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Note 11 - Net Income Per Common Share

12 Months Ended

Aug. 31, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

11. 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 fiscal 2022 and fiscal 2021:

Numerator:		August 31, 2022				August 31, 2021
Net income attributable to NTIC		$	6,324,700			$	6,281,238

Denominator:
Basic-weighted shares outstanding			9,216,216				9,116,472
Weighted shares assumed upon exercise of stock options			418,812				757,667
Diluted – weighted shares outstanding			9,635,028				9,874,139

Basic net income per share:		$	0.69			$	0.69
Diluted net income per share:		$	0.66			$	0.64

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, 2022 were options outstanding to purchase 600,094 shares of common stock. Excluded from the computation of diluted net income per share as of August 31, 2021 were options outstanding to purchase 136,221 shares of common stock.