Note 10 - Net Income Per Common Share

3 Months Ended

Nov. 30, 2015

10. 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.

The following is a reconciliation of the earnings per share computation for the three months ended November 30, 2015 and 2014:

	Three Months Ended
	November 30, 2015			November 30, 2014
Numerator:
Net (loss) income attributable to NTIC	$	(234,351	)	$	1,008,265

Denominator:
Basic – weighted shares outstanding		4,538,371			4,518,973
Weighted shares assumed upon exercise of stock options		-			140,648
Diluted – weighted shares outstanding		4,538,371			4,659,621
Basic (loss) earnings per share:	$	(0.05	)	$	0.22
Diluted (loss) earnings per share:	$	(0.05	)	$	0.22

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. There were no options outstanding as of November 30, 2015 that were dilutive.

Excluded from the computation of diluted earnings per share for the three months ended November 30, 2015 were all options outstanding of 295,181 due to the Company’s net loss for the period.