Earnings per Share

9 Months Ended

Oct. 31, 2012

Earnings per Share [Abstract]

EARNINGS PER SHARE

NOTE E – EARNINGS PER SHARE

Diluted net earnings (loss) per share of common stock reflects the potential dilution that could occur from restricted shares and if stock options, stock purchase plan commitments, and warrants were exercised (under the treasury stock method) and the Series A Preferred Stock were converted (on an as-if-converted basis) into shares of our common stock, under certain circumstances, that then would share in our earnings. A reconciliation of basic and diluted weighted average shares for basic and diluted EPS, as well as anti-dilutive securities is as follows:

	Three Months Ended,
	October 31, 2012			October 31, 2011
Numerator for Basic and Diluted Earnings per Share:
Net earnings	$	2,399,637		$	295,766
Less: deemed dividends on Series A Preferred Stock		(139,133	)		—
Net earnings attributable to common Shareholders		2,260,504			295,766
Denominator for basic earnings per share weighted average shares		12,393,352			9,943,567
Effect of dilutive securities
Stock options		674,352			15,380
Restricted shares		36,962			—
Series A Preferred Stock		1,996,475			—
Warrants		264,097			—
Denominator for basic earnings per share, with assumed conversions		15,365,238			9,958,947
Basic net earnings per common share	$	0.18		$	0.03
Diluted net earnings per common share	$	0.15		$	0.03
Anti-dilutive securities:
Stock options, out-of-the-money		71,500			1,739,551
Warrants, out-of-the-money		—			—
	Nine Months Ended,
	October 31, 2012			October 31, 2011
Numerator for Basic and Diluted Earnings per Share:
Net earnings	$	2,427,995		$	8,051
Less: deemed dividends on Series A Preferred Stock		(139,133	)		—
Net earnings attributable to common Shareholders		2,288,862			8,051
Denominator for basic earnings per share weighted average shares		11,346,428			9,823,937
Effect of dilutive securities
Stock options		357,554			13,813
Restricted stock		42,925			—
Series A Preferred Stock		670,349			—
Warrants		—			—
Denominator for basic earnings per share, with assumed conversions		12,417,256			9,837,750
Basic net earnings per common share	$	0.20		$	0.00
Diluted net earnings per common share	$	0.18		$	0.00
Anti-dilutive securities:
Stock options, out-of-the-money		486,000			1,432,967
Warrants, out-of-the-money		1,400,000			—