Net Income Per Common Share

6 Months Ended

May 31, 2013

Net Income Per Common Share [Abstract]

Net Income Per Common Share

Note 5 – Net Income Per Common Share

Basic net income 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 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.

	Six Months Ended		Six Months Ended		Three Months Ended			Three Months Ended
	May 31, 2013		May 31, 2012		May 31, 2013			May 31, 2012
Net income (loss) – numerator basic	$	1,876,233	$	4,385,498	$	(436,466	)	$	1,178,741
Interest expense attributable to convertible notes, net		290,072		806,765		190,142			379,006
Net income (loss) plus interest expense attributable to convertible notes, net – numerator diluted	$	2,166,305	$	5,192,263	$	(246,324	)	$	1,557,747
Weighted average common shares outstanding – denominator basic		469,613,225		130,497,262		583,632,393			147,166,286
Effect of dilutive securities		676,598,817		102,809,538		-			101,799,817
Weighted average dilutive common shares outstanding – denominator diluted		1,146,212,042		233,306,800		583,632,393			248,966,103
Earnings (loss) per common share – basic	$	0.00	$	0.03	$	(0.00	)	$	0.01
Earnings (loss) per common share – diluted	$	0.00	$	0.02	$	(0.00	)	$	0.01

Approximately 22,103,000 and 10,165,000 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 six-month periods ended May 31, 2013 and May 31, 2012, respectively, because the effect would be anti-dilutive. Approximately 680,472,000 and 10,165,000 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 three-month periods ended May 31, 2013 and May 31, 2012, respectively, because the effect would be anti-dilutive.

As of May 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 six months ended May 31, 2013.