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Net Loss Per Share
9 Months Ended
Apr. 30, 2025
Net Loss Per Share [Abstract]  
Net loss per share

Note 3 – Net loss per share

 

Basic net loss per share represents net loss divided by the weighted average number of common shares outstanding during the period. The dilutive effect of potential common shares, consisting of outstanding stock options, and unvested restricted stock units and performance stock units, is determined using the treasury stock method. As a result of the net loss for the three and nine months ended April 30, 2025 and 2024, diluted weighted average shares outstanding are the same as basic weighted average shares outstanding, and do not include the potential common shares from stock options, restricted stock units, or warrants because to do so would be anti-dilutive.

 

For the three and nine months ended April 30, 2025, the effect of approximately 1,611,000 and 1,838,000, respectively, of outstanding “out of the money” options to purchase common shares and the effect of approximately 529,000 outstanding restricted stock units at April 30, 2025 were excluded from the calculation of diluted net (loss) per share because their effect would be anti-dilutive.

For the three and nine months ended April 30, 2025, the effect of an assumed exercise of 1,000,000 “out of the money” warrants and the hypothetical shares which would be bought back was excluded from the calculation of diluted weighted average shares outstanding because the effect would also be anti-dilutive.

 

For the three and nine months ended April 30, 2024, the effect of approximately 1,832,000 and 2,542,000, respectively, of outstanding “out of the money” options to purchase common shares and the effect of approximately 77,000 and 133,000, respectively, of outstanding restricted stock units were excluded from the calculation of diluted net (loss) income per share because their effect would be anti-dilutive. During the three and nine months ended April 30, 2024, the effect of approximately 848,000 and 688,000, respectively, of shares related to warrants and the effect of approximately 1,688,000 and 1,438,000, respectively of shares related to the assumed conversion of debentures were excluded from the calculation of diluted weighted average shares outstanding because their effect would be anti-dilutive.

 

The warrants relate to the convertible debentures, which were repaid in May 2024. The warrants are eligible for any dividends paid on the common stock and are therefore considered to be participating securities which do not have any contractual obligation to share in the Company’s losses. The impact on net loss per share under the two-class method was not material for any period presented.