Note 8 – Earnings (Loss) Per Share

Basic earnings (loss) per share for continuing operations are computed by dividing the respective net income or loss attributable to common stockholders by the weighted-average number of shares of our Common Stock outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue Common Stock were exercised or converted into Common Stock or resulted in the issuance of Common Stock that shared in the earnings of the entity. Diluted earnings (loss) per share also utilize the treasury stock method, which prescribes a theoretical buy-back of shares from the theoretical proceeds of all options and warrants outstanding during the period. Options outstanding to acquire shares of our Common Stock at March 31, 2019 and December 31, 2018 were 2,950,000 and 2,980,000, respectively.

For the three months ended March 31, 2019, dilutive earnings (loss) per share were the same as basic earnings per share due to the exclusion of Common Stock in the form of stock options (“Common Stock Equivalents”), which in a net loss position would have an anti-dilutive effect on loss per share. For the three months ended March 31, 2019, there were 2,950,000 potential dilutive Common Stock Equivalents that were excluded from the earnings (loss) per share computation as a consequence of their anti-dilutive effect. For the three months ended March 31, 2018, there were 282,867 Common Stock Equivalents that were in the money that were included in the fully diluted earnings per share computation and 2,300,000 options was excluded from the calculation.