Note 6 - Earnings (Loss) Per Share

9 Months Ended

Oct. 31, 2012

Earnings Per Share [Text Block]

6.           Earnings (Loss) Per Share

The Company calculates basic earnings (loss) per share by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share reflects the effects of potentially dilutive securities. Since the Company incurred a net loss for each of the three and nine months ended October 31, 2012 and 2011, basic and diluted loss per share were the same for those periods because the inclusion of potential common shares related to outstanding stock options in the calculation would have been antidilutive.

Potential common shares of 330,000 have been excluded from diluted weighted average common shares for the three and nine months ended October 31, 2012, as the effect would have been antidilutive. Similarly, potential common shares of 90,000 and 140,000, respectively, have been excluded from diluted weighted average common shares for the three and nine months ended October 31, 2011, as the effect would have been antidilutive.