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. For the three and nine months ended April 30, 2021, approximately 397,000 and 104,000 weighted average stock options and performance stock units respectively were included in the calculation of diluted weighted average shares outstanding. As a result of the net loss for the three and nine month periods ended April 30, 2020, 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 performance stock units because to do so would be antidilutive. For the three and nine months ended April 30, 2020, approximately 40,000 and 56,000 respectively, of potential common shares (“in the money options”) were excluded from the calculation of diluted earnings per share.

For the three and nine months ended April 30, 2021, the effect of approximately 814,000 and 1,686,000 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. For the three and nine months ended April 30, 2020, the effect of approximately 2,201,000 and 1,805,000 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.