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Note 9 - Net Income Per Common Share
 9 Months Ended
May 31, 2013
Earnings Per Share [Text Block]  
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 40,000 were excluded from the computation of common share equivalents for the three and nine months ended May 31, 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 nine months ended May 31, 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 nine months ended May 31, 2013 and 2012:

   
Three Months Ended
   
Nine Months Ended
 
Numerators:
 
May 31, 2013
   
May 31, 2012
   
May 31, 2013
 
May 31, 2012
 
Net income attributable to NTIC
  $ 927,112     $ 1,454,037     $ 1,751,144     $ 3,018,987  
                                 
Denominator:
                               
Basic – weighted shares outstanding
    4,421,379       4,399,290       4,415,452       4,379,175  
Weighted shares assumed upon exercise of stock options
    47,482       61,754       49,322       65,297  
Diluted – weighted shares outstanding
    4,468,861       4,461,044       4,464,774       4,448,472  
Basic earnings per share:
  $ 0.21     $ 0.33     $ 0.40     $ 0.69  
Diluted earnings per share:
  $ 0.21     $ 0.33     $ 0.39     $ 0.68  

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.