5.	Net Income (Loss) Per Share

We calculate basic income (loss) per share by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted income (loss) per share reflects the effects of potentially dilutive securities. Because we incurred a net loss for the three months ended April 30, 2015, basic and diluted loss per share for this period was 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 3,073,736 and 2,950,000 relating to outstanding stock awards to directors and our employee, respectively, have been excluded from diluted weighted average common shares for the three months ended

April 30, 2016 and 2015 respectively, as the effect would have been antidilutive.

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

	Three Months Ended April 30,
	2016		2015

Net income (loss)	$	1,324	$	(311	)
Basic net loss per share:
Weighted-average shares outstanding-Basic		14,644		14,674
Basic net income (loss) per share	$	0.09	$	(0.02	)
Diluted net income (loss) per share:
Weighted average shares outstanding - basic		14,644		14,674
Effect of potentially dilutive securities		-		-
Weighted average shares outstanding - diluted		14,644		14,674
Diluted income (loss) per share	$	0.09	$	(0.02	)