Quarterly report pursuant to Section 13 or 15(d)

NET (LOSS) INCOME PER COMMON SHARE

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NET (LOSS) INCOME PER COMMON SHARE
3 Months Ended
Mar. 31, 2022
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 option and warrants to the extent they are dilutive.

 

For the three months ended March 31, 2022 and 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. In addition, for the three months ended March 31, 2022, 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 three months ended March 31, 2021 since the convertible promissory notes had been converted into common stock, they have been excluded in the Company’s computation of net (loss) income per common share.

 

   

Three Months

Ended

   

Three Months

Ended

 
   

March 31, 2022

   

March 31, 2021

 

Basic net (loss) income per share computation:

               

Net (loss) income

  $ (40,656

)

  $ 354,679  

Weighted-average common shares outstanding

    5,136,177       4,765,292  

Basic net (loss) income per share

  $ (0.01

)

  $ 0.07  

Diluted net (loss) income per share computation:

               

Net (loss) income per above

  $ (40,656

)

  $ 354,679  

Weighted-average common shares outstanding

    5,136,177       4,765,292  

Incremental shares attributable to assumed conversion of stock options and warrants

    -       1,410  

Total adjusted weighted-average shares

    5,136,177       4,766,702  

Diluted net (loss) income per share

  $ (0.01

)

  $ 0.07  

 

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

 

   

Three Months

March 31, 2022

   

Three Months

March 31, 2021

 

Stock options

    165,620       99,990  

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

    165,620       99,990