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 earnings per share computation:

Numerator:	August 31, 2018		August 31, 2017
Net income attributable to NTIC	$	6,701,366	$	3,422,126

Denominator:
Basic-weighted shares outstanding		4,538,838		4,528,611
Weighted shares assumed upon exercise of stock options		146,364		48,748
Diluted – weighted shares outstanding		4,685,202		4,577,359

Basic earnings per share:	$	1.48	$	0.76
Diluted earnings per share:	$	1.43	$	0.75

The dilutive impact summarized above relates to the periods when the average market price of Company stock exceeded the exercise price of the potentially dilutive option securities granted. Earnings per common share were based on the weighted average number of common shares outstanding during the periods when computing the basic earnings per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted earnings per share. There were

shares excluded from the computation of diluted income per share as of

August 31, 2018.

Excluded from the computation of diluted earnings per share as of

August 31, 2017

were options outstanding to purchase

48,067

shares of common stock.