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Note 10 - Earnings Per Share
 6 Months Ended
Jun. 30, 2022
Notes to Financial Statements  
Earnings Per Share [Text Block]

NOTE 10:         EARNINGS PER SHARE

 

Basic earnings per share is computed by dividing net earnings available to common shareholders (the numerator) by the weighted average number of common shares outstanding (the denominator) for the period presented. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued.

 

A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows:

 

  

Three months ended

June 30,

  

Six months ended

June 30,

 
  

2022

  

2021

  

2022

  

2021

 
                 

Basic weighted average common shares outstanding

  6,728,938   6,684,281   6,726,990   6,682,347 

Dilutive effect of options and unvested restricted shares

  -   2,948   -   - 

Diluted weighted average shares outstanding

  6,728,938   6,687,229   6,726,990   6,682,347 

 

The following table represents common stock equivalents that were excluded from the computation of diluted earnings per share for the three and six months ended June 30, 2022 and 2021, because the effect of their inclusion would be anti-dilutive.

 

  

Three months ended

June 30,

  

Six months ended

June 30,

 
  

2022

  

2021

  

2022

  

2021

 
                 

Stock Options

  599,500   557,052   599,500   560,000 
   599,500   557,052   599,500   560,000 

 

 

 

 

Stock options to purchase 599,500 shares of common stock were outstanding and 297,500 were exercisable during the three and six months ended June 30, 2022.

 

The dilutive potential common shares on options is calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all options are used to repurchase common stock at market value. The number of shares remaining after the proceeds are exhausted represents the potential dilutive effect of the securities.