per share calculation respectively. The balance of options outstanding at

June 30, 2017

were

not

included as their effect would have been anti-dilutive. For the

three

and

six

months ended

June 30, 2016,

none

of the outstanding options were included in the earnings per share calculation as their effect would have been anti-dilutive.

The potentially dilutive common shares from warrants and options are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all 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.