Income

per Share

The Company uses the

two

-class method to compute basic and diluted

net income or loss per common share. In periods of net loss,

effect is given to the Company’s participating securities as they do

not

contractually participate in the losses of the Company. The following table sets forth the computation of basic and diluted net income per share (in thousands, except share and per share data):

	Thirteen weeks ended				Thirty-nine weeks ended
	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016

NUMERATOR:
Net income before allocation of earnings to participating securities	$	1,441	$	1,841	$	2,673	$	1,058
Less: Earnings allocated to participating securities		11		39		33		22
Net income after allocation of earnings to participating securities	$	1,430	$	1,802	$	2,640	$	1,036

DENOMINATOR:
Weighted average number of common shares outstanding - basic		15,633,290		15,518,115		15,600,184		15,471,759
Dilutive effect of share-based awards:		182,975		172,889		189,667		178,384
Weighted average number of common shares outstanding - dilutive		15,816,265		15,691,004		15,789,851		15,650,143
Basic income per common share attributable to Build-A-Bear Workshop, Inc. stockholders:	$	0.09	$	0.12	$	0.17	$	0.07
Diluted income per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	0.09	$	0.11	$	0.17	$	0.07

In calculating diluted income per share for the

thirteen

and

thirty-nine

week periods ended

September 30, 2017,

options to purchase

382,317

and

321,998

shares of common stock, respectively, that were outstanding at the end of the period were

not

included in the computation of diluted income per share due to their anti-dilutive effect. For the

thirteen

and

thirty-nine

week periods ended

October 1, 2016,

the number of options to purchase common shares that were excluded from the calculation was

302,628

and

253,374

shares, respectively.