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Note 9 - Net Income Per Common Share
 6 Months Ended
Feb. 28, 2013
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 48,000 were excluded from the computation of common share equivalents for the three and six months ended February 28, 2013, as the exercise prices of such options were greater than market price of a share of common stock.  Options to purchase shares of common stock of 26,000 were excluded from the computation of common share equivalents for the three and six months ended February 29, 2012, 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 and six months ended February 28, 2013 and February 29, 2012:

   
Three Months Ended
   
Six Months Ended
 
Numerators:
 
February 28,
2013
   
February 29,
2012
   
February 28,
2013
   
February 29,
2012
 
Net income attributable to NTIC
  $ 434,410     $ 606,193     $ 824,032     $ 1,564,950  
                                 
Denominator:
                               
Basic – weighted shares outstanding
    4,418,821       4,398,356       4,409,954       4,366,932  
Weighted shares assumed upon exercise of stock options
    66,255       68,079       50,243       73,069  
Diluted – weighted shares outstanding
    4,485,076       4,466,435       4,460,197       4,440,001  
Basic earnings per share:
  $ 0.10     $ 0.14     $ 0.19     $ 0.36  
Diluted earnings per share:
  $ 0.10     $ 0.14     $ 0.18     $ 0.35  

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.