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, 2021, 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 or unearned performance stock units because to do so would be antidilutive. For the three months ended October 31, 2021, approximately 541,000 of potential common shares (“in the money options”) and unvested performance stock units were excluded from the calculation of diluted (loss) per share. For the three months ended October 31, 2020, approximately 10,000 weighted average stock options and unvested performance stock units were included in the calculation of diluted weighted average shares outstanding.

For the three months ended October 31, 2021 and 2020, the effect of approximately 793,000 and 2,146,000 of outstanding “out of the money” options to purchase common shares were excluded from the calculation of diluted net (loss) income per share because their effect would be anti-dilutive.