Earnings per share

3 Months Ended

Jan. 31, 2019

Note 6 - Earnings per share

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding increased by the effects of assuming that other potentially dilutive securities (such as stock options) outstanding during the period had been exercised and the treasury stock method had been applied. Potentially issuable securities totaling 93,000 and 771,973 shares for the three months ended January 31, 2019 and 2018, respectively, were excluded from the calculation of diluted per share amounts because of their anti-dilutive effect.

The following table summarizes the computation of basic and diluted weighted average shares outstanding:

	Three Months Ended January 31,
	2019		2018

Weighted average shares outstanding for basic earnings per share		9,309,454		8,880,384

Add effects of potentially dilutive securities-assumed exercise of stock options		528,700		218,917

Weighted average shares outstanding for diluted earnings per share		9,838,154		9,099,301