9. EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2014

Notes to Financial Statements

NOTE 9 - EARNINGS PER SHARE

Basic earnings per share are computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding during the period.  Diluted earnings per share reflect per share amounts that would have resulted if dilutive potential common shares had been converted to common shares.  The following reconciles amounts reported in the financial statements:

	Three Months Ended September 30, 2014						Three Months Ended September 30, 2013
	Numerator		Denominator		Per Share Amount		Numerator		Denominator		Per Share Amount
Net (Loss) Income	$	12,335						124,668
Less:  Preferred Stock Dividends
Income Available to Common Shareholders – Basic Earnings per Share	$	12,335		1,241		10		124,668		1,341	$	93
Effect of Dilutive Securities:
Preferred Stock Dividends
Stock Options and Warrants
Income Available to Common Shareholders – Diluted Earnings per Share	$	12,335		1,241		10		124,668		1,341	$	93

	Nine Months Ended September 30, 2014								Nine Months Ended September 30, 2013
	Numerator			Denominator		Per Share Amount			Numerator		Denominator		Per Share Amount
Net (Loss) Income	$	(18,285	)							274,124
Less:  Preferred Stock Dividends
Income Available to Common Shareholders – Basic Earnings per Share	$	(18,285	)		1,241		(15	)		274,124		1,410	$	194
Effect of Dilutive Securities:
Preferred Stock Dividends
Stock Options and Warrants
Income Available to Common Shareholders – Diluted Earnings per Share	$	(18,285	)		1,241		(15	)		274,124		1,410	$	194

Options and warrants to purchase 624,3613 common shares at exercise prices between $3,500 and $14,300 were outstanding at September 30, 2014, but were not included in the computation of diluted earnings per share for the quarter ending September 30, 2014 and September 30, 2013, because their effect was anti-dilutive.