Earnings per share

12 Months Ended

Dec. 31, 2015

15. Earnings per share

Earnings per share (“EPS”) are computed on a basic and diluted basis. Basic EPS is computed by dividing net income (less preferred stock dividends) available to common stockholders by the weighted average number of common shares outstanding during the period. The computation of diluted EPS assumes the issuance of common shares for all potential common shares outstanding during the reporting period and, if dilutive, the effect of stock options as computed under the treasury stock method.

The following summarizes information related to the computation of basic and diluted EPS:

	Year Ended December 31,
	2015		2014		2013
Net income attributable to Consolidated Water Co. Ltd. stockholders	$	7,518,701	$	6,265,358	$	8,594,519
Less: preferred stock dividends		(12,028)		(11,485)		(11,222)
Net income available to common shares in the determination of basic earnings per common share	$	7,506,673	$	6,253,873	$	8,583,297

Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		14,741,748		14,697,896		14,633,884
Plus:
Weighted average number of preferred shares outstanding during the period		38,612		37,924		34,827
Potential dilutive effect of unexercised options and unvested stock grants		47,395		28,503		35,169
Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		14,827,755		14,764,323		14,703,880