NOTE 10. NET INCOME (LOSS) PER SHARE OF COMMON STOCK

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

NOTE 10. NET INCOME (LOSS) PER SHARE OF COMMON STOCK

NOTE 10.  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.

There are no stock options or warrants other than an outstanding issue with Illiad that could result in 1,191,669 shares, the company is currently in negotiations over that issue, that are exercisable into shares of the Company’s common stock as these were all extinguished; and convertible debt that is convertible into 39,834,276 and 0 shares of the Company’s common stock are not included in the computation along with 250,000,000 and 250,000,000 of the Company’s preferred stock   for the years ended December 31, 2018 and 2017, respectively, as the income share is negligible.

The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations for the years ended December 31, 2018 and 2017:

		Years ended December 31,
		2018		2017
Net income (loss)	$	(4,296,239)	$	3,298,340
Weighted average shares used for basic earnings per share		1,008,065,890		999,479,701
Incremental diluted shares		-		250,000,000
Weighted average shares used for diluted earnings per share		1,008,065,890		1,249,479,701
Net income (loss) per share:
Basic	$	(0.00)	$	0.00
Diluted	$	(0.00)	$	0.00