Note 10 - Net Income (Loss) Per Common Share

12 Months Ended

Aug. 31, 2016

10. NET INCOME (LOSS) PER COMMON SHARE

Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted net income (loss) 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 were excluded from the computation of common share equivalents for fiscal 2015, 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, 2016			August 31, 2015
Net (loss) income attributable to NTIC	$	(867,514	)	$	1,789,571

Denominator:
Basic-weighted shares outstanding		4,537,504			4,521,788
Weighted shares assumed upon exercise of stock options		0			127,272
Diluted – weighted shares outstanding		4,537,504			4,649,060

Basic income (loss) earnings per share:	$	(0.19	)	$	0.40
Diluted income (loss) earnings per share:	$	(0.19	)	$	0.38

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. 170,887 of shares of common stock were excluded because the effect was anti-dilutive due to the Company’s net loss for fiscal 2016.