EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2019

4. EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period increased to include all additional common shares that would have been outstanding assuming potentially dilutive common shares, resulting from option exercises and restricted stock units, had been issued and any proceeds thereof used to repurchase common stock at the average market price during the period.

	2019		2018

Net income	$	24,469,808	$	20,053,269

Weighted average shares:
Basic		7,315,144		7,242,212
Effect of dilutive securities:
Stock options		33,881		91,156
Restricted stock units		2,360		-
Diluted		7,351,385		7,333,368

Net income per share:
Basic	$	3.35	$	2.77
Diluted	$	3.33	$	2.73

We exclude from earnings per share the weighted-average number of securities whose effect is anti-dilutive. There were 150,000 and 50,000 options to purchase shares excluded from the calculation of earnings per share for the years ended December 31, 2019 and 2018, respectively, because their effect is anti-dilutive.