Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Nov. 19, 2013 | Feb. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Northern Technologies International Corporation | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--08-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 4,434,838 | ' |
Entity Public Float | ' | ' | $48,100,000 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000875582 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 31-Aug-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $4,314,258 | $4,137,547 |
Trade excluding joint ventures, less allowance for doubtful accounts of $20,000 at August 31, 2013 and 2012 | 3,329,995 | 2,516,961 |
Trade joint ventures | 859,434 | 734,543 |
Fees for services provided to joint ventures | 2,446,017 | 1,316,933 |
Income taxes | 144,939 | 58,129 |
Inventories | 5,111,549 | 4,151,197 |
Prepaid expenses | 258,765 | 548,331 |
Deferred income taxes | 467,548 | 596,085 |
Total current assets | 16,932,505 | 14,059,726 |
PROPERTY AND EQUIPMENT, net | 5,323,612 | 4,288,618 |
OTHER ASSETS: | ' | ' |
Investments in joint ventures | 24,702,981 | 21,461,492 |
Deferred income taxes | 1,034,212 | 1,030,610 |
Patents and trademarks, net | 1,060,639 | 961,181 |
Other | ' | 76,000 |
Total other assets | 26,797,832 | 23,529,283 |
Total assets | 49,053,949 | 41,877,627 |
CURRENT LIABILITIES: | ' | ' |
Current portion of note payable (Note 8) | 76,119 | 76,120 |
Accounts payable | 1,830,729 | 1,818,309 |
Accrued liabilities: | ' | ' |
Payroll and related benefits | 1,277,942 | 1,565,866 |
Deferred joint venture royalties | 288,000 | 288,000 |
Other | 189,263 | 251,350 |
Total current liabilities | 3,662,053 | 3,999,645 |
NOTE PAYABLE, NET OF CURRENT PORTION (Note 8) | 857,295 | 933,413 |
COMMITMENTS AND CONTINGENCIES (Note 16) | ' | ' |
EQUITY: | ' | ' |
Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding | 0 | 0 |
Common stock, $0.02 par value per share; authorized 10,000,000 shares; issued and outstanding 4,432,036 and 4,421,636, respectively | 88,641 | 88,073 |
Additional paid-in capital | 11,701,942 | 11,130,966 |
Retained earnings | 28,626,928 | 25,260,034 |
Accumulated other comprehensive income | 316,161 | 277,583 |
Stockholders’ equity | 40,733,672 | 36,756,656 |
Non-controlling interests | 3,800,929 | 187,913 |
Total equity | 44,534,601 | 36,944,569 |
Total liabilities and equity | $49,053,949 | $41,877,627 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Trade excluding joint ventures, allowance for doubtful accounts (in Dollars) | $20,000 | $20,000 |
Preferred stock, par value (in Dollars per share) | $0 | $0 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value (in Dollars per share) | $0.02 | $0.02 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 4,432,036 | 4,421,636 |
Common stock, shares outstanding | 4,432,036 | 4,421,636 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
NET SALES: | ' | ' |
Net sales, excluding joint ventures | $19,724,205 | $20,227,719 |
Net sales, to joint ventures | 2,777,659 | 2,553,934 |
Total net sales | 22,501,864 | 22,781,653 |
Cost of goods sold | 15,473,212 | 14,528,785 |
Gross profit | 7,028,652 | 8,252,868 |
JOINT VENTURE OPERATIONS: | ' | ' |
Equity in income of joint ventures | 5,237,711 | 5,519,795 |
Fees for services provided to joint ventures | 7,352,980 | 4,622,912 |
Total joint venture operations | 12,590,691 | 10,142,707 |
OPERATING EXPENSES: | ' | ' |
Selling expenses | 4,845,676 | 4,585,901 |
General and administrative expenses | 4,605,979 | 4,309,410 |
Expenses incurred in support of joint ventures | 1,387,197 | 1,054,914 |
Research and development expenses | 3,815,515 | 3,875,581 |
Total operating expenses | 14,654,367 | 13,825,806 |
OPERATING INCOME | 4,964,976 | 4,569,769 |
INTEREST INCOME | 34,614 | 54,652 |
INTEREST EXPENSE | -52,215 | -29,388 |
OTHER INCOME | 670,126 | 21,613 |
INCOME BEFORE INCOME TAX EXPENSE | 5,617,501 | 4,616,646 |
INCOME TAX EXPENSE | 864,000 | 1,041,000 |
NET INCOME | 4,753,501 | 3,575,646 |
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 1,386,607 | 127,450 |
NET INCOME ATTRIBUTABLE TO NTIC | $3,366,894 | $3,448,196 |
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE: | ' | ' |
Basic (in Dollars per share) | $0.76 | $0.79 |
Diluted (in Dollars per share) | $0.75 | $0.78 |
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING: | ' | ' |
Basic (in Shares) | 4,421,636 | 4,391,424 |
Diluted (in Shares) | 4,475,895 | 4,451,594 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
$4,753,501 | $3,575,646 | |
OTHER COMPREHENSIVE INCOME (LOSS) – FOREIGN CURRENCY TRANSLATION ADJUSTMENT | 56,909 | -2,250,689 |
COMPREHENSIVE INCOME (LOSS) | 4,810,410 | 1,324,957 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 1,404,938 | 96,118 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NTIC | $3,405,472 | $1,228,839 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] | Total |
BALANCE at Aug. 31, 2011 | $87,061 | $10,137,809 | $21,811,838 | $2,496,940 | $91,795 | $34,625,443 |
BALANCE (in Shares) at Aug. 31, 2011 | 4,353,058 | ' | ' | ' | ' | ' |
Stock issued in lieu of accrued payroll | 855 | 614,977 | ' | ' | ' | 615,832 |
Stock issued in lieu of accrued payroll (in Shares) | 42,707 | ' | ' | ' | ' | ' |
Exercise of stock options | 79 | 34,452 | ' | ' | ' | 34,531 |
Exercise of stock options (in Shares) | 3,966 | ' | ' | ' | ' | 3,966 |
Stock issued for employee stock purchase plan | 78 | 55,332 | ' | ' | ' | 55,410 |
Stock issued for employee stock purchase plan (in Shares) | 3,925 | ' | ' | ' | ' | ' |
Stock option expense | ' | 288,396 | ' | ' | ' | 288,396 |
Comprehensive Income | ' | ' | 3,448,196 | -2,219,357 | 96,118 | 1,324,957 |
BALANCE at Aug. 31, 2012 | 88,073 | 11,130,966 | 25,260,034 | 277,583 | 187,913 | 36,944,569 |
BALANCE (in Shares) at Aug. 31, 2012 | 4,403,656 | ' | ' | ' | ' | ' |
Exercise of stock options | 444 | 207,910 | ' | ' | ' | 208,354 |
Exercise of stock options (in Shares) | 22,171 | ' | ' | ' | ' | 37,040 |
Stock issued for employee stock purchase plan | 124 | 56,615 | ' | ' | ' | 56,739 |
Stock issued for employee stock purchase plan (in Shares) | 6,209 | ' | ' | ' | ' | ' |
Stock option expense | ' | 306,451 | ' | ' | ' | 306,451 |
Effect of Asean Consolidation (Note 3) | ' | ' | ' | ' | 3,960,920 | 3,960.92 |
Dividend received by non-controlling interest | ' | ' | ' | ' | -1,752,842 | -1,752,842 |
Comprehensive Income | ' | ' | 3,366,894 | 38,578 | 1,404,938 | 4,810,410 |
BALANCE at Aug. 31, 2013 | $88,641 | $11,701,942 | $28,626,928 | $316,161 | $3,800,929 | $44,534,601 |
BALANCE (in Shares) at Aug. 31, 2013 | 4,432,036 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $4,753,501 | $3,575,646 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Expensing of fair value of stock options vested | 306,451 | 288,396 |
Depreciation expense | 435,678 | 351,118 |
Amortization expense | 71,405 | 128,921 |
Loss on disposal of assets | 84,396 | 870 |
Equity in income of joint ventures | -5,237,711 | -5,519,795 |
Deferred income taxes | 124,935 | 5,605 |
Receivables: | ' | ' |
Trade, excluding joint ventures | -894,888 | -156,979 |
Trade, joint ventures | -124,891 | 415,123 |
Fees for services provided to joint ventures | 213,002 | 812,978 |
Income taxes | -98,427 | -61,144 |
Inventories | -1,017,188 | -365,800 |
Prepaid expenses and other | 363,337 | -220,837 |
Accounts payable | 78,623 | -123,512 |
Income tax payable | 8,435 | -165,308 |
Accrued liabilities | -311,693 | 646,024 |
Net cash used in operating activities | -1,245,035 | -388,694 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Investment in joint ventures | ' | -484,545 |
Dividends received from joint ventures | 3,155,737 | 3,060,545 |
Additions to property and equipment | -1,488,059 | -1,037,468 |
Effect of NTI Asean consolidation on cash (Note 2) | 1,612,768 | ' |
Additions to patents | -255,259 | -187,064 |
Net cash provided by investing activities | 3,025,187 | 1,351,468 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Repayment of note payable | -76,119 | -76,119 |
Dividend received by non-controlling interest | -1,752,842 | ' |
Proceeds from employee stock purchase plan | 56,739 | 55,410 |
Proceeds from exercise of stock options | 208,354 | 34,531 |
Net cash provided by financing activities | -1,563,867 | 13,822 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH: | -39,574 | -105,411 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 176,711 | 871,185 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 4,137,547 | 3,266,362 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $4,314,258 | $4,137,547 |
Note_1_Nature_of_Business_and_
Note 1 - Nature of Business and Significant Accounting Policies | 12 Months Ended | |||||
Aug. 31, 2013 | ||||||
Disclosure Text Block [Abstract] | ' | |||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | |||||
1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | ||||||
Nature of Business – Northern Technologies International Corporation and Subsidiaries (the Company) develops and markets proprietary environmentally beneficial products and services in over 60 countries either directly or via a network of joint ventures, independent distributors and agents. The Company’s primary business is corrosion prevention marketed mainly under the ZERUST® brand. The Company has been selling its proprietary ZERUST® rust and corrosion inhibiting products and services to the automotive, electronics, electrical, mechanical, military and retail consumer markets for over 35 years, and more recently, has targeted and expanded into the oil and gas industry. The Company also sells a portfolio of bio-based and biodegradable (compostable) polymer resin compounds and finished products marketed under the Natur-Tec® brand. These products are intended to reduce the Company’s customers’ carbon footprint and provide environmentally sound disposal options. | ||||||
The Company participates, either directly or indirectly, in 23 active joint venture arrangements in North America, Europe and Asia. Each of these joint ventures generally manufactures and markets products in the geographic territory to which it is assigned. While most of the Company’s joint ventures exclusively sell rust and corrosion inhibiting products, some of the joint ventures sell the Company’s Natur-Tec® resin compounds and finished products. The profits of joint ventures are shared by the respective joint venture owners in accordance with their respective ownership percentages. The Company typically owns 50% or less of its joint venture entities and does not control the decisions of these entities, including dividend declaration or amount in any given year. | ||||||
The Company has evaluated events occurring after the date of the consolidated financial statements for events requiring recording or disclosure in the financial statements. | ||||||
Principles of Consolidation - The Company evaluates its voting and variable interests in entities on a qualitative and quantitative basis. The Company consolidates entities when it has the power to direct the activities that most significantly impact an entity’s economic success and has the obligation to absorb losses or the right to receive benefits that could be significant to the entity. All such relationships are evaluated on an ongoing basis. The consolidated financial statements include the accounts of Northern Technologies International Corporation, its wholly owned subsidiary, Northern Technologies Holding Company, LLC, and its majority owned subsidiary in Brazil, Zerust Prevenção de Corrosão S.A. (Zerust Brazil) and, effective September 1, 2012, majority owned holding company, NTI ASEAN LLC (NTI Asean). All significant intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements do not include the accounts of any of the Company’s joint ventures. | ||||||
Noncontrolling interest – The Company owns 85% of Zerust Brazil. The remaining 15% is accounted for as a noncontrolling interest and reported as part of equity in the consolidated financial statements. Effective September 1, 2012, the Company owns 60% of NTI Asean. The remaining 40% is accounted for as a noncontrolling interest and reported as part of equity in the consolidated financial statements. The Company allocates gains and losses to the noncontrolling interest even when such allocation might result in a deficit balance, reducing the losses attributed to the controlling interest, changes in ownership interests are treated as equity transactions if control is maintained. | ||||||
Net Sales –The Company includes net sales to its joint ventures and net sales to unaffiliated customers as separate line items on its consolidated statements of operations. There are no sales originating from the Company’s joint ventures included in the amount, as the Company’s investments in its joint ventures are accounted for using the equity method. | ||||||
Revenue Recognition – The Company recognizes revenue from the sale of its products when persuasive evidence of an arrangement exists, the product has been delivered, the price is fixed and determinable and collection of the resulting receivable is reasonably assured. These criteria are met when risk of loss and title pass to the customer, distributor or joint venture entity. | ||||||
Deferred Joint Venture Revenue – The Company periodically sponsors a worldwide joint venture conference, in which all of its joint ventures are invited to participate. It defers a portion of its service fees received from its joint ventures in each accounting period leading up to the next conference, reflecting that the Company has not earned portions of the payments received. It is anticipated that the next joint venture conference will be held in the summer of 2014. At both August 31, 2013 and 2012, the Company had deferred $288,000 of joint venture fees for services related to this future conference, which represents the amount that the Company expects to spend to hold the conference. This amount is based on the historical experience of the Company, current conditions, and the intentions of the Company’s management. The Company does not anticipate deferring any additional service fees until after the next conference. | ||||||
Accounts Receivable – Payment terms for the Company’s unaffiliated customers are determined based on credit risk and vary by customer. The Company typically offers standard payment terms to unaffiliated customers of net 30 days. The Company does not accrue interest on past due accounts receivable. The Company reviews the credit histories of its customers before extending unsecured credit. The Company presents accounts and notes receivable, net of an allowance for doubtful accounts. Each quarter, the Company prepares an analysis of its ability to collect outstanding receivables that provides a basis for an allowance estimate for doubtful accounts. In doing so, the Company evaluates the age of its receivables, past collection history, current financial conditions of key customers and its joint ventures, and economic conditions. Based on this evaluation, the Company establishes a reserve for specific accounts and notes receivable that it believes are uncollectible, as well as an estimate of uncollectible receivables not specifically known. The Company believes that an analysis of historical trends and its current knowledge of potential collection problems provide the Company with sufficient information to establish a reasonable estimate for an allowance for doubtful accounts. In the event the Company determined that a smaller or larger uncollectible accounts reserve is appropriate, the Company would record a credit or charge to selling expense in the period that it made such a determination. Accounts receivable have been reduced by an allowance for uncollectible accounts of $20,000 at both August 31, 2013 and 2012. Accounts are considered past due based on terms agreed upon between the Company and the customer. Accounts receivable are written-off only after all collection attempts have failed and are based on individual credit evaluation and specific circumstances of the customer. | ||||||
Receivables from Joint Ventures – Trade receivables from joint ventures arise from sales the Company makes to its joint ventures of products. Payment terms for the Company’s joint ventures also are determined based on credit risk; however, additional consideration also is given to the individual joint venture due to the transportation time associated with ocean delivery of most products and certain other factors. Generally, accounts receivable from the Company’s joint ventures unpaid after 90 days are considered past due. The Company does not accrue interest on past due accounts receivable. The Company periodically reviews amounts due from its joint ventures for collectability, and based on past experience and continuous review of the balances due, has determined an allowance for doubtful accounts related to its joint venture receivables is not necessary. | ||||||
Fees for Services Provided to Joint Ventures – The Company provides certain services to its joint ventures including consulting, legal, travel, insurance, technical and marketing services. The Company receives fees for the services it provides to its joint ventures. The fees for services received by the Company from its joint ventures are generally based on either a flat fee or a percentage of net sales by the Company’s joint ventures depending on local laws and tax regulations. The Company recognizes revenues related to fees for services provided to its joint ventures when earned, amounts are determinable and collectability is reasonably assured. Under the Company’s agreements with its joint ventures, amounts are earned when product is shipped from joint venture facilities. The Company reviews the financial situation of each of its joint ventures to assist in the likelihood of collections on amounts earned. The Company elects to account for these fees on a cash basis for certain joint ventures if uncertainty exists surrounding the collection of such fees. | ||||||
Cash and Cash Equivalents - The Company includes as cash and cash equivalents highly liquid, short-term investments with maturity of three months or less when purchased, which are readily convertible into known amounts of cash. The Company maintains its cash in high quality financial institutions. The balances, at times, may exceed federally insured limits. | ||||||
Inventories - Inventories are recorded at the lower of cost (first-in, first-out basis) or market. | ||||||
Property and Depreciation - Property and equipment are stated at cost. Depreciation is computed using the straight-line method based on the estimated service lives of the various assets as follows: | ||||||
Buildings and improvements (in years) | 5 | - | 30 | |||
Machinery and equipment (in years) | 3 | - | 10 | |||
Investments in Joint Ventures - Investments in the Company’s joint ventures are accounted for using the equity method. Under the equity method, investments are initially recorded at cost and are adjusted for dividends, distributed and undistributed earnings and losses, changes in foreign currency exchange rates and additional investments. In the event the Company’s share of joint venture’s cumulative losses exceed the Company’s investment balance, the balance is reported at zero value until proportionate income exceeds the losses. The Company assesses its joint ventures for impairment on an annual basis as of August 31 of each year as part of its fiscal year end analysis. In addition to the annual review for impairment, the Company reviews the operating results of each joint venture on a quarterly basis in comparison to its historical operating results and its accrual of fees for services provided to joint ventures. If the operating results of a joint venture do not meet financial performance expectations, an additional evaluation is performed on the joint venture. If an investment were determined to be impaired, then a reserve is created to reflect the impairment on the financial results of the Company. The Company’s evaluation of its investments in joint ventures requires the Company to make assumptions about future cash flows of its joint ventures. These assumptions require significant judgment and actual results may differ from assumed or estimated amounts. | ||||||
Recoverability of Long-Lived Assets - The Company reviews its long-lived assets whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. The Company determines potential impairment by comparing the carrying value of the assets with expected net cash flows expected to be provided by operating activities of the business or related products. If the sum of the expected undiscounted future net cash flows is less than the carrying value, the Company evaluates if an impairment loss should be recognized. An impairment loss is measured by comparing the amount by which the carrying value exceeds the fair value of the asset. | ||||||
Income Taxes - The Company utilizes the liability method of accounting for income taxes which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | ||||||
The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In the event the Company determines that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. | ||||||
The Company records uncertain tax positions on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) those tax positions that meet the more-likely-than-not recognition threshold. The Company recognizes the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority. | ||||||
Foreign Currency Translation (Accumulated Other Comprehensive Income) - The functional currency of Zerust Brazil and each unconsolidated international joint venture is the applicable local currency. The translation of the applicable foreign currencies into U.S. dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average monthly exchange rate. Translation gains or losses are reported as an element of other comprehensive income. | ||||||
The Company (excluding Zerust Brazil, NTI Asean and its joint ventures) conducts all foreign transactions based on the U.S. dollar. Since investments in joint ventures are accounted for using the equity method, any changes in foreign currency exchange rates are reflected as a foreign currency translation adjustment and does not change the equity in income of joint ventures reflected in the Company’s consolidated statements of operations. | ||||||
Fair Value of Financial Instruments – The carrying value of cash, short-term accounts and notes receivable, notes payable, trade accounts payables, and other accrued expenses approximate fair value because of the short maturity of those instruments. The fair value of the Company’s long-term debt approximates the carrying values based upon current market rates of interest. | ||||||
Shipping and Handling - The Company records all amounts billed to customers in a sales transaction related to shipping and handling as sales. The Company records costs related to shipping and handling in cost of goods sold. | ||||||
Government Grants - The Company accrues proceeds received under the grants when earned based on the terms of the contracts and offsets research and development expenses incurred in equal installments over the timelines associated with completion of the grant specific objectives and milestones. | ||||||
Research and Development - The Company expenses all costs related to product research and development as incurred. The costs related to product research and development are the net amount after being reduced by reimbursements related to certain research and development contracts of $274,728 and $365,940 for fiscal 2013 and fiscal 2012, respectively. The Company accrues proceeds received under such contracts and offsets research and development expenses incurred in equal installments over the timelines associated with completion of the contracts’ specific objectives and milestones. At August 31, 2013 and 2012, the Company had $0 and $96,861, respectively, of deferred amounts in other accrued liabilities as the Company had not yet performed under the obligations of the contract at that time. | ||||||
Stock-Based Compensation – The Company recognizes compensation cost relating to share-based payment transactions, including grants of employee stock options and transactions under the Company’s employee stock purchase plan, in its consolidated financial statements. That cost is measured based on the fair value of the equity or liability instruments issued. The Company measures the cost of employee services received in exchange for stock options and other stock-based awards based on the grant-date fair value of the award, and recognizes the cost over the period the employee is required to provide services for the award. | ||||||
Use of Estimates - The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||
Note_2_Recently_Issued_Account
Note 2 - Recently Issued Accounting Pronouncements | 12 Months Ended |
Aug. 31, 2013 | |
Table Text Block [Abstract] | ' |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | ' |
2. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
During February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-02: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles (GAAP) to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is reclassified to a balance sheet account (for example, inventory) instead of directly to income or expense in the same reporting period. The Company adopted ASU 2013-02 beginning with the first quarter of fiscal 2013. There was no impact on the Company’s financial statements during fiscal 2013. | |
In March 2013, the FASB issued ASU No. 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity” (“ASU 2013-05”), which resolves diversity in practice regarding the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within a foreign entity. The amendments in ASU 2013-05 are effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of ASU 2013-05 will not have a material impact on the Company’s financial position or results of operations. | |
In July 2013, the FASB issued ASU No. 2013-11: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which requires unrecognized tax benefits to be presented as a decrease in a net operating loss, similar tax loss or tax credit carryforward if certain criteria are met. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on the Company’s consolidated financial statements during fiscal 2014. | |
Note_3_NTI_ASEAN
Note 3 - NTI ASEAN | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Business Combination Disclosure [Text Block] | ' | ||||||||||||||||
3. 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 the equity and voting rights of NTI Asean and accounted for its investment using the equity method, as its ownership was considered to be less than a majority. 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 fiscal year ended August 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 | Eliminated in | Pro Forma | ||||||||||||||
Asean | Consolidation | ||||||||||||||||
Net sales | $ | 22,781,653 | $ | — | $ | — | $ | 22,781,653 | |||||||||
Cost of goods sold | 14,528,785 | — | — | 14,528,785 | |||||||||||||
Gross profit | 8,252,868 | — | — | 8,252,868 | |||||||||||||
Joint venture operations | 10,142,707 | 3,395,354 | (1,414,248 | ) | 12,123,813 | ||||||||||||
Operating expenses | 13,825,806 | 185,700 | — | 14,011,506 | |||||||||||||
Operating income | 4,569,769 | 3,209,654 | (1,414,248 | ) | 6,365,175 | ||||||||||||
Income before income tax expense | 4,616,646 | 3,209,654 | (1,414,248 | ) | 6,412,052 | ||||||||||||
Income tax expense | 1,041,000 | 381,466 | — | 1,422,466 | |||||||||||||
Net income | 3,575,646 | 2,828,188 | (1,414,248 | ) | 4,989,586 | ||||||||||||
Net income attributable to non-controlling interest | 127,450 | (1,131,275 | ) | — | (1,003,825 | ) | |||||||||||
Net income attributable to NTIC | 3,448,196 | 1,696,913 | (1,414,248 | ) | 3,730,861 | ||||||||||||
Net income per common diluted share | $ | 0.78 | $ | 0.38 | $ | (0.32 | ) | $ | 0.84 | ||||||||
Note_4_Inventories
Note 4 - Inventories | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
4. INVENTORIES | |||||||||
Inventories consisted of the following: | |||||||||
31-Aug-13 | 31-Aug-12 | ||||||||
Production materials | $ | 1,096,693 | $ | 1,462,615 | |||||
Finished goods | 4,014,856 | 2,688,582 | |||||||
$ | 5,111,549 | $ | 4,151,197 | ||||||
Note_5_Property_and_Equipment_
Note 5 - Property and Equipment, Net | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
5. PROPERTY AND EQUIPMENT, NET | |||||||||
Property and equipment, net consisted of the following: | |||||||||
31-Aug-13 | 31-Aug-12 | ||||||||
Land | $ | 310,365 | $ | 310,365 | |||||
Buildings and improvements | 4,613,879 | 3,406,674 | |||||||
Machinery and equipment | 3,189,671 | 2,908,021 | |||||||
8,113,915 | 6,625,060 | ||||||||
Less accumulated depreciation | (2,790,303 | ) | (2,336,442 | ) | |||||
$ | 5,323,612 | $ | 4,288,618 | ||||||
Note_6_Patents_and_Trademarks_
Note 6 - Patents and Trademarks, Net | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||
6. PATENTS AND TRADEMARKS, NET | |||||||||
Patents and trademarks, net consisted of the following: | |||||||||
31-Aug-13 | 31-Aug-12 | ||||||||
Patents and trademarks | $ | 2,064,128 | $ | 1,945,785 | |||||
Less accumulated amortization | (1,003,489 | ) | (984,604 | ) | |||||
$ | 1,060,639 | $ | 961,181 | ||||||
Patent and trademark costs are amortized over seven years. Costs incurred related to patents and trademarks are capitalized until filed and approved, at which time the amounts capitalized to date are amortized and any further costs, including maintenance costs, are expensed as incurred. Amortization expense is estimated to approximate $80,000 in each of the next five fiscal years. | |||||||||
Note_7_Investments_in_Joint_Ve
Note 7 - Investments in Joint Ventures | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | ' | ||||||||||||||||
7. INVESTMENTS IN JOINT VENTURES | |||||||||||||||||
The financial statements of the Company’s foreign joint ventures are initially prepared using the accounting principles accepted in the respective joint ventures’ countries of domicile. Amounts related to foreign joint ventures reported in the below tables and the accompanying financial statements have subsequently been adjusted to conform with accounting principles generally accepted in the United States of America in all material respects. All material profits recorded on sales from the Company to its joint ventures have been eliminated for financial reporting purposes. | |||||||||||||||||
Financial information from the audited and unaudited financial statements of the Company’s joint venture in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR), China, NTI Asean and all of the Company’s other joint ventures, are summarized as follows: | |||||||||||||||||
31-Aug-13 | |||||||||||||||||
TOTAL | EXCOR | China | All Other | ||||||||||||||
Current assets | $ | 63,052,410 | $ | 25,955,136 | $ | 11,200,355 | $ | 25,896,919 | |||||||||
Total assets | 68,417,142 | 28,391,787 | 11,226,755 | 28,798,600 | |||||||||||||
Current liabilities | 16,107,597 | 3,572,004 | 3,080,118 | 9,455,475 | |||||||||||||
Noncurrent liabilities | 2,488,057 | — | 871,886 | 1,616,171 | |||||||||||||
Joint ventures’ equity | 49,821,488 | 24,819,783 | 7,274,751 | 17,726,954 | |||||||||||||
Northern Technologies International Corporation’s share of joint ventures’ equity | 24,702,981 | 12,409,893 | 3,637,375 | 8,655,713 | |||||||||||||
Northern Technologies International Corporation's share of joint ventures' undistributed earnings | $ | 22,281,510 | $ | 12,378,988 | $ | 3,587,375 | $ | 6,315,147 | |||||||||
31-Aug-12 | |||||||||||||||||
TOTAL | EXCOR | NTI ASEAN | All Other | ||||||||||||||
Current assets | $ | 61,973,725 | $ | 24,357,139 | $ | 15,358,967 | $ | 22,257,619 | |||||||||
Total assets | 68,585,974 | 26,620,589 | 15,522,456 | 26,442,929 | |||||||||||||
Current liabilities | 18,686,181 | 4,749,574 | 5,763,857 | 8,172,750 | |||||||||||||
Noncurrent liabilities | 4,700,458 | — | 1,055,965 | 3,644,493 | |||||||||||||
Joint ventures’ equity | 45,199,335 | 21,871,015 | 8,702,634 | 14,625,686 | |||||||||||||
Northern Technologies International Corporation’s share of joint ventures’ equity | 21,461,492 | 10,935,509 | 3,685,404 | 6,840,579 | |||||||||||||
Northern Technologies International Corporation's share of joint ventures' undistributed earnings | $ | 19,403,150 | $ | 10,904,604 | $ | 3,314,445 | $ | 5,184,101 | |||||||||
Fiscal Year Ended August 31, 2013 | |||||||||||||||||
TOTAL | EXCOR | China | All Other | ||||||||||||||
Net sales | $ | 113,189,068 | $ | 36,476,544 | $ | 15,161,289 | $ | 61,551,235 | |||||||||
Gross profit | 52,058,609 | 19,470,322 | 7,153,395 | 25,434,891 | |||||||||||||
Net income | 10,650,542 | 7,009,897 | 1,157,995 | 2,482,650 | |||||||||||||
Northern Technologies International Corporation’s share of equity in income of joint ventures | $ | 5,237,711 | $ | 3,507,057 | $ | 579,376 | $ | 1,151,278 | |||||||||
Fiscal Year Ended August 31, 2012 | |||||||||||||||||
TOTAL | EXCOR | NTI ASEAN | All Other | ||||||||||||||
Net sales | $ | 111,830,961 | $ | 36,027,979 | $ | 22,035,035 | $ | 53,767,947 | |||||||||
Gross profit | 50,679,875 | 18,667,848 | 9,621,930 | 22,390,097 | |||||||||||||
Net income | 11,987,323 | 6,656,298 | 3,585,476 | 1,745,549 | |||||||||||||
Northern Technologies International Corporation’s share of equity in income of joint ventures | $ | 5,519,795 | $ | 3,318,213 | $ | 1,414,248 | $ | 787,333 | |||||||||
The Company records expenses that are directly attributable to the joint ventures on its consolidated statements of operations on the line “Expenses incurred in support of joint ventures”. The expenses include items such as employee compensation and benefits, travel, consulting, legal and laboratory supplies and testing expenses. | |||||||||||||||||
During fiscal 2013, the Company obtained an additional 10% ownership interest in NTI Asean in exchange for a license agreement. See Note 3 for additional information. | |||||||||||||||||
During fiscal 2012, both the Company and the other 50% owner in Harita NTI Limited agreed to receive additional equity interest in consideration for outstanding fees for services receivable of $484,545 due to each party. | |||||||||||||||||
The Company did not make any other joint venture investments during fiscal 2013 and fiscal 2012. | |||||||||||||||||
Note_8_Corporate_Debt
Note 8 - Corporate Debt | 12 Months Ended |
Aug. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
8. CORPORATE DEBT | |
As of August 31, 2013, Northern Technologies Holding Company, LLC (NTI LLC) had a term loan with a principal amount of $933,414 outstanding that NTI LLC obtained from PNC Bank, National Association (PNC Bank) in connection with the purchase of NTIC’s corporate headquarters in September 2006. The term loan matures on January 10, 2016, bears interest at an annual rate based on the daily LIBOR rate plus 2.15% and is payable in consecutive monthly installments equal to approximately $6,343 (inclusive of principal but exclusive of interest). The term loan is secured by a first lien on the real estate and building owned by NTI LLC and all of the assets of the Company and is guaranteed by the Company. | |
The Company has a revolving line of credit with PNC Bank of $3,000,000 that expires on January 8, 2014. No amounts were outstanding under the line of credit as of August 31, 2013 and August 31, 2012. At the option of the Company, outstanding advances under the line of credit bear interest at either (a) an annual rate based on LIBOR plus 2.15% for the applicable LIBOR interest period selected by the Company or (b) at the rate publicly announced by PNC Bank from time to time as its prime rate. Interest is payable in arrears (a) for the portion of advances bearing interest under the prime rate on the last day of each month during the term thereof and (b) for the portion of advances bearing interest under the LIBOR option on the last day of the respective LIBOR interest period selected for such advance. Any unpaid interest is payable on the maturity date. As of August 31, 2013, the interest rate was 2.82% and the weighted average rate was 3.00% for fiscal 2013. As of August 31, 2012, the interest rate was 3.18% and the weighted average rate was 3.17% for fiscal 2012. The revolving line of credit is secured by cash, receivables and inventory. | |
The term loan and the line of credit are governed under separate loan agreements (collectively, the Loan Agreements). The Loan Agreements contain standard covenants, including affirmative financial covenants, such as the maintenance of a minimum fixed charge coverage ratio, and negative covenants, which, among other things, limit the incurrence of additional indebtedness, loans and equity investments, disposition of assets, mergers and consolidations and other matters customarily restricted in such agreements. Under the Loan Agreements, the Company is subject to a minimum fixed charge coverage ratio of 1.10:1.00. As of August 31, 2013, the Company was in compliance with all debt covenants. | |
On December 11, 2012, PNC Bank extended the maturity date of the line of credit from January 9, 2013 to January 8, 2014, and waived a technical covenant default by the Company to deliver quarterly compliance certificates. All other terms of the line of credit and the loan agreement and other documents evidencing the line of credit remain the same. It is anticipated that the line of credit will be extended again prior to the January 8, 2014 maturity date. | |
Note_9_Stockholders_Equity
Note 9 - Stockholders' Equity | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | ||||||||
9. STOCKHOLDERS’ EQUITY | |||||||||
During fiscal 2013, the Company did not purchase or retire any shares of its common stock. The following stock options to purchase shares of common stock were exercised during fiscal 2013: | |||||||||
Options | Exercise | ||||||||
Exercised | Price | ||||||||
25,140 | $ | 9.95 | |||||||
4,000 | 12.84 | ||||||||
4,000 | 8.57 | ||||||||
1,734 | 7.65 | ||||||||
1,500 | 9.76 | ||||||||
666 | 7.75 | ||||||||
The total intrinsic value of the options exercised during fiscal 2013 was $45,533. | |||||||||
During fiscal 2012, the Company did not purchase or retire any shares of its common stock. The following stock options to purchase shares of common stock were exercised during fiscal 2012: | |||||||||
Options | Exercise | ||||||||
Exercised | Price | ||||||||
1,966 | $ | 7.65 | |||||||
2,000 | 9.75 | ||||||||
The total intrinsic value of the options exercised during fiscal 2012 was $13,872. | |||||||||
During fiscal 2012, the Company granted stock for payment of fiscal 2011 bonuses under the 2007 Plan for an aggregate of 42,707 shares of its common stock to various employees at a grant price of $14.42 per share. The aggregate fair value of the shares of the Company’s common stock as of the date of grant of the stock bonuses was $615,830, based on the closing sale price of a share of the Company’s common stock on the date of grant. The fair value of common stock granted during fiscal 2012 was based on fiscal 2011 performance and was included in accrued liabilities at August 31, 2011. | |||||||||
Note_10_Net_Income_Per_Common_
Note 10 - Net Income Per Common Share | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
10. NET INCOME PER COMMON SHARE | |||||||||
Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per share assumes the exercise of stock options using the treasury stock method, if dilutive. | |||||||||
Options to purchase shares of common stock of 22,000 and 48,000 were excluded from the computation of common share equivalents for fiscal 2013 and fiscal 2012, respectively, as the exercise prices of such options were greater than market price of a share of common stock. | |||||||||
The following is a reconciliation of the earnings per share computation for fiscal 2013 and fiscal 2012: | |||||||||
Numerator: | 31-Aug-13 | 31-Aug-12 | |||||||
Net income attributable to NTIC | $ | 3,366,894 | $ | 3,448,196 | |||||
Denominator: | |||||||||
Basic – weighted shares outstanding | 4,421,636 | 4,391,424 | |||||||
Weighted shares assumed upon exercise of stock options | 54,259 | 60,170 | |||||||
Diluted – weighted shares outstanding | 4,475,895 | 4,451,594 | |||||||
Basic earnings per share: | $ | 0.76 | $ | 0.79 | |||||
Diluted earnings per share: | $ | 0.75 | $ | 0.78 | |||||
The dilutive impact summarized above relates to the periods when the average market price of Company stock exceeded the exercise price of the potentially dilutive option securities granted. Earnings per common share were based on the weighted average number of common shares outstanding during the periods when computing the basic earnings per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted earnings per share. | |||||||||
Note_11_StockBased_Compensatio
Note 11 - Stock-Based Compensation | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||
11. STOCK-BASED COMPENSATION | |||||||||||||
The Company has two stock-based compensation plans under which stock options and other stock-based awards have been granted, the Northern Technologies International Corporation Amended and Restated 2007 Stock Incentive Plan (the 2007 Plan) and the Northern Technologies International Corporation Employee Stock Purchase Plan (the ESPP). The Compensation Committee of the Board of Directors and the Board of Directors administers these plans. | |||||||||||||
The 2007 Plan provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, stock unit awards, performance awards and stock bonuses to eligible recipients to enable the Company and its subsidiaries to attract and retain qualified individuals through opportunities for equity participation in the Company, and to reward those individuals who contribute to the achievement of the Company’s economic objectives. Subject to adjustment as provided in the 2007 Plan, up to a maximum of 800,000 shares of the Company’s common stock are issuable under the 2007 Plan. Options granted under the 2007 Plan generally have a term of five years and become exercisable over a three- or four-year period beginning on the one-year anniversary of the date of grant. Options are granted at per share exercise prices equal to the market value of the Company’s common stock on the date of grant. As of August 31, 2013, only stock options and stock bonuses had been granted under the 2007 Plan. | |||||||||||||
The maximum number of shares of common stock of the Company available for issuance under the ESPP is 100,000 shares, subject to adjustment as provided in the ESPP. The ESPP provides for six-month offering periods beginning on September 1 and March 1 of each year. The purchase price of the shares is 90% of the lower of the fair market value of common stock at the beginning or end of the offering period. This discount may not exceed the maximum discount rate permitted for plans of this type under Section 423 of the Internal Revenue Code of 1986, as amended. The ESPP is compensatory for financial reporting purposes. | |||||||||||||
The fair value of option grants is determined at date of grant, using the Black-Scholes option pricing model with the assumptions listed below. The volatility factor used in the Black-Scholes option pricing model is based on historical stock price fluctuations and the risk free interest rate is based on U.S. treasury rates appropriate for the expected term. Dividend yield and expected volatility are estimated using historical amounts that are anticipated to be consistent with current values. Expected life of the option is based on the life of the option agreements. Based on these valuations, the Company recognized compensation expense of $306,451 and $288,396 during fiscal 2013 and 2012, respectively, related to the options that vested during such time period. As of August 31, 2013, the total compensation cost for nonvested options not yet recognized in the Company’s consolidated statements of operations was $305,771. Stock-based compensation expense of $185,815 is expected to be recognized during fiscal 2014, based on outstanding options as of August 31, 2013. Future option grants will impact the compensation expense recognized. | |||||||||||||
The Company currently estimates a ten percent forfeiture rate for stock options, but will continue to review this estimate in future periods. | |||||||||||||
The fair value of each option grant is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions and results for the grants: | |||||||||||||
31-Aug-13 | 31-Aug-12 | ||||||||||||
Dividend yield | 0.00% | 0 | % | ||||||||||
Expected volatility | 48.00% | 48.8 | % | ||||||||||
Expected life of option (years) | 5 | - | 10 | 5 | |||||||||
Weighted average risk-free interest rate | 0.71% | 1.31 | % | ||||||||||
Stock option activity during the periods indicated is as follows: | |||||||||||||
Number of | Weighted Average | Aggregate | |||||||||||
Shares (#) | Exercise Price | Intrinsic Value | |||||||||||
Outstanding at August 31, 2011 | 189,839 | $ | 9.07 | ||||||||||
Options granted | 26,000 | 16.45 | |||||||||||
Options exercised | (3,966 | ) | 8.71 | ||||||||||
Options terminated | (8,000 | ) | 9.23 | ||||||||||
Outstanding at August 31, 2012 | 203,873 | $ | 10.01 | ||||||||||
Options granted | 118,294 | 10.25 | |||||||||||
Options exercised | (37,040 | ) | 9.96 | ||||||||||
Options terminated | (24,500 | ) | 13.12 | ||||||||||
Outstanding at August 31, 2013 | 260,627 | $ | 9.84 | $ | 1,358,325 | ||||||||
Exercisable at August 31, 2013 | 134,998 | $ | 9.48 | $ | 768,043 | ||||||||
The weighted average per share fair value of options granted during fiscal 2013 and fiscal 2012 were $5.53 and $7.14, respectively. The weighted average remaining contractual life of the options outstanding as of August 31, 2013 and 2012 was 4.52 years and 2.14 years, respectively. | |||||||||||||
Note_12_Geographic_And_Segment
Note 12 - Geographic And Segment Information | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
12. GEOGRAPHIC AND SEGMENT INFORMATION | |||||||||||||||||
Net sales by geographic location as a percentage of total consolidated net sales were as follows: | |||||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Inside the U.S.A. to unaffiliated customers | 70.7 | % | 64 | % | |||||||||||||
Outside the U.S.A. to: | |||||||||||||||||
Joint ventures in which the Company is a shareholder directly and indirectly | 13.4 | % | 12.1 | % | |||||||||||||
Unaffiliated customers | 15.9 | % | 23.9 | % | |||||||||||||
100 | % | 100 | % | ||||||||||||||
Net sales by geographic location are based on the location of the customer. | |||||||||||||||||
Fees for services provided to joint ventures by geographic location as a percentage of total fees for services provided to joint ventures during fiscal 2013 and fiscal 2012 were as follows: | |||||||||||||||||
Fiscal 2013 | % of Total Fees | Fiscal 2012 | % of Total Fees | ||||||||||||||
for Services | for Services | ||||||||||||||||
Provided to Joint | Provided to Joint | ||||||||||||||||
Ventures in Fiscal | Ventures in | ||||||||||||||||
2013 | Fiscal 2012 | ||||||||||||||||
China* | $ | 2,063,369 | 28.1 | % | $ | — | 0 | % | |||||||||
Germany | 1,004,958 | 13.7 | % | 994,347 | 21.5 | % | |||||||||||
Japan | 723,977 | 9.8 | % | 1,022,386 | 22.1 | % | |||||||||||
Thailand | 621,807 | 8.4 | % | — | 0 | % | |||||||||||
Poland | 525,282 | 7.1 | % | 456,837 | 9.9 | % | |||||||||||
France | 496,897 | 6.8 | % | 517,708 | 11.2 | % | |||||||||||
Sweden | 415,547 | 5.7 | % | 587,069 | 12.7 | % | |||||||||||
Korea** | 393,307 | 5.3 | % | — | 0 | % | |||||||||||
Finland | 321,256 | 4.4 | % | 491,988 | 10.6 | % | |||||||||||
United Kingdom | 236,125 | 3.2 | % | 309,938 | 6.7 | % | |||||||||||
India | — | 0 | % | (192,758 | ) | (4.1 | )% | ||||||||||
Other | 550,455 | 7.5 | % | 435,398 | 9.4 | % | |||||||||||
$ | 7,352,980 | 100 | % | $ | 4,622,912 | 100 | % | ||||||||||
*Joint venture owned by NTI Asean. | |||||||||||||||||
**Joint venture owned by NTI Asean as of August 31, 2013, but not as of August 31, 2012. NTI Asean results are not included on the consolidated financial statements for the year ended August 31, 2012. (See Note 2) | |||||||||||||||||
The following table sets forth the Company’s net sales for fiscal 2013 and fiscal 2012 by segment: | |||||||||||||||||
Fiscal 2013 | Fiscal 2012 | $ | % | ||||||||||||||
Change | Change | ||||||||||||||||
ZERUST® net sales | $ | 20,457,198 | $ | 20,971,275 | $ | (514,077 | ) | (2.5 | )% | ||||||||
Natur-Tec® net sales | 2,044,666 | 1,810,378 | 234,288 | 12.9 | % | ||||||||||||
$ | 22,501,864 | $ | 22,781,653 | $ | (279,789 | ) | (1.2 | )% | |||||||||
The following table sets forth the Company’s cost of goods sold for fiscal 2013 and fiscal 2012 by segment: | |||||||||||||||||
Fiscal 2013 | % of Product | Fiscal 2012 | % of Product | ||||||||||||||
Sales* | Sales* | ||||||||||||||||
Direct cost of goods sold | |||||||||||||||||
ZERUST® | $ | 11,408,604 | 55.8 | % | $ | 10,748,865 | 51.3 | % | |||||||||
Natur-Tec® | 1,731,398 | 84.7 | % | 1,585,731 | 87.6 | % | |||||||||||
Indirect cost of goods sold | 2,333,210 | — | 2,194,190 | — | |||||||||||||
$ | 15,473,212 | 68.8 | % | $ | 14,528,785 | 63.8 | % | ||||||||||
* | The percent of segment sales is calculated by dividing the direct cost of sales for each individual segment category by the net sales for each segment category. | ||||||||||||||||
The Company’s management utilizes product net sales and direct and indirect cost of goods sold for each product in reviewing the financial performance of a product type. Further allocation of Company expenses or assets, aside from amounts presented in the tables above, is not utilized in evaluating product performance, nor does such allocation occur for internal financial reporting. | |||||||||||||||||
Sales to the Company’s joint ventures are included in the foregoing geographic and segment information, however, sales by the Company’s joint ventures to other parties are not included. The foregoing geographic and segment information represents only sales and cost of goods sold recognized directly by the Company. | |||||||||||||||||
The geographical distribution of key financial statement data is as follows: | |||||||||||||||||
At August 31, | At August 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Brazil | $ | 1,419,543 | $ | 1,610,389 | |||||||||||||
North America | $ | 47,634,406 | $ | 40,267,238 | |||||||||||||
Total assets | $ | 49,053,949 | $ | 41,877,627 | |||||||||||||
At August 31, | At August 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Brazil | $ | 2,394,486 | $ | 4,543,982 | |||||||||||||
North America | 20,107,378 | 18,237,671 | |||||||||||||||
Total net sales | $ | 22,501,864 | $ | 22,781,653 | |||||||||||||
At August 31, | At August 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Brazil | $ | (273,246 | ) | $ | 1,513,891 | ||||||||||||
North America | 5,238,222 | 3,055,878 | |||||||||||||||
Total operating income | $ | 4,964,976 | $ | 4,569,769 | |||||||||||||
Total assets located in Brazil primarily consist of cash and cash equivalents, customer receivables and inventory. Total assets are periodically reviewed to assure the net realizable value from the estimated future production based on forecasted sales exceeds the carrying value of the assets. | |||||||||||||||||
Note_13_Retirement_Plan
Note 13 - Retirement Plan | 12 Months Ended |
Aug. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' |
13. RETIREMENT PLAN | |
The Company has a 401(k) employee savings plan. Employees who meet certain age and service requirements may elect to contribute up to 15% of their salaries. The Company typically contributes the lesser of 50% of the participant’s contributions or 3.5% of the employee’s salary. The Company recognized expense for the savings plan of $175,016 and $166,201 for fiscal 2013 and fiscal 2012, respectively. | |
Note_14_Related_Party_Transact
Note 14 - Related Party Transactions | 12 Months Ended |
Aug. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
14. RELATED PARTY TRANSACTIONS | |
During fiscal 2013 and fiscal 2012, the Company made consulting payments totaling $100,000 per year to Bioplastic Polymers LLC, an entity owned by Ramani Narayan, Ph.D., a director of the Company, and paid royalties of $10,244 and $7,745, respectively, based on net sales of the Company’s bioplastics products. | |
Note_15_Income_Taxes
Note 15 - Income Taxes | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
15. INCOME TAXES | |||||||||
The provision for income taxes for the fiscal years ended August 31, 2013 and 2012 consists of the following: | |||||||||
Fiscal Year Ended August 31, | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Federal | $ | — | $ | — | |||||
State | 8,000 | 25,000 | |||||||
Foreign | 731,000 | 1,015,000 | |||||||
739,000 | 1,040,000 | ||||||||
Deferred: | |||||||||
Federal | 118,000 | 44,000 | |||||||
State | 7,000 | (43,000 | ) | ||||||
Foreign | — | — | |||||||
125,000 | 1,000 | ||||||||
$ | 864,000 | $ | 1,041,000 | ||||||
Reconciliations of the expected federal income tax at the statutory rate with the provisions for income taxes for the fiscal years ended August 31, 2013 and 2012 are as follows: | |||||||||
Fiscal Year Ended August 31, | |||||||||
2013 | 2012 | ||||||||
Tax computed at statutory rates | $ | 1,910,000 | $ | 1,570,000 | |||||
State income tax, net of federal benefit | 15,000 | (17,000 | ) | ||||||
Tax effect on equity in (income) loss of international joint ventures | (1,781,000 | ) | (1,616,000 | ) | |||||
Tax effect on dividends received from joint ventures | 1,732,000 | 1,363,000 | |||||||
Tax effect of foreign operations | 807,000 | 556,000 | |||||||
Foreign tax credit | (2,524,000 | ) | (1,729,000 | ) | |||||
Research and development credit | (364,000 | ) | (330,000 | ) | |||||
Valuation allowance | 1,635,000 | 1,177,000 | |||||||
Tax-exempt income | (230,000 | ) | — | ||||||
Non-controlling interest in partnership income | (425,000 | ) | — | ||||||
Other | 89,000 | 67,000 | |||||||
$ | 864,000 | $ | 1,041,000 | ||||||
The Company has not provided U.S. income taxes or foreign withholding taxes with respect to its portion of the cumulative undistributed earnings of foreign joint ventures that are essentially permanent in duration. The Company’s portion of the cumulative undistributed earnings of foreign joint ventures that are essentially permanent in duration were $22,281,510 and $18,185,000 at August 31, 2013 and 2012, respectively. If some or all of the undistributed earnings of the joint ventures are remitted to the Company in the future, income taxes, if any, after the application of foreign tax credits will be provided at that time. To the extent undistributed earnings of the Company’s joint ventures are distributed in the future, it is not expected to result in any material additional income tax liability after the application of foreign tax credits. | |||||||||
The tax effect of the temporary differences and tax carryforwards comprising the net deferred taxes shown on the consolidated balance sheets at August 31, 2013 and 2012 are as follows: | |||||||||
August 31, | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Accrued bonus | $ | 277,300 | $ | 404,100 | |||||
Allowance for doubtful accounts | 7,200 | 7,200 | |||||||
Inventory costs | 24,600 | 11,900 | |||||||
Prepaid expenses and other | (31,200 | ) | (27,300 | ) | |||||
Other accrued expenses | 85,500 | 96,200 | |||||||
Deferred joint venture expenses | 104,100 | 104,000 | |||||||
Total current | $ | 467,500 | $ | 596,100 | |||||
Noncurrent: | |||||||||
Property and equipment | $ | (165,100 | ) | $ | (159,500 | ) | |||
Goodwill | 35,200 | 43,100 | |||||||
Other intangible assets | 914,000 | 949,200 | |||||||
Nonqualified stock options | 248,500 | 196,100 | |||||||
Foreign tax credit carryforward | 4,253,900 | 3,438,300 | |||||||
Research and development credit | 1,823,200 | 1,485,800 | |||||||
New hire retention credit | 10,600 | 10,700 | |||||||
7,120,300 | 5,963,700 | ||||||||
Valuation allowance | (6,086,100 | ) | (4,933,100 | ) | |||||
Total noncurrent | $ | 1,034,200 | $ | 1,030,600 | |||||
At August 31, 2013, the Company had foreign tax credit carryforwards of approximately $4,253,900, of which approximately $285,800 will expire if not utilized by August 31, 2014. In addition, the Company had federal and state tax credit carryforwards of $1,832,200 at August 31, 2013 which begins to expire in fiscal 2019. These federal and state tax credit carryforwards consist primarily of federal and Minnesota research and development credit carryforwards. | |||||||||
The Company has recorded a valuation allowance of $4,253,900 with respect to the foreign tax credit carryforwards. In addition, the Company has recorded a valuation allowance of $1,832,200 with respect to federal and state tax credit carryforwards. | |||||||||
The Company records a tax valuation allowance to reduce deferred tax assets to the amount expected to be realized when it is more likely than not that some portion or all of its deferred tax assets will not be realized. The Company determined based on all available evidence, including historical data and projections of future results, that it is more likely than not that all of its deferred tax assets, except for its foreign tax credit carryforward and Minnesota research and development credit carryforwards, will be fully realized. The Company determined that its deferred tax asset related to foreign tax credit carryforwards will not be realized due to insufficient federal taxable income within the carryforward period and the fact that for ordering purposes the foreign tax credit carryforwards are not allowed to be used until after any current year foreign tax credits are utilized. In addition, based on historical data and future projections, the Company determined that it is more likely than not that its deferred tax asset related to federal and Minnesota research and development credit carryforwards will not be realized due to insufficient federal and Minnesota taxable income within the carryforward period after considering the foreign tax credit usage. | |||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: | |||||||||
Fiscal Year Ended August 31, | |||||||||
2013 | 2012 | ||||||||
Gross unrecognized tax benefits – beginning balance | $ | 131,000 | $ | 131,000 | |||||
Gross increases - prior period tax positions | 19,000 | — | |||||||
Gross increases – current period tax positions | 20,000 | — | |||||||
Gross unrecognized tax benefits – ending balance | $ | 170,000 | $ | 131,000 | |||||
The entire amount of unrecognized tax benefits would affect the effective tax rate. It is not expected that the amount of unrecognized tax benefits will change significantly in the next 12 months. | |||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the Company’s income tax provision. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet. The liability for the payment of interest and penalties was $0 at both August 31, 2013 and August 31, 2012. | |||||||||
The Company is subject to taxation in the United States and various states and foreign jurisdictions. With few exceptions, as of August 31, 2013, the Company is no longer subject to federal, state, local, or foreign examinations by tax authorities for years prior to August 31, 2010. | |||||||||
Note_16_Commitments_and_Contin
Note 16 - Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
16. COMMITMENTS AND CONTINGENCIES | |
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 and 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, 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 2013 compared to a pre-established target EBITOI for fiscal 2014 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 of which 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 2014. | |
On August 31, 2012, the Compensation Committee approved the material terms of an annual bonus plan that encompasses the Company’s executive officers, members of management and key employees for the fiscal year ending August 31, 2013. Under the terms of the plan, the total amount available under the bonus plan for all plan participants, including executive officers, is up to a certain percentage of the Company’s Adjusted EBITOI and $0 if Adjusted EBITOI is below 70% of a pre-established target Adjusted EBITOI for fiscal 2013. 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 is determined based upon the Company’s actual EBITOI for fiscal 2013 compared to the pre-established target EBITOI for fiscal 2013 and 25% of the payout is determined based upon such executive officer’s achievement of certain pre-established individual performance objectives. On November 19, 2013, the Board of Directors, upon recommendation of the Compensation Committee, approved the payment of annual bonuses for fiscal 2013. For fiscal 2013, actual Adjusted EBITOI was 60% of the budgeted target Adjusted EBITOI. The Company’s Board of Directors, upon recommendation of the Compensation Committee, nonetheless, decided to pay bonuses for fiscal 2013 under the plan since the principal reason for the shortfall was reduced revenue compared to budget due to the postponed fulfillment of a ZERUST® Oil & Gas contract. | |
There was $959,000 accrued for bonuses under the fiscal 2013 bonus plan as of August 31, 2013. $1,248,526 was accrued for bonuses under the prior fiscal year bonus plan as of August 31, 2012. | |
The Company leases property located at 23205 Mercantile Road, Beachwood, Ohio. Remaining rentals payable under such leases are as follows: fiscal 2014 - $59,500 and thereafter - $0. | |
Two joint ventures accounted for 49.0% of the Company’s trade joint venture receivables at August 31, 2013 and three joint ventures accounted for 55.3% of the Company’s trade joint venture receivables at August 31, 2012. | |
From time to time, the Company is subject to various claims and legal actions in the ordinary course of its business. The Company is not currently involved in any legal proceeding in which the Company believes, based on information currently available, that there is a reasonable possibility of a material loss. | |
Note_17_Statement_of_Cash_Flow
Note 17 - Statement of Cash Flows | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||
Cash Flow, Supplemental Disclosures [Text Block] | ' | ||||||||
17. STATEMENTS OF CASH FLOWS | |||||||||
Supplemental disclosures of cash flow information for the fiscal years ended August 31, 2013 and 2012 consist of: | |||||||||
Fiscal Year Ended | |||||||||
August 31, | |||||||||
2013 | 2012 | ||||||||
Cash paid during the year for income tax | $ | — | $ | — | |||||
Cash paid during the year for interest | 52,215 | 29,388 | |||||||
Common stock issued in lieu of accrued payroll (0 and 42,707 shares, respectively) | — | 615,830 | |||||||
Decrease/(increase) in the Company’s investment in joint ventures and accumulated other comprehensive income due to changes in exchange rates | (38,578 | ) | 2,219,357 | ||||||
Note_18_Fair_Value_Measurement
Note 18 - Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Fair Value, Measurement Inputs, Disclosure [Text Block] | ' | ||||||||||||||||
18. FAIR VALUE MEASUREMENTS | |||||||||||||||||
The Company follows the authoritative guidance on fair value measurements and disclosures with respect to assets and liabilities that are measured at fair value on both a recurring and non-recurring basis. Under this guidance, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability, developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and financial liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels defined as follows: | |||||||||||||||||
Level 1 - | Inputs are quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2 - | Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. | ||||||||||||||||
Level 3 - | Inputs are unobservable for the asset or liability. | ||||||||||||||||
See the section below titled Valuation Techniques for further discussion of how the Company determines fair value for investments. | |||||||||||||||||
Assets and Liabilities That Are Measured at Fair Value on a Recurring Basis | |||||||||||||||||
Assets and liabilities that are measured at fair value on a recurring basis primarily relate to marketable equity securities. These items are marked-to-market at each reporting period. | |||||||||||||||||
The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis: | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Using Inputs Considered as | |||||||||||||||||
Fair value as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
31-Aug-13 | |||||||||||||||||
Cash equivalents | $ | 1,020,000 | $ | 1,020,000 | $ | — | $ | — | |||||||||
Fair Value Measurements | |||||||||||||||||
Using Inputs Considered as | |||||||||||||||||
Fair value as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
31-Aug-12 | |||||||||||||||||
Cash equivalents | $ | 1,518,000 | $ | 1,518,000 | $ | — | $ | — | |||||||||
Valuation Techniques | |||||||||||||||||
Financial assets that are classified as Level 1 securities include Cash equivalents. These are valued using quoted market prices in an active market. | |||||||||||||||||
The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s policy is to recognize transfers into and out of levels within the fair value hierarchy at the end of the fiscal quarter in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers between Level 1, Level 2, or Level 3 during the fiscal years ended August 31, 2013 or August 31, 2012. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. | |||||||||||||||||
Assets and Liabilities That Are Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
The following tables provide information by level for assets and liabilities that are measured at fair value on a Nonrecurring basis: | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Using Inputs Considered as | |||||||||||||||||
Fair value as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
31-Aug-13 | |||||||||||||||||
Fair market value of NTI Asean | $ | 7,922,000 | $ | — | $ | — | $ | 7,922,000 | |||||||||
The Company determined the fair value of NTI Asean using the capitalized income method, including a capitalization rate of 25%. | |||||||||||||||||
Note_19_Quaterly_Information_U
Note 19 - Quaterly Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information [Text Block] | ' | ||||||||||||||||
19. QUARTERLY INFORMATION (UNAUDITED) | |||||||||||||||||
Fiscal Quarter Ended | |||||||||||||||||
30-Nov | 28-Feb | 31-May | 31-Aug | ||||||||||||||
Fiscal year 2013: | |||||||||||||||||
Net sales | $ | 5,291,747 | $ | 5,246,350 | $ | 5,877,033 | $ | 6,086,734 | |||||||||
Gross profit | 1,600,775 | 1,612,437 | 1,822,669 | 1,992,771 | |||||||||||||
Income before income tax expense | 892,536 | 985,155 | 1,445,769 | 2,294,041 | |||||||||||||
Income tax expense | 134,000 | 240,000 | 158,000 | 332,000 | |||||||||||||
Net income | 758,536 | 745,155 | 1,287,769 | 1,962,041 | |||||||||||||
Net income attributable to noncontrolling interest | 368,914 | 310,745 | 360,657 | 346,291 | |||||||||||||
Net income attributable to NTIC | 389,622 | 434,410 | 927,112 | 1,615,750 | |||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.09 | $ | 0.1 | $ | 0.21 | $ | 0.37 | |||||||||
Diluted | $ | 0.09 | $ | 0.1 | $ | 0.21 | $ | 0.36 | |||||||||
Weighted average common shares assumed outstanding: | |||||||||||||||||
Basic | 4,406,205 | 4,418,821 | 4,421,379 | 4,431,948 | |||||||||||||
Diluted | 4,440,436 | 4,485,076 | 4,468,861 | 4,501,017 | |||||||||||||
Fiscal Quarter Ended | |||||||||||||||||
30-Nov | Feb-29 | 31-May | 31-Aug | ||||||||||||||
Fiscal year 2012: | |||||||||||||||||
Net sales | $ | 4,832,114 | $ | 4,974,328 | $ | 7,804,904 | $ | 5,170,307 | |||||||||
Gross profit | 1,622,638 | 1,494,246 | 3,661,390 | 1,474,594 | |||||||||||||
Income before income tax expense | 1,041,421 | 703,991 | 2,454,623 | 416,611 | |||||||||||||
Income tax expense (benefit) | 106,000 | 100,000 | 814,000 | (32,000 | ) | ||||||||||||
Net income | 935,421 | 603,991 | 1,640,623 | 448,611 | |||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.22 | $ | 0.14 | $ | 0.33 | $ | 0.1 | |||||||||
Diluted | $ | 0.22 | $ | 0.14 | $ | 0.33 | $ | 0.1 | |||||||||
Weighted average common shares assumed outstanding: | |||||||||||||||||
Basic | 4,355,666 | 4,398,356 | 4,399,290 | 4,403,656 | |||||||||||||
Diluted | 4,433,724 | 4,466,435 | 4,461,044 | 4,436,444 | |||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Aug. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Business Description and Basis of Presentation [Text Block] | ' |
Nature of Business – Northern Technologies International Corporation and Subsidiaries (the Company) develops and markets proprietary environmentally beneficial products and services in over 60 countries either directly or via a network of joint ventures, independent distributors and agents. The Company’s primary business is corrosion prevention marketed mainly under the ZERUST® brand. The Company has been selling its proprietary ZERUST® rust and corrosion inhibiting products and services to the automotive, electronics, electrical, mechanical, military and retail consumer markets for over 35 years, and more recently, has targeted and expanded into the oil and gas industry. The Company also sells a portfolio of bio-based and biodegradable (compostable) polymer resin compounds and finished products marketed under the Natur-Tec® brand. These products are intended to reduce the Company’s customers’ carbon footprint and provide environmentally sound disposal options. | |
The Company participates, either directly or indirectly, in 23 active joint venture arrangements in North America, Europe and Asia. Each of these joint ventures generally manufactures and markets products in the geographic territory to which it is assigned. While most of the Company’s joint ventures exclusively sell rust and corrosion inhibiting products, some of the joint ventures sell the Company’s Natur-Tec® resin compounds and finished products. The profits of joint ventures are shared by the respective joint venture owners in accordance with their respective ownership percentages. The Company typically owns 50% or less of its joint venture entities and does not control the decisions of these entities, including dividend declaration or amount in any given year. | |
The Company has evaluated events occurring after the date of the consolidated financial statements for events requiring recording or disclosure in the financial statements. | |
Consolidation, Policy [Policy Text Block] | ' |
Principles of Consolidation - The Company evaluates its voting and variable interests in entities on a qualitative and quantitative basis. The Company consolidates entities when it has the power to direct the activities that most significantly impact an entity’s economic success and has the obligation to absorb losses or the right to receive benefits that could be significant to the entity. All such relationships are evaluated on an ongoing basis. The consolidated financial statements include the accounts of Northern Technologies International Corporation, its wholly owned subsidiary, Northern Technologies Holding Company, LLC, and its majority owned subsidiary in Brazil, Zerust Prevenção de Corrosão S.A. (Zerust Brazil) and, effective September 1, 2012, majority owned holding company, NTI ASEAN LLC (NTI Asean). All significant intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements do not include the accounts of any of the Company’s joint ventures. | |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | ' |
Noncontrolling interest – The Company owns 85% of Zerust Brazil. The remaining 15% is accounted for as a noncontrolling interest and reported as part of equity in the consolidated financial statements. Effective September 1, 2012, the Company owns 60% of NTI Asean. The remaining 40% is accounted for as a noncontrolling interest and reported as part of equity in the consolidated financial statements. The Company allocates gains and losses to the noncontrolling interest even when such allocation might result in a deficit balance, reducing the losses attributed to the controlling interest, changes in ownership interests are treated as equity transactions if control is maintained. | |
Revenue Recognition, Policy [Policy Text Block] | ' |
Net Sales –The Company includes net sales to its joint ventures and net sales to unaffiliated customers as separate line items on its consolidated statements of operations. There are no sales originating from the Company’s joint ventures included in the amount, as the Company’s investments in its joint ventures are accounted for using the equity method. | |
Revenue Recognition – The Company recognizes revenue from the sale of its products when persuasive evidence of an arrangement exists, the product has been delivered, the price is fixed and determinable and collection of the resulting receivable is reasonably assured. These criteria are met when risk of loss and title pass to the customer, distributor or joint venture entity. | |
Deferred Joint Venture Revenue – The Company periodically sponsors a worldwide joint venture conference, in which all of its joint ventures are invited to participate. It defers a portion of its service fees received from its joint ventures in each accounting period leading up to the next conference, reflecting that the Company has not earned portions of the payments received. It is anticipated that the next joint venture conference will be held in the summer of 2014. At both August 31, 2013 and 2012, the Company had deferred $288,000 of joint venture fees for services related to this future conference, which represents the amount that the Company expects to spend to hold the conference. This amount is based on the historical experience of the Company, current conditions, and the intentions of the Company’s management. The Company does not anticipate deferring any additional service fees until after the next conference. | |
Accounts Receivable – Payment terms for the Company’s unaffiliated customers are determined based on credit risk and vary by customer. The Company typically offers standard payment terms to unaffiliated customers of net 30 days. The Company does not accrue interest on past due accounts receivable. The Company reviews the credit histories of its customers before extending unsecured credit. The Company presents accounts and notes receivable, net of an allowance for doubtful accounts. Each quarter, the Company prepares an analysis of its ability to collect outstanding receivables that provides a basis for an allowance estimate for doubtful accounts. In doing so, the Company evaluates the age of its receivables, past collection history, current financial conditions of key customers and its joint ventures, and economic conditions. Based on this evaluation, the Company establishes a reserve for specific accounts and notes receivable that it believes are uncollectible, as well as an estimate of uncollectible receivables not specifically known. The Company believes that an analysis of historical trends and its current knowledge of potential collection problems provide the Company with sufficient information to establish a reasonable estimate for an allowance for doubtful accounts. In the event the Company determined that a smaller or larger uncollectible accounts reserve is appropriate, the Company would record a credit or charge to selling expense in the period that it made such a determination. Accounts receivable have been reduced by an allowance for uncollectible accounts of $20,000 at both August 31, 2013 and 2012. Accounts are considered past due based on terms agreed upon between the Company and the customer. Accounts receivable are written-off only after all collection attempts have failed and are based on individual credit evaluation and specific circumstances of the customer. | |
Receivables from Joint Ventures – Trade receivables from joint ventures arise from sales the Company makes to its joint ventures of products. Payment terms for the Company’s joint ventures also are determined based on credit risk; however, additional consideration also is given to the individual joint venture due to the transportation time associated with ocean delivery of most products and certain other factors. Generally, accounts receivable from the Company’s joint ventures unpaid after 90 days are considered past due. The Company does not accrue interest on past due accounts receivable. The Company periodically reviews amounts due from its joint ventures for collectability, and based on past experience and continuous review of the balances due, has determined an allowance for doubtful accounts related to its joint venture receivables is not necessary. | |
Fees for Services Provided to Joint Ventures – The Company provides certain services to its joint ventures including consulting, legal, travel, insurance, technical and marketing services. The Company receives fees for the services it provides to its joint ventures. The fees for services received by the Company from its joint ventures are generally based on either a flat fee or a percentage of net sales by the Company’s joint ventures depending on local laws and tax regulations. The Company recognizes revenues related to fees for services provided to its joint ventures when earned, amounts are determinable and collectability is reasonably assured. Under the Company’s agreements with its joint ventures, amounts are earned when product is shipped from joint venture facilities. The Company reviews the financial situation of each of its joint ventures to assist in the likelihood of collections on amounts earned. The Company elects to account for these fees on a cash basis for certain joint ventures if uncertainty exists surrounding the collection of such fees. | |
Revenue Recognition, Deferred Revenue [Policy Text Block] | ' |
Deferred Joint Venture Revenue – The Company periodically sponsors a worldwide joint venture conference, in which all of its joint ventures are invited to participate. It defers a portion of its service fees received from its joint ventures in each accounting period leading up to the next conference, reflecting that the Company has not earned portions of the payments received. It is anticipated that the next joint venture conference will be held in the summer of 2014. At both August 31, 2013 and 2012, the Company had deferred $288,000 of joint venture fees for services related to this future conference, which represents the amount that the Company expects to spend to hold the conference. This amount is based on the historical experience of the Company, current conditions, and the intentions of the Company’s management. The Company does not anticipate deferring any additional service fees until after the next conference. | |
Receivables, Policy [Policy Text Block] | ' |
Accounts Receivable – Payment terms for the Company’s unaffiliated customers are determined based on credit risk and vary by customer. The Company typically offers standard payment terms to unaffiliated customers of net 30 days. The Company does not accrue interest on past due accounts receivable. The Company reviews the credit histories of its customers before extending unsecured credit. The Company presents accounts and notes receivable, net of an allowance for doubtful accounts. Each quarter, the Company prepares an analysis of its ability to collect outstanding receivables that provides a basis for an allowance estimate for doubtful accounts. In doing so, the Company evaluates the age of its receivables, past collection history, current financial conditions of key customers and its joint ventures, and economic conditions. Based on this evaluation, the Company establishes a reserve for specific accounts and notes receivable that it believes are uncollectible, as well as an estimate of uncollectible receivables not specifically known. The Company believes that an analysis of historical trends and its current knowledge of potential collection problems provide the Company with sufficient information to establish a reasonable estimate for an allowance for doubtful accounts. In the event the Company determined that a smaller or larger uncollectible accounts reserve is appropriate, the Company would record a credit or charge to selling expense in the period that it made such a determination. Accounts receivable have been reduced by an allowance for uncollectible accounts of $20,000 at both August 31, 2013 and 2012. Accounts are considered past due based on terms agreed upon between the Company and the customer. Accounts receivable are written-off only after all collection attempts have failed and are based on individual credit evaluation and specific circumstances of the customer. | |
Receivables from Joint Ventures, Policy [Policy Text Block] | ' |
Receivables from Joint Ventures – Trade receivables from joint ventures arise from sales the Company makes to its joint ventures of products. Payment terms for the Company’s joint ventures also are determined based on credit risk; however, additional consideration also is given to the individual joint venture due to the transportation time associated with ocean delivery of most products and certain other factors. Generally, accounts receivable from the Company’s joint ventures unpaid after 90 days are considered past due. The Company does not accrue interest on past due accounts receivable. The Company periodically reviews amounts due from its joint ventures for collectability, and based on past experience and continuous review of the balances due, has determined an allowance for doubtful accounts related to its joint venture receivables is not necessary. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Cash and Cash Equivalents - The Company includes as cash and cash equivalents highly liquid, short-term investments with maturity of three months or less when purchased, which are readily convertible into known amounts of cash. The Company maintains its cash in high quality financial institutions. The balances, at times, may exceed federally insured limits. | |
Inventory, Policy [Policy Text Block] | ' |
Inventories - Inventories are recorded at the lower of cost (first-in, first-out basis) or market. | |
Property, Plant and Equipment, Policy [Policy Text Block] | ' |
Property and Depreciation - Property and equipment are stated at cost. Depreciation is computed using the straight-line method based on the estimated service lives of the various assets | |
Equity Method Investments, Policy [Policy Text Block] | ' |
Investments in Joint Ventures - Investments in the Company’s joint ventures are accounted for using the equity method. Under the equity method, investments are initially recorded at cost and are adjusted for dividends, distributed and undistributed earnings and losses, changes in foreign currency exchange rates and additional investments. In the event the Company’s share of joint venture’s cumulative losses exceed the Company’s investment balance, the balance is reported at zero value until proportionate income exceeds the losses. The Company assesses its joint ventures for impairment on an annual basis as of August 31 of each year as part of its fiscal year end analysis. In addition to the annual review for impairment, the Company reviews the operating results of each joint venture on a quarterly basis in comparison to its historical operating results and its accrual of fees for services provided to joint ventures. If the operating results of a joint venture do not meet financial performance expectations, an additional evaluation is performed on the joint venture. If an investment were determined to be impaired, then a reserve is created to reflect the impairment on the financial results of the Company. The Company’s evaluation of its investments in joint ventures requires the Company to make assumptions about future cash flows of its joint ventures. These assumptions require significant judgment and actual results may differ from assumed or estimated amounts. | |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' |
Recoverability of Long-Lived Assets - The Company reviews its long-lived assets whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. The Company determines potential impairment by comparing the carrying value of the assets with expected net cash flows expected to be provided by operating activities of the business or related products. If the sum of the expected undiscounted future net cash flows is less than the carrying value, the Company evaluates if an impairment loss should be recognized. An impairment loss is measured by comparing the amount by which the carrying value exceeds the fair value of the asset. | |
Income Tax, Policy [Policy Text Block] | ' |
Income Taxes - The Company utilizes the liability method of accounting for income taxes which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | |
The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In the event the Company determines that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. | |
The Company records uncertain tax positions on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) those tax positions that meet the more-likely-than-not recognition threshold. The Company recognizes the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority. | |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' |
Foreign Currency Translation (Accumulated Other Comprehensive Income) - The functional currency of Zerust Brazil and each unconsolidated international joint venture is the applicable local currency. The translation of the applicable foreign currencies into U.S. dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average monthly exchange rate. Translation gains or losses are reported as an element of other comprehensive income. | |
The Company (excluding Zerust Brazil, NTI Asean and its joint ventures) conducts all foreign transactions based on the U.S. dollar. Since investments in joint ventures are accounted for using the equity method, any changes in foreign currency exchange rates are reflected as a foreign currency translation adjustment and does not change the equity in income of joint ventures reflected in the Company’s consolidated statements of operations. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' |
Fair Value of Financial Instruments – The carrying value of cash, short-term accounts and notes receivable, notes payable, trade accounts payables, and other accrued expenses approximate fair value because of the short maturity of those instruments. The fair value of the Company’s long-term debt approximates the carrying values based upon current market rates of interest. | |
Shipping and Handling Cost, Policy [Policy Text Block] | ' |
Shipping and Handling - The Company records all amounts billed to customers in a sales transaction related to shipping and handling as sales. The Company records costs related to shipping and handling in cost of goods sold. | |
Government Contractors, Revenue Recognition, Policy [Policy Text Block] | ' |
Government Grants - The Company accrues proceeds received under the grants when earned based on the terms of the contracts and offsets research and development expenses incurred in equal installments over the timelines associated with completion of the grant specific objectives and milestones. | |
Research, Development, and Computer Software, Policy [Policy Text Block] | ' |
Research and Development - The Company expenses all costs related to product research and development as incurred. The costs related to product research and development are the net amount after being reduced by reimbursements related to certain research and development contracts of $274,728 and $365,940 for fiscal 2013 and fiscal 2012, respectively. The Company accrues proceeds received under such contracts and offsets research and development expenses incurred in equal installments over the timelines associated with completion of the contracts’ specific objectives and milestones. At August 31, 2013 and 2012, the Company had $0 and $96,861, respectively, of deferred amounts in other accrued liabilities as the Company had not yet performed under the obligations of the contract at that time. | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
Stock-Based Compensation – The Company recognizes compensation cost relating to share-based payment transactions, including grants of employee stock options and transactions under the Company’s employee stock purchase plan, in its consolidated financial statements. That cost is measured based on the fair value of the equity or liability instruments issued. The Company measures the cost of employee services received in exchange for stock options and other stock-based awards based on the grant-date fair value of the award, and recognizes the cost over the period the employee is required to provide services for the award. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates - The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Note_3_NTI_ASEAN_Tables
Note 3 - NTI ASEAN (Tables) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ' | ||||||||||||||||
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 | |||||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||||||||||||||||
As Reported | NTI | Eliminated in | Pro Forma | ||||||||||||||
Asean | Consolidation | ||||||||||||||||
Net sales | $ | 22,781,653 | $ | — | $ | — | $ | 22,781,653 | |||||||||
Cost of goods sold | 14,528,785 | — | — | 14,528,785 | |||||||||||||
Gross profit | 8,252,868 | — | — | 8,252,868 | |||||||||||||
Joint venture operations | 10,142,707 | 3,395,354 | (1,414,248 | ) | 12,123,813 | ||||||||||||
Operating expenses | 13,825,806 | 185,700 | — | 14,011,506 | |||||||||||||
Operating income | 4,569,769 | 3,209,654 | (1,414,248 | ) | 6,365,175 | ||||||||||||
Income before income tax expense | 4,616,646 | 3,209,654 | (1,414,248 | ) | 6,412,052 | ||||||||||||
Income tax expense | 1,041,000 | 381,466 | — | 1,422,466 | |||||||||||||
Net income | 3,575,646 | 2,828,188 | (1,414,248 | ) | 4,989,586 | ||||||||||||
Net income attributable to non-controlling interest | 127,450 | (1,131,275 | ) | — | (1,003,825 | ) | |||||||||||
Net income attributable to NTIC | 3,448,196 | 1,696,913 | (1,414,248 | ) | 3,730,861 | ||||||||||||
Net income per common diluted share | $ | 0.78 | $ | 0.38 | $ | (0.32 | ) | $ | 0.84 |
Note_4_Inventories_Tables
Note 4 - Inventories (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
31-Aug-13 | 31-Aug-12 | ||||||||
Production materials | $ | 1,096,693 | $ | 1,462,615 | |||||
Finished goods | 4,014,856 | 2,688,582 | |||||||
$ | 5,111,549 | $ | 4,151,197 |
Note_5_Property_and_Equipment_1
Note 5 - Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
31-Aug-13 | 31-Aug-12 | ||||||||
Land | $ | 310,365 | $ | 310,365 | |||||
Buildings and improvements | 4,613,879 | 3,406,674 | |||||||
Machinery and equipment | 3,189,671 | 2,908,021 | |||||||
8,113,915 | 6,625,060 | ||||||||
Less accumulated depreciation | (2,790,303 | ) | (2,336,442 | ) | |||||
$ | 5,323,612 | $ | 4,288,618 |
Note_6_Patents_and_Trademarks_1
Note 6 - Patents and Trademarks, Net (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||
31-Aug-13 | 31-Aug-12 | ||||||||
Patents and trademarks | $ | 2,064,128 | $ | 1,945,785 | |||||
Less accumulated amortization | (1,003,489 | ) | (984,604 | ) | |||||
$ | 1,060,639 | $ | 961,181 |
Note_7_Investments_in_Joint_Ve1
Note 7 - Investments in Joint Ventures (Tables) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||||||
Condensed Balance Sheet [Table Text Block] | ' | ||||||||||||||||
31-Aug-13 | |||||||||||||||||
TOTAL | EXCOR | China | All Other | ||||||||||||||
Current assets | $ | 63,052,410 | $ | 25,955,136 | $ | 11,200,355 | $ | 25,896,919 | |||||||||
Total assets | 68,417,142 | 28,391,787 | 11,226,755 | 28,798,600 | |||||||||||||
Current liabilities | 16,107,597 | 3,572,004 | 3,080,118 | 9,455,475 | |||||||||||||
Noncurrent liabilities | 2,488,057 | — | 871,886 | 1,616,171 | |||||||||||||
Joint ventures’ equity | 49,821,488 | 24,819,783 | 7,274,751 | 17,726,954 | |||||||||||||
Northern Technologies International Corporation’s share of joint ventures’ equity | 24,702,981 | 12,409,893 | 3,637,375 | 8,655,713 | |||||||||||||
Northern Technologies International Corporation's share of joint ventures' undistributed earnings | $ | 22,281,510 | $ | 12,378,988 | $ | 3,587,375 | $ | 6,315,147 | |||||||||
31-Aug-12 | |||||||||||||||||
TOTAL | EXCOR | NTI ASEAN | All Other | ||||||||||||||
Current assets | $ | 61,973,725 | $ | 24,357,139 | $ | 15,358,967 | $ | 22,257,619 | |||||||||
Total assets | 68,585,974 | 26,620,589 | 15,522,456 | 26,442,929 | |||||||||||||
Current liabilities | 18,686,181 | 4,749,574 | 5,763,857 | 8,172,750 | |||||||||||||
Noncurrent liabilities | 4,700,458 | — | 1,055,965 | 3,644,493 | |||||||||||||
Joint ventures’ equity | 45,199,335 | 21,871,015 | 8,702,634 | 14,625,686 | |||||||||||||
Northern Technologies International Corporation’s share of joint ventures’ equity | 21,461,492 | 10,935,509 | 3,685,404 | 6,840,579 | |||||||||||||
Northern Technologies International Corporation's share of joint ventures' undistributed earnings | $ | 19,403,150 | $ | 10,904,604 | $ | 3,314,445 | $ | 5,184,101 | |||||||||
Condensed Income Statement [Table Text Block] | ' | ||||||||||||||||
Fiscal Year Ended August 31, 2013 | |||||||||||||||||
TOTAL | EXCOR | China | All Other | ||||||||||||||
Net sales | $ | 113,189,068 | $ | 36,476,544 | $ | 15,161,289 | $ | 61,551,235 | |||||||||
Gross profit | 52,058,609 | 19,470,322 | 7,153,395 | 25,434,891 | |||||||||||||
Net income | 10,650,542 | 7,009,897 | 1,157,995 | 2,482,650 | |||||||||||||
Northern Technologies International Corporation’s share of equity in income of joint ventures | $ | 5,237,711 | $ | 3,507,057 | $ | 579,376 | $ | 1,151,278 | |||||||||
Fiscal Year Ended August 31, 2012 | |||||||||||||||||
TOTAL | EXCOR | NTI ASEAN | All Other | ||||||||||||||
Net sales | $ | 111,830,961 | $ | 36,027,979 | $ | 22,035,035 | $ | 53,767,947 | |||||||||
Gross profit | 50,679,875 | 18,667,848 | 9,621,930 | 22,390,097 | |||||||||||||
Net income | 11,987,323 | 6,656,298 | 3,585,476 | 1,745,549 | |||||||||||||
Northern Technologies International Corporation’s share of equity in income of joint ventures | $ | 5,519,795 | $ | 3,318,213 | $ | 1,414,248 | $ | 787,333 |
Note_9_Stockholders_Equity_Tab
Note 9 - Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Note 9 - Stockholders' Equity (Tables) [Line Items] | ' | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
Number of | Weighted Average | Aggregate | |||||||||||
Shares (#) | Exercise Price | Intrinsic Value | |||||||||||
Outstanding at August 31, 2011 | 189,839 | $ | 9.07 | ||||||||||
Options granted | 26,000 | 16.45 | |||||||||||
Options exercised | (3,966 | ) | 8.71 | ||||||||||
Options terminated | (8,000 | ) | 9.23 | ||||||||||
Outstanding at August 31, 2012 | 203,873 | $ | 10.01 | ||||||||||
Options granted | 118,294 | 10.25 | |||||||||||
Options exercised | (37,040 | ) | 9.96 | ||||||||||
Options terminated | (24,500 | ) | 13.12 | ||||||||||
Outstanding at August 31, 2013 | 260,627 | $ | 9.84 | $ | 1,358,325 | ||||||||
Exercisable at August 31, 2013 | 134,998 | $ | 9.48 | $ | 768,043 | ||||||||
Stock Option Exercises [Member] | ' | ||||||||||||
Note 9 - Stockholders' Equity (Tables) [Line Items] | ' | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
Options | Exercise | ||||||||||||
Exercised | Price | ||||||||||||
25,140 | $ | 9.95 | |||||||||||
4,000 | 12.84 | ||||||||||||
4,000 | 8.57 | ||||||||||||
1,734 | 7.65 | ||||||||||||
1,500 | 9.76 | ||||||||||||
666 | 7.75 | ||||||||||||
Options | Exercise | ||||||||||||
Exercised | Price | ||||||||||||
1,966 | $ | 7.65 | |||||||||||
2,000 | 9.75 |
Note_10_Net_Income_Per_Common_1
Note 10 - Net Income Per Common Share (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
Numerator: | 31-Aug-13 | 31-Aug-12 | |||||||
Net income attributable to NTIC | $ | 3,366,894 | $ | 3,448,196 | |||||
Denominator: | |||||||||
Basic – weighted shares outstanding | 4,421,636 | 4,391,424 | |||||||
Weighted shares assumed upon exercise of stock options | 54,259 | 60,170 | |||||||
Diluted – weighted shares outstanding | 4,475,895 | 4,451,594 | |||||||
Basic earnings per share: | $ | 0.76 | $ | 0.79 | |||||
Diluted earnings per share: | $ | 0.75 | $ | 0.78 |
Note_11_StockBased_Compensatio1
Note 11 - Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Aug. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||
31-Aug-13 | 31-Aug-12 | ||||||||||||
Dividend yield | 0.00% | 0 | % | ||||||||||
Expected volatility | 48.00% | 48.8 | % | ||||||||||
Expected life of option (years) | 5 | - | 10 | 5 | |||||||||
Weighted average risk-free interest rate | 0.71% | 1.31 | % | ||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
Number of | Weighted Average | Aggregate | |||||||||||
Shares (#) | Exercise Price | Intrinsic Value | |||||||||||
Outstanding at August 31, 2011 | 189,839 | $ | 9.07 | ||||||||||
Options granted | 26,000 | 16.45 | |||||||||||
Options exercised | (3,966 | ) | 8.71 | ||||||||||
Options terminated | (8,000 | ) | 9.23 | ||||||||||
Outstanding at August 31, 2012 | 203,873 | $ | 10.01 | ||||||||||
Options granted | 118,294 | 10.25 | |||||||||||
Options exercised | (37,040 | ) | 9.96 | ||||||||||
Options terminated | (24,500 | ) | 13.12 | ||||||||||
Outstanding at August 31, 2013 | 260,627 | $ | 9.84 | $ | 1,358,325 | ||||||||
Exercisable at August 31, 2013 | 134,998 | $ | 9.48 | $ | 768,043 |
Note_12_Geographic_And_Segment1
Note 12 - Geographic And Segment Information (Tables) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Note 12 - Geographic And Segment Information (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | ||||||||||||||||
Fiscal Year Ended August 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Inside the U.S.A. to unaffiliated customers | 70.7 | % | 64 | % | |||||||||||||
Outside the U.S.A. to: | |||||||||||||||||
Joint ventures in which the Company is a shareholder directly and indirectly | 13.4 | % | 12.1 | % | |||||||||||||
Unaffiliated customers | 15.9 | % | 23.9 | % | |||||||||||||
100 | % | 100 | % | ||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
Fiscal 2013 | Fiscal 2012 | $ | % | ||||||||||||||
Change | Change | ||||||||||||||||
ZERUST® net sales | $ | 20,457,198 | $ | 20,971,275 | $ | (514,077 | ) | (2.5 | )% | ||||||||
Natur-Tec® net sales | 2,044,666 | 1,810,378 | 234,288 | 12.9 | % | ||||||||||||
$ | 22,501,864 | $ | 22,781,653 | $ | (279,789 | ) | (1.2 | )% | |||||||||
' | |||||||||||||||||
Fiscal 2013 | % of Product | Fiscal 2012 | % of Product | ||||||||||||||
Sales* | Sales* | ||||||||||||||||
Direct cost of goods sold | |||||||||||||||||
ZERUST® | $ | 11,408,604 | 55.8 | % | $ | 10,748,865 | 51.3 | % | |||||||||
Natur-Tec® | 1,731,398 | 84.7 | % | 1,585,731 | 87.6 | % | |||||||||||
Indirect cost of goods sold | 2,333,210 | — | 2,194,190 | — | |||||||||||||
$ | 15,473,212 | 68.8 | % | $ | 14,528,785 | 63.8 | % | ||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | ||||||||||||||||
At August 31, | At August 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Brazil | $ | 1,419,543 | $ | 1,610,389 | |||||||||||||
North America | $ | 47,634,406 | $ | 40,267,238 | |||||||||||||
Total assets | $ | 49,053,949 | $ | 41,877,627 | |||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||
At August 31, | At August 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Brazil | $ | 2,394,486 | $ | 4,543,982 | |||||||||||||
North America | 20,107,378 | 18,237,671 | |||||||||||||||
Total net sales | $ | 22,501,864 | $ | 22,781,653 | |||||||||||||
At August 31, | At August 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Brazil | $ | (273,246 | ) | $ | 1,513,891 | ||||||||||||
North America | 5,238,222 | 3,055,878 | |||||||||||||||
Total operating income | $ | 4,964,976 | $ | 4,569,769 | |||||||||||||
Fees For Services Provided to Joint Ventures [Member] | ' | ||||||||||||||||
Note 12 - Geographic And Segment Information (Tables) [Line Items] | ' | ||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
Fiscal 2013 | % of Total Fees | Fiscal 2012 | % of Total Fees | ||||||||||||||
for Services | for Services | ||||||||||||||||
Provided to Joint | Provided to Joint | ||||||||||||||||
Ventures in Fiscal | Ventures in | ||||||||||||||||
2013 | Fiscal 2012 | ||||||||||||||||
China* | $ | 2,063,369 | 28.1 | % | $ | — | 0 | % | |||||||||
Germany | 1,004,958 | 13.7 | % | 994,347 | 21.5 | % | |||||||||||
Japan | 723,977 | 9.8 | % | 1,022,386 | 22.1 | % | |||||||||||
Thailand | 621,807 | 8.4 | % | — | 0 | % | |||||||||||
Poland | 525,282 | 7.1 | % | 456,837 | 9.9 | % | |||||||||||
France | 496,897 | 6.8 | % | 517,708 | 11.2 | % | |||||||||||
Sweden | 415,547 | 5.7 | % | 587,069 | 12.7 | % | |||||||||||
Korea** | 393,307 | 5.3 | % | — | 0 | % | |||||||||||
Finland | 321,256 | 4.4 | % | 491,988 | 10.6 | % | |||||||||||
United Kingdom | 236,125 | 3.2 | % | 309,938 | 6.7 | % | |||||||||||
India | — | 0 | % | (192,758 | ) | (4.1 | )% | ||||||||||
Other | 550,455 | 7.5 | % | 435,398 | 9.4 | % | |||||||||||
$ | 7,352,980 | 100 | % | $ | 4,622,912 | 100 | % |
Note_15_Income_Taxes_Tables
Note 15 - Income Taxes (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||
Fiscal Year Ended August 31, | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Federal | $ | — | $ | — | |||||
State | 8,000 | 25,000 | |||||||
Foreign | 731,000 | 1,015,000 | |||||||
739,000 | 1,040,000 | ||||||||
Deferred: | |||||||||
Federal | 118,000 | 44,000 | |||||||
State | 7,000 | (43,000 | ) | ||||||
Foreign | — | — | |||||||
125,000 | 1,000 | ||||||||
$ | 864,000 | $ | 1,041,000 | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||
Fiscal Year Ended August 31, | |||||||||
2013 | 2012 | ||||||||
Tax computed at statutory rates | $ | 1,910,000 | $ | 1,570,000 | |||||
State income tax, net of federal benefit | 15,000 | (17,000 | ) | ||||||
Tax effect on equity in (income) loss of international joint ventures | (1,781,000 | ) | (1,616,000 | ) | |||||
Tax effect on dividends received from joint ventures | 1,732,000 | 1,363,000 | |||||||
Tax effect of foreign operations | 807,000 | 556,000 | |||||||
Foreign tax credit | (2,524,000 | ) | (1,729,000 | ) | |||||
Research and development credit | (364,000 | ) | (330,000 | ) | |||||
Valuation allowance | 1,635,000 | 1,177,000 | |||||||
Tax-exempt income | (230,000 | ) | — | ||||||
Non-controlling interest in partnership income | (425,000 | ) | — | ||||||
Other | 89,000 | 67,000 | |||||||
$ | 864,000 | $ | 1,041,000 | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
August 31, | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Accrued bonus | $ | 277,300 | $ | 404,100 | |||||
Allowance for doubtful accounts | 7,200 | 7,200 | |||||||
Inventory costs | 24,600 | 11,900 | |||||||
Prepaid expenses and other | (31,200 | ) | (27,300 | ) | |||||
Other accrued expenses | 85,500 | 96,200 | |||||||
Deferred joint venture expenses | 104,100 | 104,000 | |||||||
Total current | $ | 467,500 | $ | 596,100 | |||||
Noncurrent: | |||||||||
Property and equipment | $ | (165,100 | ) | $ | (159,500 | ) | |||
Goodwill | 35,200 | 43,100 | |||||||
Other intangible assets | 914,000 | 949,200 | |||||||
Nonqualified stock options | 248,500 | 196,100 | |||||||
Foreign tax credit carryforward | 4,253,900 | 3,438,300 | |||||||
Research and development credit | 1,823,200 | 1,485,800 | |||||||
New hire retention credit | 10,600 | 10,700 | |||||||
7,120,300 | 5,963,700 | ||||||||
Valuation allowance | (6,086,100 | ) | (4,933,100 | ) | |||||
Total noncurrent | $ | 1,034,200 | $ | 1,030,600 | |||||
Summary of Income Tax Contingencies [Table Text Block] | ' | ||||||||
Fiscal Year Ended August 31, | |||||||||
2013 | 2012 | ||||||||
Gross unrecognized tax benefits – beginning balance | $ | 131,000 | $ | 131,000 | |||||
Gross increases - prior period tax positions | 19,000 | — | |||||||
Gross increases – current period tax positions | 20,000 | — | |||||||
Gross unrecognized tax benefits – ending balance | $ | 170,000 | $ | 131,000 |
Note_17_Statement_of_Cash_Flow1
Note 17 - Statement of Cash Flows (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | ' | ||||||||
Fiscal Year Ended | |||||||||
August 31, | |||||||||
2013 | 2012 | ||||||||
Cash paid during the year for income tax | $ | — | $ | — | |||||
Cash paid during the year for interest | 52,215 | 29,388 | |||||||
Common stock issued in lieu of accrued payroll (0 and 42,707 shares, respectively) | — | 615,830 | |||||||
Decrease/(increase) in the Company’s investment in joint ventures and accumulated other comprehensive income due to changes in exchange rates | (38,578 | ) | 2,219,357 |
Note_18_Fair_Value_Measurement1
Note 18 - Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Using Inputs Considered as | |||||||||||||||||
Fair value as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
31-Aug-13 | |||||||||||||||||
Cash equivalents | $ | 1,020,000 | $ | 1,020,000 | $ | — | $ | — | |||||||||
Fair Value Measurements | |||||||||||||||||
Using Inputs Considered as | |||||||||||||||||
Fair value as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
31-Aug-12 | |||||||||||||||||
Cash equivalents | $ | 1,518,000 | $ | 1,518,000 | $ | — | $ | — | |||||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Using Inputs Considered as | |||||||||||||||||
Fair value as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
31-Aug-13 | |||||||||||||||||
Fair market value of NTI Asean | $ | 7,922,000 | $ | — | $ | — | $ | 7,922,000 |
Note_19_Quaterly_Information_U1
Note 19 - Quaterly Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Note 19 - Quaterly Information (Unaudited) (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | ||||||||||||||||
Fiscal Quarter Ended | |||||||||||||||||
30-Nov | 28-Feb | 31-May | 31-Aug | ||||||||||||||
Fiscal year 2013: | |||||||||||||||||
Net sales | $ | 5,291,747 | $ | 5,246,350 | $ | 5,877,033 | $ | 6,086,734 | |||||||||
Gross profit | 1,600,775 | 1,612,437 | 1,822,669 | 1,992,771 | |||||||||||||
Income before income tax expense | 892,536 | 985,155 | 1,445,769 | 2,294,041 | |||||||||||||
Income tax expense | 134,000 | 240,000 | 158,000 | 332,000 | |||||||||||||
Net income | 758,536 | 745,155 | 1,287,769 | 1,962,041 | |||||||||||||
Net income attributable to noncontrolling interest | 368,914 | 310,745 | 360,657 | 346,291 | |||||||||||||
Net income attributable to NTIC | 389,622 | 434,410 | 927,112 | 1,615,750 | |||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.09 | $ | 0.1 | $ | 0.21 | $ | 0.37 | |||||||||
Diluted | $ | 0.09 | $ | 0.1 | $ | 0.21 | $ | 0.36 | |||||||||
Weighted average common shares assumed outstanding: | |||||||||||||||||
Basic | 4,406,205 | 4,418,821 | 4,421,379 | 4,431,948 | |||||||||||||
Diluted | 4,440,436 | 4,485,076 | 4,468,861 | 4,501,017 | |||||||||||||
Prior Period [Member] | ' | ||||||||||||||||
Note 19 - Quaterly Information (Unaudited) (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | ||||||||||||||||
Fiscal Quarter Ended | |||||||||||||||||
30-Nov | Feb-29 | 31-May | 31-Aug | ||||||||||||||
Fiscal year 2012: | |||||||||||||||||
Net sales | $ | 4,832,114 | $ | 4,974,328 | $ | 7,804,904 | $ | 5,170,307 | |||||||||
Gross profit | 1,622,638 | 1,494,246 | 3,661,390 | 1,474,594 | |||||||||||||
Income before income tax expense | 1,041,421 | 703,991 | 2,454,623 | 416,611 | |||||||||||||
Income tax expense (benefit) | 106,000 | 100,000 | 814,000 | (32,000 | ) | ||||||||||||
Net income | 935,421 | 603,991 | 1,640,623 | 448,611 | |||||||||||||
Net income per share: | |||||||||||||||||
Basic | $ | 0.22 | $ | 0.14 | $ | 0.33 | $ | 0.1 | |||||||||
Diluted | $ | 0.22 | $ | 0.14 | $ | 0.33 | $ | 0.1 | |||||||||
Weighted average common shares assumed outstanding: | |||||||||||||||||
Basic | 4,355,666 | 4,398,356 | 4,399,290 | 4,403,656 | |||||||||||||
Diluted | 4,433,724 | 4,466,435 | 4,461,044 | 4,436,444 |
Note_1_Nature_of_Business_and_1
Note 1 - Nature of Business and Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Note 1 - Nature of Business and Significant Accounting Policies (Details) [Line Items] | ' | ' |
Number of Countries in which Entity Operates | 60 | ' |
Number of Joint Venture Arrangements | 23 | ' |
Deferred Revenue, Current (in Dollars) | $288,000 | $288,000 |
Allowance for Doubtful Accounts Receivable (in Dollars) | 20,000 | 20,000 |
Reimbursements Related To Certain Research And Development Contracts (in Dollars) | 274,728 | 365,940 |
Reimbursements Related To Certain Research And Development Contracts (in Dollars) | 274,728 | 365,940 |
Other Accrued Liabilities, Current (in Dollars) | 189,263 | 251,350 |
Zerust Brazil [Member] | ' | ' |
Note 1 - Nature of Business and Significant Accounting Policies (Details) [Line Items] | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 15.00% | ' |
Equity Method Investment, Ownership Percentage | 85.00% | ' |
Research And Development [Member] | ' | ' |
Note 1 - Nature of Business and Significant Accounting Policies (Details) [Line Items] | ' | ' |
Other Accrued Liabilities, Current (in Dollars) | 0 | 96,861 |
Building and Building Improvements [Member] | Maximum [Member] | ' | ' |
Note 1 - Nature of Business and Significant Accounting Policies (Details) [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '30 years | ' |
Building and Building Improvements [Member] | Minimum [Member] | ' | ' |
Note 1 - Nature of Business and Significant Accounting Policies (Details) [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' |
Machinery and Equipment [Member] | Maximum [Member] | ' | ' |
Note 1 - Nature of Business and Significant Accounting Policies (Details) [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '10 years | ' |
Machinery and Equipment [Member] | Minimum [Member] | ' | ' |
Note 1 - Nature of Business and Significant Accounting Policies (Details) [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' |
Joint Venture Fees [Member] | ' | ' |
Note 1 - Nature of Business and Significant Accounting Policies (Details) [Line Items] | ' | ' |
Deferred Revenue, Current (in Dollars) | $288,000 | $288,000 |
NTI ASEAN [Member] | ' | ' |
Note 1 - Nature of Business and Significant Accounting Policies (Details) [Line Items] | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 40.00% | ' |
Equity Method Investment, Ownership Percentage | 60.00% | ' |
Maximum [Member] | ' | ' |
Note 1 - Nature of Business and Significant Accounting Policies (Details) [Line Items] | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% | ' |
Note_3_NTI_ASEAN_Details
Note 3 - NTI ASEAN (Details) | Aug. 31, 2013 | Sep. 30, 2012 | Aug. 31, 2012 | Sep. 30, 2012 |
NTI ASEAN [Member] | NTI ASEAN [Member] | NTI ASEAN [Member] | Capitalization Rate To Determine Fair Value of NTI Asean [Member] | |
Note 3 - NTI ASEAN (Details) [Line Items] | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | 10.00% | ' | 50.00% | ' |
Business Acquisition, Percentage of Voting Interests Acquired | ' | 10.00% | ' | ' |
Business Acquisition, Ownership Percentage Subsequent to Acquisition | ' | 60.00% | ' | ' |
Fair Value Inputs, Discount Rate | ' | ' | ' | 25.00% |
Note_3_NTI_ASEAN_Details_Alloc
Note 3 - NTI ASEAN (Details) - Allocation of the total transaction amount: (USD $) | 12 Months Ended |
Aug. 31, 2013 | |
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 |
Note_3_NTI_ASEAN_Details_Pro_F
Note 3 - NTI ASEAN (Details) - Pro Forma Effects of Consolidation of NTI Asean on the Company's Consolidated Financial Statements as of the Beginning of the Period For the Three Months Ended November 30, 2011: (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 29, 2012 | Nov. 30, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | |
Note 3 - NTI ASEAN (Details) - Pro Forma Effects of Consolidation of NTI Asean on the Company's Consolidated Financial Statements as of the Beginning of the Period For the Three Months Ended November 30, 2011: [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $6,086,734 | $5,877,033 | $5,246,350 | $5,291,747 | ' | ' | ' | ' | $22,501,864 | $22,781,653 |
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | 15,473,212 | 14,528,785 |
Gross profit | 1,992,771 | 1,822,669 | 1,612,437 | 1,600,775 | 1,474,594 | 3,661,390 | 1,494,246 | 1,622,638 | 7,028,652 | 8,252,868 |
Joint venture operations | ' | ' | ' | ' | ' | ' | ' | ' | 12,590,691 | 10,142,707 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 14,654,367 | 13,825,806 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 4,964,976 | 4,569,769 |
Income before income tax expense | 2,294,041 | 1,445,769 | 985,155 | 892,536 | 416,611 | 2,454,623 | 703,991 | 1,041,421 | 5,617,501 | 4,616,646 |
Income tax expense | 332,000 | 158,000 | 240,000 | 134,000 | -32,000 | 814,000 | 100,000 | 106,000 | 864,000 | 1,041,000 |
Net income | 1,962,041 | 1,287,769 | 745,155 | 758,536 | 448,611 | 1,640,623 | 603,991 | 935,421 | 4,753,501 | 3,575,646 |
Net income attributable to non-controlling interest | 346,291 | 360,657 | 310,745 | 368,914 | ' | ' | ' | ' | 1,386,607 | 127,450 |
Net income attributable to NTIC | 1,615,750 | 927,112 | 434,410 | 389,622 | ' | ' | ' | ' | 3,366,894 | 3,448,196 |
Net income per common diluted share (in Dollars per share) | $0.36 | $0.21 | $0.10 | $0.09 | $0.10 | $0.33 | $0.14 | $0.22 | $0.75 | $0.78 |
As Reported [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note 3 - NTI ASEAN (Details) - Pro Forma Effects of Consolidation of NTI Asean on the Company's Consolidated Financial Statements as of the Beginning of the Period For the Three Months Ended November 30, 2011: [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,781,653 |
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,528,785 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,252,868 |
Joint venture operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,142,707 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,825,806 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,569,769 |
Income before income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,616,646 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,041,000 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,575,646 |
Net income attributable to non-controlling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 127,450 |
Net income attributable to NTIC | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,448,196 |
Net income per common diluted share (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.78 |
NTI ASEAN [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note 3 - NTI ASEAN (Details) - Pro Forma Effects of Consolidation of NTI Asean on the Company's Consolidated Financial Statements as of the Beginning of the Period For the Three Months Ended November 30, 2011: [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Joint venture operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,395,354 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 185,700 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,209,654 |
Income before income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,209,654 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 381,466 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,828,188 |
Net income attributable to non-controlling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,131,275 |
Net income attributable to NTIC | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,696,913 |
Net income per common diluted share (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.38 |
Eliminated in Consolidation [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note 3 - NTI ASEAN (Details) - Pro Forma Effects of Consolidation of NTI Asean on the Company's Consolidated Financial Statements as of the Beginning of the Period For the Three Months Ended November 30, 2011: [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Joint venture operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,414,248 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,414,248 |
Income before income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,414,248 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,414,248 |
Net income attributable to NTIC | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,414,248 |
Net income per common diluted share (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($0.32) |
Pro Forma [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note 3 - NTI ASEAN (Details) - Pro Forma Effects of Consolidation of NTI Asean on the Company's Consolidated Financial Statements as of the Beginning of the Period For the Three Months Ended November 30, 2011: [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,781,653 |
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,528,785 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,252,868 |
Joint venture operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,123,813 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,011,506 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,365,175 |
Income before income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,412,052 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,422,466 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,989,586 |
Net income attributable to non-controlling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,003,825 |
Net income attributable to NTIC | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,730,861 |
Net income per common diluted share (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.84 |
Note_4_Inventories_Details_Inv
Note 4 - Inventories (Details) - Inventories (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Inventories [Abstract] | ' | ' |
Production materials | $1,096,693 | $1,462,615 |
Finished goods | 4,014,856 | 2,688,582 |
$5,111,549 | $4,151,197 |
Note_5_Property_and_Equipment_2
Note 5 - Property and Equipment, Net (Details) - Components of Property and Equipment, Net (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Components of Property and Equipment, Net [Abstract] | ' | ' |
Land | $310,365 | $310,365 |
Buildings and improvements | 4,613,879 | 3,406,674 |
Machinery and equipment | 3,189,671 | 2,908,021 |
8,113,915 | 6,625,060 | |
Less accumulated depreciation | -2,790,303 | -2,336,442 |
$5,323,612 | $4,288,618 |
Note_6_Patents_and_Trademarks_2
Note 6 - Patents and Trademarks, Net (Details) (Patents and Trademarks [Member], USD $) | 12 Months Ended |
Aug. 31, 2013 | |
Patents and Trademarks [Member] | ' |
Note 6 - Patents and Trademarks, Net (Details) [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '7 years |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $80,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 80,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 80,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 80,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $80,000 |
Note_6_Patents_and_Trademarks_3
Note 6 - Patents and Trademarks, Net (Details) - Patents and Trademarks, Net (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Patents and Trademarks, Net [Abstract] | ' | ' |
Patents and trademarks | $2,064,128 | $1,945,785 |
Less accumulated amortization | -1,003,489 | -984,604 |
$1,060,639 | $961,181 |
Note_7_Investments_in_Joint_Ve2
Note 7 - Investments in Joint Ventures (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
NTI ASEAN [Member] | ' | ' |
Note 7 - Investments in Joint Ventures (Details) [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 10.00% | 50.00% |
Harita NTI Ltd [Member] | ' | ' |
Note 7 - Investments in Joint Ventures (Details) [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | ' | 50.00% |
Due from Joint Ventures (in Dollars) | ' | 484,545 |
Note_7_Investments_in_Joint_Ve3
Note 7 - Investments in Joint Ventures (Details) - Condensed Balance Sheet of EXCOR and NTI ASEAN, and All Other Joint Ventures (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Current assets | $63,052,410 | $61,973,725 |
Total assets | 68,417,142 | 68,585,974 |
Current liabilities | 16,107,597 | 18,686,181 |
Noncurrent liabilities | 2,488,057 | 4,700,458 |
Joint venturesb equity | 49,821,488 | 45,199,335 |
Northern Technologies International Corporationbs share of joint venturesb equity | 24,702,981 | 21,461,492 |
Northern Technologies International Corporation's share of joint ventures' undistributed earnings | 22,281,510 | 19,403,150 |
EXCOR [Member] | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Current assets | 25,955,136 | 24,357,139 |
Total assets | 28,391,787 | 26,620,589 |
Current liabilities | 3,572,004 | 4,749,574 |
Joint venturesb equity | 24,819,783 | 21,871,015 |
Northern Technologies International Corporationbs share of joint venturesb equity | 12,409,893 | 10,935,509 |
Northern Technologies International Corporation's share of joint ventures' undistributed earnings | 12,378,988 | 10,904,604 |
China [Member] | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Current assets | 11,200,355 | ' |
Total assets | 11,226,755 | ' |
Current liabilities | 3,080,118 | ' |
Noncurrent liabilities | 871,886 | ' |
Joint venturesb equity | 7,274,751 | ' |
Northern Technologies International Corporationbs share of joint venturesb equity | 3,637,375 | ' |
Northern Technologies International Corporation's share of joint ventures' undistributed earnings | 3,587,375 | ' |
All Other [Member] | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Current assets | 25,896,919 | 22,257,619 |
Total assets | 28,798,600 | 26,442,929 |
Current liabilities | 9,455,475 | 8,172,750 |
Noncurrent liabilities | 1,616,171 | 3,644,493 |
Joint venturesb equity | 17,726,954 | 14,625,686 |
Northern Technologies International Corporationbs share of joint venturesb equity | 8,655,713 | 6,840,579 |
Northern Technologies International Corporation's share of joint ventures' undistributed earnings | 6,315,147 | 5,184,101 |
NTI ASEAN [Member] | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Current assets | ' | 15,358,967 |
Total assets | ' | 15,522,456 |
Current liabilities | ' | 5,763,857 |
Noncurrent liabilities | ' | 1,055,965 |
Joint venturesb equity | ' | 8,702,634 |
Northern Technologies International Corporationbs share of joint venturesb equity | ' | 3,685,404 |
Northern Technologies International Corporation's share of joint ventures' undistributed earnings | ' | $3,314,445 |
Note_7_Investments_in_Joint_Ve4
Note 7 - Investments in Joint Ventures (Details) - Condensed Income Statement of EXCOR and NTI ASEAN, and All Other Joint Ventures: (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Net sales | $113,189,068 | $111,830,961 |
Gross profit | 52,058,609 | 50,679,875 |
Net income | 10,650,542 | 11,987,323 |
Northern Technologies International Corporationbs share of equity in income of joint ventures | 5,237,711 | 5,519,795 |
EXCOR [Member] | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Net sales | 36,476,544 | 36,027,979 |
Gross profit | 19,470,322 | 18,667,848 |
Net income | 7,009,897 | 6,656,298 |
Northern Technologies International Corporationbs share of equity in income of joint ventures | 3,507,057 | 3,318,213 |
China [Member] | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Net sales | 15,161,289 | ' |
Gross profit | 7,153,395 | ' |
Net income | 1,157,995 | ' |
Northern Technologies International Corporationbs share of equity in income of joint ventures | 579,376 | ' |
All Other [Member] | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Net sales | 61,551,235 | 53,767,947 |
Gross profit | 25,434,891 | 22,390,097 |
Net income | 2,482,650 | 1,745,549 |
Northern Technologies International Corporationbs share of equity in income of joint ventures | 1,151,278 | 787,333 |
NTI ASEAN [Member] | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Net sales | ' | 22,035,035 |
Gross profit | ' | 9,621,930 |
Net income | ' | 3,585,476 |
Northern Technologies International Corporationbs share of equity in income of joint ventures | ' | $1,414,248 |
Note_8_Corporate_Debt_Details
Note 8 - Corporate Debt (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2012 |
Monthly Payments [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | Term Loan and Line of Credit Agreements "Loan Agreements" [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | ||
Term Loan [Member] | Term Loan [Member] | Revolving Credit Facility [Member] | |||||
Note 8 - Corporate Debt (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Gross (in Dollars) | $933,414 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | 2.15% | 2.15% | ' | ' | ' |
Debt Instrument, Periodic Payment, Principal (in Dollars) | ' | 6,343 | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | ' | ' | ' | ' | ' | $3,000,000 | ' |
Line of Credit Facility, Interest Rate at Period End | ' | ' | ' | ' | ' | 2.82% | 3.18% |
Debt, Weighted Average Interest Rate | ' | ' | ' | ' | ' | 3.00% | 3.17% |
Debt Instrument, Covenants, Fixed Charge Coverage Ratio | ' | ' | ' | ' | '1.10:1.00 | ' | ' |
Note_9_Stockholders_Equity_Det
Note 9 - Stockholders' Equity (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Note 9 - Stockholders' Equity (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $45,533 | $13,872 |
Common Stock Bonuses [Member] | ' | ' |
Note 9 - Stockholders' Equity (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | ' | 42,707 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | ' | $14.42 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Aggregate Fair Value | ' | $615,830 |
Note_9_Stockholders_Equity_Det1
Note 9 - Stockholders' Equity (Details) - Exercised Stock Options (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Note 9 - Stockholders' Equity (Details) - Exercised Stock Options [Line Items] | ' | ' |
Options Exercised | 37,040 | 3,966 |
Exercise Price (in Dollars per share) | $9.96 | $8.71 |
Exercise 1 [Member] | ' | ' |
Note 9 - Stockholders' Equity (Details) - Exercised Stock Options [Line Items] | ' | ' |
Options Exercised | 25,140 | ' |
Exercise Price (in Dollars per share) | $9.95 | ' |
Exercise 6 [Member] | ' | ' |
Note 9 - Stockholders' Equity (Details) - Exercised Stock Options [Line Items] | ' | ' |
Options Exercised | 4,000 | ' |
Exercise Price (in Dollars per share) | $12.84 | ' |
Exercise 2 [Member] | ' | ' |
Note 9 - Stockholders' Equity (Details) - Exercised Stock Options [Line Items] | ' | ' |
Options Exercised | 4,000 | ' |
Exercise Price (in Dollars per share) | $8.57 | ' |
Exercise 3 [Member] | ' | ' |
Note 9 - Stockholders' Equity (Details) - Exercised Stock Options [Line Items] | ' | ' |
Options Exercised | 1,734 | ' |
Exercise Price (in Dollars per share) | $7.65 | ' |
Exercise 4 [Member] | ' | ' |
Note 9 - Stockholders' Equity (Details) - Exercised Stock Options [Line Items] | ' | ' |
Options Exercised | 1,500 | ' |
Exercise Price (in Dollars per share) | $9.76 | ' |
Exercise 5 [Member] | ' | ' |
Note 9 - Stockholders' Equity (Details) - Exercised Stock Options [Line Items] | ' | ' |
Options Exercised | 666 | ' |
Exercise Price (in Dollars per share) | $7.75 | ' |
Excercise 1 FY12 [Member] | ' | ' |
Note 9 - Stockholders' Equity (Details) - Exercised Stock Options [Line Items] | ' | ' |
Options Exercised | ' | 1,966 |
Exercise Price (in Dollars per share) | ' | $7.65 |
Exercise 2 FY12 [Member] | ' | ' |
Note 9 - Stockholders' Equity (Details) - Exercised Stock Options [Line Items] | ' | ' |
Options Exercised | ' | 2,000 |
Exercise Price (in Dollars per share) | ' | $9.75 |
Note_10_Net_Income_Per_Common_2
Note 10 - Net Income Per Common Share (Details) (Employee Stock Option [Member]) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Employee Stock Option [Member] | ' | ' |
Note 10 - Net Income Per Common Share (Details) [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 22,000 | 48,000 |
Note_10_Net_Income_Per_Common_3
Note 10 - Net Income Per Common Share (Details) - Reconciliation of the Earnings Per Share Computations (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 29, 2012 | Nov. 30, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | |
Reconciliation of the Earnings Per Share Computations [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to NTIC (in Dollars) | $1,615,750 | $927,112 | $434,410 | $389,622 | ' | ' | ' | ' | $3,366,894 | $3,448,196 |
Basic b weighted shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 4,421,636 | 4,391,424 |
Weighted shares assumed upon exercise of stock options | ' | ' | ' | ' | ' | ' | ' | ' | 54,259 | 60,170 |
Diluted b weighted shares outstanding | 4,501,017 | 4,468,861 | 4,485,076 | 4,440,436 | 4,436,444 | 4,461,044 | 4,466,435 | 4,433,724 | 4,475,895 | 4,451,594 |
Basic earnings per share: (in Dollars per share) | $0.37 | $0.21 | $0.10 | $0.09 | $0.10 | $0.33 | $0.14 | $0.22 | $0.76 | $0.79 |
Diluted earnings per share: (in Dollars per share) | $0.36 | $0.21 | $0.10 | $0.09 | $0.10 | $0.33 | $0.14 | $0.22 | $0.75 | $0.78 |
Note_11_StockBased_Compensatio2
Note 11 - Stock-Based Compensation (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Note 11 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | ' | '5 years |
Stock or Unit Option Plan Expense (in Dollars) | $306,451 | $288,396 |
Allocated Share-based Compensation Expense, Estimate, Next Fiscal Year (in Dollars) | 185,815 | ' |
Estimated Forfeiture Rate For Stock Options | 10.00% | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $5.53 | $7.14 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | '4 years 189 days | '2 years 51 days |
Net of Estimated Forfeitures [Member] | ' | ' |
Note 11 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | 305,771 | ' |
Employee Stock Option [Member] | 2007 Plan [Member] | ' | ' |
Note 11 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '5 years | ' |
Employee Stock Option [Member] | 2007 Plan [Member] | Minimum [Member] | ' | ' |
Note 11 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years | ' |
Employee Stock Option [Member] | 2007 Plan [Member] | Maximum [Member] | ' | ' |
Note 11 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '4 years | ' |
Employee Stock Option [Member] | ' | ' |
Note 11 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Stock or Unit Option Plan Expense (in Dollars) | $306,451 | $288,396 |
2007 Plan [Member] | ' | ' |
Note 11 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 800,000 | ' |
ESPP [Member] | ' | ' |
Note 11 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 100,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 90.00% | ' |
Minimum [Member] | ' | ' |
Note 11 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '5 years | ' |
Maximum [Member] | ' | ' |
Note 11 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '10 years | ' |
Note_11_StockBased_Compensatio3
Note 11 - Stock-Based Compensation (Details) - Black-Scholes Option-Pricing Model Assumptions | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Note 11 - Stock-Based Compensation (Details) - Black-Scholes Option-Pricing Model Assumptions [Line Items] | ' | ' |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 48.00% | 48.80% |
Expected life of option (years) | ' | '5 years |
Weighted average risk-free interest rate | 0.71% | 1.31% |
Minimum [Member] | ' | ' |
Note 11 - Stock-Based Compensation (Details) - Black-Scholes Option-Pricing Model Assumptions [Line Items] | ' | ' |
Expected life of option (years) | '5 years | ' |
Maximum [Member] | ' | ' |
Note 11 - Stock-Based Compensation (Details) - Black-Scholes Option-Pricing Model Assumptions [Line Items] | ' | ' |
Expected life of option (years) | '10 years | ' |
Note_11_StockBased_Compensatio4
Note 11 - Stock-Based Compensation (Details) - Stock Option Activity (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2011 | |
Stock Option Activity [Abstract] | ' | ' | ' |
Outstanding | 260,627 | 203,873 | 189,839 |
Options Outstanding, Weighted Average Exercise Price (in Dollars per share) | $9.84 | $10.01 | $9.07 |
Options Outstanding, Aggregate Intrinsic Value (in Dollars) | $1,358,325 | ' | ' |
Options granted | 118,294 | 26,000 | ' |
Options granted, Weighted Average Exercise Price (in Dollars per share) | $10.25 | $16.45 | ' |
Options exercised | -37,040 | -3,966 | ' |
Options exercised, Weighted Average Exercise Price (in Dollars per share) | $9.96 | $8.71 | ' |
Options terminated | -24,500 | -8,000 | ' |
Options terminated, Weighted Average Exercise Price (in Dollars per share) | $13.12 | $9.23 | ' |
Exercisable at August 31, 2013 | 134,998 | ' | ' |
Exercisable at August 31, 2013 (in Dollars per share) | $9.48 | ' | ' |
Exercisable at August 31, 2013 (in Dollars) | $768,043 | ' | ' |
Note_12_Geographic_And_Segment2
Note 12 - Geographic And Segment Information (Details) - Net Sales By Geographic Location as Percentage of Total Consolidated Net Sales (Percentage of Total Consolidated Net Sales [Member]) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Note 12 - Geographic And Segment Information (Details) - Net Sales By Geographic Location as Percentage of Total Consolidated Net Sales [Line Items] | ' | ' |
Net Sales, Percentage | 100.00% | 100.00% |
Inside the U.S.A to Unaffiliated Customers [Member] | ' | ' |
Note 12 - Geographic And Segment Information (Details) - Net Sales By Geographic Location as Percentage of Total Consolidated Net Sales [Line Items] | ' | ' |
Net Sales, Percentage | 70.70% | 64.00% |
Joint Ventures In Which The Company Is A Shareholder Directly And Indirectly - Outside the U.S.A [Member] | ' | ' |
Note 12 - Geographic And Segment Information (Details) - Net Sales By Geographic Location as Percentage of Total Consolidated Net Sales [Line Items] | ' | ' |
Net Sales, Percentage | 13.40% | 12.10% |
Unaffiliated Customers - Outside the U.S.A [Member] | ' | ' |
Note 12 - Geographic And Segment Information (Details) - Net Sales By Geographic Location as Percentage of Total Consolidated Net Sales [Line Items] | ' | ' |
Net Sales, Percentage | 15.90% | 23.90% |
Note_12_Geographic_And_Segment3
Note 12 - Geographic And Segment Information (Details) - Fees For Services Provided to Joint Ventures By Geographic Location as a Percentage of Total Fees for Services Provided to Joint Ventures (USD $) | 12 Months Ended | |||
Aug. 31, 2013 | Aug. 31, 2012 | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Fees for Services Provided to Joint Ventures (in Dollars) | $7,352,980 | $4,622,912 | ||
Percentage of Total Fees for Services Provided to Joint Ventures | 100.00% | 100.00% | ||
China [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Fees for Services Provided to Joint Ventures (in Dollars) | 2,063,369 | [1] | ' | [1] |
Percentage of Total Fees for Services Provided to Joint Ventures | 28.10% | [1] | 0.00% | [1] |
Germany [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Fees for Services Provided to Joint Ventures (in Dollars) | 1,004,958 | 994,347 | ||
Percentage of Total Fees for Services Provided to Joint Ventures | 13.70% | 21.50% | ||
Japan [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Fees for Services Provided to Joint Ventures (in Dollars) | 723,977 | 1,022,386 | ||
Percentage of Total Fees for Services Provided to Joint Ventures | 9.80% | 22.10% | ||
Thailand [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Fees for Services Provided to Joint Ventures (in Dollars) | 621,807 | [1] | ' | [1] |
Percentage of Total Fees for Services Provided to Joint Ventures | 8.40% | [1] | 0.00% | [1] |
Poland [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Fees for Services Provided to Joint Ventures (in Dollars) | 525,282 | 456,837 | ||
Percentage of Total Fees for Services Provided to Joint Ventures | 7.10% | 9.90% | ||
France [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Fees for Services Provided to Joint Ventures (in Dollars) | 496,897 | 517,708 | ||
Percentage of Total Fees for Services Provided to Joint Ventures | 6.80% | 11.20% | ||
Sweden [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Fees for Services Provided to Joint Ventures (in Dollars) | 415,547 | 587,069 | ||
Percentage of Total Fees for Services Provided to Joint Ventures | 5.70% | 12.70% | ||
Korea [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Fees for Services Provided to Joint Ventures (in Dollars) | 393,307 | [2] | ' | [2] |
Percentage of Total Fees for Services Provided to Joint Ventures | 5.30% | [2] | 0.00% | [2] |
Finland [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Fees for Services Provided to Joint Ventures (in Dollars) | 321,256 | 491,988 | ||
Percentage of Total Fees for Services Provided to Joint Ventures | 4.40% | 10.60% | ||
United Kingdom [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Fees for Services Provided to Joint Ventures (in Dollars) | 236,125 | 309,938 | ||
Percentage of Total Fees for Services Provided to Joint Ventures | 3.20% | 6.70% | ||
India [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Fees for Services Provided to Joint Ventures (in Dollars) | ' | -192,758 | ||
Percentage of Total Fees for Services Provided to Joint Ventures | 0.00% | -4.10% | ||
Other Countries [Member] | ' | ' | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ||
Fees for Services Provided to Joint Ventures (in Dollars) | $550,455 | $435,398 | ||
Percentage of Total Fees for Services Provided to Joint Ventures | 7.50% | 9.40% | ||
[1] | Joint venture owned by NTI Asean. | |||
[2] | Joint venture owned by NTI Asean as of August 31, 2013, but not as of August 31, 2012. NTI Asean results are not included on the consolidated financial statements for the year ended August 31, 2012. (See Note 2) |
Note_12_Geographic_And_Segment4
Note 12 - Geographic And Segment Information (Details) - Net Sales By Segment (USD $) | 3 Months Ended | 12 Months Ended | ||||
Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' |
Net sales | $6,086,734 | $5,877,033 | $5,246,350 | $5,291,747 | $22,501,864 | $22,781,653 |
Change in $ | ' | ' | ' | ' | -279,789 | ' |
Change in % | ' | ' | ' | ' | -1.20% | ' |
ZERUST [Member] | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | 20,457,198 | 20,971,275 |
Change in $ | ' | ' | ' | ' | -514,077 | ' |
Change in % | ' | ' | ' | ' | -2.50% | ' |
Natur-Tec [Member] | ' | ' | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | 2,044,666 | 1,810,378 |
Change in $ | ' | ' | ' | ' | $234,288 | ' |
Change in % | ' | ' | ' | ' | 12.90% | ' |
Note_12_Geographic_And_Segment5
Note 12 - Geographic And Segment Information (Details) - Cost of Goods Sold By Segment (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Direct cost of goods sold | ' | ' |
Indirect cost of goods sold | $15,473,212 | $14,528,785 |
Indirect cost of goods sold | 68.80% | 63.80% |
ZERUST [Member] | Direct Cost of Goods Sold [Member] | ' | ' |
Direct cost of goods sold | ' | ' |
Indirect cost of goods sold | 11,408,604 | 10,748,865 |
Indirect cost of goods sold | 55.80% | 51.30% |
Natur-Tec [Member] | Direct Cost of Goods Sold [Member] | ' | ' |
Direct cost of goods sold | ' | ' |
Indirect cost of goods sold | 1,731,398 | 1,585,731 |
Indirect cost of goods sold | 84.70% | 87.60% |
Indirect Cost of Goods Sold [Member] | ' | ' |
Direct cost of goods sold | ' | ' |
Indirect cost of goods sold | $2,333,210 | $2,194,190 |
Note_12_Geographic_And_Segment6
Note 12 - Geographic And Segment Information (Details) - Total assets by geographic distribution (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Country | $49,053,949 | $41,877,627 |
Brazil [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Country | 1,419,543 | 1,610,389 |
North America [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Country | $47,634,406 | $40,267,238 |
Note_12_Geographic_And_Segment7
Note 12 - Geographic And Segment Information (Details) - Operating income by geographic distribution (USD $) | 3 Months Ended | 12 Months Ended | ||||
Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2013 | Aug. 31, 2012 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' |
Net Sales | $6,086,734 | $5,877,033 | $5,246,350 | $5,291,747 | $22,501,864 | $22,781,653 |
Operating Income | ' | ' | ' | ' | 4,964,976 | 4,569,769 |
Brazil [Member] | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | 2,394,486 | 4,543,982 |
Operating Income | ' | ' | ' | ' | -273,246 | 1,513,891 |
North America [Member] | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | 20,107,378 | 18,237,671 |
Operating Income | ' | ' | ' | ' | $5,238,222 | $3,055,878 |
Note_13_Retirement_Plan_Detail
Note 13 - Retirement Plan (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Defined Contribution Plan Employee Contribution Percent Max | 15.00% | ' |
Defined Contribution Plan Maximum Amount Of Employees Contributions Percent | 50.00% | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 3.50% | ' |
Defined Contribution Plan, Cost Recognized (in Dollars) | $175,016 | $166,201 |
Note_14_Related_Party_Transact1
Note 14 - Related Party Transactions (Details) (Bioplastic Polymers LLC [Member], USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Consulting Payment Expense [Member] | ' | ' |
Note 14 - Related Party Transactions (Details) [Line Items] | ' | ' |
Related Party Transaction, Amounts of Transaction | $100,000 | $100,000 |
Royalty Payment Expense [Member] | ' | ' |
Note 14 - Related Party Transactions (Details) [Line Items] | ' | ' |
Related Party Transaction, Amounts of Transaction | $10,244 | $7,745 |
Note_15_Income_Taxes_Details
Note 15 - Income Taxes (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Note 15 - Income Taxes (Details) [Line Items] | ' | ' |
Undistributed Earnings of Foreign Subsidiaries | $22,281,510 | $18,185,000 |
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 4,253,900 | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | 0 |
Foreign Tax Authority [Member] | ' | ' |
Note 15 - Income Taxes (Details) [Line Items] | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 285,800 | ' |
Tax Credit Carryforward, Valuation Allowance | 4,253,900 | ' |
Federal and State Tax [Member] | ' | ' |
Note 15 - Income Taxes (Details) [Line Items] | ' | ' |
Operating Loss Carryforwards | 1,832,200 | ' |
Tax Credit Carryforward, Valuation Allowance | $1,832,200 | ' |
Note_15_Income_Taxes_Details_P
Note 15 - Income Taxes (Details) - Provision For Income Taxes (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2012 |
Current: | ' | ' |
State | $8,000 | $25,000 |
Foreign | 731,000 | 1,015,000 |
739,000 | 1,040,000 | |
Deferred: | ' | ' |
Federal | 118,000 | 44,000 |
State | 7,000 | -43,000 |
125,000 | 1,000 | |
$864,000 | $1,041,000 |
Note_15_Income_Taxes_Details_R
Note 15 - Income Taxes (Details) - Reconciliations of the Expected Federal Income Tax at the Statutory Rate With the Provisions For Income Taxes (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 29, 2012 | Nov. 30, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | |
Reconciliations of the Expected Federal Income Tax at the Statutory Rate With the Provisions For Income Taxes [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax computed at statutory rates | ' | ' | ' | ' | ' | ' | ' | ' | $1,910,000 | $1,570,000 |
State income tax, net of federal benefit | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | -17,000 |
Tax effect on equity in (income) loss of international joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | -1,781,000 | -1,616,000 |
Tax effect on dividends received from joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | 1,732,000 | 1,363,000 |
Tax effect of foreign operations | ' | ' | ' | ' | ' | ' | ' | ' | 807,000 | 556,000 |
Foreign tax credit | ' | ' | ' | ' | ' | ' | ' | ' | -2,524,000 | -1,729,000 |
Research and development credit | ' | ' | ' | ' | ' | ' | ' | ' | -364,000 | -330,000 |
Valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | 1,635,000 | 1,177,000 |
Tax-exempt income | ' | ' | ' | ' | ' | ' | ' | ' | -230,000 | ' |
Non-controlling interest in partnership income | ' | ' | ' | ' | ' | ' | ' | ' | -425,000 | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 89,000 | 67,000 |
$332,000 | $158,000 | $240,000 | $134,000 | ($32,000) | $814,000 | $100,000 | $106,000 | $864,000 | $1,041,000 |
Note_15_Income_Taxes_Details_T
Note 15 - Income Taxes (Details) - Tax Effect of the Temporary Differences and Tax Carry Forwards Comprising Net Deferred Taxes: (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Current: | ' | ' |
Accrued bonus | $277,300 | $404,100 |
Allowance for doubtful accounts | 7,200 | 7,200 |
Inventory costs | 24,600 | 11,900 |
Prepaid expenses and other | -31,200 | -27,300 |
Other accrued expenses | 85,500 | 96,200 |
Deferred joint venture expenses | 104,100 | 104,000 |
Total current | 467,500 | 596,100 |
Noncurrent: | ' | ' |
Property and equipment | -165,100 | -159,500 |
Goodwill | 35,200 | 43,100 |
Other intangible assets | 914,000 | 949,200 |
Nonqualified stock options | 248,500 | 196,100 |
Foreign tax credit carryforward | 4,253,900 | 3,438,300 |
Research and development credit | 1,823,200 | 1,485,800 |
New hire retention credit | 10,600 | 10,700 |
7,120,300 | 5,963,700 | |
Valuation allowance | -6,086,100 | -4,933,100 |
Total noncurrent | $1,034,200 | $1,030,600 |
Note_15_Income_Taxes_Details_R1
Note 15 - Income Taxes (Details) - Reconciliation of the Total Amounts of Unrecognized Tax Benefits: (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Aug. 31, 2013 | Aug. 31, 2011 |
Reconciliation of the Total Amounts of Unrecognized Tax Benefits: [Abstract] | ' | ' |
Gross unrecognized tax benefits b beginning balance | $131,000 | $131,000 |
Gross increases - prior period tax positions | 19,000 | ' |
Gross increases b current period tax positions | 20,000 | ' |
Gross unrecognized tax benefits b ending balance | $170,000 | $131,000 |
Note_16_Commitments_and_Contin1
Note 16 - Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Note 16 - Commitments and Contingencies (Details) [Line Items] | ' | ' |
Operating Leases, Future Minimum Payments Due, Next Twelve Months (in Dollars) | $59,500 | ' |
Operating Leases, Future Minimum Payments, Due Thereafter (in Dollars) | 0 | ' |
Fiscal 2013 Bonus Plan [Member] | Executive Officer [Member] | ' | ' |
Note 16 - Commitments and Contingencies (Details) [Line Items] | ' | ' |
Percentage of Individual Bonus Payout Determined By Actual Versus Targeted EBITOI Results | 75.00% | ' |
Percentage of Individual's Payout Determined Upon Achievement of Certain Pre-Established Individual Performance Objectives | 25.00% | ' |
Fiscal 2013 Bonus Plan [Member] | ' | ' |
Note 16 - Commitments and Contingencies (Details) [Line Items] | ' | ' |
Percentage of Individual Bonus Payout Determined By Actual Versus Targeted EBITOI Results | ' | 75.00% |
Percentage of Individual's Payout Determined Upon Achievement of Certain Pre-Established Individual Performance Objectives | ' | 25.00% |
nticAmount Of Bonus Cash Available If EBITOI Falls Below Adjusted EBITOI Threshold | ' | 0 |
Adjusted EBITOI As Percentage of Target EBITOI, Threshold To Pay Bonus | 60.00% | 70.00% |
Accrued Bonuses (in Dollars) | $959,000 | $1,248,526 |
Trade Joint Venture Receivables [Member] | ' | ' |
Note 16 - Commitments and Contingencies (Details) [Line Items] | ' | ' |
Number of Joint Ventures Accounted for a Certain Percentage of Companybs Trade Joint Venture Receivables | 2 | 3 |
Concentration Risk, Percentage | 49.00% | 55.30% |
Note_17_Statement_of_Cash_Flow2
Note 17 - Statement of Cash Flows (Details) - Supplemental Disclosures of Cash Flow Information (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Supplemental Disclosures of Cash Flow Information [Abstract] | ' | ' |
Cash paid during the year for interest | $52,215 | $29,388 |
Common stock issued in lieu of accrued payroll (0 and 42,707 shares, respectively) | ' | 615,830 |
Decrease/(increase) in the Companybs investment in joint ventures and accumulated other comprehensive income due to changes in exchange rates | ($38,578) | $2,219,357 |
Note_17_Statement_of_Cash_Flow3
Note 17 - Statement of Cash Flows (Details) - Supplemental Disclosures of Cash Flow Information (Parentheticals) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Supplemental Disclosures of Cash Flow Information [Abstract] | ' | ' |
Common stock, shares issued | 0 | 42,707 |
Note_18_Fair_Value_Measurement2
Note 18 - Fair Value Measurements (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Disclosure Text Block [Abstract] | ' | ' |
Fair Value Assets, Transfers Level 1, Level 2, Level 3 | $0 | $0 |
Fair Value Inputs, Capitalization Rate | 25.00% | ' |
Note_18_Fair_Value_Measurement3
Note 18 - Fair Value Measurements (Details) - Assets And Liabilities Measured At Fair Value Recurring Basis (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Cash equivalents | $1,020,000 | $1,518,000 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Cash equivalents | $1,020,000 | $1,518,000 |
Note_18_Fair_Value_Measurement4
Note 18 - Fair Value Measurements (Details) - Assets And Liabilities Measured at Fair Value Nonrecurring Basis (NTI ASEAN [Member], USD $) | Aug. 31, 2013 |
Note 18 - Fair Value Measurements (Details) - Assets And Liabilities Measured at Fair Value Nonrecurring Basis [Line Items] | ' |
Fair market value of NTI Asean | $7,922,000 |
Fair Value, Inputs, Level 3 [Member] | ' |
Note 18 - Fair Value Measurements (Details) - Assets And Liabilities Measured at Fair Value Nonrecurring Basis [Line Items] | ' |
Fair market value of NTI Asean | $7,922,000 |
Note_19_Quaterly_Information_U2
Note 19 - Quaterly Information (Unaudited) (Details) - Quarterly Information (Unaudited) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 29, 2012 | Nov. 30, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | |
Fiscal year 2013: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $6,086,734 | $5,877,033 | $5,246,350 | $5,291,747 | ' | ' | ' | ' | $22,501,864 | $22,781,653 |
Gross profit | 1,992,771 | 1,822,669 | 1,612,437 | 1,600,775 | 1,474,594 | 3,661,390 | 1,494,246 | 1,622,638 | 7,028,652 | 8,252,868 |
Income before income tax expense | 2,294,041 | 1,445,769 | 985,155 | 892,536 | 416,611 | 2,454,623 | 703,991 | 1,041,421 | 5,617,501 | 4,616,646 |
Income tax expense | 332,000 | 158,000 | 240,000 | 134,000 | -32,000 | 814,000 | 100,000 | 106,000 | 864,000 | 1,041,000 |
Net income | 1,962,041 | 1,287,769 | 745,155 | 758,536 | 448,611 | 1,640,623 | 603,991 | 935,421 | 4,753,501 | 3,575,646 |
Net income attributable to noncontrolling interest | 346,291 | 360,657 | 310,745 | 368,914 | ' | ' | ' | ' | 1,386,607 | 127,450 |
Net income attributable to NTIC | $1,615,750 | $927,112 | $434,410 | $389,622 | ' | ' | ' | ' | $3,366,894 | $3,448,196 |
Net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in Dollars per share) | $0.37 | $0.21 | $0.10 | $0.09 | $0.10 | $0.33 | $0.14 | $0.22 | $0.76 | $0.79 |
Diluted (in Dollars per share) | $0.36 | $0.21 | $0.10 | $0.09 | $0.10 | $0.33 | $0.14 | $0.22 | $0.75 | $0.78 |
Weighted average common shares assumed outstanding: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in Shares) | 4,431,948 | 4,421,379 | 4,418,821 | 4,406,205 | 4,403,656 | 4,399,290 | 4,398,356 | 4,355,666 | ' | ' |
Diluted (in Shares) | 4,501,017 | 4,468,861 | 4,485,076 | 4,440,436 | 4,436,444 | 4,461,044 | 4,466,435 | 4,433,724 | 4,475,895 | 4,451,594 |
Note_19_Quaterly_Information_U3
Note 19 - Quaterly Information (Unaudited) (Details) - Quater Information (Unaudited) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Feb. 29, 2012 | Nov. 30, 2011 | Aug. 31, 2013 | Aug. 31, 2012 | |
Fiscal year 2012: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | $5,170,307 | $7,804,904 | $4,974,328 | $4,832,114 | ' | ' |
Gross profit | 1,992,771 | 1,822,669 | 1,612,437 | 1,600,775 | 1,474,594 | 3,661,390 | 1,494,246 | 1,622,638 | 7,028,652 | 8,252,868 |
Income before income tax expense | 2,294,041 | 1,445,769 | 985,155 | 892,536 | 416,611 | 2,454,623 | 703,991 | 1,041,421 | 5,617,501 | 4,616,646 |
Income tax expense (benefit) | 332,000 | 158,000 | 240,000 | 134,000 | -32,000 | 814,000 | 100,000 | 106,000 | 864,000 | 1,041,000 |
Net income | $1,962,041 | $1,287,769 | $745,155 | $758,536 | $448,611 | $1,640,623 | $603,991 | $935,421 | $4,753,501 | $3,575,646 |
Net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in Dollars per share) | $0.37 | $0.21 | $0.10 | $0.09 | $0.10 | $0.33 | $0.14 | $0.22 | $0.76 | $0.79 |
Diluted (in Dollars per share) | $0.36 | $0.21 | $0.10 | $0.09 | $0.10 | $0.33 | $0.14 | $0.22 | $0.75 | $0.78 |
Weighted average common shares assumed outstanding: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in Shares) | 4,431,948 | 4,421,379 | 4,418,821 | 4,406,205 | 4,403,656 | 4,399,290 | 4,398,356 | 4,355,666 | ' | ' |
Diluted (in Shares) | 4,501,017 | 4,468,861 | 4,485,076 | 4,440,436 | 4,436,444 | 4,461,044 | 4,466,435 | 4,433,724 | 4,475,895 | 4,451,594 |