EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2014

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 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,
	2014			2013			2014		2013
	(Unaudited)						(Unaudited)
Basic:
Numerator:
Net income (loss)	$	(4,032,003	)	$	(4,004,029	)	$	247,700	$	2,347,443

Denominator:
Basic - weighted average common shares outstanding	21,957,167			21,831,665			21,956,620		21,777,561

Basic EPS	$	(0.18	)	$	(0.18	)	$	0.01	$	0.11

Diluted:
Numerator:

Net income (loss)	$	(4,032,003	)	$	(4,004,029	)	$	247,700	$	2,347,443

Denominator:
Weighted average common shares outstanding	21,957,167			21,831,665			21,956,620		21,777,561
Effect of Dilutive Securities:
Stock options	—			—			65,995		342,112
	21,957,167			21,831,665			22,022,615		22,119,673

Diluted EPS	$	(0.18	)	$	(0.18	)	$	0.01	$	0.11

- Definition

The entire disclosure for earnings per share.

+ References+ Details