Northern Technologies International (NTIC) 10-Q 11 Jul 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	May 31, 2016	Jul. 08, 2016
Document Information [Line Items]
Entity Registrant Name	Northern Technologies International Corporation
Entity Central Index Key	875,582
Trading Symbol	ntic
Current Fiscal Year End Date	--08-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		4,537,116
Document Type	10-Q
Document Period End Date	May 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	May 31, 2016	Aug. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 4,626,538	$ 2,623,981
Available for sale securities	2,239,792	2,027,441
Trade excluding joint ventures, less allowance for doubtful accounts of $40,000 at May 31, 2016 and August 31, 2015	4,573,671	4,027,167
Trade joint ventures	718,899	645,377
Fees for services provided to joint ventures	1,351,593	1,449,162
Income taxes	510,288	198,462
Inventories	7,411,006	7,468,441
Prepaid expenses	489,946	411,473
Deferred income taxes	424,108	424,108
Total current assets	22,345,841	19,275,612
PROPERTY AND EQUIPMENT, NET	7,298,036	7,293,163
OTHER ASSETS:
Investments in joint ventures	18,604,871	20,544,238
Investments at carrying value (Note 7)	1,883,668	1,883,668
Deferred income taxes	1,175,170	1,176,012
Patents and trademarks, net	1,264,780	1,262,219
Other	199,216	130,736
Total other assets	23,127,705	24,996,873
Total assets	52,771,582	51,565,648
CURRENT LIABILITIES:
Accounts payable	2,769,347	2,101,175
Accrued liabilities:
Payroll and related benefits	819,302	1,056,257
Other	364,405	514,409
Total current liabilities	3,953,054	3,671,841
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 4,537,116 and 4,539,045, respectively	90,742	90,781
Additional paid-in capital	13,738,062	13,441,264
Retained earnings	35,098,104	34,522,871
Accumulated other comprehensive loss	(3,239,074)	(3,180,811)
Stockholders’ equity	45,687,834	44,874,105
Non-controlling interest	3,130,694	3,019,702
Total equity	48,818,528	47,893,807
Total liabilities and equity	$ 52,771,582	$ 51,565,648

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	May 31, 2016	Aug. 31, 2015
Trade allowance	$ 40,000	$ 40,000
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	10,000	10,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock par value (in dollars per share)	$ 0.02	$ 0.02
Common stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, shares issued (in shares)	4,537,116	4,539,045
Common stock, shares outstanding (in shares)	4,537,116	4,539,045

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2016		May 31, 2015
NET SALES:
Net sales, excluding joint ventures	$ 7,925,357	$ 7,553,957	$ 21,454,381		$ 20,030,491
Net sales, to joint ventures	761,218	723,618	1,961,565		2,189,888
Total net sales	8,686,575	8,277,575	23,415,946		22,220,379
Cost of goods sold	5,777,249	5,595,207	15,920,896	[1]	15,059,558	[1]
Gross profit	2,909,326	2,682,368	7,495,050		7,160,821
JOINT VENTURE OPERATIONS:
Equity in income of joint ventures	1,664,464	1,724,915	3,600,884		4,806,247
Fees for services provided to joint ventures	1,351,913	1,303,964	3,808,384		4,432,494
Total joint venture operations	3,016,377	3,028,879	7,409,268		9,238,741
OPERATING EXPENSES:
Selling expenses	1,507,200	1,434,627	4,507,716		4,168,955
General and administrative expenses	1,691,077	1,703,083	5,057,777		4,794,206
Expenses incurred in support of joint ventures	266,791	327,586	881,255		1,510,830
Research and development expenses	1,231,950	1,064,710	3,349,572		2,968,879
Total operating expenses	4,697,018	4,530,006	13,796,320		13,442,870
OPERATING INCOME	1,228,685	1,181,241	1,107,998		2,956,692
INTEREST INCOME	29,868	7,943	58,425		25,504
INTEREST EXPENSE	(15,465)	(6,004)	(30,987)		(14,232)
OTHER INCOME	6,294		7,255		2,145
INCOME BEFORE INCOME TAX EXPENSE	1,249,382	1,183,180	1,142,691		2,970,109
INCOME TAX EXPENSE	225,395	114,180	262,359		495,478
NET INCOME	1,023,987	1,069,000	880,332		2,474,631
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	106,614	163,565	305,099		689,575
NET INCOME ATTRIBUTABLE TO NTIC	$ 917,373	$ 905,435	$ 575,233		$ 1,785,056
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE:
Basic (in dollars per share)	$ 0.20	$ 0.20	$ 0.13		$ 0.40
Diluted (in dollars per share)	$ 0.20	$ 0.20	$ 0.13		$ 0.39
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING:
Basic (in shares)	4,538,970	4,525,109	4,538,005		4,519,279
Diluted (in shares)	4,563,801	4,594,992	4,587,064		4,635,561
[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 for each segment category.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2016	May 31, 2015
NET INCOME	$ 1,023,987	$ 1,069,000	$ 880,332	$ 2,474,631
OTHER COMPREHENSIVE INCOME (LOSS) – FOREIGN CURRENCY TRANSLATION ADJUSTMENT	432,360	(439,459)	(52,370)	(3,695,884)
COMPREHENSIVE INCOME (LOSS)	1,456,347	629,541	827,962	(1,221,253)
COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	124,840	130,133	310,992	372,690
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NTIC	$ 1,331,507	$ 499,408	$ 516,970	$ (1,593,943)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	May 31, 2016	May 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 880,332	$ 2,474,631
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	325,576	378,421
Depreciation expense	482,576	385,126
Amortization expense	89,275	65,747
Loss on disposal of assets		20,689
Equity in income from joint ventures	(3,600,884)	(4,806,247)
Dividends received from joint ventures	5,449,543	2,767,771
Deferred income taxes		(27,558)
Receivables:
Trade, excluding joint ventures	(570,647)	(896,173)
Trade, joint ventures	(73,522)	324,338
Fees for services provided to joint ventures	97,569	1,257,998
Income taxes	(314,038)	(217,055)
Inventories	17,185	(887,748)
Prepaid expenses and other	(58,518)	(95,316)
Accounts payable	692,741	82,550
Income tax payable	(377)	22,943
Accrued liabilities	(363,514)	(813,896)
Net cash provided by operating activities	3,053,297	36,221
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of available for sale securities		2,991,919
Purchase of available for sale securities	(212,351)
Additions to property and equipment	(490,481)	(1,098,035)
Additions to patents	(91,836)	(138,786)
Net cash (used in) provided by investing activities	(794,668)	1,755,098
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividend received by non-controlling interest	(200,000)	(560,000)
Repurchase of common stock	(97,450)
Proceeds from employee stock purchase plan	68,633	57,980
Proceeds from exercise of stock options		99,450
Net cash used in financing activities	(228,817)	(402,570)
EFFECT OF EXCHANGE RATE CHANGES ON CASH:	(27,255)	(72,195)
NET INCREASE IN CASH AND CASH EQUIVALENTS	2,002,557	1,316,554
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	2,623,981	2,477,017
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 4,626,538	$ 3,793,571

Note 1 - Interim Financial Info

Note 1 - Interim Financial Information	9 Months Ended
	May 31, 2016
Notes to Financial Statements
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 May 31, 2016 and August 31, 2015 and the results of their operations for the three and nine months ended May 31, 2016 and 2015 and their cash flows for the nine months ended May 31, 2016 and 2015, in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). 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, 2015. 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 nine months ended May 31, 2016 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 31, 2016. The Company evaluates events occurring after the date of the consolidated financial statements requiring recording or disclosure in the consolidated financial statements.

Note 2 - Recently Issued Accoun

Note 2 - Recently Issued Accounting Pronouncements	9 Months Ended
	May 31, 2016
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	2. Recently Issued Accounting PronouncementS In May 2014, the Financial Accounting Standards Board (FASB) issued Revenue from Contracts with Customers, Topic 606 In July 2015, the FASB issued ASU No. 2015-11, “ Inventory In November 2015, FASB issued ASU 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes During February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, “ Leases In March 2016, the FASB issued ASU No. 2016-07, “ Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting In March 2016, the FASB issued ASU 2016-09, Stock Compensation Although there are several other new accounting pronouncements issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does not believe any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial position or operating results.

Note 3 - Inventories

Note 3 - Inventories	9 Months Ended
	May 31, 2016
Notes to Financial Statements
Inventory Disclosure [Text Block]	3. INVENTORIES Inventories consisted of the following: May 31, 2016 August 31, 2015 Production materials $ 1,337,225 $ 1,445,014 Finished goods 6,073,781 6,023,427 $ 7,411,006 $ 7,468,441

Note 4 - Property and Equipment

Note 4 - Property and Equipment, Net	9 Months Ended
	May 31, 2016
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	4. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: May 31, 2016 August 31, 2015 Land $ 310,365 $ 310,365 Buildings and improvements 6,469,887 6,180,089 Machinery and equipment 4,273,741 4,090,619 11,053,993 10,581,073 Less accumulated depreciation (3,755,957 ) (3,287,910 ) $ 7,298,036 $ 7,293,163

Note 5 - Patents and Trademarks

Note 5 - Patents and Trademarks, Net	9 Months Ended
	May 31, 2016
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	5. PATENTS AND TRADEMARKS, NET Patents and trademarks, net consisted of the following: May 31, 2016 August 31, 2015 Patents and trademarks $ 2,531,858 $ 2,440,022 Less accumulated amortization (1,267,078 ) (1,177,803 ) $ 1,264,780 $ 1,262,219 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 $115,000 in each of the next five fiscal years.

Note 6 - Investments in Joint V

Note 6 - Investments in Joint Ventures	9 Months Ended
	May 31, 2016
Notes to Financial Statements
Equity Method Investments and Joint Ventures Disclosure [Text Block]	6. 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 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 and from joint ventures to other 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) and all of the Company’s other joint ventures, are summarized as follows: May 31, 2016 Total EXCOR All Other Current assets $ 47,930,421 $ 22,433,723 $ 25,496,698 Total assets 51,389,757 24,189,092 27,200,665 Current liabilities 13,952,018 4,602,925 9,349,093 Noncurrent liabilities 103,392 — 103,392 Joint ventures’ equity 37,334,348 19,586,166 17,748,182 Northern Technologies International Corporation’s share of joint ventures’ equity 18,604,871 9,793,085 8,811,786 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 15,892,135 $ 9,416,694 $ 6,475,441 August 31, 2015 Total EXCOR All Other Current assets $ 49,295,116 $ 22,620,323 $ 26,674,793 Total assets 52,853,938 24,606,880 28,247,058 Current liabilities 12,288,383 3,360,142 8,928,241 Noncurrent liabilities 1,215,139 — 1,215,139 Joint ventures’ equity 39,350,417 21,246,738 18,103,679 Northern Technologies International Corporation’s share of joint ventures’ equity 20,544,238 11,571,361 8,972,877 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 18,483,377 $ 11,540,456 $ 6,942,921 Nine Months Ended May 31, 2016 Total EXCOR All Other Net sales $ 66,223,514 $ 25,314,260 $ 40,909,254 Gross profit 29,745,795 13,512,404 16,233,391 Net income 7,188,274 5,409,407 1,778,867 Northern Technologies International Corporation’s share of equity in income of joint ventures $ 3,600,884 $ 2,714,905 $ 885,979 Nine Months Ended May 31, 2015 Total EXCOR Tianjin All Other Net sales $ 75,974,770 $ 27,580,051 $ 3,735,457 $ 44,659,262 Gross profit 37,469,186 15,113,100 1,783,673 20,572,413 Net income 9,634,318 6,334,009 265,648 3,034,661 Northern Technologies International Corporation’s share of equity in income of joint ventures $ 4,806,247 $ 3,152,489 $ 132,824 $ 1,520,934 On January 2, 2015, the Company announced that, effective as of December 31, 2014, the Company terminated its joint venture arrangement in China, Tianjin-Zerust Anticorrosion Co., Ltd. (Tianjin Zerust), and began the process of liquidating the joint venture entity. Since December 31, 2014, the Company has conducted business in China through a wholly-owned subsidiary, NTIC (Shanghai) Co. Ltd. (NTIC China). As of December 31, 2014, the Company started recognizing Tianjin Zerust based on its carrying value instead of the equity method since the Company no longer expects to significantly affect the joint venture’s operations or decision making. See Note 7. 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. See Note 13 regarding pending litigation involving Tianjin Zerust. The Company did not make any joint venture investments during the nine months ended May 31, 2016 and 2015.

Note 7 - China Operations

Note 7 - China Operations	9 Months Ended
	May 31, 2016
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 is reported at carrying value based on the Company’s decreased level of influence over the entity, and the Company has reclassified previously unrecognized gains on foreign currency translation from accumulated other comprehensive income. Any declines in the fair value are reflected as adjustments to the carrying value. No such adjustments were recorded during the nine months ended May 31, 2016. Because of the lack of financial and other information received from Tianjin Zerust, it is possible that receipt of future financial and other information from Tianjin Zerust may impact the realization of the Company’s investment in and realization of a receivable from Tianjin Zerust. The last time the Company received financial information from Tianjin Zerust was through November 2014. The Company, as of May 31, 2016, does not believe there are any triggering events that would require an impairment test. The Company’s current net investment is approximately $1,130,200, which is 60% of its investment in Tianjin Zerust, which was $1,883,668 as of May 31, 2016. The Company will continue to evaluate the realization of this asset on an ongoing basis and adjust if necessary. The Company incurred expenses of $1,425,000 and $1,138,000 during the nine months ended May 31, 2016 and 2015, respectively, related to the termination of the joint venture agreement with Tianjin Zerust, the initiation of the liquidation of Tianjin Zerust, the formation and initial operation of NTIC China and the litigation in North America. Such expenses consisted primarily of legal expenses and personnel expenses associated with the establishment of the subsidiary and the hiring of new personnel. These expenses are recorded as operating expenses on the consolidated statements of operations and are partially offset by the gross margin contribution from sales of NTIC China. See Note 13 regarding pending litigation involving Tianjin Zerust.

Note 8 - Corporate Debt

Note 8 - Corporate Debt	9 Months Ended
	May 31, 2016
Notes to Financial Statements
Debt Disclosure [Text Block]	8. CORPORATE DEBT 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 May 31, 2016 and August 31, 2015. 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. The revolving line of credit is secured by cash, receivables and inventory. The line of credit is governed under a loan agreement. The loan agreement contains 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 agreement, the Company is subject to a minimum fixed charge coverage ratio of 1.10:1.00. As of May 31, 2016, the Company was in compliance with all debt covenants. On January 6, 2016, PNC Bank extended the maturity date of the line of credit from January 7, 2016 to January 7, 2017. All other terms of the line of credit and the loan agreement and other documents evidencing the line of credit remain the same.

Note 9 - Stockholders' Equity

Note 9 - Stockholders' Equity	9 Months Ended
	May 31, 2016
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	9. STOCKHOLDERS’ EQUITY During the nine months ended May 31, 2016, the Company repurchased and retired 7,511 shares of its common stock. During the nine months ended May 31, 2015, the Company did not repurchase or retire any shares of its common stock. 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 53,447 shares of its common stock to various employees and directors during the nine months ended May 31, 2016. The weighted average per share exercise price of the stock options is $14.85, which is equal to the fair market value of the Company’s common stock on the date of grant. During the nine months ended May 31, 2016, no stock options to purchase shares of common stock were exercised. The Company granted stock options under the 2007 Plan to purchase an aggregate of 45,067 shares of its common stock to various employees and directors during the nine months ended May 31, 2015. The weighted average per share exercise price of the stock options is $20.10, which was equal to the fair market value of the Company’s common stock on the date of grant. The following stock options to purchase shares of common stock were exercised during the nine months ended May 31, 2015: Options Exercised Exercise Price 18,000 $7.65 2,333 $10.20

Note 10 - Net Income Per Common

Note 10 - Net Income Per Common Share	9 Months Ended
	May 31, 2016
Notes to Financial Statements
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. The following is a reconciliation of the income per share computation: Three Months Ended Nine Months Ended Numerators: May 31, 2016 May 31, 2015 May 31, 2016 May 31, 2015 Net income attributable to NTIC $ 917,373 $ 905,435 $ 575,233 $ 1,785,056 Denominators: Basic – weighted shares outstanding 4,538,970 4,525,109 4,538,005 4,519,279 Weighted shares assumed upon exercise of stock options 24,831 69,883 49,059 116,282 Diluted – weighted shares outstanding 4,563,801 4,594,992 4,587,064 4,635,561 Basic income per share: $ 0.20 $ 0.20 $ 0.13 $ 0.40 Diluted income per share: $ 0.20 $ 0.20 $ 0.13 $ 0.39 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. Income per share was based on the weighted average number of shares of common stock outstanding during the periods when computing the basic income per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted income per share. Excluded from the computation of diluted income per share for the three and nine months ended May 31, 2016 were options outstanding to purchase 170,887 shares of common stock. Excluded from the computation of diluted income per share for the three and nine months ended May 31, 2015 were options outstanding to purchase 45,067 shares of common stock.

Note 11 - Stock-based Compensat

Note 11 - Stock-based Compensation	9 Months Ended
	May 31, 2016
Notes to Financial Statements
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 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 administer 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 ten 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. The Company issues new shares upon the exercise of options. As of May 31, 2016, 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 Company issued 2,439 and 1,948 shares on September 1, 2015 and 2014, respectively, under the ESPP. The Company issued 3,144 shares on March 1, 2016 under the ESPP. The Company granted options to purchase an aggregate of 53,447 and 45,067 shares of its common stock during the nine months ended May 31, 2016 and 2015, 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. The Company recognized compensation expense of $325,576 and $378,421 during the nine months ended May 31, 2016 and 2015, respectively, related to the options that vested during such time period. As of May 31, 2016, the total compensation cost for nonvested options not yet recognized in the Company’s consolidated statements of operations was $341,261, net of estimated forfeitures. Stock-based compensation expense of $101,861 is expected through the remainder of fiscal year 2016, and $159,600 and $79,800 is expected to be recognized during fiscal 2017 and fiscal 2018, respectively, based on outstanding options as of May 31, 2016. Future option grants will impact the compensation expense recognized. Stock-based compensation expense is included in general and administrative expense on the consolidated statements of operations. 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: Nine Months Ended May 31, 2016 May 31, 2015 Dividend yield 0.00 % 0.00 % Expected volatility 46.0 % 46.6 % Expected life of option (years) 10 10 Average risk-free interest rate 1.63 % 1.63 % The weighted average per share fair value of options granted during nine months ended May 31, 2016 and 2015 was $8.48 and $11.58, respectively. The weighted average remaining contractual life of the options outstanding as of May 31, 2016 and 2015 was 6.71 years and 6.56 years, respectively.

Note 12 - Segment and Geographi

Note 12 - Segment and Geographic Information	9 Months Ended
	May 31, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	12. SEGMENT AND GEOGRAPHIC INFORMATION Segment Information The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s business is organized into two reportable segments: ZERUST® and Natur-Tec®. 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 40 years, and more recently, has targeted and expanded into the oil and gas industry. The Company also sells a portfolio of bio-based and compostable (fully biodegradable) polymer resins and finished products under the Natur-Tec® brand. The following table sets forth the Company’s net sales for the three and nine months ended May 31, 2016 and 2015 by segment: Three Months Ended Nine Months Ended May 31, 2016 May 31, 2015 May 31, 2016 May 31, 2015 ZERUST® net sales $ 7,185,955 $ 7,076,760 $ 19,548,974 $ 19,098,816 Natur-Tec® net sales 1,500,620 1,200,815 3,866,972 3,121,563 Total net sales $ 8,686,575 $ 8,277,575 $ 23,415,946 $ 22,220,379 The following table sets forth the Company’s cost of goods sold for the three and nine months ended May 31, 2016 and 2015 by segment: Three Months Ended Nine Months Ended May 31, % of Segment Sales* May 31, % of May 31, % of May 31, % of Direct cost of goods sold ZERUST® $ 4,028,114 56.1 % $ 3,942,776 55.7 % $ 10,968,742 56.1 % $ 10,452,467 54.7 % Natur-Tec® 1,119,730 74.6 % 889,976 74.1 % 2,938,927 76.0 % 2,391,599 76.6 % Indirect cost of goods sold 629,405 — 762,455 — 2,013,227 — 2,215,492 — Total net cost of goods sold $ 5,777,249 $ 5,595,207 $ 15,920,896 $ 15,059,558 __________________________ * 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. Geographic Information Net sales by geographic location for the three and nine months ended May 31, 2016 and 2015 were as follows: Three Months Ended Nine Months Ended May 31, 2016 May 31, 2015 May 31, 2016 May 31, 2015 Inside the U.S.A. to unaffiliated customers $ 5,559,885 $ 5,337,090 $ 14,762,170 $ 14,200,121 Outside the U.S.A to: Joint ventures in which the Company is a shareholder directly and indirectly 446,322 580,622 1,967,370 2,588,501 Unaffiliated customers 2,680,368 2,359,863 6,686,406 5,431,757 $ 8,686,575 $ 8,277,575 $ 23,415,946 $ 22,220,379 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 and nine months ended May 31, 2016 and 2015 were as follows: Three Months Ended May 31, % of Total Fees for Services Provided to Joint Ventures May 31, % of Total Fees for Services Provided to Joint Ventures Germany $ 242,158 17.9 % $ 219,182 16.8 % Poland 167,237 12.4 % 149,771 11.5 % Japan 148,091 11.0 % 124,772 9.6 % United Kingdom 135,068 10.0 % 93,229 7.2 % Thailand 132,548 9.8 % 128,164 9.8 % France 87,588 6.5 % 108,788 8.4 % Korea 74,085 5.5 % 70,984 5.4 % India 70,610 5.2 % 72,285 5.5 % Sweden 66,239 4.9 % 103,234 7.9 % Finland 55,876 4.1 % 74,711 5.7 % Czech Republic 54,537 4.0 % 56,843 4.3 % Other 117,876 8.7 % 102,001 7.8 % $ 1,351,913 100.0 % $ 1,303,964 100.0 % Nine Months Ended May 31, % of Total Fees for Services Provided to Joint Ventures May 31, % of Total Fees for Services Provided to Joint Ventures Germany $ 664,812 17.4 % $ 660,135 14.9 % Poland 452,260 11.8 % 437,607 9.9 % Japan 416,241 10.9 % 409,316 9.2 % Thailand 395,611 10.4 % 425,316 9.6 % United Kingdom 292,216 7.7 % 304,600 6.9 % France 250,373 6.6 % 318,686 7.2 % Korea 247,730 6.5 % 133,405 3.0 % India 223,137 5.9 % 215,548 4.9 % Sweden 189,556 5.0 % 262,451 5.9 % Finland 177,704 4.7 % 220,926 5.0 % Czech Republic 176,470 4.6 % 165,492 3.7 % China — 0.0 % 516,139 11.6 % Other 322,274 8.5 % 362,872 8.2 % $ 3,808,384 100.0 % $ 4,432,494 100.0 % Sales to the Company’s joint ventures are included in the foregoing segment and geographic information; however, sales by the Company’s joint ventures to other parties are not included. The foregoing segment and geographic 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: May 31, 2016 August 31, 2015 Brazil $ 64,050 $ 46,918 India 13,664 16,402 China 164,765 45,220 United States 7,055,557 7,184,623 Total long-lived assets $ 7,298,036 $ 7,293,163 Nine Months Ended May 31, 2016 May 31, 2015 Brazil $ 1,509,659 $ 2,103,589 India 911,227 708,635 China 2,473,733 442,262 United States 18,521,327 18,965,893 Total net sales $ 23,415,946 $ 22,220,379 Total long-lived assets located in Brazil, India and China primarily consist of property, plant and equipment. 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 13 - Commitments and Conti

Note 13 - Commitments and Contingencies	9 Months Ended
	May 31, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	13. COMMITMENTS AND CONTINGENCIES On August 18, 2015, 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, 2016. For fiscal 2016 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 Adjusted EBITOI for fiscal 2016 compared to a pre-established target Adjusted EBITOI for fiscal 2016 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 the Company’s 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 2016. There was $215,000 accrued for management bonuses for the nine months ended May 31, 2016 compared to an accrual of $466,000 for management bonuses for the nine months ended May 31, 2015. Four joint ventures (consisting of the Company’s joint ventures in Korea, India, Thailand and Tianjin Zerust) accounted for 65.6% of the Company’s trade joint venture receivables at May 31, 2016 and accounted for 67.0% of the Company’s trade joint venture receivables at August 31, 2015. On March 23, 2015, the Company and NTI Asean filed a lawsuit in Tianjin No 1 Intermediate People’s Court against two individuals, Meng Tao and Xu Hui, related to breaches of duties and contractual commitments owed to NTI Asean under certain agreements related to the Company’s former joint venture in China, Tianjin Zerust Anti-Corrosion Technologies Ltd. The lawsuit alleges, among other things, that Mr. Meng Tao and Xu Hui have engaged in self-dealing, usurped business opportunities, and received economic benefits that were required to go to Tianjin Zerust. As of May 31, 2016, the Company is not able to reasonably estimate the amount of any recovery to NTI Asean, if any. On April 21, 2015, the Company and NTI Asean initiated a lawsuit in the District Court for the Second Judicial District, County of Ramsey, State of Minnesota against Cortec Corporation alleging, among other things, that Cortec Corporation aided and abetted breaches of duties and contractual commitments owed to the Company and NTI Asean related to the Company’s joint venture in China, Tianjin Zerust. From time to time, the Company is subject to various other claims and legal actions in the ordinary course of its business. The Company records a liability in its consolidated financial statements for costs related to claims, including future legal costs, settlements and judgments, where the Company has assessed that a loss is probable and an amount could be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The Company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that material loss may be have been incurred. In the opinion of management, as of May 31, 2016, the amount of liability, if any, with respect to these matters, individually or in the aggregate, will not materially affect the Company’s consolidated results of operations, financial position or cash flows.

Note 14 - Fair Value Measuremen

Note 14 - Fair Value Measurements	9 Months Ended
	May 31, 2016
Notes to Financial Statements
Fair Value, Measurement Inputs, Disclosure [Text Block]	14. 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 Fair Value as of Level 1 Level 2 Level 3 Available for sale securities $ 2,239,792 $ 2,239,792 $ — $ — Fair Value Measurements Fair Value as of Level 1 Level 2 Level 3 Available for sale securities $ 2,027,441 $ 2,027,441 $ — $ — There were no transfers between Level 1, Level 2, or Level 3 during the three and nine months ended May 31, 2016 and 2015.

Note 3 - Inventories (Tables)

Note 3 - Inventories (Tables)	9 Months Ended
	May 31, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	May 31, 2016 August 31, 2015 Production materials $ 1,337,225 $ 1,445,014 Finished goods 6,073,781 6,023,427 $ 7,411,006 $ 7,468,441

Note 4 - Property and Equipme22

Note 4 - Property and Equipment, Net (Tables)	9 Months Ended
	May 31, 2016
Notes Tables
Property, Plant and Equipment [Table Text Block]	May 31, 2016 August 31, 2015 Land $ 310,365 $ 310,365 Buildings and improvements 6,469,887 6,180,089 Machinery and equipment 4,273,741 4,090,619 11,053,993 10,581,073 Less accumulated depreciation (3,755,957 ) (3,287,910 ) $ 7,298,036 $ 7,293,163

Note 5 - Patents and Trademar23

Note 5 - Patents and Trademarks, Net (Tables)	9 Months Ended
	May 31, 2016
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	May 31, 2016 August 31, 2015 Patents and trademarks $ 2,531,858 $ 2,440,022 Less accumulated amortization (1,267,078 ) (1,177,803 ) $ 1,264,780 $ 1,262,219

Note 6 - Investments in Joint24

Note 6 - Investments in Joint Ventures (Tables)	9 Months Ended
	May 31, 2016
Notes Tables
Condensed Balance Sheet [Table Text Block]	May 31, 2016 Total EXCOR All Other Current assets $ 47,930,421 $ 22,433,723 $ 25,496,698 Total assets 51,389,757 24,189,092 27,200,665 Current liabilities 13,952,018 4,602,925 9,349,093 Noncurrent liabilities 103,392 — 103,392 Joint ventures’ equity 37,334,348 19,586,166 17,748,182 Northern Technologies International Corporation’s share of joint ventures’ equity 18,604,871 9,793,085 8,811,786 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 15,892,135 $ 9,416,694 $ 6,475,441 August 31, 2015 Total EXCOR All Other Current assets $ 49,295,116 $ 22,620,323 $ 26,674,793 Total assets 52,853,938 24,606,880 28,247,058 Current liabilities 12,288,383 3,360,142 8,928,241 Noncurrent liabilities 1,215,139 — 1,215,139 Joint ventures’ equity 39,350,417 21,246,738 18,103,679 Northern Technologies International Corporation’s share of joint ventures’ equity 20,544,238 11,571,361 8,972,877 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 18,483,377 $ 11,540,456 $ 6,942,921
Condensed Income Statement [Table Text Block]	Nine Months Ended May 31, 2016 Total EXCOR All Other Net sales $ 66,223,514 $ 25,314,260 $ 40,909,254 Gross profit 29,745,795 13,512,404 16,233,391 Net income 7,188,274 5,409,407 1,778,867 Northern Technologies International Corporation’s share of equity in income of joint ventures $ 3,600,884 $ 2,714,905 $ 885,979 Nine Months Ended May 31, 2015 Total EXCOR Tianjin All Other Net sales $ 75,974,770 $ 27,580,051 $ 3,735,457 $ 44,659,262 Gross profit 37,469,186 15,113,100 1,783,673 20,572,413 Net income 9,634,318 6,334,009 265,648 3,034,661 Northern Technologies International Corporation’s share of equity in income of joint ventures $ 4,806,247 $ 3,152,489 $ 132,824 $ 1,520,934

Note 9 - Stockholders' Equity (

Note 9 - Stockholders' Equity (Tables)	9 Months Ended
	May 31, 2016
Notes Tables
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Options Exercised Exercise Price 18,000 $7.65 2,333 $10.20

Note 10 - Net Income Per Comm26

Note 10 - Net Income Per Common Share (Tables)	9 Months Ended
	May 31, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended Nine Months Ended Numerators: May 31, 2016 May 31, 2015 May 31, 2016 May 31, 2015 Net income attributable to NTIC $ 917,373 $ 905,435 $ 575,233 $ 1,785,056 Denominators: Basic – weighted shares outstanding 4,538,970 4,525,109 4,538,005 4,519,279 Weighted shares assumed upon exercise of stock options 24,831 69,883 49,059 116,282 Diluted – weighted shares outstanding 4,563,801 4,594,992 4,587,064 4,635,561 Basic income per share: $ 0.20 $ 0.20 $ 0.13 $ 0.40 Diluted income per share: $ 0.20 $ 0.20 $ 0.13 $ 0.39

Note 11 - Stock-based Compens27

Note 11 - Stock-based Compensation (Tables)	9 Months Ended
	May 31, 2016
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Nine Months Ended May 31, 2016 May 31, 2015 Dividend yield 0.00 % 0.00 % Expected volatility 46.0 % 46.6 % Expected life of option (years) 10 10 Average risk-free interest rate 1.63 % 1.63 %

Note 12 - Segment and Geograp28

Note 12 - Segment and Geographic Information (Tables)	9 Months Ended
	May 31, 2016
Fees for Services Provided to Joint Ventures [Member]
Notes Tables
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	Three Months Ended May 31, % of Total Fees for Services Provided to Joint Ventures May 31, % of Total Fees for Services Provided to Joint Ventures Germany $ 242,158 17.9 % $ 219,182 16.8 % Poland 167,237 12.4 % 149,771 11.5 % Japan 148,091 11.0 % 124,772 9.6 % United Kingdom 135,068 10.0 % 93,229 7.2 % Thailand 132,548 9.8 % 128,164 9.8 % France 87,588 6.5 % 108,788 8.4 % Korea 74,085 5.5 % 70,984 5.4 % India 70,610 5.2 % 72,285 5.5 % Sweden 66,239 4.9 % 103,234 7.9 % Finland 55,876 4.1 % 74,711 5.7 % Czech Republic 54,537 4.0 % 56,843 4.3 % Other 117,876 8.7 % 102,001 7.8 % $ 1,351,913 100.0 % $ 1,303,964 100.0 % Nine Months Ended May 31, % of Total Fees for Services Provided to Joint Ventures May 31, % of Total Fees for Services Provided to Joint Ventures Germany $ 664,812 17.4 % $ 660,135 14.9 % Poland 452,260 11.8 % 437,607 9.9 % Japan 416,241 10.9 % 409,316 9.2 % Thailand 395,611 10.4 % 425,316 9.6 % United Kingdom 292,216 7.7 % 304,600 6.9 % France 250,373 6.6 % 318,686 7.2 % Korea 247,730 6.5 % 133,405 3.0 % India 223,137 5.9 % 215,548 4.9 % Sweden 189,556 5.0 % 262,451 5.9 % Finland 177,704 4.7 % 220,926 5.0 % Czech Republic 176,470 4.6 % 165,492 3.7 % China — 0.0 % 516,139 11.6 % Other 322,274 8.5 % 362,872 8.2 % $ 3,808,384 100.0 % $ 4,432,494 100.0 %
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	Three Months Ended Nine Months Ended May 31, 2016 May 31, 2015 May 31, 2016 May 31, 2015 ZERUST® net sales $ 7,185,955 $ 7,076,760 $ 19,548,974 $ 19,098,816 Natur-Tec® net sales 1,500,620 1,200,815 3,866,972 3,121,563 Total net sales $ 8,686,575 $ 8,277,575 $ 23,415,946 $ 22,220,379
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block]	Three Months Ended Nine Months Ended May 31, % of Segment Sales* May 31, % of May 31, % of May 31, % of Direct cost of goods sold ZERUST® $ 4,028,114 56.1 % $ 3,942,776 55.7 % $ 10,968,742 56.1 % $ 10,452,467 54.7 % Natur-Tec® 1,119,730 74.6 % 889,976 74.1 % 2,938,927 76.0 % 2,391,599 76.6 % Indirect cost of goods sold 629,405 — 762,455 — 2,013,227 — 2,215,492 — Total net cost of goods sold $ 5,777,249 $ 5,595,207 $ 15,920,896 $ 15,059,558
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	Three Months Ended Nine Months Ended May 31, 2016 May 31, 2015 May 31, 2016 May 31, 2015 Inside the U.S.A. to unaffiliated customers $ 5,559,885 $ 5,337,090 $ 14,762,170 $ 14,200,121 Outside the U.S.A to: Joint ventures in which the Company is a shareholder directly and indirectly 446,322 580,622 1,967,370 2,588,501 Unaffiliated customers 2,680,368 2,359,863 6,686,406 5,431,757 $ 8,686,575 $ 8,277,575 $ 23,415,946 $ 22,220,379
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	May 31, 2016 August 31, 2015 Brazil $ 64,050 $ 46,918 India 13,664 16,402 China 164,765 45,220 United States 7,055,557 7,184,623 Total long-lived assets $ 7,298,036 $ 7,293,163
Revenue from External Customers by Geographic Areas [Table Text Block]	Nine Months Ended May 31, 2016 May 31, 2015 Brazil $ 1,509,659 $ 2,103,589 India 911,227 708,635 China 2,473,733 442,262 United States 18,521,327 18,965,893 Total net sales $ 23,415,946 $ 22,220,379

Note 14 - Fair Value Measurem29

Note 14 - Fair Value Measurements (Tables)	9 Months Ended
	May 31, 2016
Notes Tables
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]	Fair Value Measurements Fair Value as of Level 1 Level 2 Level 3 Available for sale securities $ 2,239,792 $ 2,239,792 $ — $ — Fair Value Measurements Fair Value as of Level 1 Level 2 Level 3 Available for sale securities $ 2,027,441 $ 2,027,441 $ — $ —

Note 3 - Inventories (Details)

Note 3 - Inventories (Details) - USD ($)	May 31, 2016	Aug. 31, 2015
Production materials	$ 1,337,225	$ 1,445,014
Finished goods	6,073,781	6,023,427
Inventories	$ 7,411,006	$ 7,468,441

Note 4 - Components of Property

Note 4 - Components of Property and Equipment, Net (Details) - USD ($)	May 31, 2016	Aug. 31, 2015
Land	$ 310,365	$ 310,365
Buildings and improvements	6,469,887	6,180,089
Machinery and equipment	4,273,741	4,090,619
Gross	11,053,993	10,581,073
Less accumulated depreciation	(3,755,957)	(3,287,910)
Net	$ 7,298,036	$ 7,293,163

Note 5 - Patents and Trademar32

Note 5 - Patents and Trademarks, Net (Details Textual) - Patents and Trademarks [Member]	9 Months Ended
	May 31, 2016USD ($)
Finite-Lived Intangible Assets, Amortization Expense, Year Two	$ 115,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	115,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	115,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 115,000
Finite-Lived Intangible Asset, Useful Life	7 years
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	$ 115,000

Note 5 - Patents and Trademar33

Note 5 - Patents and Trademarks, Net (Details) - USD ($)	May 31, 2016	Aug. 31, 2015
Patents and Trademarks [Member]
Patents and trademarks	$ 2,531,858	$ 2,440,022
Less accumulated amortization	(1,267,078)	(1,177,803)
Patents and trademarkes, net	1,264,780	1,262,219
Patents and trademarkes, net	$ 1,264,780	$ 1,262,219

Note 6 - Investments in Joint34

Note 6 - Investments in Joint Ventures (Details Textual) - USD ($)	9 Months Ended
	May 31, 2016	May 31, 2015
Payments to Acquire Interest in Joint Venture	$ 0	$ 0

Note 6 - Condensed Balance Shee

Note 6 - Condensed Balance Sheet of EXCOR and All Other Joint Ventures (Details) - USD ($)	May 31, 2016	Aug. 31, 2015
EXCOR [Member]
Current assets	$ 22,433,723	$ 22,620,323
Total assets	24,189,092	24,606,880
Current liabilities	4,602,925	3,360,142
Noncurrent liabilities
Joint ventures’ equity	19,586,166	21,246,738
Northern Technologies International Corporation’s share of joint ventures’ equity	9,793,085	11,571,361
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	9,416,694	11,540,456
All Other [Member]
Current assets	25,496,698	26,674,793
Total assets	27,200,665	28,247,058
Current liabilities	9,349,093	8,928,241
Noncurrent liabilities	103,392	1,215,139
Joint ventures’ equity	17,748,182	18,103,679
Northern Technologies International Corporation’s share of joint ventures’ equity	8,811,786	8,972,877
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	6,475,441	6,942,921
Current assets	47,930,421	49,295,116
Total assets	51,389,757	52,853,938
Current liabilities	13,952,018	12,288,383
Noncurrent liabilities	103,392	1,215,139
Joint ventures’ equity	37,334,348	39,350,417
Northern Technologies International Corporation’s share of joint ventures’ equity	18,604,871	20,544,238
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$ 15,892,135	$ 18,483,377

Note 6 - Condensed Income State

Note 6 - Condensed Income Statement of EXCOR, Tianjin Zerust, and All Other Joint Ventures (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2016	May 31, 2015
EXCOR [Member]
Net sales			$ 25,314,260	$ 27,580,051
Gross profit			13,512,404	15,113,100
Net income			5,409,407	6,334,009
Northern Technologies International Corporation’s share of equity in income of joint ventures			2,714,905	3,152,489
All Other [Member]
Net sales			40,909,254	44,659,262
Gross profit			16,233,391	20,572,413
Net income			1,778,867	3,034,661
Northern Technologies International Corporation’s share of equity in income of joint ventures			885,979	1,520,934
Tianjin Zerust [Member]
Net sales				3,735,457
Gross profit				1,783,673
Net income				265,648
Northern Technologies International Corporation’s share of equity in income of joint ventures				132,824
Net sales			66,223,514	75,974,770
Gross profit			29,745,795	37,469,186
Net income			7,188,274	9,634,318
Northern Technologies International Corporation’s share of equity in income of joint ventures	$ 1,664,464	$ 1,724,915	$ 3,600,884	$ 4,806,247

Note 7 - China Operations (Deta

Note 7 - China Operations (Details Textual) - USD ($)	9 Months Ended
	May 31, 2016	May 31, 2015	Aug. 31, 2015
Tianjin Zerust [Member]
Other than Temporary Impairment Losses, Percentage of Investment	60.00%
Cost Method Investments	$ 1,883,668
Other than Temporary Impairment Losses, Investments	0
Cost-method Investments, Aggregate Carrying Amount, Not Evaluated for Impairment	1,130,200
Termination of Joint Venture and Formation of NTIC China [Member]
Professional Fees	1,425,000	$ 1,138,000
Cost Method Investments	$ 1,883,668		$ 1,883,668

Note 8 - Corporate Debt (Detail

Note 8 - Corporate Debt (Details Textual)	9 Months Ended
	May 31, 2016USD ($)	Aug. 31, 2015USD ($)
PNC Bank [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.15%
PNC Bank [Member] | Revolving Credit Facility [Member]
Long-term Line of Credit	$ 0	$ 0
Line of Credit Facility, Maximum Borrowing Capacity	$ 3,000,000
Term Loan and Line of Credit, Agreements, Loan Agreements [Member]
Debt Instrument, Covenants, Fixed Charge Coverage Ratio	1.1

Note 9 - Stockholders' Equity39

Note 9 - Stockholders' Equity (Details Textual) - $ / shares	9 Months Ended
	May 31, 2016	May 31, 2015
The 2007 Plan [Member]
Stock Repurchased and Retired During Period, Shares		0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	53,447	45,067
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 14.85	$ 20.10
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0
Stock Repurchased and Retired During Period, Shares	7,511
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	53,447	45,067

Note 9 - Exercised Stock Option

Note 9 - Exercised Stock Options (Details) - $ / shares	9 Months Ended
	May 31, 2016	May 31, 2015
Exercise 1 [Member]
Options Exercised (in shares)		18,000
Exercise Price (in dollars per share)		$ 7.65
Exercise 2 [Member]
Options Exercised (in shares)		2,333
Exercise Price (in dollars per share)		$ 10.20
Options Exercised (in shares)	0

Note 10 - Net Income Per Comm41

Note 10 - Net Income Per Common Share (Details Textual) - shares	3 Months Ended		9 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2016
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	170,887	45,067	170,887

Note 10 - Reconciliation of the

Note 10 - Reconciliation of the Earnings Per Share Computations (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2016	May 31, 2015
Net income attributable to NTIC	$ 917,373	$ 905,435	$ 575,233	$ 1,785,056
Basic – weighted shares outstanding (in shares)	4,538,970	4,525,109	4,538,005	4,519,279
Weighted shares assumed upon exercise of stock options (in shares)	24,831	69,883	49,059	116,282
Diluted – weighted shares outstanding (in shares)	4,563,801	4,594,992	4,587,064	4,635,561
Basic income per share: (in dollars per share)	$ 0.20	$ 0.20	$ 0.13	$ 0.40
Diluted income per share: (in dollars per share)	$ 0.20	$ 0.20	$ 0.13	$ 0.39

Note 11 - Stock-based Compens43

Note 11 - Stock-based Compensation (Details Textual) - USD ($)	Mar. 01, 2016	Sep. 02, 2015	Sep. 02, 2014	May 31, 2016	May 31, 2015
The 2007 Plan [Member] | Minimum [Member] | One Year after Date of Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				3 years
The 2007 Plan [Member] | Maximum [Member] | One Year after Date of Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				4 years
The 2007 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized				800,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period				10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross				53,447	45,067
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized				100,000
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent				90.00%
Employee Stock Option [Member]
Stock or Unit Option Plan Expense				$ 325,576	$ 378,421
Net of Estimated Forfeitures [Member]
Allocated Share-based Compensation Expense, Estimate Remainder of Fiscal Year				$ 341,261
Number of Stock-based Compensation Plans				2
Stock Issued During Period, Shares, Employee Stock Purchase Plans	3,144	2,439	1,948
Stock Issued During Period, Shares, Employee Stock Purchase Plans	3,144	2,439	1,948
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross				53,447	45,067
Allocated Share-based Compensation Expense, Estimate Remainder of Fiscal Year				$ 101,861
Allocated Share-based Compensation Expense, Estimate, Next Fiscal Year				159,600
Allocated Share-based Compensation Expense, Estimate, Fiscal Year Two				$ 79,800
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				$ 8.48	$ 11.58
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term				6 years 259 days	6 years 204 days

Note 11 - Black-Scholes Option-

Note 11 - Black-Scholes Option-pricing Model Assumptions (Details)	9 Months Ended
	May 31, 2016	May 31, 2015
Dividend yield	0.00%	0.00%
Expected volatility	46.00%	46.60%
Expected life of option (years)	10 years	10 years
Average risk-free interest rate	1.63%	1.63%

Note 12 - Segment and Geograp45

Note 12 - Segment and Geographic Information (Details Textual)	9 Months Ended
	May 31, 2016
Number of Reportable Segments	2

Note 12 - Net Sales by Segment

Note 12 - Net Sales by Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2016	May 31, 2015
ZERUST [Member]
Net sales by segment	$ 7,185,955	$ 7,076,760	$ 19,548,974	$ 19,098,816
NaturTec [Member]
Net sales by segment	1,500,620	1,200,815	3,866,972	3,121,563
Net sales by segment	$ 8,686,575	$ 8,277,575	$ 23,415,946	$ 22,220,379

Note 12 - Cost of Goods Sold by

Note 12 - Cost of Goods Sold by Segment (Details) - USD ($)		3 Months Ended		9 Months Ended
		May 31, 2016	May 31, 2015	May 31, 2016		May 31, 2015
Direct Cost of Goods Sold [Member] | ZERUST [Member]
Cost of goods sold		$ 4,028,114	$ 3,942,776	$ 10,968,742	[1]	$ 10,452,467	[1]
Percentage of product sales	[1]	56.10%	55.70%	56.10%		54.70%
Direct Cost of Goods Sold [Member] | NaturTec [Member]
Cost of goods sold		$ 1,119,730	$ 889,976	$ 2,938,927	[1]	$ 2,391,599	[1]
Percentage of product sales	[1]	74.60%	74.10%	76.00%		76.60%
Indirect Cost of Goods Sold [Member]
Cost of goods sold		$ 629,405	$ 762,455	$ 2,013,227	[1]	$ 2,215,492	[1]
Percentage of product sales	[1]
Cost of goods sold		$ 5,777,249	$ 5,595,207	$ 15,920,896	[1]	$ 15,059,558	[1]
Percentage of product sales	[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 for each segment category.

Note 12 - Net Sales by Geograph

Note 12 - Net Sales by Geographic Location (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2016	May 31, 2015
Inside the USA to Unaffiliated Customers [Member]
Net sales by segment	$ 5,559,885	$ 5,337,090	$ 14,762,170	$ 14,200,121
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member]
Net sales by segment	446,322	580,622	1,967,370	2,588,501
Unaffiliated Customers Outside the USA [Member]
Net sales by segment	2,680,368	2,359,863	6,686,406	5,431,757
Net sales by segment	$ 8,686,575	$ 8,277,575	$ 23,415,946	$ 22,220,379

Note 12 - Fees for Services Pro

Note 12 - Fees for Services Provided to Joint Ventures by Geographic Location as a Percentage of Total Fees for Services Provided to Joint Ventures (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2016	May 31, 2015
GERMANY
Fees	$ 242,158	$ 219,182	$ 664,812	$ 660,135
Percentage of total fees	17.90%	16.80%	17.40%	14.90%
POLAND
Fees	$ 167,237	$ 149,771	$ 452,260	$ 437,607
Percentage of total fees	12.40%	11.50%	11.80%	9.90%
JAPAN
Fees	$ 148,091	$ 124,772	$ 416,241	$ 409,316
Percentage of total fees	11.00%	9.60%	10.90%	9.20%
UNITED KINGDOM
Fees	$ 135,068	$ 93,229	$ 292,216	$ 304,600
Percentage of total fees	10.00%	7.20%	7.70%	6.90%
THAILAND
Fees	$ 132,548	$ 128,164	$ 395,611	$ 425,316
Percentage of total fees	9.80%	9.80%	10.40%	9.60%
FRANCE
Fees	$ 87,588	$ 108,788	$ 250,373	$ 318,686
Percentage of total fees	6.50%	8.40%	6.60%	7.20%
KOREA, REPUBLIC OF
Fees	$ 74,085	$ 70,984	$ 247,730	$ 133,405
Percentage of total fees	5.50%	5.40%	6.50%	3.00%
INDIA
Fees	$ 70,610	$ 72,285	$ 223,137	$ 215,548
Percentage of total fees	5.20%	5.50%	5.90%	4.90%
SWEDEN
Fees	$ 66,239	$ 103,234	$ 189,556	$ 262,451
Percentage of total fees	4.90%	7.90%	5.00%	5.90%
FINLAND
Fees	$ 55,876	$ 74,711	$ 177,704	$ 220,926
Percentage of total fees	4.10%	5.70%	4.70%	5.00%
CZECH REPUBLIC
Fees	$ 54,537	$ 56,843	$ 176,470	$ 165,492
Percentage of total fees	4.00%	4.30%	4.60%	3.70%
Other Countries [Member]
Fees	$ 117,876	$ 102,001	$ 322,274	$ 362,872
Percentage of total fees	8.70%	7.80%	8.50%	8.20%
CHINA
Fees				$ 516,139
Percentage of total fees			0.00%	11.60%
Fees	$ 1,351,913	$ 1,303,964	$ 3,808,384	$ 4,432,494
Percentage of total fees	100.00%	100.00%	100.00%	100.00%

Note 12 - Total Long-Lived Asse

Note 12 - Total Long-Lived Assets by Geographic Distribution (Details) - USD ($)	May 31, 2016	Aug. 31, 2015
BRAZIL
Total long-lived assets	$ 64,050	$ 46,918
INDIA
Total long-lived assets	13,664	16,402
CHINA
Total long-lived assets	164,765	45,220
UNITED STATES
Total long-lived assets	7,055,557	7,184,623
Total long-lived assets	$ 7,298,036	$ 7,293,163

Note 12 - Total Net Sales by Ge

Note 12 - Total Net Sales by Geographic Distribution (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2016	May 31, 2015
BRAZIL
Net sales by segment			$ 1,509,659	$ 2,103,589
INDIA
Net sales by segment			911,227	708,635
CHINA
Net sales by segment			2,473,733	442,262
UNITED STATES
Net sales by segment			18,521,327	18,965,893
Net sales by segment	$ 8,686,575	$ 8,277,575	$ 23,415,946	$ 22,220,379

Note 13 - Commitments and Con52

Note 13 - Commitments and Contingencies (Details Textual)	9 Months Ended
	May 31, 2016USD ($)	Aug. 31, 2015	May 31, 2015USD ($)
Fiscal 2016 Bonus Plan [Member] | Executive Officer [Member]
Percentage of Individual Bonus Payout Determined by Actual Versus Targeted EBITOI Results	75.00%
Percentage of Individuals Payout Determined Upon Achievement of Certain Pre-Established Individual Performance Objectives	25.00%
Accrued Bonuses	$ 215,000		$ 466,000
Number of Joint Ventures Accounted For Certain Percentage of Company's Trade Joint Venture Receivables	4
Entity Wide Trade Joint Venture Receivables, Four Joint Ventures,Percentage	65.60%	67.00%

Note 14 - Assets and Liabilitie

Note 14 - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - USD ($)	May 31, 2016	Aug. 31, 2015
Fair Value, Inputs, Level 1 [Member]
Available for sale securities	$ 2,239,792	$ 2,027,441
Available for sale securities	$ 2,239,792	$ 2,027,441