1. Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Summary Of Significant Accounting Policies Tables

Basic and diluted earnings per share

	Income			Shares		Per Share
	(Numerator)			(Denominator)		Amount
Net income	$	818,958
Less preferred stock dividends		(99,000	)
Earnings per share – basic
Income available to common     stockholders		719,958			19,457,810	$	.04
Effect of dilutive securities
Options		-			287,802
Convertible preferred stock		99,000			366,666
Diluted earnings per share
Income available to common stockholders     and assumed conversions	$	818, 958			20,112,278	$	.04

The following table sets forth the calculation of basic and diluted earnings per share for the year ended December 31, 2012:

	Income			Shares		Per Share
	(Numerator)			(Denominator)		Amount
Net income	$	624,143
Less preferred stock dividends		(99,271	)
Earnings per share – basic
Income available to common     stockholders		524,872			19,497,638	$	.03
Effect of dilutive securities
Options		-			213,606
Convertible preferred stock		99,271			366,666
Diluted earnings per share
Income available to common stockholders     and assumed conversions	$	624,143			20,0077,910	$	.03

The following table sets forth the calculation of basic and diluted earnings per share for the year ended December 31, 2013:

	Income			Shares		Per Share
	(Numerator)			(Denominator)		Amount
Net income	$	91,097
Less preferred stock dividends		(99,000	)
Earnings per share – basic
Income available to common     stockholders		(7,903)			19,533,201	$	-
Effect of dilutive securities
Options		-			939,707
Convertible preferred stock		99,000			-
Diluted earnings per share
Income available to common stockholders     and assumed conversions	$	91,097			20,472,908	$	.01