10. EARNINGS PER SHARE

6 Months Ended

Apr. 30, 2014

Earnings Per Share [Abstract]

10. EARNINGS PER SHARE

The Company presents “basic” and “diluted” earnings per common share pursuant to the provisions included in Accounting Standards Codification Topic 260, Earnings Per Share, issued by FASB and certain other financial accounting pronouncements.  Basic earnings per common share were computed by dividing net income by the sum of the weighted-average number of common shares outstanding.   Diluted earnings per common share is computed by dividing the net income by the weighted-average number of common shares outstanding plus the dilutive effect of common shares issuable upon exercise of potential sources of dilution.

The weighted average common shares outstanding used in the computation of basic earnings per share were 6,372,309 for the three and six months ended April 30, 2014 and 2013. The weighted average common shares outstanding used in the computation of diluted earnings per share were 6,639,309 for the three and six months ended April 30, 2014 and 2013.  The 267,000 shares that could be exercised pursuant to the warrant agreement attached to the units issued in September 2011 have been included in the diluted earnings per share calculation because of their anti-dilutive impact.