Basic And Diluted Net Income Per Share

6 Months Ended

Jan. 31, 2015

Basic And Diluted Net Income Per Share [Abstract]

Basic And Diluted Net Income Per Common Share

2. Basic and Diluted Net Income per Common Share 

Basic net income per common share is computed by dividing net income by the basic weighted average number of common shares outstanding during the period.  Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period and reflects the potential dilution that could occur if all of ARI’s outstanding stock options and warrants that are in the money were exercised (calculated using the treasury stock method).

The following table is a reconciliation of basic and diluted net income per common share (in thousands, except per share data): 

	Three months ended January 31				Six months ended January 31
	2015		2014		2015		2014
Net income (loss)	$	260	$	(461)	$	364	$	(436)
Weighted-average common shares outstanding		14,393		13,184		14,043		13,154
Effect of dilutive stock options and warrants		468		-		432		-
Diluted weighted-average common shares outstanding		14,861		13,184		14,475		13,154
Net income (loss) per share
Basic	$	0.02	$	(0.03)	$	0.03	$	(0.03)
Diluted	$	0.02	$	(0.03)	$	0.03	$	(0.03)
Options and warrants that could potentially dilute net income per share in the future that are not included in the computation of diluted net income per share, as their impact is anti-dilutive		-		1,462		5		1,462