Note 3 - Net Income Per Common and Common Equivalent Share

6 Months Ended

Jun. 26, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

(3) Net Income Per Common and Common Equivalent Share

Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share is calculated by dividing net income 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 EPS:

	Three Months Ended				Six Months Ended
	June 26,		June 27,		June 26,		June 27,
	2021		2020		2021		2020
Basic EPS Computation:
Numerator:
Net income (loss)	$	239,198	$	299,231	$	270,101	$	900,885
Denominator:
Weighted average Common shares Outstanding		13,982,177		13,207,436		13,783,276		13,207,436
Basic EPS	$	0.02	$	0.02	$	0.02	$	0.07
Diluted EPS Computation:
Numerator:
Net income (loss)	$	239,198	$	299,231	$	270,101	$	900,885
Denominator:
Weighted average Common shares Outstanding		13,982,177		13,207,436		13,783,276		13,207,436
Dilutive effect of stock options		568,741		52,347		624,628		46,021
Total Shares		14,550,918		13,259,783		14,407,904		13,253,457
Diluted EPS	$	0.02	$	0.02	$	0.02	$	0.07