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Note 2 - NTI ASEAN
 3 Months Ended
Nov. 30, 2012
Business Combination Disclosure [Text Block]
2.           NTI ASEAN

NTI Asean LLC (NTI Asean) is an entity that holds investments in eight entities operating in the Association of Southeast Asian Nations (ASEAN) region, including the following countries: China, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand.

Prior to September 1, 2012, the Company owned 50% of NTI Asean, which it considered to be less than a majority, of the equity and voting rights and accounted for its investment using the equity method.  On September 1, 2012, the Company obtained an additional 10% ownership interest in NTI Asean in exchange for a license agreement, and thereafter holds 60% of the equity and voting rights of NTI Asean.

The Company accounted for the transaction resulting in the additional ownership as a business combination.  Beginning in the first quarter of fiscal 2013, the Company consolidated the results of NTI Asean.  Immediately prior to the transaction, the Company re-measured the fair value of NTI Asean and determined that there was no difference between the fair value and the book value of the entity.  As a result, there was no accounting impact related to the business combination in the statement of operations.

The Company determined the fair value of NTI Asean using the capitalized income method, including a capitalization rate of 25%.  The allocation of the total transaction amount was as follow:

The allocation of the total transaction amount was as follow:

Net assets acquired (liabilities assumed):
     
Cash and cash equivalents
  $ 1,613,000  
Accounts receivables
    1,342,000  
Investments in JV
    4,967,000  
Value of assets
  $ 7,922,000  
         
Purchase price:
       
Fair value of non-controlling interest
  $ 3,961,000  
Value of previously held interest
    3,961,000  
Told consideration
  $ 7,922,000  

The following is a summary of certain line items of the Company’s consolidated statement of operations for the three months ended November 30, 2011 as reported and on a pro forma basis, assuming the consolidation of NTI Asean on the Company’s consolidated financial statements as of the beginning of such period:

   
As Reported
   
NTI
Asean
   
Eliminated in
Consolidation
   
Pro Forma
 
Net sales
  $ 4,832,114     $ —     $ —     $ 4,832,114  
Cost of goods sold
    3,209,476       —       —       3,209,476  
Gross profit
    1,622,638       —       —       1,622,638  
Joint venture operations
    2,802,932       830,898       (369,461 )     3,264,369  
Operating expenses
    3,393,068       2,665       —       3,395,733  
Operating income
    1,032,502       828,233       (369,461 )     1,491,274  
Income before income tax expense
    1,041,421       828,233       (369,461 )     1,500,193  
Income tax expense
    106,000       89,311       —       195,311  
Net income
    935,421       738,922       (369,461 )     1,304,882  
Net income attributable to non-controlling interest
    (23,336 )     (295,569 )     —       (318,905 )
Net income attributable to NTIC
    958,757       443,535       (369,461 )     1,032,831  
Net income per common diluted share
  $ 0.22     $ 0.10     $ (0.08 )   $ 0.24