Earnings Per Share
A reconciliation of net income and number of shares used in computing basic and diluted earnings per share was as follows:
| | | | | | | | | | | |
| | Year Ended April 30, |
| | 2025 | | 2024 |
| Basic and diluted net income (loss) per share computation (dollars in thousands): | | | |
| Net income (loss) attributable to common stockholders | $ | 4,701 | | | $ | (7,276) | |
| Weighted Average common shares - basic and diluted | 13,659,786 | | | 13,547,604 | |
| Basic and diluted net income (loss) per share | $ | 0.34 | | | $ | (0.54) | |
| | | |
| Diluted income (loss) per share computation | | | |
| Net income (loss) attributable to common stockholders | $ | 4,701 | | | $ | (7,276) | |
| | | |
| | | |
| | | |
| Weighted Average common shares | 13,659,786 | | | 13,547,604 | |
| Incremental shares from assumed exercise of stock options | 606,995 | | | — | |
| Adjusted weighted average share – diluted | 14,266,781 | | | 13,547,604 | |
| | | |
| Diluted net income (loss) per share | $ | 0.33 | | | $ | (0.54) | |
The following table reflects the total potential stock-based instruments outstanding at April 30, 2025 and 2024 that could have an effect on the future computation of dilution per common share. These figures were not included in the above calculation as, to do so, would be antidilutive:
| | | | | | | | | | | |
| | Year Ended April 30, |
| | 2025 | | 2024 |
| Stock options | 126,353 | | | 1,919,497 | |
| | | |
| | | |
| Total common stock equivalents | 126,353 | | | 1,919,497 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.