NOTE 11 – NET INCOME (LOSS) PER SHARE



Basic net income (loss) per common share is based on the weighted average number of common shares outstanding during each period and year. Diluted net income per common share takes into effect the dilutive effect of potential common shares outstanding.  The Company’s only potential common shares outstanding are stock options and shares associated with the long-term incentive compensation plans, which resulted in a dilutive effect of 179,709 and 0 for the three months ended March 31, 2020 and 2019, respectively. The Company calculates the dilutive effect of outstanding options using the treasury stock method. Options totaling 632,114 and 1,311,090 were excluded from the calculation of diluted earnings per share for the three months ended March 31, 2020 and 2019, respectively because the exercise price was greater than the average market price of common stock during the period and deferred stock awards totaling 117,688 and 216,929 shares would not have been included for the three months ended March 31, 2020 and 2019, respectively, because of unmet performance conditions.