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

six

months ended

February 28, 2019

and

2018:

	Three Months Ended				Six Months Ended
Numerators:	February 28, 2019		February 28, 2018		February 28, 2019		February 28, 2018
Net income attributable to NTIC	$	1,401,568	$	1,332,847	$	2,898,627	$	2,416,473
Denominators:
Basic – weighted shares outstanding		4,542,177		4,537,408		4,542,175		4,537,368
Weighted shares assumed upon exercise of stock options		181,753		135,930		189,433		103,674
Diluted – weighted shares outstanding		4,723,930		4,673,338		4,731,608		4,641,042
Basic net income per share:	$	0.31	$	0.29	$	0.64	$	0.53
Diluted net income per share:	$	0.30	$	0.29	$	0.61	$	0.52

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. Net income per common share was based on the weighted average number of common shares outstanding during the periods when computing basic net income per share. When dilutive, stock options are included as equivalents using the treasury stock method when computing the diluted net income per share.

Excluded from the computation of diluted income per share for the

three

and

six

months ended

February 28, 2019,

were options outstanding to purchase

70,884

shares of common stock. There were

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

three

and

six

months ended

February 28, 2018.