Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Feb. 28, 2014 | Apr. 11, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Northern Technologies International Corporation | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--08-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 4,448,837 |
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 | 28-Feb-14 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $6,996,127 | $4,314,258 |
Receivables: | ' | ' |
Trade excluding joint ventures, less allowance for doubtful accounts of $40,000 at February 28, 2014 and $20,000 at August 31, 2013 | 3,260,411 | 3,329,995 |
Trade joint ventures | 536,532 | 859,434 |
Fees for services provided to joint ventures | 2,816,043 | 2,446,017 |
Income taxes | 356,947 | 144,939 |
Inventories | 5,370,201 | 5,111,549 |
Prepaid expenses | 582,289 | 258,765 |
Deferred income taxes | 467,548 | 467,548 |
Total current assets | 20,386,098 | 16,932,505 |
PROPERTY AND EQUIPMENT, NET | 5,431,316 | 5,323,612 |
OTHER ASSETS: | ' | ' |
Investments in joint ventures | 22,653,710 | 24,702,981 |
Deferred income taxes | 1,034,212 | 1,034,212 |
Patents and trademarks, net | 1,138,698 | 1,060,639 |
Other | 177,273 | ' |
Total other assets | 25,003,893 | 26,797,832 |
Total assets | 50,821,307 | 49,053,949 |
CURRENT LIABILITIES: | ' | ' |
Current portion of note payable (Note 6) | ' | 76,119 |
Accounts payable | 1,261,616 | 1,830,729 |
Accrued liabilities: | ' | ' |
Payroll and related benefits | 1,027,069 | 1,277,942 |
Deferred joint venture royalties | 288,000 | 288,000 |
Other | 118,510 | 189,263 |
Total current liabilities | 2,695,195 | 3,662,053 |
NOTE PAYABLE, NET OF CURRENT PORTION (Note 6) | ' | 857,295 |
COMMITMENTS AND CONTINGENCIES (Note 12) | ' | ' |
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 4,434,837 and 4,432,036, respectively | 88,697 | 88,641 |
Additional paid-in capital | 11,967,414 | 11,701,942 |
Retained earnings | 30,510,558 | 28,626,928 |
Accumulated other comprehensive income | 933,423 | 316,161 |
Stockholders’ equity | 43,500,092 | 40,733,672 |
Non-controlling interest | 4,626,020 | 3,800,929 |
Total equity | 48,126,112 | 44,534,601 |
Total liabilities and equity | $50,821,307 | $49,053,949 |
Consolidated_Balance_Sheets_Cu1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
Trade allowance (in Dollars) | $40,000 | $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 | 4,434,837 | 4,432,036 |
Common stock, shares outstanding | 4,434,837 | 4,432,036 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |
NET SALES: | ' | ' | ' | ' |
Net sales, excluding joint ventures | $5,527,366 | $4,485,203 | $11,132,384 | $9,255,590 |
Net sales, to joint ventures | 691,642 | 761,147 | 1,395,724 | 1,282,507 |
Total net sales | 6,219,008 | 5,246,350 | 12,528,108 | 10,538,097 |
Cost of goods sold | 4,051,833 | 3,633,913 | 8,209,864 | 7,324,885 |
Gross profit | 2,167,175 | 1,612,437 | 4,318,244 | 3,213,212 |
JOINT VENTURE OPERATIONS: | ' | ' | ' | ' |
Equity in income of joint ventures | 1,395,451 | 1,138,438 | 2,823,199 | 2,292,734 |
Fees for services provided to joint ventures | 2,057,671 | 1,770,881 | 4,167,319 | 3,617,158 |
Total joint venture operations | 3,453,122 | 2,909,319 | 6,990,518 | 5,909,892 |
OPERATING EXPENSES: | ' | ' | ' | ' |
Selling expenses | 1,291,316 | 1,174,065 | 2,610,202 | 2,345,160 |
General and administrative expenses | 1,209,933 | 1,143,987 | 2,597,429 | 2,392,683 |
Expenses incurred in support of joint ventures | 366,469 | 321,456 | 695,733 | 691,143 |
Research and development expenses | 1,099,345 | 912,393 | 2,237,865 | 1,850,599 |
Total operating expenses | 3,967,063 | 3,551,901 | 8,141,229 | 7,279,585 |
OPERATING INCOME | 1,653,234 | 969,855 | 3,167,533 | 1,843,519 |
INTEREST INCOME | 2,570 | 22,288 | 4,359 | 47,634 |
INTEREST EXPENSE | -11,976 | -6,988 | -25,646 | -13,462 |
INCOME BEFORE INCOME TAX EXPENSE | 1,643,828 | 985,155 | 3,146,246 | 1,877,691 |
INCOME TAX EXPENSE | 259,759 | 240,000 | 457,759 | 374,000 |
NET INCOME | 1,384,069 | 745,155 | 2,688,487 | 1,503,691 |
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 359,025 | 310,745 | 804,857 | 679,659 |
NET INCOME ATTRIBUTABLE TO NTIC | $1,025,044 | $434,410 | $1,883,630 | $824,032 |
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE: | ' | ' | ' | ' |
Basic (in Dollars per share) | $0.23 | $0.10 | $0.42 | $0.19 |
Diluted (in Dollars per share) | $0.22 | $0.10 | $0.41 | $0.18 |
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING: | ' | ' | ' | ' |
Basic (in Shares) | 4,434,837 | 4,418,821 | 4,434,770 | 4,409,954 |
Diluted (in Shares) | 4,579,603 | 4,485,076 | 4,566,103 | 4,460,197 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |
NET INCOME | $1,384,069 | $745,155 | $2,688,487 | $1,503,691 |
OTHER COMPREHENSIVE INCOME – FOREIGN CURRENCY TRANSLATION ADJUSTMENT | 84,038 | -25,641 | 605,611 | 395,544 |
COMPREHENSIVE INCOME | 1,468,107 | 719,514 | 3,294,098 | 1,899,235 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 334,607 | 331,252 | 793,206 | 734,687 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NTIC | $1,133,500 | $388,262 | $2,500,892 | $1,164,548 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $2,688,487 | $1,503,691 |
Stock-based compensation | 236,623 | 137,550 |
Depreciation expense | 217,620 | 211,874 |
Amortization expense | 42,819 | 35,122 |
Loss on disposal of assets | 2,178 | 13,845 |
Equity in income from joint ventures | -2,823,199 | -2,292,734 |
Increase in allowance on doubtful accounts | 20,000 | ' |
Receivables: | ' | ' |
Trade, excluding joint ventures | 64,392 | -223,731 |
Trade, joint ventures | 322,902 | -247,466 |
Fees for services provided to joint ventures | -370,026 | 221,099 |
Income taxes | -209,797 | -51,111 |
Inventories | -246,686 | -990,720 |
Prepaid expenses and other | -500,213 | -91,869 |
Accounts payable | -578,103 | -574,037 |
Income tax payable | -835 | -2,748 |
Accrued liabilities | -330,206 | -1,094,446 |
Net cash used in operating activities | -1,464,042 | -3,445,681 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Proceeds from the sale of investment in joint venture | 245,594 | ' |
Dividends received from joint ventures | 5,217,878 | 2,953,435 |
Additions to property and equipment | -325,051 | -102,259 |
Effect of subsidiary consolidation on cash | ' | 1,612,768 |
Additions to patents | -121,351 | -114,882 |
Net cash provided by investing activities | 5,017,070 | 4,349,062 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Repayment of note payable | -933,414 | -38,059 |
Dividend received by non-controlling interest | ' | -872,841 |
Investment by non-controlling interest | 30,866 | ' |
Proceeds from employee stock purchase plan | 21,255 | 28,938 |
Proceeds from exercise of stock options | 7,650 | 102,815 |
Net cash used in financing activities | -873,643 | -779,147 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH: | 2,484 | -636 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 2,681,869 | 123,598 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 4,314,258 | 4,137,547 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $6,996,127 | $4,261,145 |
Note_1_Interim_Financial_Infor
Note 1 - Interim Financial Information | 6 Months Ended |
Feb. 28, 2014 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
1. INTERIM FINANCIAL INFORMATION | |
In the opinion of management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, which are of a normal recurring nature, and present fairly the consolidated financial position of Northern Technologies International Corporation and its subsidiaries (the Company) as of February 28, 2014 and August 31, 2013 and the results of their operations for the three and six months ended February 28, 2014 and 2013 and their cash flows for the six months ended February 28, 2014 and 2013, in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). | |
Certain amounts reported in the consolidated financial statements for the previous reporting periods have been reclassified to conform to the current period presentation. These reclassifications did not have a material impact on the Company’s previously reported consolidated balance sheets or statements of cash flows. | |
These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s annual report on Form 10-K for the fiscal year ended August 31, 2013. These consolidated financial statements also should be read in conjunction with the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section appearing in this report. | |
Operating results for the three and six months ended February 28, 2014 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 31, 2014. | |
The Company evaluates events occurring after the date of the consolidated financial statements requiring recording or disclosure in the consolidated financial statements. | |
Note_2_Inventories
Note 2 - Inventories | 6 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
2. INVENTORIES | |||||||||
Inventories consisted of the following: | |||||||||
28-Feb-14 | 31-Aug-13 | ||||||||
Production materials | $ | 1,191,107 | $ | 1,096,693 | |||||
Finished goods | 4,179,094 | 4,014,856 | |||||||
$ | 5,370,201 | $ | 5,111,549 | ||||||
Note_3_Property_and_Equipment_
Note 3 - Property and Equipment, Net | 6 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
3. PROPERTY AND EQUIPMENT, NET | |||||||||
Property and equipment, net consisted of the following: | |||||||||
28-Feb-14 | 31-Aug-13 | ||||||||
Land | $ | 310,365 | $ | 310,365 | |||||
Buildings and improvements | 4,540,110 | 4,613,879 | |||||||
Machinery and equipment | 3,590,893 | 3,189,671 | |||||||
8,441,369 | 8,113,915 | ||||||||
Less accumulated depreciation | (3,010,052 | ) | (2,790,303 | ) | |||||
$ | 5,431,316 | $ | 5,323,612 | ||||||
Note_4_Patents_and_Trademarks_
Note 4 - Patents and Trademarks, Net | 6 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||
4. PATENTS AND TRADEMARKS, NET | |||||||||
Patents and trademarks, net consisted of the following: | |||||||||
28-Feb-14 | 31-Aug-13 | ||||||||
Patents and trademarks | $ | 2,185,008 | $ | 2,064,128 | |||||
Less accumulated amortization | (1,046,310 | ) | (1,003,489 | ) | |||||
$ | 1,138,698 | $ | 1,060,639 | ||||||
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_5_Investments_in_Joint_Ve
Note 5 - Investments in Joint Ventures | 6 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | ' | ||||||||||||||||
5. 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 consolidated financial statements have subsequently been adjusted to approximate U.S. GAAP in all material respects. All material profits recorded on sales from the Company to its joint ventures of goods that remain in inventory, 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), joint venture in China, NTI Asean and all of the Company’s other joint ventures, are summarized as follows: | |||||||||||||||||
At February 28, 2014 | |||||||||||||||||
Total | EXCOR | China | All Other | ||||||||||||||
Current assets | $ | 60,798,447 | $ | 21,138,250 | $ | 12,498,369 | $ | 27,161,828 | |||||||||
Total assets | 66,244,262 | 23,578,234 | 12,520,341 | 30,145,687 | |||||||||||||
Current liabilities | 17,443,151 | 3,486,865 | 3,860,391 | 10,095,895 | |||||||||||||
Noncurrent liabilities | 2,126,033 | — | 868,005 | 1,258,028 | |||||||||||||
Joint ventures’ equity | 46,675,076 | 20,091,369 | 7,791,945 | 18,791,762 | |||||||||||||
Company’s share of joint ventures’ equity | 22,653,729 | 10,045,687 | 3,895,973 | 8,712,069 | |||||||||||||
Company’s share of joint ventures’ undistributed earnings | $ | 20,232,259 | $ | 10,014,782 | $ | 3,845,973 | $ | 6,371,504 | |||||||||
At August 31, 2013 | |||||||||||||||||
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 | |||||||||||||
Company’s share of joint ventures’ equity | 24,702,981 | 12,409,893 | 3,637,375 | 8,655,713 | |||||||||||||
Company’s share of joint ventures’ undistributed earnings | $ | 22,281,510 | $ | 12,378,988 | $ | 3,587,375 | $ | 6,315,147 | |||||||||
Six Months Ended February 28, 2014 | |||||||||||||||||
Total | EXCOR | China | All Other | ||||||||||||||
Net sales | $ | 58,050,376 | $ | 18,963,579 | $ | 8,257,630 | $ | 30,829,167 | |||||||||
Gross profit | 27,600,668 | 10,072,948 | 3,834,419 | 13,693,301 | |||||||||||||
Net income | 5,479,724 | 3,763,017 | 553,963 | 1,162,744 | |||||||||||||
Company’s share of equity in income of joint ventures | $ | 2,823,199 | $ | 1,881,705 | $ | 276,948 | $ | 664,546 | |||||||||
Six Months Ended February 28, 2013 | |||||||||||||||||
Total | EXCOR | China | All Other | ||||||||||||||
Net sales | $ | 54,247,135 | $ | 17,451,153 | $ | 6,929,260 | $ | 29,866,722 | |||||||||
Gross profit | 25,852,537 | 9,105,579 | 3,290,660 | 13,456,298 | |||||||||||||
Net income | 4,728,680 | 3,260,575 | 524,546 | 943,559 | |||||||||||||
Company’s share of equity in income of joint ventures | $ | 2,292,734 | $ | 1,631,125 | $ | 262,148 | $ | 399,461 | |||||||||
The Company records expenses that are directly attributable to the joint ventures on its consolidated statements of operations in the line item “Expenses incurred in support of joint ventures.” The expenses include items such as employee compensation and benefit expenses, travel expense and consulting expense. | |||||||||||||||||
The Company did not make any joint venture investments during the six months ended February 28, 2014 and 2013. | |||||||||||||||||
On November 30, 2013, the Company agreed to sell its indirect ownership interest in Mütec GmbH (“Mütec”), one of the Company’s joint ventures in Germany which manufactures proprietary electronic sensing instruments. As of February 28, 2014, $177,273 is due to the Company related to this transaction. | |||||||||||||||||
Note_6_Corporate_Debt
Note 6 - Corporate Debt | 6 Months Ended |
Feb. 28, 2014 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
6. CORPORATE DEBT | |
As of August 31, 2013, Northern Technologies Holding Company, LLC (NTI LLC) had a term loan with a principal amount of $933,413 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. This term loan was repaid in full on January 3, 2014 and as a result there was $0 outstanding as of February 28, 2014. | |
The Company has a revolving line of credit with PNC Bank of $3,000,000. No amounts were outstanding under the line of credit as of both February 28, 2014 and August 31, 2013. 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. As of February 28, 2014, the Company was in compliance with all debt covenants. | |
On December 31, 2013, PNC Bank extended the maturity date of the line of credit from January 8, 2014 to January 7, 2015. All other terms of the line of credit and the loan agreement and other documents evidencing the line of credit remain the same. | |
Note_7_Stockholders_Equity
Note 7 - Stockholders' Equity | 6 Months Ended | |||
Feb. 28, 2014 | ||||
Stockholders' Equity Note [Abstract] | ' | |||
Stockholders' Equity Note Disclosure [Text Block] | ' | |||
7. STOCKHOLDERS’ EQUITY | ||||
During the six months ended February 28, 2014, 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 the six months ended February 28, 2014: | ||||
Options Exercised | Exercise Price | |||
1,000 | $7.65 | |||
The Company granted stock options under the Northern Technologies International Corporation Amended and Restated 2007 Stock Incentive Plan (the 2007 Plan) to purchase an aggregate of 56,373 shares of its common stock to various employees and directors during the six months ended February 28, 2014. The weighted average per share exercise price of the stock options is $14.83, which is equal to the fair market value of the Company’s common stock on the date of grant. | ||||
During the six months ended February 28, 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 the six months ended February 28, 2013: | ||||
Options Exercised | Exercise Price | |||
25,140 | $9.95 | |||
1,734 | 7.65 | |||
The Company granted stock options under the 2007 Plan to purchase an aggregate of 118,294 shares of its common stock to various employees and directors during the six months ended February 28, 2013. The weighted average per share exercise price of the stock options is $10.25, which is equal to the fair market value of the Company’s common stock on the date of grant. | ||||
Note_8_Net_Income_Per_Common_S
Note 8 - Net Income Per Common Share | 6 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||
8. 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. | |||||||||||||||||
No options to purchase shares of common stock were excluded from the computation of common share equivalents for the three and six months ended February 28, 2014, as the exercise prices of such options were less than market price of a share of common stock. Options to purchase shares of common stock of 48,000 were excluded from the computation of common share equivalents for the three and six months ended February 28, 2013, 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 the three and six months ended February 28, 2014 and 2013: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
Numerators: | February 28, | February 28, | February 28, | February 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income attributable to NTIC | $ | 1,025,044 | $ | 434,410 | $ | 1,883,630 | $ | 824,032 | |||||||||
Denominator: | |||||||||||||||||
Basic – weighted shares outstanding | 4,434,837 | 4,418,821 | 4,434,770 | 4,409,954 | |||||||||||||
Weighted shares assumed upon exercise of stock options | 144,766 | 66,255 | 131,333 | 50,243 | |||||||||||||
Diluted – weighted shares outstanding | 4,579,603 | 4,485,076 | 4,566,103 | 4,460,197 | |||||||||||||
Basic earnings per share: | $ | 0.23 | $ | 0.1 | $ | 0.42 | $ | 0.19 | |||||||||
Diluted earnings per share: | $ | 0.22 | $ | 0.1 | $ | 0.41 | $ | 0.18 | |||||||||
The dilutive impact summarized above relates to the periods when the average market price of the Company’s common 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_9_StockBased_Compensation
Note 9 - Stock-Based Compensation | 6 Months Ended | ||||||||||
Feb. 28, 2014 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||
9. STOCK-BASED COMPENSATION | |||||||||||
The Company has two stock-based compensation plans under which stock options and other stock-based awards have been granted, including the Northern Technologies International Corporation Amended and Restated 2007 Stock Incentive 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. To date, only stock options and stock bonuses have 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 Company granted options to purchase an aggregate of 56,373 and 118,294 shares of its common stock during the six months ended February 28, 2014 and 2013, respectively. The fair value of option grants is determined at date of grant, using the Black-Scholes option pricing model with the assumptions listed below. Based on these valuations, the Company recognized compensation expense of $236,623 and $137,550 during the six months ended February 28, 2014 and 2013, respectively, related to the options that vested during such time period. The stock-based expense recorded reduced after-tax net income per share by $0.03 for each of the six months ended February 28, 2014 and 2013, respectively. As of February 28, 2014, the total compensation cost for non-vested options not yet recognized in the Company’s consolidated statements of operations was $503,979 net of estimated forfeitures. Additional stock-based compensation expense of $217,396 is expected through the remainder of fiscal year 2014, and expense of $186,598 and $99,985 is expected to be recognized during fiscal 2015 and fiscal 2016, respectively. Future option grants will impact the compensation expense recognized. | |||||||||||
The Company currently estimates a ten percent forfeiture rate for stock options and continually reviews this estimate for 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: | |||||||||||
Six Months Ended | |||||||||||
February 28, | February 28, | ||||||||||
2014 | 2013 | ||||||||||
Dividend yield | 0 | % | 0.00% | ||||||||
Expected volatility | 47.3 | % | 48.00% | ||||||||
Expected life of option (years) | 10 | 5 | - | 10 | |||||||
Average risk-free interest rate | 1.36 | % | 0.71% | ||||||||
The weighted average per share fair value of options granted during six months ended February 28, 2014 and 2013 was $8.60 and $5.53, respectively. The weighted average remaining contractual life of the options outstanding as of February 28, 2014 and 2013 was 5.02 years and 4.58 years, respectively. | |||||||||||
Note_10_Geographic_And_Segment
Note 10 - Geographic And Segment Information | 6 Months Ended | ||||||||||||||||||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||||||
10. GEOGRAPHIC AND SEGMENT INFORMATION | |||||||||||||||||||||||||||||||||
Net sales by geographic location as a percentage of total consolidated net sales for the three and six months ended February 28, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
February 28, | February 28, | February 28, | February 28, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Inside the U.S.A. to unaffiliated customers | 62.1 | % | 65.6 | % | 66.6 | % | 68.4 | % | |||||||||||||||||||||||||
Outside the U.S.A to: | |||||||||||||||||||||||||||||||||
Joint ventures in which the Company is a shareholder directly and indirectly | 12.9 | % | 18.2 | % | 11.7 | % | 16.8 | % | |||||||||||||||||||||||||
Unaffiliated customers | 25 | % | 16.2 | % | 21.7 | % | 14.8 | % | |||||||||||||||||||||||||
100 | % | 100 | % | 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 the three months ended February 28, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
February 28, | % of Total Fees | February 28, | % of Total Fees for | ||||||||||||||||||||||||||||||
2014 | for Services | 2013 | Services Provided | ||||||||||||||||||||||||||||||
Provided to | to Joint Ventures | ||||||||||||||||||||||||||||||||
Joint Ventures | |||||||||||||||||||||||||||||||||
China | $ | 523,451 | 25.4 | % | $ | 450,586 | 25.4 | % | |||||||||||||||||||||||||
Germany | 263,556 | 12.8 | % | 249,513 | 14.1 | % | |||||||||||||||||||||||||||
Japan | 167,410 | 8.2 | % | 169,205 | 9.6 | % | |||||||||||||||||||||||||||
India | 166,858 | 8.1 | % | — | 0 | % | |||||||||||||||||||||||||||
Poland | 152,518 | 7.4 | % | 154,839 | 8.7 | % | |||||||||||||||||||||||||||
Thailand | 130,441 | 6.3 | % | 148,303 | 8.4 | % | |||||||||||||||||||||||||||
France | 122,972 | 6 | % | 147,896 | 8.3 | % | |||||||||||||||||||||||||||
Korea | 108,797 | 5.3 | % | 123,388 | 7 | % | |||||||||||||||||||||||||||
Sweden | 92,223 | 4.5 | % | 77,627 | 4.4 | % | |||||||||||||||||||||||||||
United Kingdom | 79,935 | 3.9 | % | 35,754 | 2 | % | |||||||||||||||||||||||||||
Finland | 76,537 | 3.7 | % | 72,329 | 4.1 | % | |||||||||||||||||||||||||||
Other | 172,973 | 8.4 | % | 141,441 | 8 | % | |||||||||||||||||||||||||||
$ | 2,057,671 | 100 | % | $ | 1,770,881 | 100 | % | ||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
February 28, | % of Total Fees | February 28, | % of Total Fees for | ||||||||||||||||||||||||||||||
2014 | for Services | 2013 | Services Provided | ||||||||||||||||||||||||||||||
Provided to | to Joint Ventures | ||||||||||||||||||||||||||||||||
Joint Ventures | |||||||||||||||||||||||||||||||||
China | $ | 1,111,633 | 26.7 | % | $ | 943,897 | 26.1 | % | |||||||||||||||||||||||||
Germany | 527,111 | 12.6 | % | 492,213 | 13.6 | % | |||||||||||||||||||||||||||
Japan | 340,691 | 8.2 | % | 371,186 | 10.3 | % | |||||||||||||||||||||||||||
Poland | 317,085 | 7.6 | % | 266,311 | 7.4 | % | |||||||||||||||||||||||||||
Thailand | 282,999 | 6.8 | % | 301,989 | 8.4 | % | |||||||||||||||||||||||||||
Korea | 270,221 | 6.5 | % | 262,131 | 7.2 | % | |||||||||||||||||||||||||||
France | 251,075 | 6 | % | 276,398 | 7.6 | % | |||||||||||||||||||||||||||
Sweden | 202,193 | 4.8 | % | 164,619 | 4.6 | % | |||||||||||||||||||||||||||
Finland | 181,740 | 4.4 | % | 160,180 | 4.4 | % | |||||||||||||||||||||||||||
India | 166,858 | 4 | % | — | 0 | % | |||||||||||||||||||||||||||
United Kingdom | 154,632 | 3.7 | % | 102,812 | 2.8 | % | |||||||||||||||||||||||||||
Other | 361,081 | 8.7 | % | 275,422 | 7.6 | % | |||||||||||||||||||||||||||
$ | 4,167,319 | 100 | % | $ | 3,617,158 | 100 | % | ||||||||||||||||||||||||||
The following table sets forth the Company’s net sales for the three and six months ended February 28, 2014 and 2013 by segment: | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
February 28, | February 28, | February 28, | February 28, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
ZERUST® sales | $ | 5,555,051 | $ | 4,710,412 | $ | 11,304,064 | $ | 9,505,695 | |||||||||||||||||||||||||
Natur-Tec™ sales | 663,957 | 535,938 | 1,224,044 | 1,032,402 | |||||||||||||||||||||||||||||
Total net sales | $ | 6,219,008 | $ | 5,246,350 | $ | 12,528,108 | $ | 10,538,097 | |||||||||||||||||||||||||
The following table sets forth the Company’s cost of goods sold for the three and six months ended February 28, 2014 and 2013 by segment: | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
February 28, | % of | February 28, | % of | February 28, | % of | February 28, | % of | ||||||||||||||||||||||||||
2014 | Product | 2013 | Product | 2014 | Product | 2013 | Product | ||||||||||||||||||||||||||
Sales* | Sales* | Sales* | Sales* | ||||||||||||||||||||||||||||||
Direct cost of goods sold | |||||||||||||||||||||||||||||||||
ZERUST® | $ | 2,965,790 | 53.4 | % | $ | 2,623,070 | 55.7 | % | $ | 6,047,554 | 53.5 | % | $ | 5,267,365 | 55.4 | % | |||||||||||||||||
Natur-Tec® | 490,573 | 73.9 | % | 453,147 | 84.6 | % | 940,037 | 76.8 | % | 892,820 | 86.5 | % | |||||||||||||||||||||
Indirect cost of goods sold | 595,470 | — | 557,696 | — | 1,222,273 | — | 1,164,700 | — | |||||||||||||||||||||||||
Total net cost of goods sold | $ | 4,051,833 | $ | 3,633,913 | $ | 8,209,864 | $ | 7,324,885 | |||||||||||||||||||||||||
* | The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category. | ||||||||||||||||||||||||||||||||
The Company 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: | |||||||||||||||||||||||||||||||||
As of | As of | ||||||||||||||||||||||||||||||||
February 28, | August 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Brazil | $ | 934,780 | $ | 1,193,373 | |||||||||||||||||||||||||||||
India | 332,217 | — | |||||||||||||||||||||||||||||||
North America | 49,554,310 | 47,860,576 | |||||||||||||||||||||||||||||||
Total assets | $ | 50,821,307 | $ | 49,053,949 | |||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
February 28, | February 28, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Brazil | $ | 1,153,012 | $ | 1,131,469 | |||||||||||||||||||||||||||||
India | 168,779 | — | |||||||||||||||||||||||||||||||
North America | 11,206,317 | 9,406,628 | |||||||||||||||||||||||||||||||
Total net sales | $ | 12,528,108 | $ | 10,538,097 | |||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
February 28, | February 28, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Brazil | $ | (145,955 | ) | $ | (106,759 | ) | |||||||||||||||||||||||||||
India | 5,800 | — | |||||||||||||||||||||||||||||||
North America | 3,307,688 | 1,950,278 | |||||||||||||||||||||||||||||||
Total operating income | $ | 3,167,533 | $ | 1,843,519 | |||||||||||||||||||||||||||||
Total assets located in Brazil and India primarily consist of cash and cash equivalents, customer receivables and inventory. These 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_11_Research_and_Developme
Note 11 - Research and Development | 6 Months Ended |
Feb. 28, 2014 | |
Research and Development [Abstract] | ' |
Research, Development, and Computer Software Disclosure [Text Block] | ' |
11. RESEARCH AND DEVELOPMENT | |
The Company expenses all costs related to product research and development as incurred. The Company incurred $2,237,865 and $1,850,599 of expense during the six months ended February 28, 2014 and 2013, respectively, in connection with its research and development activities. These costs are net of reimbursements related to certain research and development contracts. Such reimbursements totaled $45,788 and $137,364 for the six months ended February 28, 2014 and 2013, respectively. The net fees are accounted for in the “Research and Development Expenses” section of the consolidated statements of operations. | |
Note_12_Commitments_and_Contin
Note 12 - Commitments and Contingencies | 6 Months Ended |
Feb. 28, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
12. 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 as well as certain officers and employees for the fiscal year ending August 31, 2014. For fiscal 2014 as in past years, the total amount available under the bonus plan for all plan participants, including executive officers, 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 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. There was $620,000 for management bonuses accrued for six months ended February 28, 2014 compared to a management bonus accrual of $275,000 for the six months ended February 28, 2013. | |
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. | |
Three joint ventures accounted for 60.1% of the Company’s trade joint venture receivables at February 28, 2014, and two joint ventures accounted for 49.0% of the Company’s trade joint venture receivables at August 31, 2013. | |
From time to time, the Company is subject to various claims and legal actions in the ordinary course of its business. The Company 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_13_Fair_Value_Measurement
Note 13 - Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Fair Value, Measurement Inputs, Disclosure [Text Block] | ' | ||||||||||||||||
13. FAIR VALUE MEASUREMENTS | |||||||||||||||||
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 | ||||||||||||||
28-Feb-14 | |||||||||||||||||
Cash equivalents | $ | 3,523,000 | $ | 3,523,000 | $ | — | $ | — | |||||||||
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 | $ | — | $ | — | |||||||||
Note_2_Inventories_Tables
Note 2 - Inventories (Tables) | 6 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
28-Feb-14 | 31-Aug-13 | ||||||||
Production materials | $ | 1,191,107 | $ | 1,096,693 | |||||
Finished goods | 4,179,094 | 4,014,856 | |||||||
$ | 5,370,201 | $ | 5,111,549 |
Note_3_Property_and_Equipment_1
Note 3 - Property and Equipment, Net (Tables) | 6 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
28-Feb-14 | 31-Aug-13 | ||||||||
Land | $ | 310,365 | $ | 310,365 | |||||
Buildings and improvements | 4,540,110 | 4,613,879 | |||||||
Machinery and equipment | 3,590,893 | 3,189,671 | |||||||
8,441,369 | 8,113,915 | ||||||||
Less accumulated depreciation | (3,010,052 | ) | (2,790,303 | ) | |||||
$ | 5,431,316 | $ | 5,323,612 |
Note_4_Patents_and_Trademarks_1
Note 4 - Patents and Trademarks, Net (Tables) | 6 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||
28-Feb-14 | 31-Aug-13 | ||||||||
Patents and trademarks | $ | 2,185,008 | $ | 2,064,128 | |||||
Less accumulated amortization | (1,046,310 | ) | (1,003,489 | ) | |||||
$ | 1,138,698 | $ | 1,060,639 |
Note_5_Investments_in_Joint_Ve1
Note 5 - Investments in Joint Ventures (Tables) | 6 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||||||
Condensed Balance Sheet [Table Text Block] | ' | ||||||||||||||||
At February 28, 2014 | |||||||||||||||||
Total | EXCOR | China | All Other | ||||||||||||||
Current assets | $ | 60,798,447 | $ | 21,138,250 | $ | 12,498,369 | $ | 27,161,828 | |||||||||
Total assets | 66,244,262 | 23,578,234 | 12,520,341 | 30,145,687 | |||||||||||||
Current liabilities | 17,443,151 | 3,486,865 | 3,860,391 | 10,095,895 | |||||||||||||
Noncurrent liabilities | 2,126,033 | — | 868,005 | 1,258,028 | |||||||||||||
Joint ventures’ equity | 46,675,076 | 20,091,369 | 7,791,945 | 18,791,762 | |||||||||||||
Company’s share of joint ventures’ equity | 22,653,729 | 10,045,687 | 3,895,973 | 8,712,069 | |||||||||||||
Company’s share of joint ventures’ undistributed earnings | $ | 20,232,259 | $ | 10,014,782 | $ | 3,845,973 | $ | 6,371,504 | |||||||||
At August 31, 2013 | |||||||||||||||||
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 | |||||||||||||
Company’s share of joint ventures’ equity | 24,702,981 | 12,409,893 | 3,637,375 | 8,655,713 | |||||||||||||
Company’s share of joint ventures’ undistributed earnings | $ | 22,281,510 | $ | 12,378,988 | $ | 3,587,375 | $ | 6,315,147 | |||||||||
Condensed Income Statement [Table Text Block] | ' | ||||||||||||||||
Six Months Ended February 28, 2014 | |||||||||||||||||
Total | EXCOR | China | All Other | ||||||||||||||
Net sales | $ | 58,050,376 | $ | 18,963,579 | $ | 8,257,630 | $ | 30,829,167 | |||||||||
Gross profit | 27,600,668 | 10,072,948 | 3,834,419 | 13,693,301 | |||||||||||||
Net income | 5,479,724 | 3,763,017 | 553,963 | 1,162,744 | |||||||||||||
Company’s share of equity in income of joint ventures | $ | 2,823,199 | $ | 1,881,705 | $ | 276,948 | $ | 664,546 | |||||||||
Six Months Ended February 28, 2013 | |||||||||||||||||
Total | EXCOR | China | All Other | ||||||||||||||
Net sales | $ | 54,247,135 | $ | 17,451,153 | $ | 6,929,260 | $ | 29,866,722 | |||||||||
Gross profit | 25,852,537 | 9,105,579 | 3,290,660 | 13,456,298 | |||||||||||||
Net income | 4,728,680 | 3,260,575 | 524,546 | 943,559 | |||||||||||||
Company’s share of equity in income of joint ventures | $ | 2,292,734 | $ | 1,631,125 | $ | 262,148 | $ | 399,461 |
Note_7_Stockholders_Equity_Tab
Note 7 - Stockholders' Equity (Tables) | 6 Months Ended | |||
Feb. 28, 2014 | ||||
Stockholders' Equity Note [Abstract] | ' | |||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||
Options Exercised | Exercise Price | |||
1,000 | $7.65 | |||
Options Exercised | Exercise Price | |||
25,140 | $9.95 | |||
1,734 | 7.65 |
Note_8_Net_Income_Per_Common_S1
Note 8 - Net Income Per Common Share (Tables) | 6 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
Numerators: | February 28, | February 28, | February 28, | February 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income attributable to NTIC | $ | 1,025,044 | $ | 434,410 | $ | 1,883,630 | $ | 824,032 | |||||||||
Denominator: | |||||||||||||||||
Basic – weighted shares outstanding | 4,434,837 | 4,418,821 | 4,434,770 | 4,409,954 | |||||||||||||
Weighted shares assumed upon exercise of stock options | 144,766 | 66,255 | 131,333 | 50,243 | |||||||||||||
Diluted – weighted shares outstanding | 4,579,603 | 4,485,076 | 4,566,103 | 4,460,197 | |||||||||||||
Basic earnings per share: | $ | 0.23 | $ | 0.1 | $ | 0.42 | $ | 0.19 | |||||||||
Diluted earnings per share: | $ | 0.22 | $ | 0.1 | $ | 0.41 | $ | 0.18 |
Note_9_StockBased_Compensation1
Note 9 - Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||||
Feb. 28, 2014 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||
Six Months Ended | |||||||||||
February 28, | February 28, | ||||||||||
2014 | 2013 | ||||||||||
Dividend yield | 0 | % | 0.00% | ||||||||
Expected volatility | 47.3 | % | 48.00% | ||||||||
Expected life of option (years) | 10 | 5 | - | 10 | |||||||
Average risk-free interest rate | 1.36 | % | 0.71% |
Note_10_Geographic_And_Segment1
Note 10 - Geographic And Segment Information (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||||||||||||||||||
Note 10 - Geographic And Segment Information (Tables) [Line Items] | ' | ||||||||||||||||||||||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
February 28, | February 28, | February 28, | February 28, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Inside the U.S.A. to unaffiliated customers | 62.1 | % | 65.6 | % | 66.6 | % | 68.4 | % | |||||||||||||||||||||||||
Outside the U.S.A to: | |||||||||||||||||||||||||||||||||
Joint ventures in which the Company is a shareholder directly and indirectly | 12.9 | % | 18.2 | % | 11.7 | % | 16.8 | % | |||||||||||||||||||||||||
Unaffiliated customers | 25 | % | 16.2 | % | 21.7 | % | 14.8 | % | |||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
February 28, | February 28, | February 28, | February 28, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
ZERUST® sales | $ | 5,555,051 | $ | 4,710,412 | $ | 11,304,064 | $ | 9,505,695 | |||||||||||||||||||||||||
Natur-Tec™ sales | 663,957 | 535,938 | 1,224,044 | 1,032,402 | |||||||||||||||||||||||||||||
Total net sales | $ | 6,219,008 | $ | 5,246,350 | $ | 12,528,108 | $ | 10,538,097 | |||||||||||||||||||||||||
Reconciliation of Cost of Good Sold from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
February 28, | % of | February 28, | % of | February 28, | % of | February 28, | % of | ||||||||||||||||||||||||||
2014 | Product | 2013 | Product | 2014 | Product | 2013 | Product | ||||||||||||||||||||||||||
Sales* | Sales* | Sales* | Sales* | ||||||||||||||||||||||||||||||
Direct cost of goods sold | |||||||||||||||||||||||||||||||||
ZERUST® | $ | 2,965,790 | 53.4 | % | $ | 2,623,070 | 55.7 | % | $ | 6,047,554 | 53.5 | % | $ | 5,267,365 | 55.4 | % | |||||||||||||||||
Natur-Tec® | 490,573 | 73.9 | % | 453,147 | 84.6 | % | 940,037 | 76.8 | % | 892,820 | 86.5 | % | |||||||||||||||||||||
Indirect cost of goods sold | 595,470 | — | 557,696 | — | 1,222,273 | — | 1,164,700 | — | |||||||||||||||||||||||||
Total net cost of goods sold | $ | 4,051,833 | $ | 3,633,913 | $ | 8,209,864 | $ | 7,324,885 | |||||||||||||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
As of | As of | ||||||||||||||||||||||||||||||||
February 28, | August 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Brazil | $ | 934,780 | $ | 1,193,373 | |||||||||||||||||||||||||||||
India | 332,217 | — | |||||||||||||||||||||||||||||||
North America | 49,554,310 | 47,860,576 | |||||||||||||||||||||||||||||||
Total assets | $ | 50,821,307 | $ | 49,053,949 | |||||||||||||||||||||||||||||
Revenue from External Customers by Geographic Areas [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
February 28, | February 28, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Brazil | $ | 1,153,012 | $ | 1,131,469 | |||||||||||||||||||||||||||||
India | 168,779 | — | |||||||||||||||||||||||||||||||
North America | 11,206,317 | 9,406,628 | |||||||||||||||||||||||||||||||
Total net sales | $ | 12,528,108 | $ | 10,538,097 | |||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
February 28, | February 28, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Brazil | $ | (145,955 | ) | $ | (106,759 | ) | |||||||||||||||||||||||||||
India | 5,800 | — | |||||||||||||||||||||||||||||||
North America | 3,307,688 | 1,950,278 | |||||||||||||||||||||||||||||||
Total operating income | $ | 3,167,533 | $ | 1,843,519 | |||||||||||||||||||||||||||||
Fees For Services Provided to Joint Ventures [Member] | ' | ||||||||||||||||||||||||||||||||
Note 10 - Geographic And Segment Information (Tables) [Line Items] | ' | ||||||||||||||||||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
February 28, | % of Total Fees | February 28, | % of Total Fees for | ||||||||||||||||||||||||||||||
2014 | for Services | 2013 | Services Provided | ||||||||||||||||||||||||||||||
Provided to | to Joint Ventures | ||||||||||||||||||||||||||||||||
Joint Ventures | |||||||||||||||||||||||||||||||||
China | $ | 523,451 | 25.4 | % | $ | 450,586 | 25.4 | % | |||||||||||||||||||||||||
Germany | 263,556 | 12.8 | % | 249,513 | 14.1 | % | |||||||||||||||||||||||||||
Japan | 167,410 | 8.2 | % | 169,205 | 9.6 | % | |||||||||||||||||||||||||||
India | 166,858 | 8.1 | % | — | 0 | % | |||||||||||||||||||||||||||
Poland | 152,518 | 7.4 | % | 154,839 | 8.7 | % | |||||||||||||||||||||||||||
Thailand | 130,441 | 6.3 | % | 148,303 | 8.4 | % | |||||||||||||||||||||||||||
France | 122,972 | 6 | % | 147,896 | 8.3 | % | |||||||||||||||||||||||||||
Korea | 108,797 | 5.3 | % | 123,388 | 7 | % | |||||||||||||||||||||||||||
Sweden | 92,223 | 4.5 | % | 77,627 | 4.4 | % | |||||||||||||||||||||||||||
United Kingdom | 79,935 | 3.9 | % | 35,754 | 2 | % | |||||||||||||||||||||||||||
Finland | 76,537 | 3.7 | % | 72,329 | 4.1 | % | |||||||||||||||||||||||||||
Other | 172,973 | 8.4 | % | 141,441 | 8 | % | |||||||||||||||||||||||||||
$ | 2,057,671 | 100 | % | $ | 1,770,881 | 100 | % | ||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||
February 28, | % of Total Fees | February 28, | % of Total Fees for | ||||||||||||||||||||||||||||||
2014 | for Services | 2013 | Services Provided | ||||||||||||||||||||||||||||||
Provided to | to Joint Ventures | ||||||||||||||||||||||||||||||||
Joint Ventures | |||||||||||||||||||||||||||||||||
China | $ | 1,111,633 | 26.7 | % | $ | 943,897 | 26.1 | % | |||||||||||||||||||||||||
Germany | 527,111 | 12.6 | % | 492,213 | 13.6 | % | |||||||||||||||||||||||||||
Japan | 340,691 | 8.2 | % | 371,186 | 10.3 | % | |||||||||||||||||||||||||||
Poland | 317,085 | 7.6 | % | 266,311 | 7.4 | % | |||||||||||||||||||||||||||
Thailand | 282,999 | 6.8 | % | 301,989 | 8.4 | % | |||||||||||||||||||||||||||
Korea | 270,221 | 6.5 | % | 262,131 | 7.2 | % | |||||||||||||||||||||||||||
France | 251,075 | 6 | % | 276,398 | 7.6 | % | |||||||||||||||||||||||||||
Sweden | 202,193 | 4.8 | % | 164,619 | 4.6 | % | |||||||||||||||||||||||||||
Finland | 181,740 | 4.4 | % | 160,180 | 4.4 | % | |||||||||||||||||||||||||||
India | 166,858 | 4 | % | — | 0 | % | |||||||||||||||||||||||||||
United Kingdom | 154,632 | 3.7 | % | 102,812 | 2.8 | % | |||||||||||||||||||||||||||
Other | 361,081 | 8.7 | % | 275,422 | 7.6 | % | |||||||||||||||||||||||||||
$ | 4,167,319 | 100 | % | $ | 3,617,158 | 100 | % |
Note_13_Fair_Value_Measurement1
Note 13 - Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||
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 | ||||||||||||||
28-Feb-14 | |||||||||||||||||
Cash equivalents | $ | 3,523,000 | $ | 3,523,000 | $ | — | $ | — | |||||||||
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 | $ | — | $ | — |
Note_2_Inventories_Details_Inv
Note 2 - Inventories (Details) - Inventories (USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
Inventories [Abstract] | ' | ' |
Production materials | $1,191,107 | $1,096,693 |
Finished goods | 4,179,094 | 4,014,856 |
$5,370,201 | $5,111,549 |
Note_3_Property_and_Equipment_2
Note 3 - Property and Equipment, Net (Details) - Components of Property and Equipment, Net (USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
Components of Property and Equipment, Net [Abstract] | ' | ' |
Land | $310,365 | $310,365 |
Buildings and improvements | 4,540,110 | 4,613,879 |
Machinery and equipment | 3,590,893 | 3,189,671 |
8,441,369 | 8,113,915 | |
Less accumulated depreciation | -3,010,052 | -2,790,303 |
$5,431,316 | $5,323,612 |
Note_4_Patents_and_Trademarks_2
Note 4 - Patents and Trademarks, Net (Details) (USD $) | 6 Months Ended |
Feb. 28, 2014 | |
Note 4 - Patents and Trademarks, Net (Details) [Line Items] | ' |
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 |
Patents and Trademarks [Member] | ' |
Note 4 - Patents and Trademarks, Net (Details) [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '7 years |
Note_4_Patents_and_Trademarks_3
Note 4 - Patents and Trademarks, Net (Details) - Patents and Trademarks, Net (USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
Patents and Trademarks, Net [Abstract] | ' | ' |
Patents and trademarks | $2,185,008 | $2,064,128 |
Less accumulated amortization | -1,046,310 | -1,003,489 |
$1,138,698 | $1,060,639 |
Note_5_Investments_in_Joint_Ve2
Note 5 - Investments in Joint Ventures (Details) (Mutec [Member], USD $) | Nov. 30, 2013 |
Mutec [Member] | ' |
Note 5 - Investments in Joint Ventures (Details) [Line Items] | ' |
Financing Receivable, Net | $177,273 |
Note_5_Investments_in_Joint_Ve3
Note 5 - Investments in Joint Ventures (Details) - Condensed Balance Sheet of EXCOR and NTI ASEAN, and All Other Joint Ventures (USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Current assets | $60,798,447 | $63,052,410 |
Total assets | 66,244,262 | 68,417,142 |
Current liabilities | 17,443,151 | 16,107,597 |
Noncurrent liabilities | 2,126,033 | 2,488,057 |
Joint venturesb equity | 46,675,076 | 49,821,488 |
Companybs share of joint venturesb equity | 22,653,729 | 24,702,981 |
Companybs share of joint venturesb undistributed earnings | 20,232,259 | 22,281,510 |
EXCOR [Member] | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Current assets | 21,138,250 | 25,955,136 |
Total assets | 23,578,234 | 28,391,787 |
Current liabilities | 3,486,865 | 3,572,004 |
Joint venturesb equity | 20,091,369 | 24,819,783 |
Companybs share of joint venturesb equity | 10,045,687 | 12,409,893 |
Companybs share of joint venturesb undistributed earnings | 10,014,782 | 12,378,988 |
NTI ASEAN [Member] | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Current assets | 12,498,369 | 11,200,355 |
Total assets | 12,520,341 | 11,226,755 |
Current liabilities | 3,860,391 | 3,080,118 |
Noncurrent liabilities | 868,005 | 871,886 |
Joint venturesb equity | 7,791,945 | 7,274,751 |
Companybs share of joint venturesb equity | 3,895,973 | 3,637,375 |
Companybs share of joint venturesb undistributed earnings | 3,845,973 | 3,587,375 |
All Other [Member] | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Current assets | 27,161,828 | 25,896,919 |
Total assets | 30,145,687 | 28,798,600 |
Current liabilities | 10,095,895 | 9,455,475 |
Noncurrent liabilities | 1,258,028 | 1,616,171 |
Joint venturesb equity | 18,791,762 | 17,726,954 |
Companybs share of joint venturesb equity | 8,712,069 | 8,655,713 |
Companybs share of joint venturesb undistributed earnings | $6,371,504 | $6,315,147 |
Note_5_Investments_in_Joint_Ve4
Note 5 - Investments in Joint Ventures (Details) - Condensed Income Statement of EXCOR and NTI ASEAN, and All Other Joint Ventures: (USD $) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | ' | ' | $58,050,376 | $54,247,135 |
Gross profit | ' | ' | 27,600,668 | 25,852,537 |
Net income | ' | ' | 5,479,724 | 4,728,680 |
Companybs share of equity in income of joint ventures | 1,395,451 | 1,138,438 | 2,823,199 | 2,292,734 |
EXCOR [Member] | ' | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | ' | ' | 18,963,579 | 17,451,153 |
Gross profit | ' | ' | 10,072,948 | 9,105,579 |
Net income | ' | ' | 3,763,017 | 3,260,575 |
Companybs share of equity in income of joint ventures | ' | ' | 1,881,705 | 1,631,125 |
NTI ASEAN [Member] | ' | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | ' | ' | 8,257,630 | 6,929,260 |
Gross profit | ' | ' | 3,834,419 | 3,290,660 |
Net income | ' | ' | 553,963 | 524,546 |
Companybs share of equity in income of joint ventures | ' | ' | 276,948 | 262,148 |
All Other [Member] | ' | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | ' | ' | 30,829,167 | 29,866,722 |
Gross profit | ' | ' | 13,693,301 | 13,456,298 |
Net income | ' | ' | 1,162,744 | 943,559 |
Companybs share of equity in income of joint ventures | ' | ' | $664,546 | $399,461 |
Note_6_Corporate_Debt_Details
Note 6 - Corporate Debt (Details) (USD $) | 6 Months Ended | 1 Months Ended | ||||
Feb. 28, 2014 | Feb. 28, 2014 | Aug. 31, 2013 | Dec. 31, 2013 | Feb. 28, 2014 | Aug. 31, 2013 | |
London Interbank Offered Rate (LIBOR) [Member] | Term Loan [Member] | Term Loan [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |
Revolving Credit Facility [Member] | ||||||
Note 6 - Corporate Debt (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Long-term Debt, Gross | ' | ' | $933,413 | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | 0 | ' | ' | 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | $3,000,000 | ' |
Debt Instrument, Basis Spread on Variable Rate | 2.15% | ' | ' | ' | ' | ' |
Debt Instrument, Maturity Date | ' | ' | ' | 7-Jan-15 | ' | ' |
Note_7_Stockholders_Equity_Det
Note 7 - Stockholders' Equity (Details) (USD $) | 6 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Note 7 - Stockholders' Equity (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 56,373 | 118,294 |
2007 Plan [Member] | ' | ' |
Note 7 - Stockholders' Equity (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 56,373 | 118,294 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | 14.83 | 10.25 |
Note_7_Stockholders_Equity_Det1
Note 7 - Stockholders' Equity (Details) - Exercised Stock Options (USD $) | 6 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2013 | |
Exercise 1 [Member] | Exercise 2 [Member] | Exercise 3 [Member] | |
Note 7 - Stockholders' Equity (Details) - Exercised Stock Options [Line Items] | ' | ' | ' |
Options Exercised | 1,000 | 25,140 | 1,734 |
Exercise Price | $7.65 | $9.95 | $7.65 |
Note_8_Net_Income_Per_Common_S2
Note 8 - Net Income Per Common Share (Details) (Equity Option [Member]) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |
Equity Option [Member] | ' | ' | ' | ' |
Note 8 - Net Income Per Common Share (Details) [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 48,000 | 0 | 48,000 |
Note_8_Net_Income_Per_Common_S3
Note 8 - Net Income Per Common Share (Details) - Reconciliation of the Earnings Per Share Computations (USD $) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |
Reconciliation of the Earnings Per Share Computations [Abstract] | ' | ' | ' | ' |
Net income attributable to NTIC (in Dollars) | $1,025,044 | $434,410 | $1,883,630 | $824,032 |
Basic b weighted shares outstanding | 4,434,837 | 4,418,821 | 4,434,770 | 4,409,954 |
Weighted shares assumed upon exercise of stock options | 144,766 | 66,255 | 131,333 | 50,243 |
Diluted b weighted shares outstanding | 4,579,603 | 4,485,076 | 4,566,103 | 4,460,197 |
Basic earnings per share: (in Dollars per share) | $0.23 | $0.10 | $0.42 | $0.19 |
Diluted earnings per share: (in Dollars per share) | $0.22 | $0.10 | $0.41 | $0.18 |
Note_9_StockBased_Compensation2
Note 9 - Stock-Based Compensation (Details) (USD $) | 6 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Note 9 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '10 years | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 56,373 | 118,294 |
Allocated Share-based Compensation Expense, Net of Tax, Per Share (in Dollars per share) | $0.03 | $0.03 |
Allocated Share-based Compensation Expense, Estimate, Remainder of Fiscal Year | $217,396 | ' |
Allocated Share-based Compensation Expense, Estimate, Next Fiscal Year | 186,598 | ' |
Allocated Share-based Compensation Expense, Estimate, Fiscal Year Two | 99,985 | ' |
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) | $8.60 | $5.53 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | '5 years 7 days | '4 years 211 days |
Net of Estimated Forfeitures [Member] | ' | ' |
Note 9 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 503,979 | ' |
Employee Stock Option [Member] | ' | ' |
Note 9 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Stock or Unit Option Plan Expense | $236,623 | $137,550 |
2007 Plan [Member] | ' | ' |
Note 9 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 800,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '5 years | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 56,373 | 118,294 |
2007 Plan [Member] | Minimum [Member] | One Year after Date of Grant [Member] | ' | ' |
Note 9 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years | ' |
2007 Plan [Member] | Maximum [Member] | One Year after Date of Grant [Member] | ' | ' |
Note 9 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '4 years | ' |
ESPP [Member] | ' | ' |
Note 9 - 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 9 - 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 9 - Stock-Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | ' | '10 years |
Note_9_StockBased_Compensation3
Note 9 - Stock-Based Compensation (Details) - Black-Scholes Option-Pricing Model Assumptions | 6 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2013 | |
Note 9 - Stock-Based Compensation (Details) - Black-Scholes Option-Pricing Model Assumptions [Line Items] | ' | ' |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 47.30% | 48.00% |
Expected life of option (years) | '10 years | ' |
Average risk-free interest rate | 1.36% | 0.71% |
Minimum [Member] | ' | ' |
Note 9 - Stock-Based Compensation (Details) - Black-Scholes Option-Pricing Model Assumptions [Line Items] | ' | ' |
Expected life of option (years) | ' | '5 years |
Maximum [Member] | ' | ' |
Note 9 - Stock-Based Compensation (Details) - Black-Scholes Option-Pricing Model Assumptions [Line Items] | ' | ' |
Expected life of option (years) | ' | '10 years |
Note_10_Geographic_And_Segment2
Note 10 - Geographic And Segment Information (Details) - Net Sales By Geographic Location as Percentage of Total Consolidated Net Sales (Geographic Concentration Risk [Member], Sales Revenue, Net [Member]) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |
Note 10 - 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% | 100.00% | 100.00% |
Inside the U.S.A to Unaffiliated Customers [Member] | ' | ' | ' | ' |
Note 10 - Geographic And Segment Information (Details) - Net Sales By Geographic Location as Percentage of Total Consolidated Net Sales [Line Items] | ' | ' | ' | ' |
Net Sales, Percentage | 62.10% | 65.60% | 66.60% | 68.40% |
Joint Ventures In Which The Company Is A Shareholder Directly And Indirectly - Outside the U.S.A [Member] | ' | ' | ' | ' |
Note 10 - Geographic And Segment Information (Details) - Net Sales By Geographic Location as Percentage of Total Consolidated Net Sales [Line Items] | ' | ' | ' | ' |
Net Sales, Percentage | 12.90% | 18.20% | 11.70% | 16.80% |
Unaffiliated Customers - Outside the U.S.A [Member] | ' | ' | ' | ' |
Note 10 - Geographic And Segment Information (Details) - Net Sales By Geographic Location as Percentage of Total Consolidated Net Sales [Line Items] | ' | ' | ' | ' |
Net Sales, Percentage | 25.00% | 16.20% | 21.70% | 14.80% |
Note_10_Geographic_And_Segment3
Note 10 - 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 $) | 3 Months Ended | 6 Months Ended |
Feb. 28, 2014 | Feb. 28, 2014 | |
Three Months Ended [Member] | CHINA | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | $523,451 | $450,586 |
Percentage of Total Fees for Services Provided to Joint Ventures | 25.40% | 25.40% |
Three Months Ended [Member] | GERMANY | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 263,556 | 249,513 |
Percentage of Total Fees for Services Provided to Joint Ventures | 12.80% | 14.10% |
Three Months Ended [Member] | JAPAN | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 167,410 | 169,205 |
Percentage of Total Fees for Services Provided to Joint Ventures | 8.20% | 9.60% |
Three Months Ended [Member] | INDIA | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 166,858 | ' |
Percentage of Total Fees for Services Provided to Joint Ventures | 8.10% | 0.00% |
Three Months Ended [Member] | POLAND | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 152,518 | 154,839 |
Percentage of Total Fees for Services Provided to Joint Ventures | 7.40% | 8.70% |
Three Months Ended [Member] | THAILAND | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 130,441 | 148,303 |
Percentage of Total Fees for Services Provided to Joint Ventures | 6.30% | 8.40% |
Three Months Ended [Member] | FRANCE | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 122,972 | 147,896 |
Percentage of Total Fees for Services Provided to Joint Ventures | 6.00% | 8.30% |
Three Months Ended [Member] | Korea [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 108,797 | 123,388 |
Percentage of Total Fees for Services Provided to Joint Ventures | 5.30% | 7.00% |
Three Months Ended [Member] | SWEDEN | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 92,223 | 77,627 |
Percentage of Total Fees for Services Provided to Joint Ventures | 4.50% | 4.40% |
Three Months Ended [Member] | UNITED KINGDOM | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 79,935 | 35,754 |
Percentage of Total Fees for Services Provided to Joint Ventures | 3.90% | 2.00% |
Three Months Ended [Member] | FINLAND | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 76,537 | 72,329 |
Percentage of Total Fees for Services Provided to Joint Ventures | 3.70% | 4.10% |
Three Months Ended [Member] | Other Countries [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 172,973 | 141,441 |
Percentage of Total Fees for Services Provided to Joint Ventures | 8.40% | 8.00% |
Three Months Ended [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 2,057,671 | 1,770,881 |
Percentage of Total Fees for Services Provided to Joint Ventures | 100.00% | 100.00% |
Six Months Ended [Member] | CHINA | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 1,111,633 | 943,897 |
Percentage of Total Fees for Services Provided to Joint Ventures | 26.70% | 26.10% |
Six Months Ended [Member] | GERMANY | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 527,111 | 492,213 |
Percentage of Total Fees for Services Provided to Joint Ventures | 12.60% | 13.60% |
Six Months Ended [Member] | JAPAN | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 340,691 | 371,186 |
Percentage of Total Fees for Services Provided to Joint Ventures | 8.20% | 10.30% |
Six Months Ended [Member] | INDIA | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 166,858 | ' |
Percentage of Total Fees for Services Provided to Joint Ventures | 4.00% | 0.00% |
Six Months Ended [Member] | POLAND | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 317,085 | 266,311 |
Percentage of Total Fees for Services Provided to Joint Ventures | 7.60% | 7.40% |
Six Months Ended [Member] | THAILAND | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 282,999 | 301,989 |
Percentage of Total Fees for Services Provided to Joint Ventures | 6.80% | 8.40% |
Six Months Ended [Member] | FRANCE | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 251,075 | 276,398 |
Percentage of Total Fees for Services Provided to Joint Ventures | 6.00% | 7.60% |
Six Months Ended [Member] | Korea [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 270,221 | 262,131 |
Percentage of Total Fees for Services Provided to Joint Ventures | 6.50% | 7.20% |
Six Months Ended [Member] | SWEDEN | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 202,193 | 164,619 |
Percentage of Total Fees for Services Provided to Joint Ventures | 4.80% | 4.60% |
Six Months Ended [Member] | UNITED KINGDOM | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 154,632 | 102,812 |
Percentage of Total Fees for Services Provided to Joint Ventures | 3.70% | 2.80% |
Six Months Ended [Member] | FINLAND | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 181,740 | 160,180 |
Percentage of Total Fees for Services Provided to Joint Ventures | 4.40% | 4.40% |
Six Months Ended [Member] | Other Countries [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | 361,081 | 275,422 |
Percentage of Total Fees for Services Provided to Joint Ventures | 8.70% | 7.60% |
Six Months Ended [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Fees for Services Provided to Joint Ventures (in Dollars) (in Dollars) | $4,167,319 | $3,617,158 |
Percentage of Total Fees for Services Provided to Joint Ventures | 100.00% | 100.00% |
Note_10_Geographic_And_Segment4
Note 10 - Geographic And Segment Information (Details) - Net Sales by Segment (USD $) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net Sales | $6,219,008 | $5,246,350 | $12,528,108 | $10,538,097 |
ZERUST [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net Sales | 5,555,051 | 4,710,412 | 11,304,064 | 9,505,695 |
Natur-Tec [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net Sales | $663,957 | $535,938 | $1,224,044 | $1,032,402 |
Note_10_Geographic_And_Segment5
Note 10 - Geographic And Segment Information (Details) - Cost of Goods Sold by Segment (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |||||
Direct cost of goods sold | ' | ' | ' | ' | ||||
Cost of goods sold | $4,051,833 | $3,633,913 | $8,209,864 | $7,324,885 | ||||
ZERUST [Member] | Direct Cost of Goods Sold [Member] | ' | ' | ' | ' | ||||
Direct cost of goods sold | ' | ' | ' | ' | ||||
Cost of goods sold | 2,965,790 | 2,623,070 | 6,047,554 | 5,267,365 | ||||
Cost of goods sold as a percentage of product sales | 53.40% | [1] | 55.70% | [1] | 53.50% | [1] | 55.40% | [1] |
Natur-Tec [Member] | Direct Cost of Goods Sold [Member] | ' | ' | ' | ' | ||||
Direct cost of goods sold | ' | ' | ' | ' | ||||
Cost of goods sold | 490,573 | 453,147 | 940,037 | 892,820 | ||||
Cost of goods sold as a percentage of product sales | 73.90% | [1] | 84.60% | [1] | 76.80% | [1] | 86.50% | [1] |
Indirect Cost of Goods Sold [Member] | ' | ' | ' | ' | ||||
Direct cost of goods sold | ' | ' | ' | ' | ||||
Cost of goods sold | $595,470 | $557,696 | $1,222,273 | $1,164,700 | ||||
Cost of goods sold as a percentage of product sales | ' | [1] | ' | [1] | ' | [1] | ' | [1] |
[1] | The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales foreach segment category. |
Note_10_Geographic_And_Segment6
Note 10 - Geographic And Segment Information (Details) - Total Assets by Geographic Distribution (USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Total assets | $50,821,307 | $49,053,949 |
BRAZIL | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Total assets | 934,780 | 1,193,373 |
INDIA | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Total assets | 332,217 | ' |
North America [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Total assets | $49,554,310 | $47,860,576 |
Note_10_Geographic_And_Segment7
Note 10 - Geographic And Segment Information (Details) - Total Net Sales by Geographic Distribution (USD $) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |
Note 10 - Geographic And Segment Information (Details) - Total Net Sales by Geographic Distribution [Line Items] | ' | ' | ' | ' |
Total net sales | $6,219,008 | $5,246,350 | $12,528,108 | $10,538,097 |
BRAZIL | ' | ' | ' | ' |
Note 10 - Geographic And Segment Information (Details) - Total Net Sales by Geographic Distribution [Line Items] | ' | ' | ' | ' |
Total net sales | ' | ' | 1,153,012 | 1,131,469 |
INDIA | ' | ' | ' | ' |
Note 10 - Geographic And Segment Information (Details) - Total Net Sales by Geographic Distribution [Line Items] | ' | ' | ' | ' |
Total net sales | ' | ' | 168,779 | ' |
North America [Member] | ' | ' | ' | ' |
Note 10 - Geographic And Segment Information (Details) - Total Net Sales by Geographic Distribution [Line Items] | ' | ' | ' | ' |
Total net sales | ' | ' | $11,206,317 | $9,406,628 |
Note_10_Geographic_And_Segment8
Note 10 - Geographic And Segment Information (Details) - Operating Income by Geographic Distribution (USD $) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total operating income | $1,653,234 | $969,855 | $3,167,533 | $1,843,519 |
BRAZIL | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total operating income | ' | ' | -145,955 | -106,759 |
INDIA | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total operating income | ' | ' | 5,800 | ' |
North America [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total operating income | ' | ' | $3,307,688 | $1,950,278 |
Note_11_Research_and_Developme1
Note 11 - Research and Development (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | |
Research and Development [Abstract] | ' | ' | ' | ' |
Research and Development Expense | $1,099,345 | $912,393 | $2,237,865 | $1,850,599 |
Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross | ' | ' | $45,788 | $137,364 |
Note_12_Commitments_and_Contin1
Note 12 - Commitments and Contingencies (Details) (USD $) | Feb. 28, 2014 | Aug. 31, 2013 | Feb. 28, 2013 | Feb. 28, 2014 |
Fiscal 2013 Bonus Plan [Member] | ||||
Executive Officer [Member] | ||||
Note 12 - 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% |
Accrued Bonuses | $620,000 | ' | $275,000 | ' |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 59,500 | ' | ' | ' |
Operating Leases, Future Minimum Payments, Due Thereafter | $0 | ' | ' | ' |
Entity-Wide Trade Joint Venture Receivables, Three Joint Ventures, Percentage | 60.10% | ' | ' | ' |
EntityWideTradeJointVentureReceivablesTwoJointVenturesPercentage | ' | 49.00% | ' | ' |
Note_13_Fair_Value_Measurement2
Note 13 - Fair Value Measurements (Details) - Assets and Liabilities Measured at Fair Value Recurring Basis (USD $) | Feb. 28, 2014 | Aug. 31, 2013 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Cash equivalents | $3,523,000 | $1,020,000 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Cash equivalents | $3,523,000 | $1,020,000 |