Earnings Per Share

3 Months Ended

Mar. 31, 2025

Note 7. Earnings Per Share

Basic income per share is calculated as net income divided by the weighted average of common shares outstanding. Diluted earnings per share is calculated as net income divided by the diluted weighted average number of common shares. Diluted weighted average number of common shares gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method. Diluted earnings per share exclude all diluted potential shares if their effect is anti-dilutive. Any common stock options listed in Note 5 that were out-of-the-money or anti-dilutive were excluded from diluted earnings per share. The following is provided to reconcile the earnings per share calculations:


	Three months ended March 31,
	2025		2024
Net income	$	309,717	$	545,324

Weighted average common shares outstanding - basic		4,568,127		4,534,801

Effect of dilution - stock options		4,364		32,906
Weighted average shares outstanding - diluted		4,572,491		4,567,707

SCI Engineered Materials, Inc. 10-Q