NOTE 10: EARNINGS PER SHARE

 

The following table sets forth the computation of basic and diluted earnings per share:

 

   February 28,
2025
   February 29,
2024
 
         
Numerator for basic and diluted earnings per share   $1,273,414   $1,441,463 
           
Denominator for basic earnings per share - weighted average    15,750,997    15,743,763 
           
Effects of dilutive securities:          
Stock options for employees, directors and outside consultants    19,105    30,244 
Denominator for diluted earnings per share    15,770,102    15,774,007 
           
Basic Earnings Per Share – Weighted Average   $0.08   $0.09 
           
Diluted Earnings Per Share – Weighted Average   $0.08   $0.09 

 

At February 28, 2025, the total number of stock options excluded from the computation of diluted income per share because the effect of inclusion would have been anti-dilutive is 192,275.

 

Historical Timeline

Fiscal YearFiled
2025May 28, 2025Showing above
2024May 23, 2024
2023May 25, 2023
2022May 24, 2022
2020May 29, 2020

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.