1. UNAUDITED INTERIM FINANCIAL STATEMENTS: Income (Loss) Per Share (Policies)

9 Months Ended

Sep. 30, 2018

Policies

Income (Loss) Per Share

Income (Loss) Per Share

Income (loss) per share – basic is calculated by dividing net income (loss) by the weighted average number of shares of stock outstanding during the year, including shares issuable without additional consideration. Income per share – assuming dilution is calculated by dividing net income by the weighted average number of shares outstanding during the year adjusted for the effect of dilutive potential shares calculated using the treasury stock method.

Schedule of Income (Loss) Per Share
	Three Months Ended		Nine Months Ended
	September 30, 2018	September 30, 2017	September 30, 2018	September 30, 2017
Net income (loss):
Income from continuing operations	$100,910	$3,587	$33,046	$50,267
Income (loss) from discontinued operations – See Note 8	(13,825)	(19,211)	166,462	(76,380)
Net income (loss)	$87,085	$(15,624)	$199,508	$(26,113)
Preferred stock dividends	(5,044)	(6,725)	(15,131)	(20,174)
Net income (loss) available to common shareholders	82,041	(22,349)	184,377	(46,287)
Basic income (loss) per share:
Weighted average common shares outstanding used in income (loss) per share	11,909,052	11,871,009	11,883,830	11,871,009
Basic income (loss) per share:
Continuing operations	0.01	0.00	0.00	0.00
Discontinued operations – See Note 8	(0.00)	(0.00)	0.01	(0.01)
Basic income (loss) per share	0.01	(0.00)	0.02	(0.00)
Diluted income (loss) per share:
Shares used in diluted income (loss) per share	14,851,830	14,887,069	14,815,054	14,833,073
Diluted income (loss) per share:
Continuing operations	0.01	0.00	0.00	0.00
Discontinued operations – See Note 8	(0.00)	(0.00)	0.01	(0.01)
Diluted income (loss) per share	0.01	(0.00)	0.01	(0.00)
Computation of shares used in income (loss) per share:
Weighted average shares and share equivalents outstanding – basic	11,909,052	11,871,009	11,883,830	11,871,009
Effect of preferred stock	987,102	987,102	987,102	987,102
Effect of dilutive stock options	1,727,251	1,796,778	1,716,322	1,745,847
Effect of dilutive warrants	228,425	232,180	227,800	229,115
Weighted average shares and share equivalents outstanding – diluted	14,851,830	14,887,069	14,815,054	14,833,073

Schedule of Anti-dilutive Securities Excluded
	Three Months Ended		Nine Months Ended
	September 30, 2018	September 30, 2017	September 30, 2018	September 30, 2017
Preferred stock	-	-	-	-
Stock options	266,000	-	266,000	-
Warrants	-	-	-	-
Convertible promissory notes	29,256	158,444	29,256	158,444
Total anti-dilutive securities excluded	295,256	158,444	295,256	158,444

Anti-dilutive securities consist of stock options and convertible promissory notes whose exercise price or conversion price, respectively, was greater than the average market price of the common stock.