Note 6 - Earnings per share

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding increased by the effects of assuming that other potentially dilutive securities (such as stock options) outstanding during the period had been exercised and the treasury stock method had been applied. Potentially dilutive securities totaling 475,105 and 1,003,854 for the three months ended April 30, 2018 and 2017, respectively, and 563,838 and 1,003,854 for the six months ended April 30, 2018 and 2017, respectively, were excluded from the calculation of diluted per share amounts because of their anti-dilutive effect.

The following table summarizes the computation of basic and diluted weighted average shares outstanding:

	Three Months Ended April 30,				Six Months Ended April 30,
	2018		2017		2018		2017

Weighted average shares outstanding for basic earnings (loss) per share		9,053,838		8,834,747		8,965,672		8,882,863

Add effects of potentially dilutive securities-assumed exercise of stock options		332,356		42,454		279,053		-

Weighted average shares outstanding for diluted earnings (loss) per share		9,386,194		8,877,201		9,244,725		8,882,863