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 net income per share computation for the

three

and

nine

months ended

May 31, 2017

and

2016:

	Three Months Ended				Nine Months Ended
Numerators:	May 31, 2017		May 31, 2016		May 31, 2017		May 31, 2016
Net income attributable to NTIC	$	1,352,416	$	917,373	$	2,037,021	$	575,233
Denominators:
Basic – weighted shares outstanding		4,526,771		4,538,970		4,528,523		4,538,005
Weighted shares assumed upon exercise of stock options		64,756		24,831		42,872		49,059
Diluted – weighted shares outstanding		4,591,527		4,563,801		4,571,395		4,587,064
Basic income per share:	$	0.30	$	0.20	$	0.45	$	0.13
Diluted income per share:	$	0.30	$	0.20	$	0.45	$	0.13

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

271,791

options outstanding as of

May 31, 2017,

that were dilutive.

Excluded from the computation of diluted income per share for the

three

and

nine

months ended

May 31, 2017

were options outstanding to purchase

48,067

shares of common stock. Excluded from the computation of diluted earnings per share for the

three

and

nine

months ended

May 31, 2016

were options outstanding to purchase

170,887

shares of common stock.