Note 11 - Earnings Per Share

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE 11:         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.

A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows:

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Basic weighted average common shares outstanding		6,684,281		6,634,746		6,682,347		6,630,391
Dilutive effect of options and unvested restricted shares		2,948		-		-		-
Diluted weighted average shares outstanding		6,687,229		6,634,746		6,682,347		6,630,391

The following table represents common stock equivalents that were excluded from the computation of diluted earnings per share for the three and six months ended June 30, 2021 and 2020, because the effect of their inclusion would be anti-dilutive.

	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Stock Options		557,052		417,000		560,000		417,000
		557,052		417,000		560,000		417,000

Stock options to purchase 560,000 shares of common stock were outstanding and 390,000 were exercisable during the three and six months ended June 30, 2021.

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.