NOTE 3

LOSS PER SHARE

Basic loss per share is computed by dividing net loss by the weighted average number of shares outstanding during the year.

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, 2011 and 2010, are as follows:

	Three month period ended September 30,				Nine month period ended September 30,
	2011		2010		2011		2010
	(unaudited)				(unaudited)
Loss used for the computation of loss per share		708,708		682,739		1,765,629		2,155,190
Weighted average number of shares used in the computation of basic and diluted loss per share (*)		5,205,640		3,999,998		5,016,935		3,999,998

(*)

All outstanding 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 shares issuable with respect of these instruments was anti-dilutive.