NOTE 9. NET INCOME (LOSS) PER SHARE OF COMMON STOCK

6 Months Ended

Jun. 30, 2021

Notes

NOTE 9. NET INCOME (LOSS) PER SHARE OF COMMON STOCK

NOTE 9.  NET INCOME (LOSS) PER SHARE OF COMMON STOCK

The Company follows ASC 260-10, which requires presentation of basic and diluted Earnings per Share (“EPS”) on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying consolidated financial statements, basic net income (loss) per share of common stock is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding during the year.  Basic net income (loss) per common share is based upon the weighted average number of common shares outstanding during the period. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

Convertible debt that is convertible into 370,602,246 and 2,998,335,175 shares of the Company’s common stock are not included in the computation, along with 249,999,900 and 249,999,900 of the Company’s Preferred Series A stock after conversion, as well as 14,436,050,000 and zero shares of the Company’s Preferred Series C stock after conversion for the periods ended June 30, 2021 and 2020, respectively. Additionally, there are 16,666,667 and 16,666,667 warrants that are exercisable into shares of stock as of June 30, 2021 and 2020, respectively, and there is an outstanding issue with a former noteholder that claims warrants as being issued and outstanding that could result in 363,185,553 and 154,150,198 shares being issued as of June 30, 2021 and 2020. The Company settled this issue with the former noteholder on July 8, 2021 and agreed to issue 363,185,553 shares of common stock. As warrants are exercisable above the current market rate, they would be excluded from any dilutive share calculations.

The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations for the three and six - month periods ended June 30, 2021 and 2020:

		Six-month period ended June 30,						Three-month period ended June 30,
		2021			2020			2021			2020
Loss from continuing operations	$	(7,346,362)		$	(2,938,708)		$	(1,051,317)		$	(2,143,224)
Income from discontinued operations		-			350,700			-			-
Consolidated net loss	$	(7,346,362)			(2,588,008)		$	(1,051,317)		$	(2,143,224)
Weighted average shares used for diluted earnings per share		4,850,306,210			1,725,314,701			5,604,768,785			1,906,073,735
Incremental Diluted Shares		-	*		-	*		-	*		-	*
Weighted Average shares used for diluted earnings per share		4,850,306,210			1,725,314,701			5,604,768,785			1,906,073,735
Net income (loss) per share:
Basic and Diluted: continuing operations	$	(0.00)		$	(0.00)		$	(0.00)		$	(0.00)
Basic and Diluted: discontinued operations	$	-		$	(0.00)		$	-		$	-
Total Basic and Diluted loss per share	$	(0.00)		$	(0.00)		$	(0.00)		$	(0.00)

*The shares associated with convertible debt, preferred stock, stock options and stock warrants are not included because the inclusion would be anti-dilutive (i.e., reduce the net loss per common share).