Net Loss Per Common Share

6 Months Ended

Aug. 31, 2012

Net Loss Per Common Share [Text Block]

3.

Net Loss Per Common Share

The Company computes net income or loss per share in accordance with ASC 260, Earnings per Share ("ASC 260"). ASC 260 requires presentation of both basic and diluted earnings per share ("EPS") on the face of the statement of operations. Basic EPS is computed by dividing net income or loss available to common shareholders (numerator) by the weighted average number of common stock equivalents outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common stock equivalents outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive and excludes any common stock equivalents that are

out-of-the-money. For the six month period ended August 31, 2012 there were 515,000 warrants exercisable at $1.75 which have been excluded from the calculation. For the six month period ended August 31, 2011 there were 515,000 warrants and 1,152,000 options which have been excluded from the calculation because their effect would be anti-dilutive.