NOTE 3 – NET LOSS PER SHARE OF COMMON STOCK

The accounting standards require the presentation of both basic and diluted loss per common share on the face of the statements of operations. The Company’s basic net loss per share is computed by dividing net loss attributable to common shareholders by the weighted average number of shares of common stock outstanding for the period. If there are dilutive securities, diluted loss per common share is computed by including common stock equivalents which includes shares issuable upon the exercise of stock options into shares of common stock, exercise of preferred warrants into shares of preferred stock, and conversion of preferred stock into shares of common stock, net of any shares assumed to have been purchased with the proceeds, using the treasury stock method.

For the three months ended September 30, 2026, the Company reported net income attributable to common stockholders, and diluted earnings per share was computed by applying the if-converted method to the outstanding convertible preferred stock and the treasury stock method to the outstanding stock options and warrants, with each class tested separately and applied in order of dilutive effect. The outstanding stock options and warrants had exercise prices in excess of the average market price of the common stock and produced no incremental shares. Application of the if-converted method to the outstanding convertible preferred stock requires reversal of the $3,724,886 gain on revaluation of preferred stock liabilities recognized in the period, and was dilutive, with the resulting effect of reducing net income per share by $0.06 per share. Accordingly, diluted earnings per share for the three months ended September 30, 2026 was $0.00.

For the nine months ended September 30, 2026 and for the three and nine months ended September 30, 2025, the Company reported a net loss attributable to common stockholders and all potentially dilutive securities were excluded because their effect would have been anti-dilutive.

The following table presents a reconciliation of basic and diluted net income per common share for the three months ended September 30, 2026:

The following table summarizes the number of shares of Common Stock issuable upon conversion or exercise, as applicable, of preferred stock, stock options, and warrants that were not included in the calculation of diluted net income (loss) per share because such shares are anti-dilutive: