Earnings (Loss) Per Common Share

3 Months Ended

May 31, 2012

Notes to Financial Statements

Earnings (Loss) Per Common Share

Note 4 - Major Customers

During the six-month period ended May 31, 2012, one customer accounted for approximately 24% of our revenue, while during the three-month period ended May 31, 2012, one customer accounted for approximately 26% of our revenue.

During the six-month period ended May 31, 2011, two customers accounted for approximately 25% and 10% of our revenues, while during the three-month period ended May 31, 2011, two customers accounted for approximately 22% and 10% of our revenues, respectively.

Note 5 –Earnings (Loss) Per Common Share

Basic earnings (loss) per share is computed by dividing net income available to common stockholders (numerator) by the weighted average number of 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, 2012		May 31, 2011			May 31, 2012		May 31, 2011
Net income (loss) – numerator basic	$	4,385,498	$	(2,162,660	)	$	1,178,741		$ (1, 374,171)
Interest expense attributable to convertible notes, net		806,765		—			379,006		—
Net income (loss) plus interest expense attributable to convertible notes, net – numerator diluted	$	5,192,263	$	(2,162,660	)	$	1,557,747	$	(1,374,171	)
Weighted average common shares outstanding – denominator basic		130,497,262		17,623,472			147,166,286		24,851,742
Effect of dilutive securities		102,809,538		—			101,799,817		—
Weighted average dilutive common shares outstanding – denominator diluted		233,306,800		17,623,472			248,966,103		24,851,742
Earnings (loss) per common share – basic	$	0.03	$	(0.12	)	$	0.01	$	(0.06	)
Earnings (loss) per common share – diluted	$	0.02	$	(0.12	)	$	0.01	$	(0.06	)

Approximately 10,165,000 and 10,447,000 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 six-month and three-month periods ended May 31, 2012 and May 31, 2011, respectively, because the effect would be anti-dilutive.