NOTE 9 – EARNINGS PER SHARE

Basic earnings per share is calculated based on the weighted average number of common shares outstanding during each period. Diluted earnings per share is calculated based on these same weighted average shares outstanding plus the effect of potential shares issuable upon assumed exercise of stock options based on the treasury stock method.

Potential shares issuable upon the exercise of stock options are excluded from the calculation of diluted earnings per share to the extent their effect would be anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share:

The weighted average number of shares outstanding used to compute earnings (loss) per share included the following:

Options to purchase 200,625 and 200,000 shares were outstanding as of June 30, 2026 and 2025, respectively, but were excluded from the computation of diluted earnings per share for the periods then ended because the options were anti-dilutive.

In connection with the private placement financing transaction completed on June 17, 2026, the following potential common shares were outstanding as of June 30, 2026 but were excluded from the computation of diluted earnings per share for the three and six months ended June 30, 2026 because their effect would have been anti-dilutive: 2,730,160 shares issuable upon conversion of the convertible notes (representing the shares issuable upon conversion of the notes into Series B convertible preferred stock and the subsequent conversion of such preferred stock into common stock) and 1,080,000 shares issuable upon exercise of the related warrants. No comparable securities were outstanding as of June 30, 2025.