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Note 9 - Net (Loss) Income Per Common Share
 12 Months Ended
Aug. 31, 2020
Notes to Financial Statements  
Earnings Per Share [Text Block]
9.
       NET (LOSS) INCOME PER COMMON SHARE
 
Basic net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of common shares outstanding. Diluted net (loss) 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 fiscal
2020
and fiscal
2019:
 
Numerator:   August 31, 2020   August 31, 2019
Net (loss) income attributable to NTIC   $
(1,337,709
 )   $
5,209,622
  
                 
Denominator:                
Basic-weighted shares outstanding    
9,096,981
      
9,085,584
  
Weighted shares assumed upon exercise of stock options    
-
      
330,390
  
Diluted – weighted shares outstanding    
9,096,981
      
9,415,974
  
                 
Basic net (loss) income per share:   $
(0.15
 )   $
0.57
  
Diluted net (loss) income per share:   $
(0.15
 )   $
0.55
  
 
*Share and per share data have been adjusted for all periods presented to reflect the
two
-for-
one
stock split effective
June 28, 2019.
 
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 the 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 as of
August 31, 2020
were options outstanding to purchase
1,127,968
shares of common stock due to the net loss for the period. Excluded from the computation of diluted net income per share as of
August 31, 2019
were options outstanding to purchase
141,768
shares of common stock.