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
	November 3,			October 28,			November 3,			October 28,
	2018			2017			2018			2017
NUMERATOR:
Net income (loss) before allocation of earnings to participating securities	$	(6,064	)	$	(2,527	)	$	(7,510	)	$	146
Less: Earnings allocated to participating securities		-			-			-			2
Net income	$	(6,064	)	$	(2,527	)	$	(7,510	)	$	144

DENOMINATOR:
Weighted average number of common shares outstanding - basic		14,590,614			15,599,675			14,597,255			15,602,498
Dilutive effect of share-based awards:		-			-			-			177,755
Weighted average number of common shares outstanding - dilutive		14,590,614			15,599,675			14,597,255			15,780,253
Basic income (loss) per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	(0.42	)	$	(0.16	)	$	(0.51	)	$	0.01
Diluted income (loss) per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	(0.42	)	$	(0.16	)	$	(0.51	)	$	0.01

In calculating diluted income per share for the

thirteen

and

thirty-nine

week periods ended

November 3, 2018

, options to purchase

594,183

and

563,661

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 28, 2017

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

381,738

and

328,050

shares, respectively.