NOTE 5: EARNINGS PER COMMON SHARE

Basic EPS is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted EPS is calculated by dividing net income (loss) by the weighted-average number of common shares and the dilutive effect of common stock equivalents (warrants, nonvested stock awards and stock options) using the treasury method.

In each relevant period, the net income used in the basic and diluted EPS calculations is the same. The following table reconciles the weighted-average basic number of common shares outstanding, and the weighted-average diluted number of common shares deemed outstanding for the purpose of calculating basic and diluted EPS.

At December 31, 2025, and 2024, there were outstanding options that were vested and exercisable into 371 and 438 shares of common stock, respectively; however, they have been excluded from the calculation of EPS because their exercise would be anti-dilutive.