Quarterly report pursuant to Section 13 or 15(d)

NOTE 3 - NET INCOME PER COMMON SHARE

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NOTE 3 - NET INCOME PER COMMON SHARE
9 Months Ended
Sep. 30, 2017
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
NOTE 3 – NET INCOME PER COMMON SHARE 

The Company’s basic income per common share is based on net income for the relevant period, divided by the weighted average number of common shares outstanding during the period.  Diluted income per common share is based on net income, divided by the weighted average number of common shares outstanding during the period, including common share equivalents, such as outstanding option and warrants to the extent they are dilutive. The computation of diluted income per share for the three and nine months ended September 30, 2017 and September 30, 2016 does not include share equivalents as all warrants and options exceeded the average market price of our common stock. Convertible debt is included below, based on the if-converted method for the three and nine months ended September 30, 2016. All such debt was converted on December 9, 2016.

 
 
Three Months
Ended
   
Three Months
Ended
 
 
 
September 30, 2017
   
September 30, 2016
 
Basic net income per share computation:
           
Net income
 
$
317,823
   
$
2,751,406
 
Weighted-average common shares outstanding
   
4,489,903
     
4,410,736
 
Basic net income per share
 
$
0.07
   
$
0.62
 
Diluted net income per share computation:
               
Net income
 
$
317,823
   
$
2,751,406
 
Weighted-average common shares outstanding
   
4,489,903
     
4,410,736
 
Incremental shares for stock options
   
4,000
     
-
 
Incremental shares for convertible promissory note
   
-
     
66,667
 
Total adjusted weighted-average shares
   
4,493,903
     
4,477,403
 
Diluted net income per share
 
$
0.07
   
$
0.61
 

 
 
Nine Months
Ended
   
Nine Months
Ended
 
 
 
September 30, 2017
   
September 30, 2016
 
Basic net income per share computation:
           
Net income
 
$
592,170
   
$
3,372,803
 
Weighted-average common shares outstanding
   
4,488,038
     
4,410,736
 
Basic net income per share
 
$
0.13
   
$
0.76
 
Diluted net income per share computation:
               
Net income
 
$
592,170
   
$
3,372,803
 
Weighted-average common shares outstanding
   
4,488,038
     
4,410,736
 
Incremental shares for stock options
   
4,000
     
-
 
Incremental shares for convertible promissory note
   
-
     
66,667
 
Total adjusted weighted-average shares
   
4,492,038
     
4,477,403
 
Diluted net income per share
  $ 0.13     $ 0.75  

The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share.

 
 
Three Months
September 30, 2017
   
Three Months
September 30, 2016
 
Stock options
   
62,280
     
143,576
 
Warrants
   
208,241
     
203,253
 
 
               
Total potential dilutive securities not included in income per share
   
270,521
     
346,829
 

 
 
Nine Months
September 30, 2017
   
Nine Months
September 30, 2016
 
Stock options
   
102,474
     
143,576
 
Warrants
   
208,241
     
203,253
 
 
               
Total potential dilutive securities not included in income per share
   
310,715
     
346,829