Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Earnings (Loss) Per Common Share

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Note 7 - Earnings (Loss) Per Common Share
9 Months Ended
Oct. 02, 2016
Notes to Financial Statements  
Earnings Per Share [Text Block]
7.
Earnings (loss) per common share
 
The following table details the weighted average number of common shares outstanding for the purposes of computing basic and diluted earnings per common share for the following periods:
 
 
 
Three months ended
 
 
Nine months ended
 
 
 
October 2,
2016
 
 
Septembe
r
27, 2015
 
 
October 2,
2016
 
 
September
27, 2015
 
Basic weighted average shares outstanding
    16,510,180       16,417,276       16,502,081       16,417,276  
Dilutive stock awards
(a) (b) (c)
                1,048,074        
Diluted weighted average shares outstanding
    16,510,180       16,417,276       17,550,155       16,417,276  
  
 
(a) Dilutive stock awards include outstanding RSU’s and in-the money stock options determined using the treasury stock method
   
(b)
Dilutive options were determined using the treasury stock method, using an average price of $1.52 per share for three months ended October 2, 2016. As a result of the net loss for the three months ended October 2, 2016, diluted earnings per share was calculated using the basic weighted average shares outstanding as the effect of potential common shares would have been anti-dilutive. Had there been net income for the three months ended October 2, 2016, dilutive stock awards would have been calculated as 1,046,730. For the nine months ended October 2, 2016, dilutive options were determined using the treasury stock method, using an average price of $1.47 per share. Total dilutive stock awards were calculated as 1,048,074.
 
(c)
For the three months and nine months ended September 27, 2015, as a result of the net loss, diluted earnings per share was calculated using the basic weighted average shares outstanding as the effect of potential common shares would have been anti-dilutive. Had there been net income for the three and nine months ended September 27, 2015, there still would be no dilutive stock awards as no outstanding stock options were considered in the money.