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:

Numerator:	August 31, 2019		August 31, 2018
Net income attributable to NTIC	$	5,209,622	$	6,701,366

Denominator:
Basic-weighted shares outstanding		9,085,584		9,077,676
Weighted shares assumed upon exercise of stock options		330,390		292,728
Diluted – weighted shares outstanding		9,415,974		9,370,404

Basic earnings per share:	$	0.57	$	0.74
Diluted earnings per share:	$	0.55	$	0.72

*Share and per share data have been adjusted for all periods presented to reflect the

two

-for-

one

stock split effective

June 28, 2019.

The dilutive impact summarized above relates to the periods when the average market price of Company 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. Excluded from the computation of diluted net income per share as of

August 31, 2019

were options to purchase

141,768

shares of common stock. There were

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

August 31, 2018.