Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share reflects the potential dilution of common stock warrants. Net income available to common stockholders represents net income after preferred stock dividends.

The following table presents earnings per share for the years ended

and

:

 

For the year ended the Company has excluded shares of common stock equivalents because the strike price of the common stock equivalents would cause them to have an anti-dilutive effect.