Note 10 - Earnings Per Share

3 Months Ended

Mar. 31, 2022

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.

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

	Three months ended March 31,
	2022		2021
Basic weighted average common shares outstanding		6,725,042		6,680,130
Dilutive effect of options and unvested restricted shares		-		-
Diluted weighted average shares outstanding		6,725,042		6,680,130

The following table represents common stock equivalents that were excluded from the computation of diluted earnings per share for the three months ended March 31, 2022 and 2021, because the effect of their inclusion would be anti-dilutive.

	Three months ended March 31,
	2022		2021
Stock Options		628,500		410,000
		628,500		410,000

Stock options to purchase 628,500 shares of common stock were outstanding and 285,000 were exercisable during the three months ended March 31, 2022.

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.