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Note 2 - NTI ASEAN | 6 Months Ended
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Feb. 28, 2013
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 consolidated statements 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:
Net assets acquired (liabilities assumed): |  |  |
Cash and cash equivalents |  | $ | 1,613,000 |
Accounts receivables |  |  | 1,342,000 |
Investments in joint ventures |  |  | 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 |
Total 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 February 29, 2012 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:
|  |  |  |  | NTI |  |  | Eliminated in |  |  |  |
|  | As Reported |  |  | Asean |  |  | Consolidation |  |  | Pro Forma |
Net sales |  | $ | 4,974,328 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,974,328 |
Cost of goods sold |  |  | 3,480,082 |  |  |  | — |  |  |  | — |  |  |  | 3,480,082 |
Gross profit |  |  | 1,494,246 |  |  |  | — |  |  |  | — |  |  |  | 1,494,246 |
Joint venture operations |  |  | 2,522,801 |  |  |  | 868,382 |  |  |  | (322,654 | ) |  |  | 3,068,529 |
Operating expenses |  |  | 3,325,228 |  |  |  | 20,470 |  |  |  | — |  |  |  | 3,345,698 |
Operating income |  |  | 691,819 |  |  |  | 847,912 |  |  |  | (322,654 | ) |  |  | 1,217,077 |
Income before income tax expense |  |  | 703,991 |  |  |  | 847,912 |  |  |  | (322,654 | ) |  |  | 1,229,249 |
Income tax expense |  |  | 100,000 |  |  |  | 95,500 |  |  |  | — |  |  |  | 195,500 |
Net income |  |  | 603,991 |  |  |  | 752,412 |  |  |  | (322,654 | ) |  |  | 1,033,749 |
Net income attributable to non-controlling interest |  |  | (2,202 | ) |  |  | (300,965 | ) |  |  | — |  |  |  | (303,167 | )
Net income attributable to NTIC |  |  | 606,193 |  |  |  | 451,447 |  |  |  | (322,654 | ) |  |  | 734,804 |
Net income per common diluted share |  | $ | 0.13 |  |  | $ | 0.10 |  |  | $ | (0.08 | ) |  | $ | 0.16 |
The following is a summary of certain line items of the Company’s consolidated statements of operations for the six months ended February 29, 2012 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:
|  |  |  |  | NTI |  |  | Eliminated in |  |  |  |
|  | As Reported |  |  | Asean |  |  | Consolidation |  |  | Pro Forma |
Net sales |  | $ | 9,806,442 |  |  | $ | — |  |  | $ | — |  |  | $ | 9,806,442 |
Cost of goods sold |  |  | 6,689,558 |  |  |  | — |  |  |  | — |  |  |  | 6,689,558 |
Gross profit |  |  | 3,116,884 |  |  |  | — |  |  |  | — |  |  |  | 3,116,884 |
Joint venture operations |  |  | 5,325,733 |  |  |  | 1,699,280 |  |  |  | (692,115 | ) |  |  | 6,332,898 |
Operating expenses |  |  | 6,718,296 |  |  |  | 23,135 |  |  |  | — |  |  |  | 6,741,431 |
Operating income |  |  | 1,724,321 |  |  |  | 1,676,145 |  |  |  | (692,115 | ) |  |  | 2,708,351 |
Income before income tax expense |  |  | 1,745,412 |  |  |  | 1,676,145 |  |  |  | (692,115 | ) |  |  | 2,729,442 |
Income tax expense |  |  | 206,000 |  |  |  | 184,811 |  |  |  | — |  |  |  | 390,811 |
Net income |  |  | 1,539,412 |  |  |  | 1,491,334 |  |  |  | (692,115 | ) |  |  | 2,338,631 |
Net income attributable to non-controlling interest |  |  | (25,538 | ) |  |  | (596,534 | ) |  |  | — |  |  |  | (622,072 | )
Net income attributable to NTIC |  |  | 1,564,950 |  |  |  | 894,800 |  |  |  | (692,115 | ) |  |  | 1,767,635 |
Net income per common diluted share |  | $ | 0.35 |  |  | $ | 0.20 |  |  | $ | (0.16 | ) |  | $ | 0.40 |

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1392-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1490-128463 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7000-128479 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1524-128463 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1383-128463 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1486-128463 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1500-128463 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Paragraph 67-73 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4934-128472 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141R -Paragraph F4 -Subparagraph e -Appendix F Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1497-128463 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4922-128472 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 88-16 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 141 -Paragraph 51, 52 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6996-128479 + Details
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