NOTE K - EARNINGS PER SHARE:

The Company computes and presents earnings per share (“EPS”) in accordance with the authoritative guidance on Earnings Per Share. Basic EPS excludes the effect of potentially dilutive securities while diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised, converted or resulted in the issuance of common stock that then shared in the earnings of the Company.

The following table shows the reconciliation of the numerator and denominator of the basic EPS calculation to the numerator and denominator of the diluted EPS calculation (in thousands, except per share amounts).

	Fiscal Year Ended
	June 30, 2019			June 24, 2018
Income/(loss) from continuing operations	$	(750	)	$	2,274
Loss from discontinued operations		-			(362	)
Net income/(loss) available to common stockholders	$	(750	)	$	1,912
Interest saved on convertible notes of $1,584 at 4%	$	63		$	90
Adjusted net income/(loss)	$	(687	)	$	2,002

BASIC:
Weighted average common shares		15,070			13,854

Income/(loss) from continuing operations per common share	$	(0.05	)	$	0.17
Loss from discontinued operations per common share		-			(0.03	)
Net income/(loss) per common share	$	(0.05	)	$	0.14

DILUTED:
Weighted average common shares		15,070			13,854
Convertible notes		-			1,129
Dilutive stock options		-			-
Weighted average common shares outstanding		15,070			14,983

Income/(loss) from continuing operations per common share	$	(0.05	)	$	0.16
Loss from discontinued operations per common share		-			(0.03	)
Net income/(loss) per common share	$	(0.05	)	$	0.13

We had 216,550 and 478,056 shares of common stock potentially issuable upon exercise of employee stock options for years ended June 30, 2019 and June 24, 2018, respectively, that were excluded from the weighted average number of shares outstanding on a diluted basis because the effect of such options would be anti-dilutive. These instruments expire at varying times from fiscal 2020 through fiscal 2026.