Note 3 - Net Income (Loss) Per Share of Common Stock

3 Months Ended

Feb. 29, 2016

Net Income (Loss) Per Share of Common Stock

Basic net income (loss) per common share has been computed on the basis of the weighted average number of common shares outstanding. Diluted net income (loss) per share has been computed on the basis of the weighted average number of common shares outstanding plus equivalent shares assuming exercise of stock options. Potential shares of common stock that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

Basic and diluted earnings (loss) per common share have been computed based on the following as of February 29, 2016 and February 28, 2015:

	For the three months ended
	February 29, 2016		February 28, 2015
Basic:
Numerator: net income	$	80,962	$	168,195
Denominator: average number of common shares outstanding		4,074,338		4,050,507
Basic earnings per common share	$	0.02	$	0.04

Diluted:
Numerator: net income	$	80,962	$	168,195
Average number of common shares outstanding		4,074,338		4,050,507
Effect of dilutive stock options		0		1,247
Denominator: dilutive average number of common shares outstanding		4,074,338		4,051,754
Diluted earnings per common share	$	0.02	$	0.04