Note 10 - Net (Loss) Income Per Common Share

6 Months Ended

Feb. 29, 2016

0. NET (LOSS) INCOME PER COMMON SHARE

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

The following is a reconciliation of the (loss) income per share computation:

	Three Months Ended						Six Months Ended
Numerators:	February 29, 2016			February 28, 2015			February 29, 2016			February 28, 2015
Net (loss) income attributable to NTIC	$	(107,789	)	$	(128,644	)	$	(342,140	)	$	876,621
Denominators:
Basic – weighted shares outstanding		4,537,429			4,522,514			4,536,995			4,516,311
Weighted shares assumed upon exercise of stock options		-			-			-			139,481
Diluted – weighted shares outstanding		4,537,429			4,522,514			4,536,995			4,655,792
Basic (loss) income per share:	$	(0.02	)	$	(0.03	)	$	(0.08	)	$	0.20
Diluted (loss) income per share:	$	(0.02	)	$	(0.03	)	$	(0.08	)	$	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. (Loss) income per share were based on the weighted average number of shares of common stock outstanding during the periods when computing the basic (loss) income per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted (loss) income per share. There were no options outstanding as of February 29, 2016 that were dilutive.

Excluded from the computation of diluted (loss) income per share for the three and six months ended February 29, 2016 were all options outstanding to purchase 283,181 shares of common stock, due to the Company’s net loss in the period. Excluded from the computation of diluted (loss) income per share for the three months ended February 28, 2015 were all options outstanding to purchase 263,734 shares of common stock, due to the Company’s net loss in the period.