Note 7 - Loss Per Share

9 Months Ended

Jul. 31, 2023

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 7 – Loss per share

Basic loss per share is computed by dividing net loss 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. During the three and nine months ended July 31, 2023 we reported a net loss, and in periods with a net loss, the basic loss per share equals the diluted loss per share as all common stock equivalents are excluded from the per share calculation due to their anti-dilutive effect. Potentially issuable securities that are out-of-the-money totaled 814,154 and 471,464 shares for the three months ended July 31, 2023 and 2022, respectively, and 750,967 and 482,889 shares for the nine months ended July 31, 2023 and 2022, respectively, and 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 July 31,				Nine Months Ended July 31,
	2023		2022		2023		2022
Weighted average shares outstanding for basic earnings per share		10,290,265		10,127,244		10,267,652		10,100,767
Add effects of potentially dilutive securities-assumed exercise of stock options		-		111,688		-		132,442
Weighted average shares outstanding for diluted earnings per share		10,290,265		10,238,932		10,267,652		10,233,209