Note 9 - Net Income Per Common Share

3 Months Ended

Nov. 30, 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 months ended November 30, 2023 and 2022:

	Three Months Ended
	November 30, 2023		November 30, 2022
Numerator:
Net income attributable to NTIC	$	895,521	$	502,242
Denominator:
Basic – weighted shares outstanding		9,427,588		9,317,680
Weighted shares assumed upon exercise of stock options		278,993		401,251
Diluted – weighted shares outstanding		9,706,581		9,718,931
Basic net income per share:	$	0.09	$	0.05
Diluted net income per share:	$	0.09	$	0.05

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 months ended November 30, 2023 were options outstanding to purchase 580,869 shares of common stock. Excluded from the computation of diluted net income per share for the three months ended November 30, 2022 were options outstanding to purchase 305,514 shares of common stock.