Earnings Per Share

12 Months Ended

Oct. 31, 2022

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 Series B and Series B-2 convertible preferred shares were anti-dilutive for fiscal years ended October 31, 2022, 2021 and 2020. The computations for basic and diluted net loss per common share are as follows (in thousands, except per share amounts):


	Year ended October 31,
	2022		2021		2020
Basic net loss per common share:
Net loss applicable to common stock	$	(737)	$	(3,942)	$	(16,936)
Effect of unvested, restricted stock	(50)		(35)		(44)
Numerator: Net loss for basic EPS	(787)		(3,977)		(16,980)
Denominator: Weighted average common shares-basic	17,513		17,555		17,666
Basic net loss per common share	$	(0.04)	$	(0.23)	$	(0.96)

Diluted net loss per common share:
Numerator: Net loss for diluted EPS	$	(787)	$	(3,977)	$	(16,980)
Weighted average common shares-basic	17,513		17,555		17,666
Effect of dilutive unvested, restricted stock and preferred stock	—		—		—
Denominator: Weighted average common shares-diluted	17,513		17,555		17,666
Diluted net loss per common share	$	(0.04)	$	(0.23)	$	(0.96)

13. Earnings Per Share (continued)Diluted net loss per common share is calculated 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. Diluted net loss per common share was calculated under the two-class method for the fiscal year ended October 31, 2022. The Company excluded 117,000 and 164,000, unvested, restricted shares, as calculated under the treasury stock method, from its computation of diluted net losses per share for the fiscal years ended October 31, 2021 and 2020, respectively.