Note 15: Earnings Per Share

Net income (loss) per share is calculated using the weighted average number of shares of common stock outstanding during the applicable period. Basic weighted average common shares outstanding do not include shares of restricted stock that have not yet vested, although such shares are included as outstanding shares in the Company’s Consolidated Balance Sheet. Diluted net income (loss) per share is computed using the weighted average number of common shares outstanding and if dilutive, potential common shares outstanding during the period. Potential common shares consist of the additional common shares issuable in respect of restricted share awards, stock options and convertible preferred stock.

Potentially dilutive securities totaling 120,000 and 116,500 were excluded from the calculation of diluted earnings per share for the 13 weeks ended April 1, 2023 and April 2, 2022, respectively, because the effects were anti-dilutive based on the application of the treasury stock method. Additionally, 222,588 shares of Series A-1 Preferred Stock, convertible into approximately 4.5 million of the Company’s common shares, and 100,000 shares of Series S Preferred Stock, convertible into 100,000 of the Company's commons shares, were excluded from the calculation of diluted earnings per share as, by agreement, these shares could not be converted as of April 1, 2023.