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

months ended

November

30,

2018

and

2017:

	Three Months Ended
Numerator:	November 30, 2018		November 30, 2017
Net income attributable to NTIC	$	1,497,059	$	1,083,626

Denominator:
Basic – weighted shares outstanding		4,542,175		4,537,368
Weighted shares assumed upon exercise of stock options		197,113		71,420
Diluted – weighted shares outstanding		4,739,288		4,608,788
Basic net income per share:	$	0.33	$	0.24
Diluted net income per share:	$	0.32	$	0.24

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. Net income per common share was based on the weighted average number of common shares outstanding during the periods when computing basic net income per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted net income per share.

Excluded from the computation of diluted net income per share for the

three

months ended

November 30, 2018

were options outstanding to purchase

70,884

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

three

months ended

November 30, 2017

were options outstanding to purchase

92,319

shares of common stock.