Net Loss per Common Share

3 Months Ended

May 31, 2012

Earnings Per Share

Earnings Per Share

Note 5.  Net Loss Per Common Share

The computation of basic earnings per common share is based on the weighted average number of shares outstanding during the period.  The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the period plus the weighted average common stock equivalents which would arise from the exercise of stock options and warrants outstanding using the treasury stock method and the average market price per share during the period.

The shares used in the computation of our basic and diluted earnings per share are reconciled as follows (rounded to thousands):

	Three Months Ended May 31,				Nine Months Ended May 31,
	2012		2011		2012		2011
Weighted average number of shares outstanding – basic		29,717,000		29,612,000		29,696,000		28,553,000
Dilutive effect of stock options and warrants		-		-		-		-
Weighted average number of shares outstanding – diluted		29,717,000		29,612,000		29,696,000		28,553,000

No common shares issuable upon exercise of stock options or warrants are included in the computation of diluted weighted average number of shares for the three months and nine months ended May 31, 2012 and 2011 because the effect would be anti-dilutive.  As of May 31, 2012, we had outstanding options and warrants to purchase a total of 5,581,762 shares of our common stock that could have a future dilutive effect on the calculation of earnings per share.