Quarterly report pursuant to Section 13 or 15(d)

NOTE 3 - NET INCOME PER COMMON SHARE

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NOTE 3 - NET INCOME PER COMMON SHARE
6 Months Ended
Jun. 30, 2018
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]

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 option and warrants to the extent they are dilutive. The computation of diluted income per share for the three and six months ended June 30, 2018 and June 30, 2017 does not include all share equivalents as the exercise price of certain warrants and options exceeded the average market price of the common stock. Convertible debt is included below, based on if-converted method.


   

Three Months

Ended

   

Three Months

Ended

 
   

June 30, 2018

   

June 30, 2017

 

Basic net income per share computation:

               

Net income

  $ 17,218     $ 120,493  

Weighted-average common shares outstanding

    4,501,755       4,489,903  

Basic net income per share

  $ 0.00     $ 0.03  

Diluted net income per share computation:

               

Net income

  $ 17,218     $ 120,493  

Weighted-average common shares outstanding

    4,501,755       4,489,903  

Incremental shares for stock options

    4,000       4,000  

Incremental shares for convertible promissory notes

    112,049       -  

Total adjusted weighted-average shares

    4,617,804       4,493,903  

Diluted net income per share

  $ 0.00     $ 0.03  

   

Six Months

Ended

   

Six Months

Ended

 
   

June 30, 2018

   

June 30, 2017

 

Basic net income per share computation:

               

Net income

  $ 75,605     $ 274,347  

Weighted-average common shares outstanding

    4,497,709       4,488,038  

Basic net income per share

  $ 0.02     $ 0.06  

Diluted net income per share computation:

               

Net income

  $ 75,605     $ 274,347  

Weighted-average common shares outstanding

    4,497,709       4,488,038  

Incremental shares for stock options

    4,000       4,000  

Incremental shares for convertible promissory notes

    56,025       -  

Total adjusted weighted-average shares

    4,557,734       4,492,038  

Diluted net income per share

  $ 0.02     $ 0.06  

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


   

Three Months

June 30, 2018

   

Three Months

June 30, 2017

 

Stock options

    52,280       100,888  

Warrants

    208,241       208,241  
                 

Total potential dilutive securities not included in income per share

    260,521       309,129  

   

Six Months

June 30, 2018

   

Six Months

June 30, 2017

 

Stock options

    52,280       122,231  

Warrants

    208,241       208,241  
                 

Total potential dilutive securities not included in income per share

    260,521       330,472