Note 8 - Stockholders' Equity

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

8. STOCKHOLDERS’ EQUITY

Common Stock

On January 2, 2014, the Company entered into a Stock Purchase Agreement (the “Purchase Agreement”) with new investors and existing investors (each, a “Share Purchaser” and, collectively, the “Share Purchasers”), pursuant to which, the Company issued and sold to such Share Purchasers 131,429 shares of the Company’s Common Stock, representing approximately 7% of Ironstone’s outstanding equity securities on the date of purchase, for an aggregate purchase price of $230,000.

On May 1, 2014, a third party exercised warrants for 187,296 shares of the Company’s Common Stock. As of September 30, 2014, the Company issued 187,296 shares from the warrant exercise to the third party.

Treasury Stock

On September 15, 2003, the Board of Directors authorized the Company to purchase 745,536 shares of Company common stock at $0.70 per share for an aggregate purchase price of $521,875. The repurchase represented 50.11% of the issued and outstanding shares of the Company. During the year ended December 31, 2008, the Company paid $699 for fractional Treasury shares. As of September 30, 2021 and December 31, 2020, the treasury shares are held by the Company.

Preferred Stock

The Company is authorized to issue up to five million shares of preferred stock without further shareholder approval; the rights, preferences and privileges of which would be determined at the time of issuance. No shares have been issued as of September 30, 2021 and December 31, 2020.

Stock Option Plans

On April 29, 2021 the Company is revised its existing Equity Incentive Plan. As of April 29, 2021, 175,000 options were granted under the Plan, with an exercise price of $1.99 per share, which is based on the weighted average price for the trailing six month average price and an illiquidity discount of 15%. The options vest straight line over three years and expire seven years following the grant date. The plan provides for incentive stock options to be granted at times and prices determined by the Company’s Board of Directors. The stock options are to be granted to directors, officers and employees of the Company, as well as certain consultants and other persons providing services to the Company.

Stock-Based Compensation

For the quarter ended September 30, 2021 the Company recorded stock options based compensation relating to the Equity Incentive Plan of $62,209.

Operating Earnings (Loss) Per Share

Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common and dilutive potential common shares outstanding during the period, if dilutive. Potentially dilutive common equivalent shares are composed of the incremental common shares issuable upon the exercise of stock options. The following is the computations of the basic and diluted net income per share and from operations and the dilutive common stock equivalents for the periods presented:

	Quarters Ended						Nine months ended
	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Numerator:
Net Operating Loss	$	(140,862	)	$	(70,130	)	$	(350,501	)	$	(207,316	)
Denominator:
Weighted average shares outstanding - basic		2,191,689			2,191,689			2,191,689			2,191,689
Effect of dilutive potential shares		175,000			-			175,000			-
Shares outstanding - diluted		2,366,689			2,191,689			2,366,689			2,191,689
Net loss per share - basic	$	(0.06	)	$	(0.03	)	$	(0.16	)	$	(0.09	)
Net loss per share - diluted	$	(0.06	)	$	(0.03	)	$	(0.15	)	$	(0.09	)

Comprehensive Earnings (Loss) Per Share

Comprehensive earnings include Operating earnings (loss) above, and securities and options investments held mark-to-market gains (loss).

	Quarters Ended				Nine months ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Numerator:
Net Comprehensive Income	$	1,610,954	$	29,410	$	1,714,155	$	183,061
Denominator:
Weighted average shares outstanding - basic		2,191,689		2,191,689		2,191,689		2,191,689
Effect of dilutive potential shares		175,000		-		175,000		-
Shares outstanding - diluted		2,366,689		2,191,689		2,366,689		2,191,689
Net comprehensive income per share - basic	$	0.74	$	0.01	$	0.78	$	0.08
Net comprehensive income per share - diluted	$	0.68	$	0.01	$	0.72	$	0.08