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Note 6 - Earnings (Loss) Per Share
 9 Months Ended
Jul. 31, 2021
Notes to Financial Statements  
Earnings Per Share [Text Block]

Note 6 – Earnings (loss) 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 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. During the three and nine months ended July 31, 2020, we reported a net loss and diluted loss per share is computed the same as basic loss per share as the effect of utilizing the fully diluted share count would have reduced the net loss per share which has an anti-dilutive effect. Therefore, all outstanding stock options are excluded from the computation of diluted loss per share. Potentially issuable securities that are out-of-the-money totaled 298,015 and 402,838 shares for the three months ended July 31, 2021 and 2020, respectively, and 371,338 and 402,838 shares for the nine months ended July 31, 2021 and 2020, respectively. These shares 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 July 31,

  

Nine Months Ended July 31,

 
  

2021

  

2020

  

2021

  

2020

 
                 

Weighted average shares outstanding for basic earnings (loss) per share

  9,979,578   9,714,700   9,955,193   9,661,054 
                 

Add effects of potentially dilutive securities-assumed exercise of stock options

  170,818   -   175,979   - 
                 

Weighted average shares outstanding for diluted earnings (loss) per share

  10,150,396   9,714,700   10,131,172   9,661,054