Note 6 - Earnings Per Share

6 Months Ended

Apr. 30, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

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 420,223 and 321,338 shares for the three months ended April 30, 2022 and 2021, respectively, and 459,889 and 331,338 shares for the six months ended April 30, 2022 and 2021, 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 April 30,				Six Months Ended April 30,
	2022		2021		2022		2021
Weighted average shares outstanding for basic earnings per share		10,107,687		9,963,291		10,087,309		9,927,776
Add effects of potentially dilutive securities-assumed exercise of stock options		135,949		166,181		142,395		169,140
Weighted average shares outstanding for diluted earnings per share		10,243,636		10,129,472		10,229,704		10,096,916