Annual report pursuant to Section 13 and 15(d)

NET (LOSS) INCOME PER COMMON SHARE

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NET (LOSS) INCOME PER COMMON SHARE
12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]

NOTE 3 NET (LOSS) INCOME PER COMMON SHARE

 

The Company’s basic (loss) income per common share is based on net (loss) income for the relevant period, divided by the weighted average number of common shares outstanding during the period. Diluted (loss) income per common share is based on net (loss) income, divided by the weighted average number of common shares outstanding during the period, including common share equivalents, such as outstanding options, warrants and convertible securities to the extent they are dilutive. For the year ended December 31, 2021 since the Company has a net loss, the effect of common stock equivalents is anti-dilutive, and, as such, common stock equivalents have been excluded from the calculation. For the year ended December 31, 2020, the average market prices for the year ended are less than the exercise price of all the outstanding stock options and warrants, therefore, the inclusion of the stock options and warrants would be anti-dilutive. In addition, since the effect of common stock equivalents is anti-dilutive, the convertible promissory notes have also been excluded from the Company’s computation of income per common share for the year ended December 31, 2020.

 

   

Year Ended

December 31, 2021

   

Year Ended

December 31, 2020

 

Basic net (loss) income per share computation:

               

Net (loss) income

  $ (134,434

)

  $ 175,647  

Weighted-average common shares outstanding

    5,026,420       4,501,271  

Basic net (loss) income per share

  $ (0.03

)

  $ 0.04  

Diluted net (loss) income per share computation:

               

Net (loss) income per above

  $ (134,434

)

  $ 175,647  

Weighted-average common shares outstanding

    5,026,420       4,501,271  

Incremental shares for convertible promissory note,

warrants and stock options

    -       -  

Total adjusted weighted-average shares

    5,026,420       4,501,271  

Diluted net (loss) income per share

  $ (0.03

)

  $ 0.04  

 

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

 

   

Year Ended

December 31, 2021

   

Year Ended

December 31, 2020

 

Stock options

    165,620       -  

Warrants

    4,988       4,988  

Convertible promissory notes

    -       178,212  
                 

Total potential dilutive securities not included in loss per share

    170,608       183,200