1. UNAUDITED INTERIM FINANCIAL STATEMENTS: Income (Loss) Per Share (Policies)

6 Months Ended

Jun. 30, 2018

Policies

Income (Loss) Per Share

Income (Loss) Per Share

Income (loss) per share – basic is calculated by dividing net income (loss) by the weighted average number of shares of stock outstanding during the year, including shares issuable without additional consideration. Income per share – assuming dilution is calculated by dividing net income by the weighted average number of shares outstanding during the year adjusted for the effect of dilutive potential shares calculated using the treasury stock method.

Schedule of Income (Loss) Per Share
	Three Months Ended		Six Months Ended
	June 30, 2018	June 30, 2017	June 30, 2018	June 30, 2017
Net income (loss):
Income (loss) from continuing operations	$27,654	$16,166	$(67,864)	$46,680
Income (loss) from discontinued operations – See Note 8	(21,669)	(31,844)	180,287	(57,169)
Net income (loss)	$5,985	$(15,678)	$112,423	$(10,489)
Preferred stock dividends	(3,363)	(6,725)	(10,087)	(13,449)
Net income (loss) available to common shareholders	2,622	(22,403)	102,336	(23,938)
Basic income (loss) per share:
Weighted average common shares outstanding used in income (loss) per share	11,871,009	11,871,009	11,871,009	11,871,009
Basic income (loss) per share:
Continuing operations	0.00	0.00	(0.01)	0.00
Discontinued operations – See Note 8	(0.00)	(0.00)	0.02	(0.00)
Basic income (loss) per share	0.00	(0.00)	0.01	(0.00)
Diluted income (loss) per share:
Shares used in diluted income (loss) per share	14,753,128	14,845,591	11,871,009	14,687,328
Diluted income (loss) per share:
Continuing operations	0.00	0.00	(0.01)	0.00
Discontinued operations – See Note 8	(0.00)	(0.00)	0.02	(0.00)
Diluted income (loss) per share	0.00	(0.00)	0.01	(0.00)
Computation of shares used in income (loss) per share:
Weighted average shares and share equivalents outstanding – basic	11,871,009	11,871,009	11,871,009	11,871,009
Effect of preferred stock	987,102	987,102	-	987,102
Effect of dilutive stock options	1,670,017	1,752,619	-	1,602,083
Effect of dilutive warrants	225,000	234,861	-	227,134
Weighted average shares and share equivalents outstanding – diluted	14,753,128	14,845,591	11,871,009	14,687,328

Schedule of Anti-dilutive Securities Excluded
	Three Months Ended		Six Months Ended
	June 30, 2018	June 30, 2017	June 30, 2018	June 30, 2017
Preferred stock	-	-	987,102	-
Stock options	2,043,000	-	4,117,834	-
Warrants	-	-	250,000	-
Convertible promissory notes	30,605	172,411	30,605	166,881
Total anti-dilutive securities excluded	2,073,605	172,411	5,385,541	166,881

Anti-dilutive securities consist of stock options and convertible promissory notes whose exercise price or conversion price, respectively, was greater than the average market price of the common stock.