Note 9 - Net Income Per Common Share

6 Months Ended

Feb. 28, 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 six months ended February 28, 2023 and 2022:

	Three Months Ended February 28,				Six Months Ended February 28,
Numerator:	2023		2022		2023		2022
Net income attributable to NTIC	$	885,248	$	182,847	$	1,387,490	$	4,676,606
Denominator:
Basic – weighted shares outstanding		9,366,357		9,214,817		9,353,989		9,211,858
Weighted shares assumed upon exercise of stock options		381,104		468,609		391,177		524,202
Diluted – weighted shares outstanding		9,747,461		9,683,426		9,745,166		9,736,060
Basic net income per share:	$	0.10	$	0.02	$	0.15	$	0.51
Diluted net income per share:	$	0.09	$	0.02	$	0.14	$	0.48

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 six months ended February 28, 2023 were options outstanding to purchase 305,514 shares of common stock. Excluded from the computation of diluted net income per share for the three and six months ended February 28, 2022, were options outstanding to purchase 311,061 shares of common stock.