NOTE

BASIC AND DILUTED NET INCOME PER SHARE

Basic net income per share is based upon the weighted average number of common shares outstanding. Diluted net income per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

Diluted net income per share reflects the effects of shares potentially issuable upon conversion of convertible preferred stock.

The components of basic and diluted earnings per share were as follows:

	For the Three Months Ended March 31, 201 9
	Net Income		Shares		Per Share
Basic income per share:
Net income	$	75,884		34,045,383	$	0.00
Effect of dilutive securities
Preferred stock Series B		-		4,252,776		-
Diluted income per share	$	75,884		38,298,159	$	0.00

	For the Three Months Ended March 31, 201 8
	Net Income		Shares		Per Share
Basic income per share:
Net income	$	779		29,559,139	$	0.00
Effect of dilutive securities
Preferred stock Series B		-		8,739,020		-
Diluted income per share	$	779		38,298,159	$	0.00

	For the Nine Months Ended March 31, 201 9
	Net Income		Shares		Per Share
Basic income per share:
Net income	$	424,551		31,021,688	$	0.01
Effect of dilutive securities
Preferred stock Series B		-		7,276,471		-
Diluted income per share	$	424,551		38,298,159	$	0.01

	For the Nine Months Ended March 31, 201 8
	Net Income		Shares		Per Share

Basic income per share:
Net income	$	850,380		29,559,139	$	0.03
Effect of dilutive securities
Preferred stock Series B		-		8,739,020		-
Diluted income per share	$	850,380		38,298,159	$	0.02