1. UNAUDITED INTERIM FINANCIAL STATEMENTS The unaudited condensed consolidated financial statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The accompanying unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements of the Company and notes thereto for the year ended December 31, 2018. Certain reclassifications have been made to prior period balances to conform with the presentation for the current period. These reclassifications did not impact the net income (loss). The information furnished reflects, in the opinion of management, all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results of the interim periods presented. Operating results of the interim period are not necessarily indicative of the amounts that will be reported for the year ending December 31, 2019. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update No. 2016-02, Leases (Topic 842), which requires lessees to record assets and liabilities reflecting the leased assets and lease obligations, respectively, while following the dual model for recognition in statements of income requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). We adopted the new standard effective January 1, 2019, as allowed, using the modified retrospective approach by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The only lease that we have is the real estate lease for our headquarters facility. As of January 1, 2019, the adoption of the standard resulted in recognition of an operating right-of-use, or ROU, liability of approximately $1,077,123 and an operating ROU asset of $1,077,123. These amounts are based on the present value of such commitments using the Company's incremental borrowing rate. The standard does not materially affect our results of operations, cash flows and liquidity. See Note 8 for further information. Effective January 1, 2019, the Company adopted ASU No. 2018-07, Compensation  Stock Based Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-7), which aligns accounting for share-based payments issued to nonemployees to that of employees under the existing guidance of Topic 718, with certain exceptions. This update supersedes previous guidance for equity-based payments to nonemployees under Subtopic 505-50, Equity  Equity-Based Payments to Non-Employees. The adoption of ASU 2018-07 did not have a material impact on the Companys consolidated financial statements. Income (Loss) Per Share Income (loss) per share  basic is calculated by dividing net income (loss) by the weighted average number of shares of stock outstanding during the year, including shares issuable without additional consideration. Income per share  assuming dilution is calculated by dividing net income by the weighted average number of shares outstanding during the year adjusted for the effect of dilutive potential shares calculated using the treasury stock method. Schedule of Income (Loss) Per Share Three Months Ended March 31, 2019 March 31, 2018 Net income (loss): Income (loss) from continuing operations $ 119,005 $ (95,518) Income (loss) from discontinued operations  See Note 10 (479) 201,956 Net income $ 118,526 $ 106,438 Preferred stock dividends (3,362) (6,724) Net income available to common shareholders 115,164 99,714 Basic income (loss) per share: Weighted average common shares outstanding used in income (loss) per share 13,741,009 11,871,009 Basic income (loss) per share: Continuing operations 0.01 (0.01) Discontinued operations  See Note 10 (0.00) 0.02 Basic income (loss) per share 0.01 0.01 Diluted income (loss) per share: Shares used in diluted income (loss) per share 17,235,723 11,871,009 Diluted income (loss) per share: Continuing operations 0.01 (0.01) Discontinued operations  See Note 10 (0.00) 0.02 Diluted income (loss) per share 0.01 0.01 Computation of shares used in income (loss) per share: Weighted average shares and share equivalents outstanding  basic 13,741,009 11,871,009 Effect of preferred stock 987,102 - Effect of dilutive stock options 2,245,133 - Effect of dilutive warrants 262,479 - Weighted average shares and share equivalents outstanding  diluted 17,235,723 11,871,009 Schedule of Anti-dilutive Securities Excluded Three Months Ended March 31, 2019 March 31, 2018 Preferred stock - 987,102 Stock options 3,000 4,120,834 Warrants - 250,000 Convertible promissory notes 27,888 31,933 Total anti-dilutive securities excluded 30,888 5,389,869 Anti-dilutive securities consist of stock options and convertible promissory notes whose exercise price or conversion price, respectively, was greater than the average market price of the common stock.