Note 10- Net Income (Loss) per Share

12 Months Ended

Jan. 02, 2016

(10)	Net Income (Loss) Per Share

The Company uses the two-class method to compute basic and diluted earnings per common share. In periods of net loss, no effect is given to the Company’s participating securities as they do not contractually participate in the losses of the Company. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except share and per share data):

	2015		2014		2013
NUMERATOR:
Net income (loss) before allocation of earnings to participating securities	$	27,345	$	14,362	$	(2,112	)
Less: Earnings allocated to participating securities		520		439		-
Net income (loss)	$	26,825	$	13,923	$	(2,112	)

DENOMINATOR:
Weighted average number of common shares outstanding - basic		16,642,269		16,908,001		16,465,138
Dilutive effect of share-based awards:		225,087		225,810		-
Weighted average number of common shares outstanding - dilutive		16,867,356		17,133,811		16,465,138
Basic income (loss) per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	1.61	$	0.82	$	(0.13	)
Diluted income (loss) per common share attributable to Build-A-Bear Workshop, Inc. stockholders	$	1.59	$	0.81	$	(0.13	)

In calculating diluted earnings per share for fiscal

2015, 2014 and 2013

, options to purchase 65,040; 44,144; and 1,065,012 respectively, shares of common stock were outstanding at the end of the period, but were not included in the computation of diluted earnings per share due to their anti-dilutive effect under provisions of ASC 260-10.

Due to the net loss in fiscal 2013,

the denominator for diluted loss per common share is the same as the denominator for basic loss per common share for those periods because the inclusion of stock options would have been anti-dilutive.