Note 5 - Earnings Per Share

3 Months Ended

Mar. 31, 2016

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the three months ended March 31, 2016 and 2015:

	2016		2015
Net income	$	1,520,997	$	1,444,407
Numerator for basic and diluted earnings per share	$	1,520,997	$	1,444,407

Denominator for basic earnings per share – weighted-average shares		9,698,951		10,211,333

Effect of dilutive securities:
Stock options		19,461		29,763
Restricted stock		41		-
Dilutive potential common shares		19,502		29,763

Denominator for diluted earnings per share – weighted-average shares		9,718,453		10,241,096

Basic earnings per share	$	0.16	$	0.14
Diluted earnings per share	$	0.16	$	0.14

The net effect of assuming the exercise of all potentially dilutive common share equivalents, including stock options to purchase common stock at exercise prices less than the average market prices and restricted stock awards of an aggregate of 149,922 and 130,833 shares of common stock have been included in the computations of diluted EPS for the quarters ended March 31, 2016 and 2015, respectively.