JanOne Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

6 Months Ended

Jul. 04, 2015

Earnings per Share

Basic income per common share is computed based on the weighted average number of common shares outstanding. Diluted income per common share is computed based on the weighted average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive shares of Common Stock include unexercised stock options and warrants. Basic per share amounts are computed, generally, by dividing net income attributable to controlling interest by the weighted average number of common shares outstanding. Diluted per share amounts assume the conversion, exercise or issuance of all potential Common Stock instruments unless their effect is anti-dilutive, thereby reducing the loss or increasing the income per common share. In calculating diluted weighted average shares and per share amounts, we included stock options and warrants with exercise prices below average market prices, for the respective reporting periods in which they were dilutive, using the treasury stock method. We calculated the number of additional shares by assuming the outstanding stock options were exercised and that the proceeds from such exercises were used to acquire Common Stock at the average market price during the quarter. For the three months and the six months ended July 4, 2015, we excluded options and warrants to purchase 507 and 717 shares of common stock from the diluted weighted average share outstanding calculation as the effect of these options and warrants were anti-dilutive. For the three months and six months ended June 28, 2014, we excluded options and warrants to purchase 386 and 375 shares of common stock from the diluted weighted average shares outstanding calculation as the effect of these options were anti-dilutive.

A reconciliation of the denominator in the basic and diluted income (loss) per share is as follows:



	Three Months Ended				Six Months Ended
	July 4, 2015		June 28, 2014		July 4, 2015			June 28, 2014
Numerator:
Net income (loss) attributable to controlling interest	$	602	$	351	$	(1,098	)	$	1,079

Denominator:
Weighted average shares outstanding — basic	5,801		5,581		5,798			5,579
Employee stock options	1		111		—			101
Stock warrants	—		200		—			197
Weighted average shares outstanding — diluted	5,802		5,892		5,798			5,877

Income (loss) per share:
Basic	$	0.10	$	0.06	$	(0.19	)	$	0.19
Diluted	$	0.10	$	0.06	$	(0.19	)	$	0.18