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

6 Months Ended

Jun. 30, 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		Six Months Ended
	June 30, 2021	June 30, 2020	June 30, 2021	June 30, 2020
Net income:
Net income from operations	$272,088	$141,625	$548,022	$192,232
Preferred stock dividends	(13,684)	(13,163)	(27,369)	(33,538)
Net income available to common shareholders	258,404	128,462	520,653	158,694
Basic income per share:
Weighted average common shares outstanding used in income per share	16,660,121	14,542,192	16,565,911	14,542,192
Basic income per share	0.02	0.01	0.03	0.01
Diluted income per share:
Shares used in diluted income per share	19,588,985	17,599,562	19,471,962	17,182,766
Diluted income per share	0.01	0.01	0.03	0.01
Computation of shares used in income per share:
Weighted average shares and share equivalents outstanding – basic	16,660,121	14,542,192	16,565,911	14,542,192
Effect of dilutive stock options	2,642,694	2,717,207	2,620,629	2,315,321
Effect of dilutive warrants	286,170	340,163	285,422	325,253
Weighted average shares and share equivalents outstanding – diluted	19,588,985	17,599,562	19,471,962	17,182,766

Schedule of Anti-dilutive Securities Excluded
	Three Months Ended		Six Months Ended
	June 30, 2021	June 30, 2020	June 30, 2021	June 30, 2020
Stock options	-	269,000	-	299,000
Preferred stock	568,257	568,257	568,257	568,257
Total anti-dilutive securities excluded	568,257	837,257	568,257	867,257

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.