Quarterly report pursuant to Section 13 or 15(d)

Net income (loss) per share

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Net income (loss) per share
3 Months Ended
Oct. 31, 2016
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]

Note 2 – Net income (loss) per share


Basic net income (loss) per share represents net income (loss) divided by the weighted average number of common shares outstanding during the period. As a result of the net loss for the three months ended October 31, 2016 diluted weighted average shares outstanding are the same as basic weighted average shares outstanding, and do not include the potential common shares from stock options and unvested restricted stock because to do so would be antidilutive.


For the three months ended October 31, 2016, the number of potential common shares (“in the money options”) and unvested restricted stock excluded from the calculation of diluted earnings per share was 720,000. For the three months ended October 31, 2015, approximately 125,000 weighted average stock options were included in the calculation of diluted weighted average shares outstanding.


For the three months ended October 31, 2015, the effect of approximately 374,000 of outstanding “out of the money” options to purchase common shares were excluded from the calculation of diluted net income per share because their effect would be anti-dilutive. There were no outstanding “out of the money” options to purchase common shares for the three months ended October 31, 2016.