Note 11 - Net Income Per Common Share

12 Months Ended

Aug. 31, 2015

11. 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 45,067 and 22,000 were excluded from the computation of common share equivalents for fiscal 2015, 2014 and 2013, respectively, 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:

Numerator:	August 31, 2015		August 31, 2014		August 31, 2013
Net income attributable to NTIC	$	1,789,571	$	4,106,372	$	3,366,894

Denominator:
Basic-weighted shares outstanding		4,521,788		4,454,836		4,421,636
Weighted shares assumed upon exercise of stock options		127,272		124,662		54,259
Diluted – weighted shares outstanding		4,649,060		4,579,498		4,475,895

Basic earnings per share:	$	0.40	$	0.92	$	0.76
Diluted earnings per share:	$	0.38	$	0.90	$	0.75

The dilutive impact summarized above relates to the periods when the average market price of Company 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.