NOTE 12. NET INCOME (LOSS) PER SHARE OF COMMON STOCK

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

NOTE 12. NET INCOME (LOSS) PER SHARE OF COMMON STOCK

NOTE 12.  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 2,998,335,175 and 1,864,741,994 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 six months ended June 30, 2020 and 2019, respectively. These shares are not included as they would be antidilutive. Additionally, there are 16,666,667 and 16,666,667 warrants that are exercisable into shares of stock as of June 30, 2020 and 2019, and there is an outstanding issue with Iliad, a former noteholder that claims warrants as being issued and outstanding that could result in 154,150,198 and 16,723,842 shares being issued as of June 30, 2020 and 2019. The Company is currently in negotiations over the issue. 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 period ended June 30, 2020 and 2019:

		Six-month period ended June 30,				Three-month period ended June 30,
		2020		2019		2020		2019
Loss from continuing operations	$	(2,938,708)	$	(8,933,204)	$	(2,938,708)	$	(2,938,708)
Income from discontinued operations		350,700		11,194		-		11,914
Consolidated net loss	$	(2,588,008)	$	(8,922,010)	$	(2,136,009)	$	(5,168,008)
Weighted average shares used for diluted earnings per share		1,725,314,701		1,092,248,763		1,906,073,735		1,140,710,865
Incremental Diluted Shares		-*		-*		-*		-*
Weighted Average shares used for diluted earnings per share		1,725,314,701		1,092,248,763		1,906,073,735		1,140,710,865
Net income (loss) per share:
Basic and diluted: continuing operations	$	(0.00)	$	(0.01)	$	(0.00)	$	(0.01)
Basic and Diluted: discontinued operations	$	0.00	$	0.00		-	$	0.00
Total Basic and Diluted	$	(0.00)	$	(0.01)	$	(0.00)	$	(0.01)

*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).