Basic and Diluted Earnings per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 2-- 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 September 30				Nine months ended September 30
	2012		2011		2012		2011
Numerator:
Net income	$	287,496	$	49,158	$	922,457	$	727,799
Denominator:
Denominator for basic earnings per
share--weighted average shares		12,480,000		12,416,000		12,499,000		12,436,000
Dilutive effect of employee stock options
and other warrants		156,000		-		158,000		-
Denominator for diluted earnings per
share--adjusted weighted average shares		12,636,000		12,416,000		12,657,000		12,436,000
Basic earnings per share	$	0.02	$	0.00	$	0.07	$	0.06
Diluted earnings per share	$	0.02	$	0.00	$	0.07	$	0.06

Options and warrants to purchase 1,143,863 shares of common stock for the three months and nine months ended September 30, 2012, respectively, were not included in the denominator for diluted earnings per share because their effect would be antidilutive or because the shares were deemed contingently issuable. Options and warrants to purchase 780,798 shares of common stock for the three months and nine months ended September 30, 2011, respectively, were not included in the denominator for diluted earnings per share because their effect would be antidilutive.