EARNINGS PER SHARE

12 Months Ended

Jun. 26, 2022

NOTE L - EARNINGS PER SHARE:

The Company computes and presents earnings per share (“EPS”) in accordance with ASC 260 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 26, 2022		June 27, 2021
Net income available to common shareholders	$	8,022	$	1,520
Interest saved on convertible notes at 4%	$	40	$	64
Adjusted net income	$	8,062	$	1,584

BASIC:
Weighted average common shares		17,993		17,307

Net income/(loss) per common share	$	0.45	$	0.09

DILUTED:
Weighted average common shares		17,993		17,307
Convertible notes		—		798
Weighted average common shares outstanding		17,993		18,105

Income from continuing operations per common share	$	0.45	$	0.09

We had 111,750 and 166,750 shares of common stock potentially issuable upon exercise of employee stock options for years ended June 26, 2022 and June 27, 2021, respectively, which were excluded from the weighted average number of shares outstanding on a diluted basis because they had an intrinsic value of zero and were anti-dilutive. These options expire at varying times from fiscal 2024 through fiscal 2026.