(

)

Net Income (Loss)

Per Share

The Company uses the

two

-class method to compute basic and diluted earnings 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 income (loss) per share (in thousands, except share and per share data):

	Fiscal year ended					Five weeks ended
	February 2,			December 30,		February 3,
	2019			2017		2018
NUMERATOR:
Net income (loss) before allocation of earnings to participating securities	$	(17,933	)	$	7,916	$	(845	)
Less: Earnings allocated to participating securities		-			96		-
Net income (loss)	$	(17,933	)	$	7,820	$	(845	)

DENOMINATOR:
Weighted average number of common shares outstanding - basic		14,591,270			15,572,045		14,860,511
Dilutive effect of share-based awards:		-			185,015		-
Weighted average number of common shares outstanding - dilutive		14,591,270			15,757,060		14,860,511
Basic income (loss) per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	(1.23	)	$	0.50	$	(0.06	)
Diluted income (loss) per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	(1.23	)	$	0.50	$	(0.06	)

In calculating diluted earnings per share for fiscal

2018

and

2017

and the

five

week transition period ending

February 3, 2018,

options to purchase

572,239;

325,427;

and

380,496;

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

not

included in the computation of diluted income per share due to their anti-dilutive effect under provisions of ASC

260

10.