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EARNINGS PER SHARE
3 Months Ended
May 31, 2017
Loss per share:  
EARNINGS PER SHARE

NOTE 8 – EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options and restricted stock-based awards using the treasury stock method.

All outstanding options and restricted stock units at May 31, 2017 and 2016 were excluded from the computation of diluted earnings per share because the Company reported a net loss for all periods presented and the effect of inclusion would be antidilutive.

As described in Note 6, the Company has the option to pay cash, issue shares of common stock or any combination thereof for the aggregate amount due upon conversion of the Notes. The Company’s intent is to settle the principal amount of the Notes in cash upon conversion. As a result, only the shares issuable for the conversion value, if any, in excess of the principal amounts of the Notes would be included in diluted earnings per share. From the time of the issuance of Notes, the average market price of the Company’s common stock has been less than the $27.594 initial conversion price of the Notes, and consequently no shares have been included in diluted earnings per share for the conversion value of the Notes.