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Note 9 - Basic and Diluted Earnings Per Common Share
 3 Months Ended
Mar. 31, 2012
Earnings Per Share [Text Block]
9. BASIC AND DILUTED EARNINGS PER COMMON SHARE:

Basic earnings per common share has been calculated by dividing net income for the period by the weighted average number of common shares outstanding during each period. Diluted earnings per share has been calculated by dividing net income for the period by the weighted average number of common shares and potentially dilutive common shares outstanding during the period. In computing diluted earnings per share, the treasury stock method is used to determine the number of shares assumed to be purchased from the conversion of common shares equivalents or the proceeds of option exercises.

The following table is a summary of the basic and diluted earnings per common share:

   
Three months
ended
March 31, 2012
   
Three months
ended
March 31, 2011
 
Numerator for basic and diluted earnings per common share:
           
Net income for the period
  $ 1,663,619     $ 727,946  
Denominator for basic and diluted earnings per common share:
               
Basic weighted average number of common shares outstanding
    46,221,465       53,437,672  
Effect of outstanding stock options
    2,732,986       2,310,280  
Diluted weighted average number of shares outstanding
    48,954,451       55,747,952  
Basic earnings (loss) per common share
  $ 0.04     $ 0.01  
Diluted earnings (loss) per common share
  $ 0.03     $ 0.01  

For the three months ended March 31, 2012, outstanding options to purchase 641,750 common shares were not included in the computation of diluted income per common share because all such options had exercise prices greater than the average market price of the common shares.

During the three months ended March 31, 2012, 7,570,236 common shares were repurchased and cancelled under the terms of a modified Dutch auction tender offer announced in December 2011.

The computation of earnings per share and diluted earnings per share for the three months ended March 31, 2012 includes reductions in the number of shares outstanding due to these repurchases. No common shares were repurchased during the three months ended March 31, 2011.