Note 10 - Net Income Per Common Share

9 Months Ended

May. 31, 2015

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.

The following is a reconciliation of the net income per share computation for the three and nine months ended May 31, 2015 and 2014:

	Three Months Ended				Nine Months Ended
Numerators:	May 31, 2015		May 31, 2014		May 31, 2015		May 31, 2014
Net income attributable to NTIC	$	905,435	$	980,217	$	1,785,056	$	2,863,847

Denominator:
Basic – weighted shares outstanding		4,525,109		4,461,880		4,519,279		4,452,798
Weighted shares assumed upon exercise of stock options		69,883		128,464		116,282		130,376
Diluted – weighted shares outstanding		4,594,992		4,590,344		4,635,561		4,583,174
Basic earnings per share:	$	0.20	$	0.22	$	0.40	$	0.64
Diluted earnings per share:	$	0.20	$	0.21	$	0.39	$	0.63

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 (loss) per common share were based on the weighted average number of common shares outstanding during the periods when computing the basic earnings (loss) per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted earnings (loss) per share.