BASIC AND DILUTED INCOME PER SHARE

9 Months Ended

Sep. 30, 2016

BASIC AND DILUTED INCOME PER SHARE

Basic income per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted income per share is calculated by dividing net income by the weighted average number of common and potential dilutive common shares outstanding. Diluted income per share takes into consideration the assumed exercise of outstanding stock options resulting in approximately 28,000 and 27,000 potential dilutive common shares for the three months ended September 30, 2016 and 2015, respectively, and 28,000 and 38,000 for the nine months ended September 30, 2016 and 2015, respectively. For the three and nine months ended September 30, 2016 and 2015, none of the outstanding stock options would have been anti-dilutive.