Quarterly report pursuant to Section 13 or 15(d)

NOTE 3 - NET INCOME PER COMMON SHARE

NOTE 3 - NET INCOME PER COMMON SHARE

9 Months Ended

Sep. 30, 2014

NOTE 3 – NET INCOME PER COMMON SHARE

The Company’s basic income per common share is based on net income for the relevant period, divided by the weighted average number of common shares outstanding during the period. Diluted income per common share is based on net income, divided by the weighted average number of common shares outstanding during the period, including common share equivalents, such as outstanding stock options and warrants to the extent they are dilutive. The computation of diluted income per share for the three and nine months ended September 30, 2013 does not include share equivalents as all warrants and options exceeded the average market price of the common stock and were therefore antidilutive.

	Three Months Ended		Three Months Ended			Nine Months Ended		Nine Months Ended
	September 30, 2014		September 30, 2013			September 30, 2014		September 30, 2013
Basic net income (loss) per share computation:
Net income (loss)	$	248,165	$	(82,219	)	$	428,796	$	95,496
Weighted-average common shares outstanding		118,377,734		117,195,173			118,158,550		117,060,232
Basic net income (loss) per share	$	0.00	$	0.00		$	0.00	$	0.00
Diluted net income (loss) per share computation:
Net income (loss)	$	248,165	$	(82,219	)	$	428,796	$	95,496
Weighted-average common shares outstanding		118,377,734		117,195,173			118,158,550		117,060,232
Incremental shares attributable to the common stock equivalents		43,548		-			30,715		-
Total adjusted weighted-average shares		118,421,282		117,195,173			118,189,265		117,060,232
Diluted net income (loss) per share	$	0.00	$	0.00		$	0.00	$	0.00

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

	Nine Months September 30, 2014		Nine Months September 30, 2013
Stock options		5,073,480		2,673,480
Warrants		500,000		750,000

Total potential dilutive securities not included in income per share		5,573,480		3,423,480

	Three Months September 30, 2014		Three Months September 30, 2013
Stock options		5,073,480		2,673,480
Warrants		500,000		750,000

Total potential dilutive securities not included in income per share		5,573,480		3,423,480