Note 7 – Net Income (Loss) per Share

Net income (loss) per share has been computed according to Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC 260”), “Earnings per Share,” which requires a dual presentation of basic and diluted income (loss) per share (“EPS”). Basic EPS represents net income (loss) divided by the weighted average number of common shares outstanding during a reporting period. Diluted EPS reflects the potential dilution that could occur if securities, including preferred stock, warrants and options, were converted into common stock. The dilutive effect of outstanding warrants and options is reflected in earnings per share by use of the treasury stock method. In applying the treasury stock method for stock-based compensation arrangements, the assumed proceeds are computed as the sum of the amount the employee must pay upon exercise and the amounts of average unrecognized compensation costs attributed to future services.

	Three Months Ended			Three Months Ended
	June 30, 2019			June 30, 2018
Basic net income (loss) per share computation:
Net income (loss)	$	257,776		$	(746,073	)
Preferred dividends		(80,000	)		(60,000	)
Net income (loss) attributable to common shareholders		177,776			(806,073	)
Weighted-average common shares outstanding		3,255,887			3,255,887
Basic net income (loss) per share	$	0.05		$	(0.25	)
Diluted net income (loss) per share computation
Net income (loss)	$	257,776		$	(746,073	)
Preferred dividends		(80,000	)		(60,000	)
Diluted income (loss) attributable to common shareholders	$	177,776			(806,073	)
Weighted-average common shares outstanding		3,255,887			3,255,887
Incremental shares attributable to the assumed exercise of preferred stock, outstanding stock options and warrants		155,531			-
Total adjusted weighted-average shares		3,411,418			3,255,887
Diluted net income (loss) per share	$	0.05		$	(0.25	)

The following table summarizes securities that, if exercised, would have an anti-dilutive effect on earnings per share:

	June 30, 2019		June 30, 2018
Convertible preferred stock		1,130,222		1,050,222
Stock options		118,500		42,500
Warrants		50,000		50,000
		1,298,722		1,142,722