Note 9 - Basic and Diluted Earnings Per Common Share

6 Months Ended

Jun. 30, 2021

9. 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,*
	*2021*		*2020*		*2021*		*2020*

Numerator for basic and diluted earnings per common share:
Net income for the period	$	1,807	$	157	$	3,956	$	2,991

Denominator for basic and diluted earnings per common share:
Basic weighted average number of common shares outstanding		10,633,601		10,567,382		10,625,748		10,589,806
Effect of outstanding stock options		164,320		86,145		168,775		94,498
Diluted weighted average number of shares outstanding		10,797,921		10,653,527		10,794,523		10,684,304

Basic earnings per common share	$	0.17	$	0.01	$	0.37	$	0.28

Diluted earnings per common share	$	0.17	$	0.01	$	0.37	$	0.28

For the three months ended June 30, 2021, options to purchase 43,445 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, 2020, where 734,388 outstanding options were not included in the computation.

For the six months ended June 30, 2021, options to purchase 42,752 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, 2020, where 734,388 outstanding options were not included in the computation.