2. BASIC INCOME (LOSS) PER SHARE

3 Months Ended

May. 31, 2015

Earnings Per Share [Abstract]

BASIC INCOME (LOSS) PER SHARE

NOTE 2:    BASIC INCOME (LOSS) PER SHARE

Basic income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during each period presented.  Diluted income (loss) per share is determined using the weighted average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents.  In periods when losses are reported, the weighted average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive.  The dilutive effect of outstanding stock options and warrants is reflected in diluted earnings per share by application of the treasury stock method.

The denominator for diluted income (loss) per share for the period ended May 31, 2014 did not include warrants as they would have been anti-dilutive. At May 31, 2015 and 2014, 5,446,137 and 5,464,694 warrants, respectively, were excluded from the denominator for diluted income (loss) per share.

	For the three months ended
	May 31,
	2015		2014
Numerator:
Net income (loss) available to common shareholders	$	427,498	$	(62,728	)
Weighted average shares – basic		25,913,646		25,878,646
Net income (loss) per share – basic	$	0.02	$	(0.00	)
Dilutive effect of common stock equivalents:
Warrants		585,972		-
Weighted average shares – diluted		26,499,618		25,878,646
Net income  (loss) per share – diluted	$	0.02	$	(0.00	)