Note A - Summary of Accounting Policies and Nature of Operations: Income Per Share (Policies)

12 Months Ended

Dec. 31, 2014

Policies

Income Per Share

Income Per Share

Income (loss) per share – basic is calculated by dividing net income 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.

	2014	2013
Numerator:
Net income (loss) available to common shareholders	$ (228,267)	$    156,120
Denominator:
Weighted average shares and share equivalents outstanding – basic	9,118,161	9,118,161
Effect of dilutive preferred stock	-	987,102
Effect of dilutive stock options	-	871,361
Effect of dilutive warrants	-	721,445
Weighted average shares and share equivalents outstanding – assuming dilution	9,118,161	11,698,069
Net income (loss) per share — basic	$           (.03)	$              .02
Net income (loss) per share — assuming dilution	$           (.03)	$              .01
Anti-dilutive securities excluded  (1)	-	1,885,389

——————————

(1)                 Anti-dilutive securities consist of stock options, warrants and convertible promissory notes that were not included in the computation of diluted earnings per share because the exercise price was greater than the average market price of the common stock.

Basic and diluted loss per share were the same for the year ended December 31, 2014 because there was a net loss for the year.