Note 8 - Basic and Diluted Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

Note

8

.

Basic and Diluted

Net

Income (

Loss

)

p

er Share

Basic net loss per share attributable to Avalon Holdings Corporation common shareholders is computed by dividing the net loss by the weighted average number of common shares outstanding. For both the

three

and

six

months ended

June 30, 2020

and

2019,

the weighted average number of common shares outstanding was

3,875,431

.

Diluted net income (loss) per share attributable to Avalon Holdings Corporation common shareholders is computed by dividing net income (loss) by the weighted average number of common shares outstanding plus any weighted common equivalent shares determined to be outstanding during the period using the treasury method. The weighted common equivalent shares included in the calculation are related to stock options granted by Avalon where the weighted average market price of Avalon's common stock for the period presented is greater than the option exercise price of the stock option.

For both the

three

and

six

months ended

June 30, 2020,

the diluted per share amount reported is equal to the basic per share amount because Avalon was in a net loss position and as a result, such dilution would be considered anti-dilutive. Assuming dilution, the diluted per share amount is equal to the basic per share amount because the average market price of Avalon's common shares during the period was less than the exercise price of the stock options outstanding.

For the

three

months ended

June 30, 2019,

the diluted weighted average number of shares outstanding was

3,893,956.

For the

six

months ended

June 30, 2019,

the diluted per share amount reported is equal to the basic per share amount because Avalon was in a net loss position and as a result, such dilution would be considered anti-dilutive. Assuming dilution, the weighted average number of common shares outstanding for the

six

months ended

June 30, 2019

was

3,918,225.