Note 5—Earnings per Share Data

The following table sets forth the computation of basic and diluted earnings per share for the quarters ended December 31, 2017 and 2016:


	December 31, 2017		December 31, 2016
Net income	$	2,346,000	$	1,394,000


Common Shares:
Weighted-average common shares outstanding		14,458,000		14,380,000
Effect of dilutive stock options		265,000		209,000

Weighted-average diluted shares outstanding		14,723,000		14,589,000


Basic:
Net income per share	$	0.16	$	0.10


Diluted:
Net income per share	$	0.16	$	0.10

Basic earnings per share is based on the weighted-average number of shares outstanding. Diluted earnings per share is based on the sum of the weighted-average number of shares outstanding plus common stock equivalents.

Weighted-average shares issuable upon the exercise of stock options included in the diluted earnings per share calculation for the quarter ended December 31, 2017 were 401,000, which equates to 265,000 dilutive common stock equivalents. Weighted-average shares issuable upon the exercise of stock options included in the diluted earnings per share calculation for the quarter ended December 31, 2016 were 482,000, which equated to 209,000 dilutive common stock equivalents. Weighted-average shares issuable upon the exercise of stock options, which were not included in the diluted earnings per share calculations because they were anti-dilutive, were zero for the quarters ended December 31, 2017 and 2016.