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.

The following is a reconciliation of the earnings per share computation:

Numerator:	August 31, 2017		August 31, 2016
Net income (loss) attributable to NTIC	$	3,422,126	$	(867,514	)

Denominator:
Basic-weighted shares outstanding		4,528,611		4,537,504
Weighted shares assumed upon exercise of stock options		48,748		—
Diluted – weighted shares outstanding		4,577,359		4,537,504

Basic income (loss) earnings per share:	$	0.76	$	(0.19	)
Diluted income (loss) earnings per share:	$	0.75	$	(0.19	)

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. There were

48,067

options outstanding as of

August 31, 2017

that were dilutive.

170,887

shares of common stock were excluded from the computation as of

August 31, 2016

because the effect was anti-dilutive due to the Company’s net loss for fiscal

2016.