Note 9 - Net Income Per Common Share

3 Months Ended

Nov. 30, 2013

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.

No options to purchase shares of common stock were excluded from the computation of common share equivalents for the three months ended November 30, 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 48,000 were excluded from the computation of common share equivalents for the three months ended November 30, 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 months ended November 30, 2013 and 2012:

	Three Months Ended
Numerator:	November 30, 2013		November 30, 2012
Net income attributable to NTIC	$	858,586	$	389,622

Denominator:
Basic – weighted shares outstanding		4,434,770		4,406,205
Weighted shares assumed upon exercise of stock options		117,899		34,231
Diluted – weighted shares outstanding		4,552,669		4,440,436

Basic earnings per share:	$	0.19	$	0.09
Diluted earnings per share:	$	0.19	$	0.09

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.

- Definition

The entire disclosure for earnings per share.

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