NOTE 6

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LOSS PER SHARE

In periods of net loss, basic loss per share is computed by dividing net loss for the period after consideration of the effect of dividend on preferred stock 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 three month periods ended March 31, 2015 and 2014 are as follows:

	US dollars
	Three month period ended March 31,
	2015		2014
	(unaudited)
Loss for the period		1,534,531		736,919
Cash dividend on Series A Preferred Stock		20,514		92,674
Stock dividend on Series B Preferred Stock		83,237		-
Loss for the period attributable to common stockholders		1,638,282		829,593

	Number of share
	Three month period ended March 31,
	2015		2014
	(unaudited)
Number of shares:
Weighted average number of shares used in the computation of basic and diluted earnings per share		5,323,459		5,302,980

Total weighted average number of common shares related to outstanding convertible preferred stock, options and warrants excluded from the calculations of diluted loss per share (*)		9,195,295		3,417,231

(*)

All outstanding convertible Preferred Stock, stock options and warrants have been excluded from the calculation of the diluted net loss per share for all the reported periods, because the effect of the common shares issuable as a result of the exercise or conversion of these instruments was anti-dilutive.