. 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 share 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,
	2017		2016

Numerator for basic and diluted earnings per common share:
Net income for the period	$	2,446,491	$	4,438,238

Denominator for basic and diluted earnings per scommon share:
Basic weighted average number of common shares outstanding		10,474,647		10,674,036
Effect of outstanding stock options		301,868		187,546
Diluted weighted average number of shares outstanding		10,776,515		10,861,582

Basic earnings per common share	$	0.23	$	0.42

Diluted earnings per common share	$	0.23	$	0.41

For

the

three

months ended

March

31,

2017,

outstanding options to purchase

28,500

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

(March

31,

2016

–

130,475).

During

the

three

months ended

March

31,

2017,

common shares were repurchased and cancelled under the terms of our stock repurchase program announced in

March

2017

(March

31,

2016

–

98,178)