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Note 2 - NTI ASEAN
 9 Months Ended
May 31, 2013
Business Combination Disclosure [Text Block]  
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 May 31, 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:

   
As Reported
   
NTI
Asean
   
Eliminated in
Consolidation
   
Pro Forma
 
Net sales
  $ 7,804,904     $ —     $ —     $ 7,804,904  
Cost of goods sold
    4,143,514       —       —       4,143,514  
Gross profit
    3,661,390       —       —       3,661,390  
Joint venture operations
    2,557,309       870,663       (384,115 )     3,043,857  
Operating expenses
    3,780,363       110,637       —       3,891,000  
Operating income
    2,438,336       760,026       (384,115 )     2,814,247  
Income before income tax expense
    2,454,623       760,026       (384,115 )     2,830,534  
Income tax expense
    814,000       99,208       —       913,208  
Net income
    1,640,623       660,818       (384,115 )     1,917,326  
Net income attributable to non-controlling interest
    186,586       (264,327 )     —       (77,741 )
Net income attributable to NTIC
    1,454,037       396,491       (384,115 )     1,466,413  
Net income per common diluted share
  $ 0.33     $ 0.09     $ (0.09 )   $ 0.33  

The following is a summary of certain line items of the Company’s consolidated statements of operations for the nine months ended May 31, 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:

   
As Reported
   
NTI
Asean
   
Eliminated in
Consolidation
   
Pro Forma
 
Net sales
  $ 17,611,346     $ —     $ —     $ 17,611,346  
Cost of goods sold
    10,833,072       —       —       10,833,072  
Gross profit
    6,778,274       —       —       6,778,274  
Joint venture operations
    7,883,042       2,569,943       (1,076,230 )     9,376,755  
Operating expenses
    10,498,659       133,772       —       10,632,431  
Operating income
    4,162,657       2,436,171       (1,076,230 )     5,522,598  
Income before income tax expense
    4,200,035       2,436,171       (1,076,230 )     5,559,976  
Income tax expense
    1,020,000       284,019       —       1,304,019  
Net income
    3,180,035       2,152,152       (1,076,230 )     4,255,957  
Net income attributable to non-controlling interest
    161,048       (860,861 )     —       (699,813 )
Net income attributable to NTIC
    3,018,987       1,291,291       (1,076,230 )     3,234,048  
Net income per common diluted share
  $ 0.68     $ 0.29     $ (0.24 )   $ 0.73