Basic and Diluted Earnings per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 3-- Basic and Diluted Earnings per Share

Basic earnings per common share are computed using the weighted average number of common shares outstanding during the period.  Diluted earnings per share are computed using the weighted average number of common shares and potential dilutive common shares that were outstanding during the period.  Potential dilutive common shares consist of outstanding stock options, outstanding stock warrants, and convertible preferred stock.

The following table sets forth the computation of basic and diluted earnings per share:

	Three months ended  June 30				Six months ended  June 30
	2011		2010		2011		2010
Numerator:
Net income	$	68,841	$	206,020	$	678,641	$	952,496
Denominator:
Denominator for basic earnings per
share--weighted average shares		12,442,000		12,380,000		12,446,000		12,380,000
Dilutive effect of employee stock options
and other warrants		2,000		-		3,000		-
Denominator for diluted earnings per
share--adjusted weighted average shares		12,444,000		12,380,000		12,449,000		12,380,000
Basic earnings per share	$	0.01	$	0.02	$	0.05	$	0.08
Diluted earnings per share	$	0.01	$	0.02	$	0.05	$	0.08

Options and warrants to purchase 780,798 shares of common stock for the three months and six months ended June 30, 2011, respectively, were not included in the denominator for diluted earnings per share because their effect would be antidilutive. Options and warrants to purchase 806,689 shares of common stock for the three months and six months ended June 30, 2010, respectively, were not included in the denominator for diluted earnings per share because their effect would be antidilutive.