NOTE

Accounting Standards ASC Topic Basic earnings (loss) per common share is calculated by dividing net income or loss applicable to common stockholders by the weighted average number of common shares outstanding and to be issued during each period. The calculation of diluted earnings per common share is similar to that of basic earnings per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, such as those issuable upon the exercise of stock options, warrants, and the conversion of debt were issued during the period.

three

nine

September 30, 2017

2016,

assumed effects of the exercise of potentially dilutive outstanding stock options and warrants were included in the calculation as their effect would have been anti-dilutive. Such outstanding options and warrants totaled and at and respectively.