Net Income (Loss) Per Common Share

3 Months Ended

Feb. 29, 2012

Notes to Financial Statements

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, unrestricted 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.

	Three Months Ended	Three Months Ended
	Feb. 29, 2012	Feb. 28, 2011
Net income (loss) - numerator basic	3,206,757	(788,488	)
Interest expense attributable to convertible notes, net	427,759	-
	427,759	-
Net income (loss) plus interest expense attributable to convertible notes, net - numerator diluted	3,634,516	(788,488	)
Weighted average common shares outstanding - denominator basic	113,645,062	10,234,574
Effect of dilutive securities	103,819,259	-
Weighted average dilutive common shares outstanding - denominator diluted	217,464,321	10,234,574
Earnings (loss) per common share – basic	0.03	(0.08	)
Earnings (loss) per common share – diluted	0.02	(0.08	)

Approximately 14,286,000 and 4,627,000 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 (loss) per share for the three-month periods ended February 29, 2012 and February 28, 2011, respectively, because the effect would be anti-dilutive.