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Note 16 - Commitments and Contingencies | 12 Months Ended
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Aug. 31, 2014
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies Disclosure [Text Block] | 16. COMMITMENTS AND CONTINGENCIES On August 19, 2014, the Compensation Committee of the Board of Directors of the Company approved the material terms of an annual bonus plan for the Company’s executive officers as well as certain officers and employees for the fiscal year ending August 31, 2015. For fiscal 2015 as in past years, the total amount available under the bonus plan for all plan participants, including executive officers, is dependent upon the Company’s earnings before interest, taxes and other income, as adjusted to take into account amounts to be paid under the bonus plan and certain other adjustments (Adjusted EBITOI). Each plan participant’s percentage of the overall bonus pool is based upon the number of plan participants, the individual’s annual base salary and the individual’s position and level of responsibility within the company. In the case of each of the Company’s executive officer participants, 75% of the amount of their individual bonus payout will be determined based upon the Company’s actual EBITOI for fiscal 2015 compared to a pre-established target EBITOI for fiscal 2015 and 25% of the payout will be determined based upon such executive officer’s achievement of certain pre-established individual performance objectives. The payment of bonuses under the plan are discretionary and may be paid to executive officer participants in both cash and shares of NTIC common stock, the exact amount and percentages will be determined by the Company’s Board of Directors, upon recommendation of the Compensation Committee, after the completion of the Company’s consolidated financial statements for fiscal 2015. On August 22, 2013, the Compensation Committee of the Board of Directors of the Company approved the material terms of an annual bonus plan for the Company’s executive officers as well as certain officers and employees for the fiscal year ending August 31, 2014. For fiscal 2014, as in past years, the total amount available under the bonus plan for all plan participants, including executive officers, was dependent upon the Company’s Adjusted EBITOI. Each plan participant’s percentage of the overall bonus pool was based upon the number of plan participants, the individual’s annual base salary and the individual’s position and level of responsibility within the company. In the case of each of the Company’s executive officer participants, 75% of the amount of their individual bonus payout was determined based upon the Company’s actual EBITOI for fiscal 2014 compared to a pre-established target EBITOI for fiscal 2014 and 25% of the payout was determined based upon such executive officer’s achievement of certain pre-established individual performance objectives. The payment of bonuses under the plan were discretionary. Accrued bonuses as of August 31, 2014 were $1,460,000 under the fiscal 2014 bonus plan. There were $959,000 in accrued bonuses under the prior fiscal year bonus plan as of August 31, 2013. On July 14, 2014, the Company entered into a purchase and sale agreement with Glenwillow Holdings, LLC pursuant to which the Company agreed to purchase certain real property and a building located on such real property located in Beachwood, Ohio, for the purchase price of $1,100,000. This purchase was completed on August 20, 2014 and was paid in cash. NTIC leases approximately 17,000 square feet of office, manufacturing, laboratory and warehouse space located in Beachwood, Ohio. The monthly rental payments are $17,500, which are adjusted annually according to the annual consumer price index, through November 2014. It is anticipated that this lease will terminate upon its expiration in December 2014. Three joint ventures (consisting of the Company’s joint ventures in Korea, China and Thailand) accounted for 62.9% of the Company’s trade joint venture receivables at August 31, 2014 and two joint ventures (consisting of the Company’s joint venues in Korea and India) accounted for 49.0% of the Company’s trade joint venture receivables at August 31, 2013. From time to time, the Company is subject to various claims and legal actions in the ordinary course of its business. The Company records a liability in its consolidated financial statements for costs related to claims, including future legal costs, settlements and judgments, where the Company has assessed that a loss is probable and an amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The Company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that material loss may be have been incurred. In the opinion of management, as of August 31, 2014, the amount of liability, if any, with respect to these matters, individually or in the aggregate, will not materially affect the Company’s consolidated results of operations, financial position or cash flows.

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