Note 6 - Earnings (Loss) Per Share

6 Months Ended

Apr. 30, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 6 – Earnings (loss) per share

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding increased by the effects of assuming that other potentially dilutive securities (such as stock options) outstanding during the period had been exercised and the treasury stock method had been applied. During the three and six months ended April 30, 2020, we reported a net loss and diluted loss per share is computed the same as basic loss per share as the effect of utilizing the fully diluted share count would have reduced the net loss per share which has an anti-dilutive effect.  Therefore, all outstanding stock options are excluded from the computation of diluted loss per share.  Potentially issuable securities that are out-of-the-money totaled 321,338 and 392,838 shares for the three months ended April 30, 2021 and 2020, respectively, and 331,338 and 392,838 shares for the six months ended April 30, 2021 and 2020, respectively. These shares were excluded from the calculation of diluted per share amounts because of their anti-dilutive effect.

The following table summarizes the computation of basic and diluted weighted average shares outstanding:

	Three Months Ended April 30,				Six Months Ended April 30,
	2021		2020		2021		2020
Weighted average shares outstanding for basic earnings (loss) per share		9,963,291		9,704,880		9,927,776		9,633,935
Add effects of potentially dilutive securities-assumed exercise of stock options		166,181		-		169,140		-
Weighted average shares outstanding for diluted earnings (loss) per share		10,129,472		9,704,880		10,096,916		9,633,935