Note 10 - Net Income Per Common Share

12 Months Ended

Aug. 31, 2012

Earnings Per Share [Text Block]

10.           NET INCOME PER COMMON SHARE

Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding.  Diluted net income per share assumes the exercise of stock options using the treasury stock method, if dilutive.

Options to purchase shares of common stock of 48,000 were excluded from the computation of common share equivalents for fiscal 2012, as the exercise prices of such options were greater than market price of a share of common stock.  No options to purchase shares of common stock were excluded from the computation of common share equivalents for fiscal 2011.

The following is a reconciliation of the earnings per share computation for fiscal 2012 and fiscal 2011:

Numerators:	August 31, 2012		August 31, 2011
Net income attributable to NTIC	$	3,448,196	$	3,900,120
Denominator:
Basic – weighted shares outstanding		4,391,424		4,325,863
Weighted shares assumed upon exercise of stock options		60,170		78,237
Diluted – weighted shares outstanding		4,451,594		4,404,100
Basic earnings per share:	$	0.79	$	0.90
Diluted earnings per share:	$	0.78	$	0.89

The dilutive impact summarized above relates to the periods when the average market price of Company stock exceeded the exercise price of the potentially dilutive option securities granted.  Earnings per common share were based on the weighted average number of common shares outstanding during the periods when computing the basic earnings per share.  When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted earnings per share.