Note 10 - Basic and Diluted Earnings Per Common Share

6 Months Ended

Jun. 30, 2020

10. Basic and Diluted Earnings per Common Share:

The following table reconciles the numerators and denominators of the basic and diluted earnings per common share computation (Dollar amounts in thousands of US dollars, except for share data):

	*Three Months Ended June 30,*				*Six Months Ended June 30,*
	*2020*		*2019*		*2020*		*2019*

Numerator for basic and diluted earnings per common share:
Net income for the period	$	157	$	2,616	$	2,991	$	5,415

Denominator for basic and diluted earnings per common share:
Basic weighted average number of common shares outstanding		10,567,382		10,657,124		10,589,806		10,646,045
Effect of outstanding stock options		86,145		182,881		94,498		191,411
Diluted weighted average number of shares outstanding		10,653,527		10,840,005		10,684,304		10,837,456

Basic earnings per common share	$	0.01	$	0.25	$	0.28	$	0.51

Diluted earnings per common share	$	0.01	$	0.24	$	0.28	$	0.50

For the three months ended June 30, 2020, options to purchase 734,388 common shares were not included in the computation of diluted income per common share because the options’ exercise price was greater than the average market price of the common shares for the period as compared to the three months ended June 30, 2019, where 260,700 outstanding options were not included in the computation.

For the six months ended June 30, 2020, options to purchas e 734,388 common shares were not included in the computation of diluted income per common share because the options’ exercise price was greater than the average market price of the common shares for the period as compared to the six months ended June 30, 2019, where 260,700 outstanding options were not included in the computation.