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Note 9 - Net Income Per Common Share
 9 Months Ended
May 31, 2023
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 and nine months ended May 31, 2023 and 2022:

 

   

Three Months Ended May 31,

    

Nine Months Ended May 31,

  

Numerator:

  

2023

(Restated)

    

2022

    

2023

(Restated)

    

2022

  

Net income attributable to NTIC

   $ 1,059,590     $ 1,000,167     $ 1,973,329     $ 5,676,773  

Denominator:

                                

Basic – weighted shares outstanding

     9,369,923       9,227,912       9,355,776       9,216,216  

Weighted shares assumed upon exercise of stock options

     258,146       350,885       346,834       466,430  

Diluted – weighted shares outstanding

     9,628,069       9,578,797       9,702,610       9,682,646  

Basic net income per share:

   $ 0.11     $ 0.11     $ 0.21     $ 0.62  

Diluted net income per share:

   $ 0.11     $ 0.11     $ 0.20     $ 0.59  

 

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 and nine months ended May 31, 2023 were options outstanding to purchase 322,246 shares of common stock. Excluded from the computation of diluted net income per share for the three and nine months ended May 31, 2022 were options outstanding to purchase 327,793 shares of common stock.