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Income Per Common Share
 3 Months Ended
Jun. 30, 2012
(Loss) earnings per common share:  
Income Per Common Share

9.  Income Per Common Share

 

Basic net income per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period.  Diluted net income (loss) per share assumes the exercise of all stock options having exercise prices less than the average market price of the common stock during the period using the treasury stock method and is computed by dividing net income (loss) by the weighted average number of common shares and dilutive potential common shares (stock options) outstanding during the period.  In periods where losses are reported, the weighted average number of common shares outstanding excludes potential common shares, because their inclusion would be anti-dilutive.

 

The following is a reconciliation of the number of shares used in the calculation of basic income per share and diluted income per share for the three month periods ended June 30, 2012 and 2011.

 

    2012     2011  
Net income   $ (63,217 )   $ 104,385  
                 
Shares outstanding:                
Weighted average common shares outstanding – basic     2,035,949       2,029,949  
Effect of the assumed exercise of dilutive stock options     —       16,112  
Weighted average common shares outstanding – dilutive     2,035,949       2,046,061  
                 
Earnings per common share:                
Basic   $ (0.03 )   $ 0.05  
Diluted   $ (0.03 )   $ 0.05  


Due to a net loss for the quarter ended June 30, 2012, the weighted average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive.  For the quarter ended June 30, 2011, no potential common shares relating to stock options were excluded in the computation of diluted net income per share.