(3) Net Income (Loss) Per Common and Common Equivalent Share

3 Months Ended

Apr. 01, 2017

Notes to Financial Statements

(3) Net Income (Loss) Per Common and Common Equivalent Share

(3)        Net Income (Loss) Per Common and Common Equivalent Share

Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated by dividing net income (loss) by the sum of the weighted average number of common shares plus additional common shares that would have been outstanding if potential dilutive common shares had been issued for granted stock options and stock purchase rights. Common stock equivalents are excluded from the diluted calculations when a net loss is incurred as they would be anti-dilutive.

The following table presents the calculation of both basic and diluted earnings per share (“EPS”):

	For periods ended
		April 1,		April 2,
		2017		2016
Basic EPS Computation:
Numerator:
Net income (loss)	$	(604,402)	$	197,128
Denominator:
Weighted average
common shares
Outstanding		13,203,436		13,198,236
Basic EPS	$	(0.05)	$	0.01
Diluted EPS Computation:
Numerator:
Net income (loss)	$	(604,402)	$	197,128
Denominator:
Weighted average
common shares
Outstanding		13,203,436		13,198,236
Dilutive effect stock options		—		305,420
Total Shares		13,203,436		13,503,656
Diluted EPS	$	(0.05)	$	0.01