Note 10 - Net Income Per Common Share

9 Months Ended

May 31, 2016

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 income per share computation:

	Three Months Ended				Nine Months Ended
Numerators:	May 31, 2016		May 31, 2015		May 31, 2016		May 31, 2015
Net income attributable to NTIC	$	917,373	$	905,435	$	575,233	$	1,785,056

Denominators:
Basic – weighted shares outstanding		4,538,970		4,525,109		4,538,005		4,519,279
Weighted shares assumed upon exercise of stock options		24,831		69,883		49,059		116,282
Diluted – weighted shares outstanding		4,563,801		4,594,992		4,587,064		4,635,561
Basic income per share:	$	0.20	$	0.20	$	0.13	$	0.40
Diluted income per share:	$	0.20	$	0.20	$	0.13	$	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. Income per share was based on the weighted average number of shares of common stock outstanding during the periods when computing the basic income per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted income per share.

Excluded from the computation of diluted income per share for the three and nine months ended May 31, 2016 were options outstanding to purchase 170,887 shares of common stock. Excluded from the computation of diluted income per share for the three and nine months ended May 31, 2015 were options outstanding to purchase 45,067 shares of common stock.