EARNINGS (LOSS) PER SHARE

9 Months Ended

Sep. 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 nine-month periods ended September 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					Nine Months Ended
	September 30,					September 30,
	(Unaudited)					(Unaudited)
	2013			2012		2013			2012
Basic:
Numerator:
Net income (loss)	$	(3,951,687	)	$	1,111,642	$	(1,604,244	)	$	11,521,781

Denominator:
Basic - weighted average common shares outstanding	21,832,831			21,594,401		21,805,692			21,455,601

Basic EPS	$	(0.18	)	$	0.05	$	(0.07	)	$	0.54

Diluted:
Numerator:

Net income (loss)	$	(3,951,687	)	$	1,111,642	$	(1,604,244	)	$	11,521,781

Denominator:
Weighted average common shares outstanding	21,832,831			21,594,401		21,805,692			21,455,601
Effect of Dilutive Securities:
Stock options	—			328,525		—			400,339
	21,832,831			21,922,926		21,805,692			21,855,940

Diluted EPS	$	(0.18	)	$	0.05	$	(0.07	)	$	0.53

- Definition

The entire disclosure for earnings per share.

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