Audiovox 2005 Annual Report Download - page 74

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(q) Net Income (Loss) Per Common Share
Basic net income (loss) per common share is based upon the
weighted average number of common shares outstanding during the
period. Diluted net income (loss) per common share reflects the
potential dilution that would occur if securities or other
contracts to issue common stock were exercised or converted into
common stock.
A reconciliation between the denominators of the basic and
diluted income (loss) per common share is as follows:
YEARS ENDED NOVEMBER 30,
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
2003 2004 2005
−−−−−−−−−−−−−−−− −−−−−−−−−−−−−−− −−−−−−−−−−−−−−−
Weighted−average number of common
shares outstanding (denominator for
net income (loss) per common
share, basic) 21,854,610 21,955,292 22,278,542
Effect of dilutive securities:
Stock options and stock warrants 199,710 417,842 −
−−−−−−−−−−−− −−−−−−−−−−−− −−−−−−−−−−−−
Weighted−average number of common
and potential common shares
outstanding (denominator for net
income (loss) per common share,
diluted) 22,054,320 22,373,134 22,278,542
========== ========== ==========
Stock options and stock warrants totaling 1,540,000, 366,250 and
611,923 for the years ended November 30, 2003, 2004 and 2005,
respectively, were not included in the net income (loss) per
common share calculation because the exercise price of these
options and warrants were greater than the average market price
of common stock during the period or these options and warrants
were anti−dilutive due to losses during the period
(r) Other Income (Loss)
Other income (loss) is comprised of the following:
YEARS ENDED NOVEMBER 30,
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
2003 2004 2005
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
CellStar impairment (Note 1 (e)) $ (21) $ − $ (1,758)
Bliss−tel (Note 14) − − 4,971
Interest Income 470 795 3,813
Rental income 55 106 610
R Royalties and other (555) 1,535 2,094
−−−−−− −−−−− −−−−−
Total−Other, net $(51) $2,436 $ 9,730
====== ====== ======
(s) Accounting for the Impairment of Long−Lived Assets and for Long−Lived Assets
to be disposed of
Long−lived assets and certain identifiable intangibles are
reviewed for impairment in accordance with SFAS No. 144,
"Accounting for the Impairment or Disposal of Long−Lived
F−20