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

9 Months Ended

Sep. 30, 2022

Policies

Income Per Share

Income Per Share

Income 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 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		Nine Months Ended
	September 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021
Net income:
Net income	$187,960	$188,004	$550,333	$736,026
Preferred stock dividends	(14,839)	(13,685)	(45,049)	(41,054)
Net income available to common shareholders	173,121	174,319	505,284	694,972
Basic income per share:
Weighted average common shares outstanding used in income per share	19,182,754	16,660,121	18,137,640	16,597,659
Basic income per share	0.01	0.01	0.03	0.04
Diluted income per share:
Shares used in diluted income per share	19,708,698	19,688,994	18,667,822	19,585,761
Diluted income per share	0.01	0.01	0.03	0.04
Computation of shares used in income per share:
Weighted average shares and share equivalents outstanding – basic	19,182,754	16,660,121	18,137,640	16,597,659
Effect of dilutive stock options	525,944	2,741,040	530,182	2,701,422
Effect of dilutive warrants	-	287,833	-	286,680
Weighted average shares and share equivalents outstanding – diluted	19,708,698	19,688,994	18,667,822	19,585,761

Schedule of Anti-dilutive Securities Excluded
	Three Months Ended		Nine Months Ended
	September 30, 2022	September 30, 2021	September 30, 2022	September 30, 2021
Preferred stock	568,257	568,257	568,257	568,257
Total anti-dilutive securities excluded	568,257	568,257	568,257	568,257