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Note 5 - Earnings (Loss) Per Share
 9 Months Ended
Oct. 31, 2013
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]

5.            Earnings (Loss) Per Share


The Company calculates basic earnings (loss) per share by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share reflects the effects of potentially dilutive securities. Since the Company incurred a net loss for the nine months ended October 31, 2013 and the three and nine months ended October 31, 2012, basic and diluted loss per share for those periods were the same because the inclusion of dilutive potential common shares related to outstanding stock awards in the calculation would have been antidilutive.


Potential common shares of 720,000 relating to outstanding stock awards to directors and employees have been excluded from diluted weighted average common shares for the nine months ended October 31, 2013, as the effect would have been antidilutive. Additionally, for the nine months ended October 31, 2013, the 1,704,546 outstanding warrants issued to Broadwood would have been anti-dilutive. Similarly, potential common shares of 330,000 relating to outstanding stock awards to directors and employees have been excluded from diluted weighted average common shares for the three and nine months ended October 31, 2012, as the effect would have been antidilutive.


The following table presents reconciliations of the numerators and denominators of the basic and diluted earnings (loss) per share computations for net income (loss). In the tables below, “Net income or loss” represents the numerator and “Shares” represents the denominator (in thousands, except per share amounts):


   

Three Months Ended
October 31,

   

Nine Months Ended
October 31,

 
   

2013

   

2012

   

2013

   

2012

 

Basic:

                               

Net income (loss)

  $ 551     $ (2,244 )   $ (1,717 )   $ (2,805 )

Weighted average shares outstanding

    14,470       7,613       14,300       7,518  

Basic income (loss) per share

  $ 0.04     $ (0.29 )   $ (0.12 )   $ (0.37 )
                                 

Diluted:

                               

Net income (loss)

  $ 551     $ (2,244 )   $ (1,717 )   $ (2,805 )

Weighted average shares outstanding

    14,470       7,613       14,300       7,518  

Effect of dilutive securities – stock options

    74       —       —       —  

Weighted average shares used in the calculation of diluted income (loss) per share

    14,544       7,613       14,300       7,518  

Diluted income (loss) per share

  $ 0.04     $ (0.29 )   $ (0.12 )   $ (0.37 )