Basic and Diluted Net Loss per Share

3 Months Ended

Jan. 31, 2021

Basic net loss per common share is calculated using the weighted-average number of common shares outstanding during the period without consideration of the dilutive effect of conversion of preferred stock. Diluted net loss per common share is calculated using the weighted-average number of common shares outstanding during the period plus the dilutive effect of conversion of unvested, restricted stock and preferred stock. The computations for basic and diluted net loss per common share are as follows (in thousands, except per share amounts):


	Three Months Ended January 31,
	2021		2020
Basic net loss per common share:
Net loss applicable to common stock	$	(4,333)	$	(6,552)
Effect of unvested, restricted stock	(18)		(17)
Numerator: Net loss for basic EPS	(4,351)		(6,569)
Denominator: Weighted average common shares-basic	17,405		17,579
Basic net loss per common share	$	(0.25)	$	(0.37)


Diluted net loss per common share:
Numerator: Net loss for diluted EPS	$	(4,351)	$	(6,569)
Weighted average common shares–basic	17,405		17,579
Effect of dilutive unvested, restricted stock and preferred stock	—		—
Denominator: Weighted average common shares–diluted	17,405		17,579
Diluted net loss per common share	$	(0.25)	$	(0.37)

12. Basic and Diluted Net Loss per Share (continued)

Diluted earnings (losses) per common share are computed using the more dilutive method of either the two-class method or the treasury stock method. Unvested stock-based compensation awards that contain non-forfeitable rights to dividends as participating shares are included in computing earnings per share. The Company’s unvested, restricted stock awards qualify as participating shares. The Company excluded 226,000 and 149,000, unvested, restricted shares, as calculated under the treasury stock method, from its computation of diluted earnings (losses) per share for the three months ended January 31, 2021 and 2020, respectively.