NET LOSS PER SHARE

6 Months Ended

Aug. 31, 2014

Notes to Financial Statements

NET LOSS PER SHARE

Basic net loss per share is calculated using the weighted average number of common shares outstanding during the reporting periods. Diluted net loss per share is calculated using the weighted average number of common shares outstanding taking into account the dilutive effect of all potentially dilutive securities, including common share equivalents consisting of warrants, stock options, and nonvested equity shares. As of August 31, 2014 and 2013, there were potentially dilutive securities consisting of options exercisable to purchase 8.2 million and 9.8 million shares of common stock, respectively, and warrants exercisable to purchase 25.8 million and 18.9 million shares of our common stock, respectively, and nonvested equity shares of 4.8 million and zero, respectively. Diluted net loss per share for the three and six months ended August 31, 2014 and 2013 is equal to the basic net loss per share because the effect of all potential common stock outstanding, including options, warrants, and nonvested equity shares is anti-dilutive.