Quarterly report pursuant to Section 13 or 15(d)

NET INCOME (LOSS) PER COMMON SHARE

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NET INCOME (LOSS) PER COMMON SHARE
9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]

NOTE 3 NET INCOME (LOSS) PER COMMON SHARE 

 

The Company’s basic income (loss) per common share is based on net income (loss) 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.

 

For the nine months ended September 30, 2021, the average market prices for the periods ended are less than the exercise price of all the outstanding stock options, therefore, the inclusion of the stock options would be anti-dilutive. For the three months ended September 30, 2021, common stock equivalents have been excluded from the computation since the effect of common stock equivalents is anti-dilutive with respect to the loss. For the nine months ended September 30, 2020, since the effect of common stock equivalents is anti-dilutive with respect to the loss, the convertible promissory notes have also been excluded from the Company’s computation of net loss per common share. For the three months ended September 30, 2020 convertible promissory notes have been included in the Company’s computation of income per common share. For the three and nine months ended September 30, 2021 since the convertible promissory notes have been converted into common stock, they have been excluded in the Company’s computation of net income (loss) per common share.

 

   

Three Months

Ended

   

Three Months

Ended

 
   

September 30, 2021

   

September 30, 2020

 

Basic net (loss) income per share computation:

               

Net (loss) income

  $ (240,029

)

  $ 55,205  

Weighted-average common shares outstanding

    5,136,177       4,501,271  

Basic net (loss) income per share

  $ (0.05

)

  $ 0.01  

Diluted net (loss) income per share computation:

               

Net (loss) income per above

  $ (240,029

)

  $ 55,205  

Interest on convertible debt

    -       4,168  

Net (loss) income

    (240,029

)

    59,373  

Weighted-average common shares outstanding

    5,136,177       4,501,271  

Incremental shares for warrants and convertible promissory notes

    -       195,549  

Total adjusted weighted-average shares

    5,136,177       4,696,820  

Diluted net (loss) income per share

  $ (0.05

)

  $ 0.01  

 

   

Nine Months

Ended

   

Nine Months

Ended

 
   

September 30, 2021

   

September 30, 2020

 

Basic net income (loss):

               

Net income (loss)

  $ 244,939     $ (203,396

)

Weighted-average common shares outstanding

    4,989,432       4,501,271  

Basic net income (loss) per share

  $ 0.05     $ (0.05

)

Diluted net income (loss):

               

Net income (loss) per above

  $ 244,939     $ (203,396

)

Net income (loss)

    244,939       (203,396

)

Weighted-average common shares outstanding

    4,989,432       4,501,271  

Incremental shares for warrants

    2,199       -  

Total adjusted weighted-average shares

    4,991,631       4,501,271  

Diluted net income (loss) per share

  $ 0.05     $ (0.05

)

 

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

 

   

Three Months

September 30, 2021

   

Three Months

September 30, 2020

 

Stock options

    96,990       -  

Warrants

    2,578       4,988  
                 

Total potential dilutive securities not included in (loss) income per share

    99,568       4,988  

 

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

 

   

Nine Months

September 30, 2021

   

Nine Months

September 30, 2020

 

Stock options

    96,990       -  

Warrants

    -       4,988  

Convertible promissory notes

    -       195,549  
                 

Total potential dilutive securities not included in income (loss) per share

    96,990       200,537