Three Months Ended

September 30,

Nine Months Ended

September 30,

2017

2016

2017

2016

Numerator:

Net income

$

414,101

$

669,050

$

1,289,831

$

1,734,302

Convertible note interest

—

$

27,836

—

$

88,840

Adjusted diluted net income

$

414,101

$

696,886

$

1,289,831

$

1,823,142

Denominator:

Weighted average common shares outstanding used in computing net income per share:

Basic

6,261,460

5,842,609

6,047,869

5,769,981

Effect of dilutive stock options and convertible notes payable

868,173

1,438,936

888,341

1,411,607

Diluted

7,129,633

7,281,545

6,936,210

7,181,588

Net income per share:

Basic

$

0.07

$

0.11

$

0.21

$

0.30

Diluted

$

0.06

$

0.10

$

0.19

$

0.25