NOTE 2 – LOSS PER SHARE

Basic loss per common share is based only on the average number of shares of Common Stock outstanding for the periods. Diluted loss per common share reflects the effect of shares of Common Stock issuable upon the exercise of options unless the effect on earnings is anti-dilutive.

Diluted loss per common share is computed using the treasury stock method. Under this method, the aggregate number of shares of Common Stock outstanding reflects the assumed use of proceeds from the hypothetical exercise of any outstanding options to purchase shares of Common Stock. The average market value for the period is used as the assumed purchase price.

The following table sets forth the elements of basic and diluted loss per common share:


	Three months ended
	March 31,
	2021		2020
Numerator for basic and diluted loss per common share:
Net loss	$	(307,000)	$	(758,000)

Denominator for basic and diluted loss per share - weighted average common shares outstanding		3,169,000		3,144,000

At March 31, 2021 and 2020, there were outstanding stock options whose exercise prices were higher than the average market values of the underlying Common Stock for the period. The weighted average of anti-dilutive stock options outstanding was as follows:


	Three months ended
	March 31,
	2021	2020
Weighted average anti-dilutive stock options outstanding	141,000	146,000