NOTE 4

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 three month period ended March 31, 2012 and 2011 and for the year ended December 31, 2011, are as follows:

	US dollars
	Three month period ended March 31,				Year ended December 31,
	2012		2011		2011
	(unaudited)
Loss used for the period		634,953		540,264		2,364,339

	Number of shares
	March 31,				December 31,
	2012		2011		2011

Number of shares:
Weighted average number of shares used in the computation of basic and diluted earnings per share		5,295,543		4,855,445		5,091,330

Total weighted average number of ordinary shares related to outstanding options and warrants excluded from the calculations of diluted loss per share (*)		600,232		113,470		582,732

(*)

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.