LOSS PER SHARE

6 Months Ended

May 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 9. LOSS PER SHARE

Basic loss per share is computed on the basis of the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed on the basis of the weighted-average number of common shares and all dilutive potentially issuable common shares outstanding during the year. Common stock issuable upon conversion of debt and preferred stock, or exercise of stock options and stock warrants have not been included in the loss per share for the three months and six months ended May 31, 2012 and 2011 as they are anti-dilutive.

The potential common shares as of May 31, 2012 and 2011 are as follows:

	2012		2011
Warrants		10,241,030		21,645,529
Stock options		18,168,947		13,108,947
Series B Convertible Preferred Stock		40,352,313		31,236,915
Series I Convertible Preferred Stock		2,293,600		2,293,600
LJCI Debenture		2,980,207,591		2,074,976,288
		3,051,263,481		2,143,261,279

The Company does not currently have sufficient authorized shares of common stock to meet the commitments entered into under the Debenture and the related LJCI Warrants. As further discussed in Note 3, upon the conversion of any portion of the remaining $60,086 principal amount of the Debenture, LJCI is required to simultaneously exercise and purchase that same percentage of the remaining 6,008,629 warrant shares equal to the percentage of the dollar amount of the Debenture being converted. The agreement limits LJCI’s investment to an aggregate common stock ownership that does not exceed 9.99% of the outstanding common shares of the Company. Furthermore, the Company has the right to redeem that portion of the Debenture that the holder may elect to convert and also has the right to redeem the outstanding principal amount of the Debenture not yet converted by the holder into common stock, plus accrued and unpaid interest thereon.