Note 5. Net Loss Per Common Share

6 Months Ended

Feb. 28, 2013

Notes

Note 5. Net Loss Per Common 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		Six Months Ended
	February 28, 2013	February 29, 2012	February 28, 2013	February 29, 2012
Weighted average number of shares    outstanding – basic	29,778,000	29,686,000	29,778,000	29,686,000
Dilutive effect of stock options and warrants	-	-	-	-
Weighted average number of shares    outstanding – diluted	29,778,000	29,686,000	29,778,000	29,686,000

No stock options or warrants are included in the computation of diluted weighted average number of shares for the three months and six months ended February 28, 2013 and February 29, 2012 because the effect would be anti-dilutive.  As of February 28, 2013, we had outstanding options and warrants to purchase a total of 5,698,762 shares of our common stock that could have a future dilutive effect on the calculation of earnings per share.