Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

v3.10.0.1
Net Income (Loss) Per Share
9 Months Ended
Sep. 30, 2018
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share

Note 3. Net Income (Loss) Per Share

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average shares of common stock outstanding for the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average shares of common stock outstanding for the period plus amounts representing the dilutive effect of securities that are convertible into common stock. The Company calculates diluted earnings per common share using the treasury stock method and the as-if-converted method, as applicable.

The following table presents the computation of net income (loss) per share:

 

 

 

Three Months Ended September 30,

 

 

 

Nine Months Ended September 30,

 

 

 

 

2018

 

 

2017

 

 

 

2018

 

 

2017

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

437,259

 

 

$

234,353

 

 

 

$

(3,858,879

)

 

$

549,323

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

 

9,566,118

 

 

 

9,545,235

 

 

 

 

9,495,278

 

 

 

9,475,708

 

 

Plus dilutive effect of potential common shares

 

 

526,383

 

 

 

624,324

 

 

 

 

 

 

 

763,279

 

 

Weighted average common shares outstanding - diluted

 

 

10,092,501

 

 

 

10,169,559

 

 

 

 

9,495,278

 

 

 

10,238,987

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.05

 

 

$

0.02

 

 

 

$

(0.41

)

 

$

0.06

 

 

Diluted

 

$

0.04

 

 

$

0.02

 

 

 

$

(0.41

)

 

$

0.05

 

 

 

 

Diluted weighted average common shares outstanding for the three months ended September 30, 2018 and 2017, includes 526,383 and 624,324 options outstanding, respectively.  Diluted weighted average common shares outstanding for the nine months ended September 30, 2017, includes 6,281 warrants and 756,998 options outstanding.

 

Potentially dilutive securities not included in the calculation of diluted net income (loss) per share because to do so would be anti-dilutive are as follows:

 

 

 

Three Months Ended September 30,

 

 

 

Nine Months Ended September 30,

 

 

 

 

2018

 

 

2017

 

 

 

2018

 

 

2017

 

 

Employee stock options

 

 

244,543

 

 

 

375,277

 

 

 

 

887,287

 

 

 

427,645

 

 

Warrants outstanding

 

 

51,003

 

 

 

51,003

 

 

 

 

51,003

 

 

 

 

 

Total

 

 

295,546

 

 

 

426,280

 

 

 

 

938,290

 

 

 

427,645