Basic And Diluted Net Income Per Common Share

3 Months Ended

Oct. 31, 2016

Basic And Diluted Net Income Per Common 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 October 31
	2016		2015
Net income	$	356	$	389
Weighted-average common shares outstanding		17,424		17,152
Effect of dilutive stock options and warrants		505		452
Diluted weighted-average common shares outstanding		17,929		17,604
Net income per share
Basic	$	0.02	$	0.02
Diluted	$	0.02	$	0.02
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		-		-