NOTE 4

LOSS PER SHARE

In periods of net loss, basic loss per share is computed by dividing net loss for the period after consideration of the effect of dividend on preferred stock by the weighted average number of shares outstanding during the period.

The loss and the weighted average number of shares used in computing basic and diluted loss per share for the nine and three month periods ended September 30, 2013 and 2012 are as follows:

	US dollars				US dollars
	Nine month period ended September 30,				Three month period ended September 30,
	2013		2012		2013		2012
	(unaudited)				(unaudited)
Loss for the period		2,620,060		2,072,967		699,868		700,556
Dividend on Preferred Stock		193,666		-		90,847		-
Loss for the period attributable to common stockholders		2,813,726		2,072,967		790,715		700,556

	Number of shares				Number of shares
	Nine month period ended September 30,				Three month period ended September 30,
	2013		2012		2013		2012

Number of shares:
Weighted average number of shares used in the computation of basic and diluted earnings per share		5,341,551		5,295,543		5,299,927		5,295,543

Total weighted average number of common shares related to outstanding convertible preferred stock, options and warrants excluded from the calculations of diluted loss per share (*)		2,567,368		600,232		3,449,035		600,232

(*)

All outstanding convertible preferred stock , stock options and warrants have been excluded from the calculation of the diluted net loss per share for all the reported periods, since the effect of the common shares issuable as a result of the exercise or conversion of these instruments was anti-dilutive.