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Note 9 - Net Income Per Common Share
 3 Months Ended
Nov. 30, 2020
Notes to Financial Statements  
Earnings Per Share [Text Block]

9.     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, 2020 and 2019:

 

  

Three Months Ended

 

Numerator:

 

November 30, 2020

  

November 30, 2019

 

Net income attributable to NTIC

 $1,262,399  $1,212,550 
         

Denominator:

        

Basic – weighted shares outstanding

  9,104,623   9,095,607 

Weighted shares assumed upon exercise of stock options

  540,007   312,035 

Diluted – weighted shares outstanding

  9,644,630   9,407,642 

Basic net income per share:

 $0.14  $0.13 

Diluted net income per share:

 $0.13  $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. 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, 2020 were options outstanding to purchase 605,629 shares of common stock. 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.