5. Earnings Per Share

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding during the periods presented. Diluted earnings per share is based on the weighted average number of common shares outstanding, as well as dilutive potential common shares which, in the Company’s case, comprise shares issuable under convertible notes payable and stock options. The treasury stock method is used to calculate dilutive shares, which reduces the gross number of dilutive shares by the number of shares purchasable from the proceeds of the options and convertible notes assumed to be exercised. In a loss period, the calculation for basic and diluted earnings per share is considered to be the same, as the impact of potential common shares is anti-dilutive. 

The following table sets forth the computation of basic and diluted net loss per share.

	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Numerator for basic and diluted net loss per share:
Net loss	$	(83,342	)	$	(337,754	)	$	(303,070	)	$	(688,289	)
Denominator for basic and diluted net loss per share:
Weighted average common shares outstanding		29,061,883			26,561,883			28,127,817			26,561,883
Basic and diluted net loss per share	$	.00		$	(.01	)	$	(.01	)	$	(.03	)
Anti-dilutive shares excluded from net loss per share		28,829,443			28,418,880			28,829,443			28,418,880

Certain common shares issuable under stock options and convertible notes payable have been omitted from the diluted net loss per share calculation because their inclusion is considered anti-dilutive because the exercise prices were greater than the average market price of the common shares or their inclusion would have been anti-dilutive.