Operating loss $ (1,446,690 ) $ (3,888,358 )

Operating loss decreased from approximately $3,888,000 for the fiscal year ended May 31, 2011 to approximately $1,447,000 for the fiscal year ended May 31, 2012 primarily due to the impairments of goodwill and intangibles in the prior fiscal year.

                                         May 31, 2012       May 31, 2011
Other income (expense):
Interest and other income               $       93,959     $          763
Gain on sale of Vigilys business line                -             60,000
Loss on sale of company                        (10,988 )                -
      Total other income, net           $       82,971     $       60,763

Other income increased for the fiscal year ended May 31, 2012 as compared to the fiscal year ended May 31, 2011 due to the reimbursement of April 2012 operating expenses agreed upon by the purchaser of substantially all of the assets of PDSG.

May 31, 2012 May 31, 2011 Loss before income taxes $ (1,363,719 ) $ (3,827,595 )

Loss before income taxes decreased from approximately $3,828,000 for the fiscal year ended May 31, 2011 to approximately $1,364,000 for the fiscal year ended May 31, 2012 primarily due to the impairments of goodwill and intangibles taken in the prior fiscal year.

Net loss from discontinued operations

We recorded a loss from discontinued operations, net for the fiscal years ended May 31, 2012 and 2011 of $1,363,719 and $3,827,595 respectively.

Net loss

We recorded a net loss for the fiscal years ended May 31, 2012 and 2011 of $4,820,405 and $11,515,390, respectively.