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

3 Months Ended

Mar. 31, 2021

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 for options and warrants and the “if converted” method for convertible preferred stock.

The reconciliation of basic and diluted income per share are as follows:

	Three Months Ended
	March 31, 2021	March 31, 2020
Net income:
Net income	$275,934	$50,607
Preferred stock dividends	(13,685)	(20,375)
Net income available to common shareholders	262,249	30,232
Basic income per share:
Weighted average common shares outstanding used in income per share	16,470,654	14,539,675
Basic income per share	0.02	0.00

Diluted income per share:
Shares used in diluted income per share	19,341,419	16,501,851
Diluted income per share	0.01	0.00
Computation of shares used in income per share:
Weighted average shares and share equivalents outstanding – basic	16,470,654	14,539,675
Effect of dilutive stock options	2,586,500	1,741,198
ct of dilutive warrants	284,265	220,978
Weighted average shares and share equivalents outstanding – diluted	19,341,419	16,501,851

Schedule of Anti-dilutive Securities Excluded
	Three Months Ended
	March 31, 2021	March 31, 2020
Stock options	-	300,000
Preferred stock	568,257	875,054
Total anti-dilutive securities excluded	568,257	1,175,054

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