Note 9 - Net Income Per Common Share

3 Months Ended

Nov. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

9.           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.

The following is a reconciliation of the earnings per share computation for the three months ended November 30, 2014 and 2013:

	Three Months Ended
Numerator:	November 30, 2014		November 30, 2013
Net income attributable to NTIC	$	1,008,265	$	858,586
Denominator:
Basic – weighted shares outstanding		4,518,973		4,434,770
Weighted shares assumed upon exercise of stock options		140,648		117,899
Diluted – weighted shares outstanding		4,659,621		4,552,669
Basic earnings per share:	$	0.22	$	0.19
Diluted earnings per share:	$	0.22	$	0.19

The dilutive impact summarized above relates to the periods when the average market price of the Company’s common 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. All options outstanding as of November 30, 2014 and November 30, 2013 were dilutive.