NOTE 13. NET INCOME (LOSS) PER SHARE OF COMMON STOCK

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

NOTE 13. NET INCOME (LOSS) PER SHARE OF COMMON STOCK

NOTE 13. 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 2,603,664,933 and 39,834,276 shares of the Company’s common stock are not included in the computation, along with 249,999,900 and 250,000,000 of the Company’s preferred stock, for the years ended December 31, 2019 and 2018, respectively. Additionally, there are 16,666,667 and zero warrants that are exercisable into shares of stock as of December 31, 2019 and December 31, 2018, respectively, and there is an outstanding issue with Iliad, a former noteholder that claims warrants as being issued and outstanding that could result in 1,308,286 shares being issued. The Company is currently in negotiations over the issue. As warrants are exercisable above the current market rate, they would be excluded from any dilute share calculations.  

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, 2019 and 2018:

		Years ended December 31,
		2019		2018
Net (loss)	$	(5,464,521)	$	(4,296,240)
Weighted average shares used for basic earnings per share		1,251,780,336		1,008,065,890
Incremental diluted shares		-		-
Weighted average shares used for diluted earnings per share		1,251,780,336		1,008,065,890
Net income (loss) per share:
Basic	$	(0.00)	$	(0.00)
Diluted	$	(0.00)	$	(0.00)