Note R - Earnings Per Share (EPS)

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE

R

—EARNINGS PER SHARE (EPS)

The Company’s basic EPS is calculated using net income (loss) available to common shareholders and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuance of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of preferred stock.

The reconciliation of the numerator of the basic and diluted EPS calculations, due to the inclusion of preferred stock dividends was as follows for the following fiscal years ended

December 

31:

	201 8			201 7
Basic Numerator:
Loss from continuing operations	$	(6,868,875	)	$	(4,275,338	)
Deemed dividend from trigger of anti-dilution provision feature		(1,428,966	)		-
Convertible preferred stock dividends		(198,033	)		(769,158	)
Net loss available to common stockholders (basic and diluted EPS)	$	(8,495,874	)	$	(5,044,496	)

The following table summarizes the weighted average securities that were excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive.

	Years ended December 31,
	201 8		201 7
Preferred stock		1,426,756		5,264,422
Stock options		83		15,529
Warrants		697,879		2,109
Potentially dilutive securities		2,124,718		5,282,060

Items excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares:

	Years ended December 31,
	201 8		201 7
Stock options		1,583,014		1,390,428
Warrants		186,806		1,351,052
Total		1,769,820		2,741,480