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 June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders	$	1,691,990	$	2,339,950	$	4,399,083	$	4,380,640
Less: preferred stock dividends		(3,382)		(3,390)		(6,023)		(6,241)
Net income from continuing operations available to common shares in the determination of basic earnings per common share		1,688,608		2,336,560		4,393,060		4,374,399
Net loss from discontinued operations		(1,067,442)		(135,617)		(1,143,307)		(121,666)
Net income available to common shares in the determination of basic earnings per common share	$	621,166	$	2,200,943	$	3,249,753	$	4,252,733

Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		14,889,816		14,792,053		14,880,889		14,787,716
Plus:
Weighted average number of preferred shares outstanding during the period		36,684		39,255		35,958		38,919
Potential dilutive effect of unexercised options and unvested stock grants		129,054		39,811		128,357		37,156
Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders		15,055,554		14,871,119		15,045,204		14,863,791