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Note 9 - Net Income Per Common Share
 9 Months Ended
May 31, 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. There was
no
dilution for the
three
months ended
May 31, 2020
due to the loss position of the Company.
71,273
shares were excluded from the computation for the
three
months ended
May 31, 2020.
 
The following is a reconciliation of the net income per share computation for the
three
and
nine
months ended
May 31, 2020
and
2019:
 
    Three Months Ended   Nine Months Ended
Numerator:   May 31, 2020   May 31, 2019   May 31, 2020   May 31, 2019
Net income attributable to NTIC   $
(965,221
 )   $
1,482,149
     $
427,163
     $
4,380,776
  
                                 
Denominator:                                
Basic – weighted shares outstanding    
9,099,990
      
9,084,354
      
9,096,981
      
9,085,584
  
Weighted shares assumed upon exercise of stock options    
-
      
308,090
      
215,933
      
355,274
  
Diluted – weighted shares outstanding    
9,099,990
      
9,392,444
      
9,312,914
      
9,440,858
  
Basic net income per share:   $
(0.11
 )   $
0.16
     $
0.05
     $
0.48
  
Diluted net income per share:   $
(0.11
 )   $
0.16
     $
0.05
     $
0.46
  
 
* 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 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 method when computing the diluted net income per share. Excluded from the computation of diluted net income per share for the
nine
months ended
May 31, 2020
were options outstanding to purchase
633,176
shares of common stock. Excluded from the computation of diluted net income per share for the
three
and
nine
months ended
May 31, 2019
were options outstanding to purchase
141,768
shares of common stock.