Net Loss Per Common Share (Tables)

3 Months Ended

May 01, 2021

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Basic net loss per share is computed by dividing reported loss by the weighted average number of shares of common stock outstanding for the reported period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock of the Company during reported periods.

A reconciliation of net loss per share calculations and the number of shares used in the calculation of basic loss per share and diluted loss per share is as follows:


	Three-Month Periods Ended
	May 1,		May 2,
	2021		2020
Numerator:
Net loss	$	(3,228,000)	$	(6,828,000)
Earnings allocated to participating share awards (a)		—		—
Net loss attributable to common shares — Basic and diluted	$	(3,228,000)	$	(6,828,000)
Denominator:
Weighted average number of common shares outstanding — Basic (b)		15,517,454		8,290,790
Dilutive effect of stock options, non-vested shares and warrants (c)		—		—
Weighted average number of common shares outstanding — Diluted		15,517,454		8,290,790
Net loss per common share	$	(0.21)	$	(0.82)
Net loss per common share — assuming dilution	$	(0.21)	$	(0.82)

(a)

During fiscal 2018, the Company issued a restricted stock award that is a participating security. For the three-month periods ended May 1, 2021 and May 2, 2020, the entire undistributed loss is allocated to common shareholders.

(b)

For the three-month period ended May 1, 2021, the basic earnings per share computation included 21,000 outstanding fully-paid warrants to purchase shares of the Company’s common stock at a price of $0.001 per share.

For the three-month periods ended May 1, 2021 and May 2, 2020, there were 650,000 and 72,000 incremental in-the-money potentially dilutive common shares outstanding. The incremental in-the-money potentially dilutive common stock shares are excluded from the computation of diluted earnings per share, as the effect of their inclusion would be anti-dilutive.