Note 5 - Earnings Per Share

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Earnings Per Share [Text Block]

5.

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,

2017

and

2016:

	2017		2016
Net income	$	1,231,265	$	1,520,997
Numerator for basic and diluted earnings per share	$	1,231,265	$	1,520,997
Denominator for basic earnings per share – weighted-average shares		9,308,726		9,698,951
Effect of dilutive securities:
Stock options		19,729		19,461
Restricted stock		2,464		41
Dilutive potential common shares		22,193		19,502
Denominator for diluted earnings per share – weighted-average shares		9,330,919		9,718,453
Basic earnings per share	$	0.13	$	0.16
Diluted earnings per share	$	0.13	$	0.16

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

109,545

and

149,922

shares of common stock have been included in the computations of diluted EPS for the quarters ended

March

31,

2017

and

2016,

respectively.