XML 21 R10.htm IDEA: XBRL DOCUMENT

Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2019

Note 3. Net Income (Loss) Per Share

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average shares of common stock outstanding for the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average shares of common stock outstanding for the period plus amounts representing the dilutive effect of securities that are convertible into common stock. The Company calculates diluted income (loss) per common share using the treasury stock method and the as-if-converted method, as applicable.

The following table presents the computation of net income (loss) per share:

	Three Months Ended March 31,
	2019		2018
Numerator:
Net income (loss)	$	336,443	$	(1,105,791	)
Denominator:
Weighted average common shares outstanding - basic		9,625,678		9,479,742
Plus dilutive effect of potential common shares		335,370		—
Weighted average common shares outstanding - diluted		9,961,048		9,479,742
Net income (loss) per share:
Basic	$	0.03	$	(0.12	)
Diluted	$	0.03	$	(0.12	)

Diluted weighted average common shares outstanding for the three months ended March 31, 2019, includes 335,370 options outstanding.

Potentially dilutive securities not included in the calculation of diluted net income (loss) per share because to do so would be anti-dilutive are as follows:

	Three Months Ended March 31,
	2019		2018
Employee stock options		468,104		1,159,062
Warrants outstanding		51,003		51,003
Total		519,107		1,210,065