Note 3 - Net Income Per Common and Common Equivalent Share

6 Months Ended

Jul. 02, 2022

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
	July 2,		June 26,		July 2,		June 26,
	2022		2021		2022		2021
Basic EPS Computation:
Numerator:
Net income (loss)	$	455,108	$	239,198	$	874,544	$	270,101
Denominator:
Weighted average
Common shares
Outstanding		14,431,825		13,982,177		14,410,064		13,783,276
Basic EPS	$	0.03	$	0.02	$	0.06	$	0.02
Diluted EPS Computation:
Numerator:
Net income (loss)	$	455,108	$	239,198	$	874,544	$	270,101
Denominator:
Weighted average
Common shares
Outstanding		14,431,825		13,982,177		14,410,064		13,783,276
Dilutive effect of stock options		276,821		568,741		272,452		624,628
Total Shares		14,708,646		14,550,918		14,682,516		14,407,904
Diluted EPS	$	0.03	$	0.02	$	0.06	$	0.02