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:

	Three Months Ended				Nine Months Ended
Numerators:	May 31, 2018		May 31, 2017		May 31, 2018		May 31, 2017
Net income attributable to NTIC	$	2,142,752	$	1,352,416	$	4,559,225	$	2,037,021
Denominators:
Basic – weighted shares outstanding		4,539,353		4,526,771		4,538,838		4,528,523
Weighted shares assumed upon exercise of stock options		167,679		64,756		125,009		42,872
Diluted – weighted shares outstanding		4,707,032		4,591,527		4,663,847		4,571,395
Basic income per share:	$	0.47	$	0.30	$	1.00	$	0.45
Diluted income per share:	$	0.46	$	0.30	$	0.98	$	0.45

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. There were

shares excluded from the computation of diluted income per share for the

three

and

nine

months ended

May 31, 2018.

Excluded from the computation of diluted earnings per share for the

three

and

nine

months ended

May 31, 2017

were options outstanding to purchase

48,067

shares of common stock.