Earnings per share

3 Months Ended

Mar. 31, 2017

5. 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:

	Three Months Ended March 31,
	2017		2016
Net income attributable to Consolidated Water Co. Ltd. stockholders	$	2,631,228	$	2,054,641
Less: preferred stock dividends		(2,642)		(2,850)
Net income available to common shares in the determination of basic earnings per common share	$	2,628,586	$	2,051,791

Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		14,871,862		14,783,380
Plus:

Weighted average number of preferred shares outstanding during the period		35,225		38,584

Potential dilutive effect of unexercised options and unvested stock grants		128,132		42,161

Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		15,035,219		14,864,125