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,

2017

and

2016:

	Three Months Ended
Numerator:	November 30, 2017		November 30, 2016
Net income attributable to NTIC	$	1,083,626	$	297,639

Denominator:
Basic – weighted shares outstanding		4,537,368		4,531,950
Weighted shares assumed upon exercise of stock options		71,420		26,928
Diluted – weighted shares outstanding		4,608,788		4,558,878
Basic earnings per share:	$	0.24	$	0.07
Diluted earnings per share:	$	0.24	$	0.07

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.

Excluded from the computation of diluted income per share for the

three

months ended

November 30, 2017

were options outstanding to purchase

92,319

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

three

months ended

November 30, 2016

were options outstanding to purchase

211,564

shares of common stock.