Basic and diluted earnings per common share:

Basic earnings per common share has been calculated on the basis of net income for the period divided by the weighted average number of common shares outstanding during each year. Diluted earnings per share gives effect to all dilutive potential common shares outstanding at the end of the year assuming that they had been issued, converted or exercised at the later of the beginning of the year or their date of issuance. 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 the exercise of options.

The following table reconciles the numerators and denominators of the basic and diluted earnings per common share computation:

	Three months ended March 31,
	2018		2017

Numerator for basic and diluted earnings per common share:
Net income for the period	$	3,743,692	$	2,446,491

Denominator for basic and diluted earnings per common share:
Basic weighted average number of common shares outstanding		10,588,718		10,474,647
Effect of outstanding stock options		203,895		301,868
Diluted weighted average number of shares outstanding		10,792,613		10,776,515

Basic earnings per common share	$	0.35	$	0.23

Diluted earnings per common share	$	0.35	$	0.23

For the

three

months ended

March 31, 2018,

outstanding options to purchase

333,300

common shares were

not

included in the computation of diluted income per common share because all such options’ exercise price was greater than the average market price of the common shares for the period as compared to the

three

months ended

March 31, 2017,

where

28,500

outstanding options were

not

included in the computation.

During the

three

months ended

March 31, 2018

and

2017,

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

February 2018,

ending in

February 2019

March 2017,

ended in

March 2018.