NORTHERN TECHNOLOGIES INTERNATIONAL CORP Earnings Per Share Disclosure
|
10. |
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 fiscal 2025 and fiscal 2024:
|
Numerator: |
August 31, 2025 |
August 31, 2024 |
||||||
|
Net income attributable to NTIC |
$ | 17,619 | $ | 5,409,082 | ||||
|
Denominator: |
||||||||
|
Basic-weighted shares outstanding |
9,476,085 | 9,434,020 | ||||||
|
Weighted shares assumed upon exercise of stock options |
163,592 | 399,430 | ||||||
|
Diluted – weighted shares outstanding |
9,639,676 | 9,833,450 | ||||||
|
Basic net income per share: |
$ | 0.00 | $ | 0.57 | ||||
|
Diluted net income per share: |
$ | 0.00 | $ | 0.55 | ||||
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 the 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 as of August 31, 2025 were options outstanding to purchase 1,833,783 shares of common stock. Excluded from the computation of diluted net income per share as of August 31, 2024 were options outstanding to purchase 305,514 shares of common stock.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 20, 2025 | Showing above |
| 2024 | Nov 19, 2024 | |
| 2023 | Nov 21, 2023 | |
| 2022 | Nov 15, 2022 | |
| 2021 | Nov 19, 2021 | |
| 2020 | Nov 13, 2020 | |
| 2019 | Nov 13, 2019 | |
| 2017 | Nov 21, 2017 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.