Note 13 - Net (Loss) Earnings  Per Share

Net (Loss) Earnings  per share accounting requires the presentation of both basic and diluted (loss) earnings  per share on the face of the statements of operations. The Company’s basic net loss per share is computed by dividing net loss by the weighted-average number of shares of Common Stock outstanding for the period. If there are dilutive securities, diluted income per share is computed by including Common Stock equivalents which includes shares issuable upon the exercise of stock options into common shares, using the treasury stock method. In periods for which the Company reports a net loss, the Common Stock equivalents are not included, as they would be anti-dilutive.

As of June 30, 2026 and December 31, 2025, shares of Common Stock underlying stock options totaling 74,465 and 74,472, respectively, and no unvested restricted stock awards, were excluded from the calculation of diluted net loss per share because they were anti-dilutive. In addition, 626,199 warrants outstanding as of June 30, 2026 were out of the money and also excluded from the calculation of diluted net loss per share for being anti-dilutive. Convertible debt outstanding during the periods was also excluded from the calculation of diluted net loss per share, as the effect of applying the if-converted method would have been anti-dilutive.

Restricted stock awards can be issued to directors, executives or employees of the Company and are subject to time-based vesting. These unvested shares are excluded from the computation of basic loss per share as these shares are not considered outstanding until vested.