| Net Income (Loss) Per Common Share |
(9) Net Income (Loss) Per Common Share
Basic net loss per share is computed by dividing reported loss by the weighted average number of shares of common stock outstanding for the reported period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock of the Company during reported periods.
A reconciliation of net income (loss) per share calculations and the number of shares used in the calculation of basic net income (loss) per share and diluted net income (loss) per share is as follows:
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Three-Month Periods Ended |
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Six-Month Periods Ended |
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July 31, |
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August 1, |
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July 31, |
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August 1, |
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2021 |
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2020 |
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2021 |
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2020 |
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Numerator: |
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Net (loss) income |
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$ |
(4,381,000) |
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$ |
1,054,000 |
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$ |
(7,759,000) |
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$ |
(5,774,000) |
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Earnings allocated to participating share awards (a) |
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— |
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(5,000) |
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— |
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— |
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Net (loss) income attributable to common shares — Basic and diluted |
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$ |
(4,381,000) |
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$ |
1,049,000 |
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$ |
(7,759,000) |
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$ |
(5,774,000) |
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Denominator: |
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Weighted average number of common shares outstanding — Basic (b) |
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19,101,652 |
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9,532,369 |
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17,314,317 |
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8,911,580 |
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Dilutive effect of stock options, non-vested shares and warrants (c) |
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— |
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364,360 |
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— |
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— |
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Weighted average number of common shares outstanding — Diluted |
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19,101,652 |
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9,896,729 |
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17,314,317 |
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8,911,580 |
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Net (loss) income per common share |
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$ |
(0.23) |
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$ |
0.11 |
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$ |
(0.45) |
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$ |
(0.65) |
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Net (loss) income per common share — assuming dilution |
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$ |
(0.23) |
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$ |
0.11 |
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$ |
(0.45) |
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$ |
(0.65) |
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(a) |
During fiscal 2018, the Company issued a restricted stock award that is a participating security. For the three- and six- month periods ended July 31, 2021 and for the six-month period ended August 1, 2020, the entire undistributed loss is allocated to common shareholders. |
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(b) |
For the three and six-month periods ended July 31, 2021, the basic earnings per share computation included 21,000 outstanding fully-paid warrants to purchase shares of the Company’s common stock at a price of $0.001 per share.
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(c) |
For the six--month periods ended July 31, 2021 and August 1, 2020 there were 650,000 and 218,000 incremental in-the-money potentially dilutive common shares outstanding. The incremental in-the-money potentially dilutive common stock shares are excluded from the computation of diluted earnings per share, as the effect of their inclusion would be anti-dilutive.
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