Note 9. Income and (Loss) Per Common Share

The Company calculates net income or loss per common share in accordance with ASC 260, Earnings Per Share. Basic and diluted net income (loss) per common share were determined by dividing net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding during the period.

The Company’s potentially dilutive shares include shares issuable upon exercise or conversion of outstanding common stock options, common stock warrants, convertible debt and preferred shares, if those options, warrants, debt and preferred shares are exercisable or convertible and at prices below the average share price for the period.

For the year ended December 31, 2025, 8,044,884 of common equivalent shares related to Preferred Shares A and A-2 were added to the basic weighted average shares outstanding to arrive at the diluted weighted average shares outstanding while other potentially dilutive shares were excluded from the calculation based on the exercises price of those shares. For the periods ended March 31, 2026 and 2025, the Company’s potentially dilutive shares were excluded from the computation of diluted loss per share, as inclusion would be anti-dilutive since the Company incurred a loss in such period.

Schedule of Anti-dilutive Securities Excluded from Calculation of Earnings Per Share