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Note 7 - China Operations
12 Months Ended
Aug. 31, 2017
Notes to Financial Statements  
Fair Value Disclosures [Text Block]
7.
CHINA OPERATIONS
 
Effective
December 31, 2014,
the Company terminated its joint venture agreements with its previous joint venture in China, Tianjin Zerust, began the process of liquidating the joint venture entity, and commenced operations in China through a wholly-owned subsidiary, NTIC (Shanghai) Co. Ltd. on
January 1, 2015.
Effective
December 31, 2014,
the Company’s investment in Tianjin Zerust was reported at carrying value based on the Company’s decreased level of influence over the entity, and the Company reclassified previously unrecognized gains on foreign currency translation from accumulated other comprehensive income. Any declines in the fair value were reflected as adjustments to the carrying value.
 
Since it began the process of liquidating the joint venture entity on
December 31, 2014,
the Company has
not
received any proceeds from the assets of Tianjin Zerust. In addition, the Company has
not
received financial information or cooperation from its joint venture partner in determining the investment value for the year ended
August 31, 2017
or
2016.
During the
fourth
quarter of fiscal
2016,
the Company obtained additional information regarding the financial position of the investment through the legal proceedings that have been ongoing (See Note
16
). These circumstances resulted in the Company concluding an indication of impairment exists and that the fair value of the investment was
$0
as of
August 31, 2016
based on accounting principles generally accepted in the United States of America. See Note
16
regarding ongoing litigation involving Tianjin Zerust.