Note 10 - Earnings Per Share

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE

10:

     EARNINGS PER SHARE

Basic earnings per share is computed by dividing net earnings available to common shareholders (the numerator) by the weighted average number of common shares outstanding (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

417,000

shares of common stock were outstanding and

292,000

were exercisable during the

three

and

nine

months ended

September 30, 2020.

Stock options to purchase

447,930

shares were outstanding and

267,930

were exercisable during the

three

and

nine

months ended

September 30, 2019.

For the

three

and

nine

months ended

September 30, 2020,

417,000

stock options, and for the

three

and

nine

months ended

September 30, 2019,

447,930

stock options were

not

included in the computation of diluted earnings per share as their effect would have been anti-dilutive.

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