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Note 8 - Net Income Per Common Share
 9 Months Ended
May 31, 2014
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
8.           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 and nine months ended May 31, 2014, as the exercise prices of such options were less than market price of a share of common stock.  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.

The following is a reconciliation of the earnings per share computation for the three and nine months ended May 31, 2014 and 2013:

   
Three Months Ended
   
Nine Months Ended
 
Numerators:
 
May 31, 2014
   
May 31, 2013
   
May 31, 2014
   
May 31, 2013
 
Net income attributable to NTIC
  $ 980,217     $ 927,112     $ 2,863,847     $ 1,751,144  
                                 
Denominator:
                               
Basic – weighted shares outstanding
    4,461,880       4,421,379       4,452,798       4,415,452  
Weighted shares assumed upon exercise of stock options
    128,464       47,482       130,376       49,322  
Diluted – weighted shares outstanding
    4,590,344       4,468,861       4,583,174       4,464,774  
Basic earnings per share:
  $ 0.22     $ 0.21     $ 0.64     $ 0.40  
Diluted earnings per share:
  $ 0.21     $ 0.21     $ 0.63     $ 0.39  

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.