NOTE 6 - EARNINGS PER SHARE

Basic earnings per share is computed by dividing reported earnings available to stockholders by the weighted average number of shares outstanding. Diluted earnings per share includes the effect of stock options that would be dilutive. The following table provides a reconciliation of the numerators and denominators reflected in the basic and diluted earnings per share computations, as required under FASB ASC 260.


	June 30,		June 30,
	2020		2019
Basic EPS
Net (loss) income	$	(116,234)	$	220,777
Weighted average shares		29,359,921		29,253,495
Basic (loss) earnings per share	$	(0.01)	$	0.01
Diluted EPS
Net (loss) income	$	(116,234)	$	220,777
Dilutive effect of stock options		—		1,457,512
Diluted weighted average shares		29,359,921		30,711,007
Diluted (loss) earnings per share	$	(0.01)	$	0.01

All potential common stock equivalents that have an anti-dilutive effect (i.e. those that increase income per share or decrease loss per share) are excluded from the calculation of diluted earnings per share. For the three months ended June 30, 2020, there were 2,816,000 of potentially anti-dilutive stock options, none of which were included in the earnings per share calculations above. For the three months ended June 30, 2019 there were 98,000 of potential common stock equivalents that were out-of-the-money and not included in the above earnings per share calculations.