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,

2019

and

2018:

	Three Months Ended
	November 30, 2019		November 30, 2018
Numerator:
Net income attributable to NTIC	$	1,212,550	$	1,497,059

Denominator:
Basic – weighted shares outstanding		9,095,607		9,084,350
Weighted shares assumed upon exercise of stock options		312,035		394,226
Diluted – weighted shares outstanding		9,407,642		9,478,576
Basic net income per share:	$	0.13	$	0.16
Diluted net income per share:	$	0.13	$	0.16

*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 is 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, 2019

were options outstanding to purchase

141,768

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

three

months ended

November 30, 2018

were options outstanding to purchase

141,768

shares of common stock.