Note 1: Organization and Significant Accounting Policies: Income (loss) Per Common Share (Policies)

12 Months Ended

Aug. 31, 2012

Policies

Income (loss) Per Common Share

Income (Loss) Per Common Share – The computation of basic income (loss) per common share is based on the weighted average number of shares outstanding during each year.

The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the year, plus the common stock equivalents that 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 year.  Common stock equivalents are not included in the diluted loss per share calculation when their effect is anti-dilutive.  Options and warrants to purchase 5,590,762, 5,260,762 and 5,236,043 shares of common stock at prices ranging from $1.20 to $7.95, $1.20 to $7.95, and $0.56 to $7.95 per share were excluded from the calculation of diluted earnings per share for the years ended August 31, 2012, 2011 and 2010, respectively, because their effect was anti-dilutive. 

The shares used in the computation of the basic and diluted earnings per share are reconciled as follows:

	Years Ended August 31,
	2012	2011	2010
Weighted average number of shares    outstanding – basic	29,717,000	28,838,000	23,257,000
Dilutive effect of stock options and warrants	-	-	-
Weighted average number of shares    outstanding, assuming dilution	29,717,000	28,838,000	23,257,000