NOTE 11—EARNINGS PER SHARE

Basic and diluted earnings per share are computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income attributable to common shareholders by the weighted average shares outstanding during each period.

The basic earnings per common share were computed as follows for the year ended April 30:



	2020		2019
Net income	$	714,000	$	642,000
Amounts allocated to participating securities (nonvested restricted shares)		(87,000)		(78,000)
Net income attributable to common shareholders	$	627,000	$	564,000
Basic weighted average common shares		5,265,750		5,265,750
Earnings per share attributable to common shareholders:
Basic earnings per share	$	0.12	$	0.11

ASC 260, Earnings per Share, provides that unvested share-based payment awards that contain non-forfeitable rights to dividends are considered to be participating securities and must be included in the computation of earnings per share pursuant to the two-class method. Diluted earnings per share is not presented as we do not have any shares considered incremental and dilutive.