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				5 weeks ended
	May 5,		April 29,		February 3,
	2018		2017		2018
NUMERATOR:
Net income (loss) before allocation of earnings to participating securities	$	354	$	2,629	$	(845	)
Less: Earnings allocated to participating securities		2		60		-
Net income (loss)	$	352	$	2,569	$	(845	)

DENOMINATOR:
Weighted average number of common shares outstanding - basic		14,582,573		15,561,804		14,860,511
Dilutive effect of share-based awards:		140,416		133,518		-
Weighted average number of common shares outstanding - dilutive		14,722,989		15,695,322		14,860,511
Basic income (loss) per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	0.02	$	0.17	$	(0.06	)
Diluted income (loss) per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	0.02	$	0.16	$	(0.06	)

In calculating diluted income per share for the

thirteen

week period ended

May 5, 2018,

options to purchase

478,996

shares of common stock, 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

week period ended

April 29, 2017,

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

353,328

shares.