Net Income (Loss) Per Common Share

3 Months Ended

Feb. 28, 2014

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share

Note 5 – Net Income (Loss) Per Common Share

Basic net income (loss) per share is computed by dividing net income 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.

	Three Months Ended		Three Months Ended
	Feb. 28, 2014		Feb. 28, 2013
Net income (loss)  – numerator basic	$	419,695	$	(1,874,714	)
Interest expense attributable to convertible notes, net		373,225
Net income plus interest expense attributable to convertible notes, net – numerator diluted	$	792,920	$	(1,874,714	)
Weighted average common shares outstanding – denominator basic		884,733,330		355,594,056
Effect of dilutive securities		1,212,289,456		—
Weighted average dilutive common shares outstanding – denominator diluted		2,097,022,786		355,594,056
Net income per common share – basic	$	0.00	$	(0.01	)
Net income per common share – diluted	$	0.00	$	(0.01	)

Approximately 86,918,833 and 22,103,000 shares of common stock issuable upon the exercise of our outstanding stock options, warrants or convertible debt that were excluded from the calculation of net income per share for the three-month periods ended February 28, 2014 and 2013, respectively, because the effect would be anti-dilutive.

The number of dilutive common shares exceeds the Company’s authorized shares. The company has evaluated its securities in the event the company cannot settle. See note 10.