NOTE A - SUMMARY OF ACCOUNTING POLICIES AND NATURE OF OPERATIONS: Income Per Share (Policies)

12 Months Ended

Dec. 31, 2021

Policies

Income Per Share

Income Per Share

Income per share – basic is calculated by dividing net income 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 from options and warrants calculated using the treasury stock method and the if-converted method for preferred stock.

Reconciliation of basic and diluted income per share (“EPS”) are as follows:

	December 31, 2021	December 31, 2020
Net income:
Net income	$892,977	$1,072,486
Preferred stock dividends	(54,739)	(59,771)
Net income available to common shareholders	838,238	1,012,715
Basic income per share:
Weighted-average common shares outstanding used in income per share computations	16,698,620	14,913,351
Basic income per share	0.05	0.07
Diluted income per share:
Shares used in diluted income per share computations	19,216,153	17,533,766
Diluted income per share	0.05	0.06
Computation of shares used in income per share:
Weighted average shares and share equivalents outstanding - basic	16,698,620	14,913,351
Effect of dilutive stock options	2,229,933	2,351,621
Effect of dilutive warrants	287,600	268,794
Weighted average shares and share equivalents outstanding – assuming dilution	19,216,153	17,533,766

Schedule of Anti-dilutive Securities Excluded:	December 31, 2021	December 31, 2020
Convertible preferred stock	568,257	568,257
Total anti-dilutive securities excluded	568,257	568,257