Earnings Per Share

12 Months Ended

Oct. 31, 2023

Basic net income (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 income (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 2023, 2022 and 2021. The computations for basic and diluted net income (loss) per common share are as follows for the fiscal years ended October 31 (in thousands, except per share data):



	2023		2022		2021
Basic net income (loss) per common share:
Net income (loss) applicable to common stock	$	8,899	$	(737)	$	(3,942)
Effect of unvested, restricted stock	(146)		(50)		(35)
Numerator: Net income (loss) for basic EPS	8,753		(787)		(3,977)
Denominator: Weighted average common shares–basic	17,603		17,513		17,555
Basic net income (loss) per common share	$	0.50	$	(0.04)	$	(0.23)

Diluted net income (loss) per common share:
Net income (loss) for basic EPS	$	8,753	$	(787)	$	(3,977)
Effect of dilutive preferred stock	—		—		—
Numerator: Net income (loss) for diluted EPS	8,753		(787)		(3,977)
Weighted average common shares–basic	17,603		17,513		17,555
Effect of dilutive preferred stock	—		—		—
Denominator: Weighted average common shares–diluted	17,603		17,513		17,555
Diluted net income (loss) per common share	$	0.50	$	(0.04)	$	(0.23)

Diluted net income (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 income (loss) per common share was calculated under the two-class method for fiscal years 2023 and 2022. The Company excluded 117,000 unvested, restricted shares, as calculated under the treasury stock method, from its computation of diluted net loss per common share for fiscal year 2021.