Net Income Per Common Share

9 Months Ended

Aug. 31, 2013

Earnings Per Share [Abstract]

Net Income Per Common Share

Note 5 – Net Income (loss) Per Common Share

Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted average number of vested, common shares outstanding during the period (denominator). Diluted net income (loss) per share is computed on the basis of the weighted average number of shares of common stock outstanding plus the effect of dilutive potential common shares outstanding during the period using the if-converted method. Dilutive potential common shares include shares issuable upon exercise of outstanding stock options, warrants and convertible debt agreements.

	Nine Months Ended		Nine Months Ended		Three Months Ended			Three Months Ended
	Aug.  31, 2013		Aug. 31, 2012		Aug. 31, 2013			Aug. 31, 2012
Net income (loss) – numerator basic	$	1,314,548	$	3,605,697	$	(561,685	)	$	(779,801	)
Interest expense attributable to convertible notes, net		385,944		996,319		95,872			—
Net income (loss) plus interest expense attributable to convertible notes, net – numerator diluted	$	1,700,492	$	4,602,016	$	(465,813	)	$	(779,801	)
Weighted average common shares outstanding – denominator basic		556,328,538		142,897,663		729,759,164			165,563,679
Effect of dilutive securities		686,887,497		121,185,921		—			—
Weighted average dilutive common shares outstanding – denominator diluted		1,243,216,035		264,083,584		729,759,164			165,563,679
Earnings (loss) per common share – basic	$	0.00	$	0.03	$	(0.00	)	$	(0.00	)
Earnings (loss) per common share – diluted	$	0.00	$	0.02	$	(0.00	)	$	(0.00	)

Approximately 76,779,000 and 784,244,000 shares of common stock issuable upon the exercise of our outstanding stock options, warrants or convertible debt were excluded from the calculation of net income (loss) per share for the nine-month and three-month periods ended August 31, 2013, respectively because the effect would be anti-dilutive. Approximately 10,165,000 and 176,868,000 shares of common stock issuable upon the exercise of our outstanding stock options, warrants or convertible debt were excluded from the calculation of net income (loss) per share for the nine-month and three-month periods ended August 31, 2012, respectively, because the effect would be anti-dilutive.

As of August 31, 2013, the weighted average diluted common shares outstanding exceeds the number of authorized common shares of the Company. This excess has no effect on diluted net income per common share for the nine months ended August 31, 2013.