NOTE H — INCOME PER COMMON SHARE

Basic income per common share has been computed by dividing net income by the weighted-average number of shares of the Company’s common stock outstanding during the relevant period. Diluted income per common share adjusts net income and basic income per common share for the effect of all potentially dilutive shares of the Company’s common stock. The calculations of basic and diluted income per common share for the three and nine month periods ended September 30, 2017 and 2016 are as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
	(in thousands, except per share amounts)
Net income – basic and diluted	$	4,330	$	6,452	$	903	$	973
Weighted-average shares outstanding – basic		14,572		14,266		14,422		14,129
Effect of dilutive securities:
Stock options and other stock awards		471		365		478		365

Weighted-average shares outstanding – diluted		15,043		14,631		14,900		14,494

Basic income per common share	$	0.30	$	0.45	$	0.06	$	0.07

Diluted income per common share	$	0.29	$	0.44	$	0.06	$	0.07

The computation of diluted income per common share for the three and nine months ended September 30, 2017 excludes 390,950 shares and 1,461,698 shares, respectively, related to options to purchase shares and other stock awards. The computation of diluted income per common share for the three and nine months ended September 30, 2016 excludes 523,375 shares and 1,632,551 shares, respectively, related to options to purchase shares and other stock awards. These shares, in each case, were excluded due to their antidilutive effect.