NOTE 7 – EARNINGS PER SHARE.

6 Months Ended

Jun. 30, 2011

Earnings Per Share [Text Block]

NOTE 7 – EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income by the weighted average number of common shares and common share equivalents outstanding (if dilutive) during each period. The number of common share equivalents, which include stock options, is computed using the treasury stock method.

A reconciliation of basic to diluted earnings (loss) per share is as follows:

Six months ended June 30,	2011		2011		2010		2010
	Basic		Diluted		Basic		Diluted
Numerator:
Net income (loss)	$	72,268	$	72,268	$	419,136	$	419,136
Denominator:
Weighted average shares outstanding		17,324,439		17,324,439		17,898,854		17,898,854
Effect of dilutive securities:
Stock options and warrants		---		467,822		---		428,694
Weighted average shares outstanding		17,324,439		17,792,261		17,898,854		18,327,548
Earnings (loss) per share	$	0.00	$	0.00	$	0.02	$	0.02

Stock options to acquire 281,268 and 100,750 shares for the six months ended June 30, 2011 and 2010, respectively, were excluded from the computations of diluted EPS because the effect of including the stock options would have been anti-dilutive to a loss per share or the options were out of the money.