EARNINGS PER SHARE

6 Months Ended

Aug. 31, 2022

NOTE 10 - EARNINGS PER SHARE

Basic earnings (loss) per share is computed by dividing net income (loss) 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. The calculation of the basic and diluted loss per share of common stock is as follows (in thousands, except per share value):

	Three Months Ended						Six Months Ended
	August 31,						August 31,
	2022			2021			2022			2021
Net loss from continuing operations	$	(7,494	)	$	(5,425	)		(19,667	)		(11,425	)
Net income from discontinued operations, net of tax		-			-			-			4,052
Net loss	$	(7,494	)	$	(5,425	)	$	(19,667	)	$	(7,373	)

Basic weighted average number of common shares outstanding		36,006			35,152			35,864			34,998
Effect of stock options and restricted stock units computed on treasury stock method		—			—			—			—
Diluted weighted average number of common shares outstanding		36,006			35,152			35,864			34,998

Basic net income (loss) per common share:
Loss from continuing operations	$	(0.21	)	$	(0.15	)	$	(0.55	)	$	(0.33	)
Income from discontinued operations	$	-		$	-		$	-		$	0.12
Diluted net income (loss) per common share:
Loss from continuing operations	$	(0.21	)	$	(0.15	)	$	(0.55	)	$	(0.33	)
Income from discontinued operations	$	-		$	-		$	-		$	0.12

All outstanding options and restricted stock units for the three and six months ended August 31, 2022 and 2021 were excluded from the computation of diluted loss per share because we reported a net loss for each of these periods and the effect of inclusion would be antidilutive.

We adopted ASU 2020-06 on March 1, 2022 under the modified retrospective method and applied the new guidance to our 2025 Convertible Notes outstanding as of that date. We have not changed previously disclosed amounts or provided additional disclosures for comparative periods. ASU 2020-06 requires the if-converted method to be applied for all convertible instruments when calculating diluted earnings per share. Under the if-converted method, diluted earnings per share will be calculated assuming that all the Convertible Notes were converted solely into shares of common stock at the beginning of the reporting period, unless the result would be anti-dilutive. Since we had a net loss for the three and six months ended August 31, 2022, respectively, the 2025 Convertible Notes were determined to be anti-dilutive and therefore had no impact to basic or diluted net loss per share for the period as a result of adopting the new pronouncement.