Earnings Per Share

3 Months Ended

Aug. 31, 2016

NOTE 12 Earnings Per Share

Basic earnings per common share is computed based on the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed based on the combination of dilutive common share equivalents, comprised of shares issuable under the Corporation’s Stock Incentive Plan and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money options to purchase shares, which is calculated based on the average share price for each period using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except per share amounts):


	Three Months Ended
	August 31, 2016		August 31, 2015
Net income (loss)	$	744	$	(834	)

Weighted average share outstanding:
Basic		8,391,244		8,391,244
Common stock equivalents – treasury stock method		106,948		—

Diluted		8,498,192		8,391,244
Net income (loss) per share:
Basic	$	.09	$	(.10	)

Diluted	$	.09	$	(.10	)

There were 13,716 and 129,139 anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share for the three months ended August 31, 2016 and 2015, respectively.