EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2013

NOTE C — EARNINGS (LOSS) PER SHARE

Basic earnings per common share are based upon the weighted average number of shares of common stock (“common shares”) outstanding. Diluted earnings per share are based upon the weighted average number of common shares outstanding and, when dilutive, common shares issuable for stock options, warrants, and convertible securities. All earnings per common share for the three-month and six-month periods ended June 30, 2013 have been adjusted for the 5% stock dividend paid on May 14, 2013, to shareholders of record as of April 30, 2013.

The following is a reconciliation of net income (loss) and weighted average common shares outstanding for purposes of calculating basic and diluted earnings per share:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	(Unaudited)						(Unaudited)
	2013			2012			2013		2012
Basic:
Numerator:
Net income (loss)	$	(4,004,029	)	$	(1,974,121	)	$	2,347,443	$	10,410,139

Denominator:
Basic - weighted average common shares outstanding	21,831,665			21,449,378			21,777,561		21,385,418

Basic EPS	$	(0.18	)	$	(0.09	)	$	0.11	$	0.49

Diluted:
Numerator:

Net income (loss)	$	(4,004,029	)	$	(1,974,121	)	$	2,347,443	$	10,410,139

Denominator:
Weighted average common shares outstanding	21,831,665			21,449,378			21,777,561		21,385,418
Effect of Dilutive Securities:
Stock options	—			—			342,112		433,075
	21,831,665			21,449,378			22,119,673		21,818,493

Diluted EPS	$	(0.18	)	$	(0.09	)	$	0.11	$	0.48

- Definition

The entire disclosure for earnings per share.

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