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Note 2 - NTI ASEAN
 6 Months Ended
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