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Note 9 - Net Income Per Common Share
 3 Months Ended
Nov. 30, 2011
Earnings Per Share [Text Block]
9.           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.

Options to purchase shares of common stock of 26,000 were excluded from the computation of common share equivalents for both the three months ended November 30, 2011 and 2010, as the exercise prices of such options were greater than market price of a share of common stock.

The following is a reconciliation of the earnings per share computation for the three months ended November 30, 2011 and 2010:

   
Three Months Ended
 
Numerators:
 
November 30,
2011
   
November 30,
2010
 
Net income
  $ 958,757     $ 899,781  
                 
Denominator:
               
Basic – weighted shares outstanding
    4,355,666       4,264,187  
Weighted shares assumed upon exercise of stock options
    78,058       60,570  
Diluted – weighted shares outstanding
    4,433,724       4,324,757  
Basic earnings per share:
  $ 0.22     $ 0.21  
Diluted earnings per share:
  $ 0.22     $ 0.21  

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.