Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by all outstanding and dilutive potential common shares during the period.

In accordance with FASB ASC 480-10-S99, Distinguishing Liabilities from Equity, and solely for the purpose of calculating earnings per share, net income was increased by $50,000 for an adjustment to the value of redeemable non-controlling interests.

The reconciliation of basic to diluted weighted average common shares outstanding is as follows for the quarters ended March 31:


	2014		2013
Weighted average number of common shares outstanding – basic		39,119,397		38,831,102
Dilutive effect of:
Common stock options		125,950		--
Unvested restricted stock		72,833		--
Weighted average number of common shares outstanding – diluted		39,318,180		38,831,102

Common stock options totaling 47,500 were not included in the diluted shares outstanding for the quarter ended March 31, 2014, because their effect would have been anti-dilutive.