10. Net income per common share

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

10. Net income per common share

10. Net income (loss) per common share

For the three months ended September 30, 2016 the computation of basic and diluted earnings per share is as follows:

	Income		Number of shares		Per share amount
Net income	$	136,971
Basic earnings per share		136,971		48,738,855	$	0.00
Effect of dilutive securities
Warrants		—		266,700
Options		—		—
Diluted earnings per share	$	136,971		49,005,555	$	0.00

For the nine months ended September 30, 2016 the computation of basic and diluted earnings per share is as follows:

	Income		Number of shares		Per share amount
Net income	$	349,386
Basic earnings per share		349,386		48,158,563	$	0.01
Effect of dilutive securities
Warrants		—		266,700
Options		—		—
Diluted earnings per share	$	349,386		48,425,263	$	0.01

For the three months and nine months ended September 30, 2016, options to purchase 480,000 shares of common stock and warrants to purchase 5,203,700 shares of common stock were excluded from the calculation of diluted earnings per share as the option and warrant exercise prices were greater than the average market price of the common shares.

For the three months and nine months ended September 30, 2015, the following options and warrants and convertible preferred stock were excluded from the computation of diluted net loss per shares as the result of the computation was anti-dilutive:

	Three months and nine months ended September 30, 2015
Options to purchase shares of common stock	$	480,000
Warrants to purchase shares of common stock		6,300,000
Outstanding at September 30, 2015	$	6,780,000