Note 10 - Net Income Per Common Share

9 Months Ended

May 31, 2025

Notes to Financial Statements

Earnings Per Share [Text Block]

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 and the settlement of restricted stock units 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, 2025 and 2024:

	Three Months Ended				Nine Months Ended
Numerator:	May 31, 2025		May 31, 2024		May 31, 2025		May 31, 2024
Net income attributable to NTIC	$	121,775	$	976,604	$	1,117,185	$	3,573,294
Denominator:
Basic – weighted shares outstanding		9,474,363		9,431,134		9,475,967		9,432,684
Weighted shares assumed upon exercise of stock options and settlement of restricted stock units		65,403		584,540		210,679		386,536
Diluted – weighted shares outstanding		9,539,766		10,015,674		9,686,646		9,819,220
Basic net income per share:	$	0.01	$	0.10	$	0.12	$	0.38
Diluted net income per share:	$	0.01	$	0.10	$	0.12	$	0.36

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 and restricted stock units are included as equivalents using the treasury stock market method when computing the diluted net income per share. Excluded from the computation of diluted net income per share for the three and nine months ended May 31, 2025 were options outstanding to purchase 1,445,960 shares of common stock. Excluded from the computation of diluted net income per share for the three and nine months ended May 31, 2024 were options outstanding to purchase 305,514 shares of common stock.