NOTE 4

LOSS PER SHARE

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

The loss and the weighted average number of shares used in computing basic and diluted loss per share for the six and three month periods ended June 30, 2012 and 2011 are as follows:

	US dollars
	Six month period ended June 30,				Three month period ended June 30,
	2012		2011		2012		2011
	(unaudited)				(unaudited)
Loss used for the period		1,372,411		1,056,921		737,458		516,657

	Number of shares
	Six month period ended June 30,				Three month period ended June 30,
	2012		2011		2012		2011

Number of shares:
Weighted average number of shares used in the computation of basic and diluted earnings per share		5,295,543		4,922,582		5,295,543		4,989,720

Total weighted average number of ordinary shares related to outstanding options and warrants excluded from the calculations of diluted loss per share (*)		600,232		555,764		600,232		555,764

(*)

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.