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

6 Months Ended

May 31, 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 May 31, 2016 and May 31, 2015:

	For the three months ended
	May 31, 2016			May 31, 2015
Basic:
Numerator: net income	$	(56,571	)	$	231,621
Denominator: average number of common shares outstanding		4,101,810			4,060,775
Basic earnings per common share	$	(0.01	)	$	0.06

Diluted:
Numerator: net income	$	(56,571	)	$	231,621
Average number of common shares outstanding		4,101,810			4,060,775
Effect of dilutive stock options		0			1,519
Denominator: dilutive average number of common shares outstanding		4,101,810			4,062,294
Diluted earnings per common share	$	(0.01	)	$	0.06

	For the six months ended
	May 31, 2016		May 31, 2015
Basic:
Numerator: net income	$	24,401	$	399,816
Denominator: average number of common shares outstanding		4,088,073		4,055,698
Basic earnings per common share	$	0.01	$	0.10

Diluted:
Numerator: net income	$	24,401	$	399,816
Average number of common shares outstanding		4,088,073		4,055,698
Effect of dilutive stock options		0		1,375
Denominator: dilutive average number of common shares outstanding		4,088,073		4,057,073
Diluted earnings per common share	$	0.01	$	0.10