Earnings Per Share

3 Months Ended

Apr. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

5. Earnings Per Share

Basic earnings per share are based on the weighted average number of common shares outstanding without consideration of common stock equivalents. Diluted earnings per share are based on the weighted average number of common and common stock equivalents. The diluted earnings per share calculation take into account the shares that may be issued upon exercise of stock options, reduced by the shares that may be repurchased with the funds received from their exercise, based on the average price during the period.

The following table sets forth the computation of basic and diluted loss per share at April 30, 2014 and 2013.

 

	Three Months Ended
	April 30,
	2014		2013
Numerator:
Net loss	$	(64)	$	(844,480)
Denominator
Denominator for basic loss per share
Weighted-average shares outstanding before common share equivalents		5,357,209		5,337,205
Weighted average common equivalent shares resulting from the warrant issued June 28, 2013 to the subordinated debt lender LKL Investments LLC		566,015		—
Total weighted average, including common equivalent shares		5,923,224		5,337,205
Denominator for diluted loss per share (adjusted weighted average shares)		5,923,224		5,337,205
Basic (loss) per share	$	(0.00)	$	(0.16)
Diluted (loss) per share	$	(0.00)	$	(0.16)

Not included in the above are the potential shares issuable for interest on the subordinated debt. As of April 30, 2014, there was accrued $368,755 of PIK interest. At the closing stock price on April 30. 2014 of $7.09 this would represent approximately 52,011 shares. Such shares would be antidilutive and as such are not included.