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

3 Months Ended

Mar. 31, 2022

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 calculated using the treasury stock method for options and warrants and the “if converted” method for convertible preferred stock.

The reconciliation of basic and diluted income per share are as follows:

	Three Months Ended
	March 31, 2022	March 31, 2021
Net income:
Net income	$199,061	$275,934
Preferred stock dividends	(15,105)	(13,685)
Net income available to common shareholders	183,956	262,249
Basic income per share:
Weighted average common shares outstanding used in income per share	17,146,121	16,470,654
Basic income per share	0.01	0.02
Diluted income per share:
Shares used in diluted income per share	19,665,241	19,341,419
Diluted income per share	0.01	0.01
Computation of shares used in income per share:
Weighted average shares and share equivalents outstanding – basic	17,146,121	16,470,654
Effect of dilutive stock options	2,231,210	2,586,500
Effect of dilutive warrants	287,910	284,265
Weighted average shares and share equivalents outstanding – diluted	19,665,241	19,341,419

Schedule of Anti-dilutive Securities Excluded
	Three Months Ended
	March 31, 2022	March 31, 2021
Preferred stock	568,257	568,257
Total anti-dilutive securities excluded	568,257	568,257

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