Shareholders' Equity

3 Months Ended

May 31, 2022

Shareholders' Equity

Note 9. – Shareholders’ Equity

Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing income or loss available to common shareholders by the weighted average number of common shares outstanding during each period. Shares issued during the period are weighted for the portion of the period that they were outstanding. Diluted earnings (loss) per share is calculated in a manner consistent with that of basic earnings (loss) per share while giving effect to all potentially dilutive common shares that were outstanding during the period.

The following table sets forth the computation of basic and diluted earnings (loss) per share for the three-month periods ended May 31, 2022 and 2021 (in thousands, except per share data):

				Weighted
				Average		Loss
	Net			Common Shares		Per
	Loss			Outstanding		Share
Three months ended May 31, 2022
Basic	$	(295	)		5,878	$	(0.05	)
Effect of dilution:
Options		—			—		—
Diluted	$	(295	)		5,878	$	(0.05	)
Three months ended May 31, 2021
Basic	$	(745	)		5,878	$	(0.13	)
Effect of dilution:
Options		—			—		—
Diluted	$	(745	)		5,878	$	(0.13	)

Stock options, debentures, and other liabilities convertible into 200,000 shares, of the Company’s common stock were anti-dilutive and, therefore, were excluded from the May 31, 2022 and 2021 diluted earnings (loss) per share calculations. For the three-month period ended May 31, 2022 and May 31, 2021, there was no expense related to share-based compensation as all options were fully vested. No options were granted for the three month period ending May 31, 2022 or for the three month period ended May 31, 2021.

Stock Repurchase Program

The Company has a stock repurchase program, pursuant to which it had been authorized to repurchase up to 2,632,500 shares of the Company’s common stock in the open market. On January 20, 2014, the Board of Directors of the Company approved a one-time continuation of the stock repurchase program, and authorized the Company to repurchase up to 1,500,000 additional shares of the Company’s common stock in the open market. There is no minimum number of shares required to be repurchased under the program.

For the quarter ending May 31, 2022 and May 31, 2021, the Company did not purchase any shares of the Video Display Corporation stock. Under the Company’s stock repurchase program, an additional 490,186 shares remain authorized to be repurchased by the Company at May 31, 2022.