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

6 Months Ended

Jun. 30, 2023

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		Six Months Ended
	June 30, 2023	June 30, 2022	June 30, 2023	June 30, 2022
Net income:
Net income	$166,913	$163,312	$315,567	$362,373
Preferred stock dividends	(17,002)	(15,105)	(34,004)	(30,210)
Net income available to common shareholders	149,911	148,207	281,563	332,163
Basic income per share:
Weighted average common shares outstanding used in income per share	19,543,846	18,060,819	19,363,300	17,603,470
Basic income per share	0.01	0.01	0.02	0.02
Diluted income per share:
Shares used in diluted income per share	19,633,735	18,587,690	19,454,281	18,133,114
Diluted income per share	0.01	0.01	0.02	0.02
Computation of shares used in income per share:
Weighted average shares and share equivalents outstanding – basic	19,543,846	18,060,819	19,363,300	17,603,470
Effect of dilutive stock options	89,889	526,871	90,981	529,644
Weighted average shares and share equivalents outstanding – diluted	19,633,735	18,587,690	19,454,281	18,133,114

Schedule of Anti-dilutive Securities Excluded
	Three Months Ended		Six Months Ended
	June 30, 2023	June 30, 2022	June 30, 2023	June 30, 2022
Preferred stock	618,257	568,257	618,257	568,257
Total anti-dilutive securities excluded	618,257	568,257	618,257	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.