Northern Technologies International (NTIC) 10-K 22 Nov 16 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
	Aug. 31, 2016	Nov. 22, 2016	Feb. 29, 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	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		4,535,070
Entity Public Float			$ 47.2
Document Type	10-K
Document Period End Date	Aug. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Aug. 31, 2016	Aug. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 3,395,274	$ 2,623,981
Available for sale securities	2,243,864	2,027,441
Trade excluding joint ventures, less allowance for doubtful accounts of $40,000 at both August 31, 2016 and 2015	4,755,320	4,027,167
Trade joint ventures	791,903	645,377
Fees for services provided to joint ventures	1,406,587	1,449,162
Income taxes	215,905	198,462
Inventories	7,711,287	7,468,441
Prepaid expenses	422,031	411,473
Deferred income taxes		424,108
Total current assets	20,942,171	19,275,612
PROPERTY AND EQUIPMENT, NET	7,275,872	7,293,163
OTHER ASSETS:
Investments in joint ventures	19,840,774	20,544,238
Investments at carrying value (Note 7)		1,883,668
Deferred income taxes	1,639,762	1,176,012
Patents and trademarks, net	1,278,597	1,262,219
Other	92,874	130,736
Total other assets	22,852,007	24,996,873
Total assets	51,070,050	51,565,648
CURRENT LIABILITIES:
Accounts payable	2,753,903	2,101,175
Accrued liabilities:
Payroll and related benefits	938,363	1,056,257
Other	301,836	514,409
Total current liabilities	3,994,102	3,671,841
COMMITMENTS AND CONTINGENCIES (Note 18)
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 4,533,416 and 4,539,045, respectively	90,668	90,781
Additional paid-in capital	13,798,567	13,441,264
Retained earnings	33,655,357	34,522,871
Accumulated other comprehensive loss	(3,009,617)	(3,180,811)
Stockholders’ equity	44,534,975	44,874,105
Non-controlling interests	2,540,973	3,019,702
Total equity	47,075,948	47,893,807
Total liabilities and equity	$ 51,070,050	$ 51,565,648

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($)	Aug. 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)	4,533,416	4,539,045
Common stock, shares outstanding (in shares)	4,533,416	4,539,045

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
NET SALES:
Net sales, excluding joint ventures	$ 30,211,660	$ 27,491,392
Net sales, to joint ventures	2,721,905	2,831,301
Total net sales	32,933,565	30,322,693
Cost of goods sold	22,320,156	20,555,932
Gross profit	10,613,409	9,766,761
JOINT VENTURE OPERATIONS:
Equity in income from joint ventures	4,743,831	5,936,565
Fees for services provided to joint ventures	5,137,710	5,715,491
Total joint venture operations	9,881,541	11,652,056
OPERATING EXPENSES:
Selling expenses	6,255,353	5,820,748
General and administrative expenses	7,230,557	6,531,576
Expenses incurred in support of joint ventures	1,001,812	1,867,570
Research and development expenses	4,724,596	4,047,279
Total operating expenses	19,212,318	18,267,173
OPERATING INCOME	1,282,632	3,151,644
INTEREST INCOME	42,115	34,835
INTEREST EXPENSE	(13,261)	(20,960)
IMPAIRMENT ON INVESTMENT AT CARRYING VALUE (Note 7)	(1,883,668)
OTHER INCOME		515
(LOSS) INCOME BEFORE INCOME TAX EXPENSE	(572,182)	3,166,034
INCOME TAX EXPENSE	626,120	648,674
NET (LOSS) INCOME	(1,198,302)	2,517,360
NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	(330,788)	727,789
NET (LOSS) INCOME ATTRIBUTABLE TO NTIC	$ (867,514)	$ 1,789,571
NET (LOSS) INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE:
Basic (in dollars per share)	$ (0.19)	$ 0.40
Diluted (in dollars per share)	$ (0.19)	$ 0.38
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING:
Basic (in shares)	4,537,504	4,521,788
Diluted (in shares)	4,537,504	4,649,060

Consolidated Statements of Comp

Consolidated Statements of Comprehensive (Loss) Income - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
NET (LOSS) INCOME	$ (1,198,302)	$ 2,517,360
OTHER COMPREHENSIVE (LOSS) INCOME – FOREIGN CURRENCY TRANSLATION ADJUSTMENT	223,253	(3,835,705)
COMPREHENSIVE LOSS	(975,049)	(1,318,345)
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	(278,729)	326,820
COMPREHENSIVE LOSS ATTRIBUTABLE TO NTIC	$ (696,320)	$ (1,645,165)

Consolidated Statements of Equi

Consolidated Statements of Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]	Total
BALANCE (in shares) at Aug. 31, 2014	4,504,552
BALANCE at Aug. 31, 2014	$ 90,092	$ 12,676,546	$ 32,733,300	$ 253,925	$ 3,837,257	$ 49,591,120
Repurchase of common stock (in shares)	(1,587)
Repurchase of common stock	$ (32)	(24,314)				$ (24,346)
Options Exercised (in shares)	32,874					38,333
Exercise of stock options	$ 657	235,432				$ 236,089
Stock issued for employee stock purchase plan (in shares)	3,206
Stock issued for employee stock purchase plan	$ 64	57,917				57,981
Stock option expense		495,683				495,683
Dividend received by non-controlling interest					(1,160,000)	(1,160,000)
Investment by non-controlling interest					15,625	15,625
Comprehensive income (loss)			1,789,571	(3,434,736)	326,820	(1,318,345)
BALANCE (in shares) at Aug. 31, 2015	4,539,045
BALANCE at Aug. 31, 2015	$ 90,781	13,441,264	34,522,871	(3,180,811)	3,019,702	$ 47,893,807
Repurchase of common stock (in shares)	(11,211)					(11,211)
Repurchase of common stock	$ (225)	(138,656)				$ (138,881)
Options Exercised (in shares)						0
Stock issued for employee stock purchase plan (in shares)	5,582
Stock issued for employee stock purchase plan	$ 112	68,522				$ 68,634
Stock option expense		427,437				427,437
Dividend received by non-controlling interest					(200,000)	(200,000)
Comprehensive income (loss)			(867,514)	171,194	(278,729)	(975,049)
BALANCE (in shares) at Aug. 31, 2016	4,533,416
BALANCE at Aug. 31, 2016	$ 90,668	$ 13,798,567	$ 33,655,357	$ (3,009,617)	$ 2,540,973	$ 47,075,948

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (1,198,302)	$ 2,517,360
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Stock-based compensation	427,437	495,683
Depreciation expense	660,008	530,449
Amortization	119,032	87,663
Loss on disposal of assets		20,689
Equity in income from joint ventures	(4,743,831)	(5,936,565)
Dividends received from joint ventures	5,503,314	2,983,338
Impairment on investment at carrying value	1,883,668
Deferred income taxes	(47,000)	131,777
Gain on sale of equipment		31,708
Receivables:
Trade, excluding joint ventures	(723,798)	(699,088)
Trade, joint ventures	(146,526)	305,909
Fees for services provided to joint ventures	42,575	1,163,737
Income taxes	(40,859)	(258,329)
Inventories	(257,826)	(1,679,654)
Prepaid expenses and other	17,023	25,028
Accounts payable	641,631	127,907
Income tax payable	42,984	31,667
Accrued liabilities	(123,924)	(634,823)
Net cash provided by (used in) operating activities	2,055,606	(755,544)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment	(643,407)	(1,438,919)
Purchase of available for sale securities	(216,423)
Proceeds from sale of available for sale securities		3,492,325
Additions to patents	(135,410)	(152,182)
Net cash (used in) provided by investing activities	(995,240)	1,901,224
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividend received by non-controlling interest	(200,000)	(1,160,000)
Investment by non-controlling interest		15,625
Repurchase of common stock	(138,881)	(24,346)
Proceeds from employee stock purchase plan	68,634	57,981
Proceeds from exercise of stock options		236,089
Net cash used in financing activities	(270,247)	(874,651)
EFFECT OF EXCHANGE RATE CHANGES ON CASH:	(18,826)	(124,065)
NET INCREASE IN CASH AND CASH EQUIVALENTS	771,293	146,964
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	2,623,981	2,477,017
CASH AND CASH EQUIVALENTS AT END OF YEAR	$ 3,395,274	$ 2,623,981

Note 1 - Nature of Business and

Note 1 - Nature of Business and Significant Accounting Policies	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Nature of Business ® ® ® The Company participates, either directly or indirectly, in 19 active joint venture arrangements in North America, Europe and Asia. Each of these joint ventures generally manufactures and markets products in the geographic territory to which it is assigned. While most of the Company’s joint ventures exclusively sell rust and corrosion inhibiting products, some of the joint ventures also sell the Company’s Natur-Tec ® The Company has evaluated events occurring after the date of the consolidated financial statements for events requiring recording or disclosure in the financial statements. Principles of Consolidation Non-Controlling Interests Net Sales 64 Revenue Recognition Trade Receivable Trade Receivables from Joint Ventures Fees for Services Provided to Joint Ventures – Cash and Cash Equivalents 65 Available for Sale Securities Inventories Property and Depreciation Buildings and improvements (years) 5 - 30 Machinery and equipment (years) 3 - 10 Patents Investments in Joint Ventures Investment at Carrying Value Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. Fair value is calculated based on publicly available market information or other estimates determined by management. The Company employs a systematic methodology on a quarterly basis that considers available quantitative and qualitative evidence in evaluating potential impairment of our investments. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, credit quality of debt instrument issuers, the duration and extent to which the fair value is less than cost, and for equity securities, the Company’s intent and ability to hold, or plans to sell, the investment. The Company also considers specific adverse conditions related to the financial health of and business outlook for the investee, including industry and sector performance, changes in technology, and operational and financing cash flow factors. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to other income (expense) and a new cost basis in the investment is established. 66 Recoverability of Long-Lived Assets Income Taxes The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In the event the Company determines that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions on the basis of a two-step process whereby the Company determines whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and those tax positions that meet the more-likely-than-not recognition threshold. The Company recognizes the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority. Foreign Currency Translation (Accumulated Other Comprehensive Income (Loss)) The Company (excluding NTIC China, Zerust Brazil, Natur-Tec India, NTI Asean, Zerust Mexico and its joint ventures) conducts all foreign transactions based on the U.S. dollar. Since investments in joint ventures are accounted for using the equity method, any changes in foreign currency exchange rates are reflected as a foreign currency translation adjustment and does not change the equity in income from joint ventures reflected in the Company’s consolidated statements of operations. Fair Value of Financial Instruments Shipping and Handling 67 Research and Development Common Stock Stock-Based Compensation Use of Estimates

Note 2 - Recently Issued Accoun

Note 2 - Recently Issued Accounting Pronouncements	12 Months Ended
	Aug. 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 68 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	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Inventory Disclosure [Text Block]	3. INVENTORIES Inventories consisted of the following: August 31, 2016 August 31, 2015 Production materials $ 1,452,396 $ 1,445,014 Finished goods 6,258,891 6,023,427 $ 7,711,287 $ 7,468,441

Note 4 - Property and Equipment

Note 4 - Property and Equipment, Net	12 Months Ended
	Aug. 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: August 31, 2016 August 31, 2015 Land $ 310,365 $ 310,365 Buildings and improvements 6,528,252 6,180,089 Machinery and equipment 3,590,063 4,090,619 10,428,680 10,581,073 Less accumulated depreciation (3,152,808 ) (3,287,910 ) $ 7,275,872 $ 7,293,163

Note 5 - Patents and Trademarks

Note 5 - Patents and Trademarks, Net	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	5. PATENTS AND TRADEMARKS, NET Patents and trademarks, net consisted of the following: August 31, 2016 August 31, 2015 Patents and trademarks $ 2,575,435 $ 2,440,022 Less accumulated amortization (1,296,838 ) (1,177,803 ) $ 1,278,597 $ 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 was $119,032 and $87,663 for the years ended August 31, 2016 and 2015, respectively. Amortization expense is estimated to approximate $120,000 in each of the next five fiscal years.

Note 6 - Investments in Joint V

Note 6 - Investments in Joint Ventures	12 Months Ended
	Aug. 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 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: As of August 31, 2016 Total EXCOR All Other Current assets $ 48,922,924 $ 22,928,810 $ 25,994,114 Total assets 52,407,026 24,733,340 27,673,686 Current liabilities 12,433,700 3,485,231 8,948,469 Noncurrent liabilities 100,783 — 100,783 Joint ventures’ equity 39,872,543 21,248,109 18,624,434 Northern Technologies International Corporation’s share of joint ventures’ equity 19,840,774 10,624,056 9,216,728 Northern Technologies International Corporation's share of joint ventures’ undistributed earnings 17,779,912 $ 10,593,151 $ 7,186,761 Northern Technologies International Corporation's dividends received from joint ventures $ 5,503,314 $ 4,364,700 $ 1,165,614 Fiscal Year Ended August 31, 2016 Total EXCOR All Other Net sales $ 90,646,833 $ 35,138,214 $ 55,508,619 Gross profit 40,440,726 18,635,421 21,805,305 Net income 9,534,771 7,049,462 2,485,309 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 4,743,831 $ 3,534,113 $ 1,209,718 70 As of 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 Northern Technologies International Corporation's dividends received from joint ventures $ 2,983,338 $ 2,440,200 $ 543,138 Fiscal Year Ended August 31, 2015 Total EXCOR All Other Net sales $ 99,026,251 $ 36,872,664 $ 62,153,587 Gross profit 48,397,318 19,993,763 28,403,555 Net income 11,849,107 8,201,659 3,647,448 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 5,936,565 $ 4,091,608 $ 1,844,957 On January 2, 2015, the Company announced that, effective as of December 31, 2014, the Company terminated its joint venture agreements with its previous joint venture in China, 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. 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 its 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 16 regarding ongoing litigation involving Tianjin Zerust. The Company did not make any joint venture investments during fiscal 2016 or fiscal 2015. On November 30, 2013, the Company agreed to sell its indirect ownership interest in Mütec GmbH (Mütec), the Company’s former joint venture in Germany which manufactures proprietary electronic sensing instruments. In connection with the transaction, the owner of Mütec borrowed $168,000 from the Company to be repaid over four years with no interest. As of August 31, 2016 and 2015, $92,874 and $125,891 was due to the Company related to this transaction, respectively.

Note 7 - China Operations

Note 7 - China Operations	12 Months Ended
	Aug. 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. 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, 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 have resulted in the Company concluding an indication of impairment exists and that the fair value of the investment is $0 based on accounting principles generally accepted in the United States of America. The investment in Tianjin Zerust is as follows: Investment Equity method investment – August 31, 2015 $ 2,243,524 Equity in earnings – fiscal year 2016 132,824 Reclassification of translation gains on foreign currency translation (492,680 ) Recording the impairment of the cost basis investment (1,883,668 ) Investment at carrying value – August 31, 2016 $ - See Note 16 regarding ongoing litigation involving Tianjin Zerust.

Note 8 - Corporate Debt

Note 8 - Corporate Debt	12 Months Ended
	Aug. 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 August 31, 2016 and 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. The line of credit matures on January 7, 2017. The line of credit is subject to 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 August 31, 2016, the Company was in compliance with all debt covenants. The revolving credit facility allows the Company to request that PNC Bank issue letters of credit up to $1,200,000. The Company did not have any letters of credit reserved against the available letters of credit balance as of August 31, 2016 and 2015 with PNC Bank. The availability of advances under the line of credit will be reduced by the face amount of any letter of credit issued and outstanding (whether or not drawn) under the revolving credit facility. As of August 31, 2016, the Company had $71,599 of letters of credit with JP Morgan Chase Bank that are performance based and set to expire between 2020 and 2022.

Note 9 - Stockholders' Equity

Note 9 - Stockholders' Equity	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	9. STOCKHOLDERS’ EQUITY On January 15, 2015, the Company’s Board of Directors authorized the repurchase of up to $3,000,000 in shares of common stock through open market purchases or unsolicited or solicited privately negotiated transactions. This program has no expiration date but may be terminated by the Company’s Board of Directors at any time. As of August 31, 2016, up to $2,836,656 in shares of common stock remained available for repurchase under the stock repurchase program. During fiscal 2016, the Company repurchased and retired 11,211 shares of its common stock at an average price of $12.40 per share. No stock options to purchase shares of common stock were exercised during fiscal 2016. 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 fiscal 2016. The weighted average per share exercise price of the stock options is $14.85, which was equal to the fair market value of the Company’s common stock on the date of grant. No stock options to purchase shares of common stock were exercised during fiscal 2016. The following stock options to purchase shares of common stock were exercised during fiscal 2015: Options Exercise 18,000 $ 9.76 18,000 7.65 2,333 10.20 The total intrinsic value of the options exercised during fiscal 2015 was $297,696. 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 45,067 shares of its common stock to various employees and directors during fiscal 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.

Note 10 - Net Income (Loss) Per

Note 10 - Net Income (Loss) Per Common Share	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	10. NET INCOME (LOSS) PER COMMON SHARE Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted net income (loss) per share assumes the exercise of stock options using the treasury stock method, if dilutive. Options to purchase shares of common stock of 45,067 were excluded from the computation of common share equivalents for fiscal 2015, 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: Numerator: August 31, 2016 August 31, 2015 Net (loss) income attributable to NTIC $ (867,514 ) $ 1,789,571 Denominator: Basic-weighted shares outstanding 4,537,504 4,521,788 Weighted shares assumed upon exercise of stock options 0 127,272 Diluted – weighted shares outstanding 4,537,504 4,649,060 Basic income (loss) earnings per share: $ (0.19 ) $ 0.40 Diluted income (loss) earnings per share: $ (0.19 ) $ 0.38 The dilutive impact summarized above relates to the periods when the average market price of Company stock exceeded the exercise price of the potentially dilutive option securities granted. Earnings per common share were based on the weighted average number of common shares outstanding during the periods when computing the basic earnings per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted earnings per share. 170,887 of shares of common stock were excluded because the effect was anti-dilutive due to the Company’s net loss for fiscal 2016.

Note 11 - Stock-based Compensat

Note 11 - Stock-based Compensation	12 Months Ended
	Aug. 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 (the 2007 Plan) and the Northern Technologies International Corporation Employee Stock Purchase Plan (the ESPP). The Compensation Committee of the Board of Directors and the Board of Directors 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 August 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 2,438 and 3,206 shares of common stock on September 1, 2015 and 2014, respectively, under the ESPP. The Company issued 3,144 shares on March 1, 2016 under the ESPP. The fair value of option grants is determined at date of grant, using the Black-Scholes option pricing model with the assumptions listed below. The volatility factor used in the Black-Scholes option pricing model is based on historical stock price fluctuations and the risk-free interest rate is based on U.S. treasury rates appropriate for the expected term. Dividend yield and expected volatility are estimated using historical amounts that are anticipated to be consistent with current values. Expected life of the option is based on the life of the option agreements. Based on these valuations, the Company recognized compensation expense of $427,437 and $495,683 during fiscal 2016 and fiscal 2015, respectively, related to the options that vested during such time period. As of August 31, 2016, the total compensation cost for non-vested options not yet recognized in the Company’s consolidated statements of operations was $239,400. Stock-based compensation expense of $159,600 and $79,800 is expected to be recognized during fiscal 2017 and 2018, based on outstanding options as of August 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 in future periods. The fair value of each option grant is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions and results for the grants: August 31, 2016 August 31, 2015 Dividend yield 0.00 % 0.00 % Expected volatility 46.0 % 46.6 % Expected life of option (years) 10 10 Weighted average risk-free interest rate 1.63 % 1.63 % Stock option activity during the periods indicated is as follows: Number of Weighted Average Exercise Price Aggregate Outstanding at August 31, 2014 239,000 $ 11.66 Options granted 45,067 20.10 Options exercised (38,333 ) 9.00 Options terminated (4,000 ) 10.20 Outstanding at August 31, 2015 241,734 13.72 Options granted 53,447 14.85 Options exercised 0 0.00 Options terminated (12,000 ) 13.38 Outstanding at August 31, 2016 283,181 $ 13.95 $ 392,370 Exercisable at August 31, 2016 188,600 $ 13.45 $ 336,683 The weighted average per share fair value of options granted during fiscal 2016 and fiscal 2015 was $8.48 and $11.58, respectively. The weighted average remaining contractual life of the total options and exercisable options outstanding as of August 31, 2016 was 6.46 years and 5.60 years, respectively.

Note 12 - Segment and Geographi

Note 12 - Segment and Geographic Information	12 Months Ended
	Aug. 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 (CODM) is its Chief Executive Officer. The Company’s business is organized into two reportable segments: ZERUST ® ® ® ® The following tables present the Company’s business segment information in fiscal 2016 and fiscal 2015: Fiscal 2016 Fiscal 2015 ZERUST ® $ 27,577,566 $ 26,042,909 Natur-Tec ® 5,355,999 4,279,784 Total net sales $ 32,933,565 $ 30,322,693 The following table sets forth the Company’s cost of goods sold for fiscal 2016 and fiscal 2015 by segment: Fiscal 2016 Fiscal 2015 Direct cost of goods sold ZERUST ® $ 15,588,133 $ 14,399,456 Natur-Tec ® 4,076,249 3,232,353 Indirect cost of goods sold 2,655,774 2,924,124 Total net cost of goods sold $ 22,320,156 $ 20,555,932 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. All joint venture operations including equity in income, fees for services and related dividends are related to Zerust products and services. Geographic Information Net sales by geographic location were as follows: Fiscal Year Ended August 31, 2016 2015 Inside the U.S.A. to unaffiliated customers $ 20,304,480 $ 19,329,979 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 2,721,905 2,831,301 Unaffiliated customers 9,907,180 8,161,413 $ 32,933,565 $ 30,322,693 Net sales by geographic location are based on the location of the customer. Fees for services provided to joint ventures by geographic location as a percentage of total fees for services provided to joint ventures during fiscal 2016 and fiscal 2015, respectively, were as follows: Fiscal 2016 Fiscal 2015 Germany $ 845,857 $ 873,400 Japan 646,015 599,108 Poland 599,391 600,255 Thailand 537,212 554,881 United Kingdom 386,761 396,514 Korea 352,393 192,539 France 329,805 412,608 India 300,506 277,548 Sweden 265,745 323,610 Finland 252,578 281,620 Czech 237,062 229,185 China 0 494,080 Other 384,385 480,143 $ 5,137,710 $ 5,715,491 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. See Note 6 for additional details on geographical information regarding equity in income from joint ventures. The geographical distribution of key financial statement data is as follows: At August 31, 2016 At August 31, 2015 China $ 253,931 $ 45,220 Brazil 66,938 46,918 India 13,645 16,402 United States 8,219,955 8,446,842 Total long-lived assets $ 8,554,469 $ 8,555,382 Fiscal Year Ended August 31, 2016 Fiscal Year Ended August 31, 2015 China $ 4,114,288 $ 1,070,422 Brazil 2,172,297 2,623,938 India 1,104,947 967,241 Other 5,237,553 6,331,113 United States 20,304,480 19,329,979 Total net sales $ 32,933,565 $ 30,322,693 Total long-lived assets located in China, Brazil and India 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 - Retirement Plan

Note 13 - Retirement Plan	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	13. RETIREMENT PLAN The Company has a 401(k) employee savings plan. Employees who meet certain age and service requirements may elect to contribute up to 15% of their salaries. The Company typically contributes the lesser of 50% of the participant’s contributions or 3.5% of the employee’s salary. The Company recognized expense for the savings plan of $215,785 and $214,008 for fiscal 2016 and fiscal 2015, respectively.

Note 14 - Related Party Transac

Note 14 - Related Party Transactions	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	14. RELATED PARTY TRANSACTIONS During fiscal 2016 and fiscal 2015, the Company made consulting payments of $100,000 per year to Bioplastic Polymers LLC, an entity owned by Ramani Narayan, Ph.D., a director of the Company, and paid royalties of $31,463 and $21,327, respectively, based on net sales of the Company’s bioplastics products.

Note 15 - Income Taxes

Note 15 - Income Taxes	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	15. INCOME TAXES The provision for income taxes for the fiscal years ended August 31, 2016 and 2015 consists of the following: Fiscal Year Ended August 31, 2016 2015 Current: Federal $ — $ — State 20,000 (37,000 ) Foreign 647,000 542,000 667,000 505,000 Deferred: Federal 6,000 87,000 State — 5,000 Foreign (47,000 ) 52,000 (41,000 ) 144,000 $ 626,000 $ 649,000 Reconciliations of the expected federal income tax at the statutory rate with the provisions for income taxes for the fiscal years ended August 31, 2016 and 2015 are as follows: Fiscal Year Ended August 31, 2016 2015 Tax computed at statutory rates $ (195,000 ) $ 1,076,000 State income tax, net of federal benefit 20,000 (32,000 ) Tax effect on equity in (income) loss of international joint ventures (956,000 ) (1,986,000 ) Tax effect on dividends received from joint ventures and investment at carrying value 2,681,000 1,470,000 Tax effect of foreign operations 997,000 996,000 Foreign tax credit (3,178,000 ) (1,937,000 ) Research and development credit (408,000 ) (314,000 ) Valuation allowance 1,620,000 1,379,000 Stock based compensation 90,000 99,000 Non-controlling interest (148,000 ) (204,000 ) Other 103,000 102,000 $ 626,000 $ 649,000 The Company has not provided U.S. income taxes or foreign withholding taxes with respect to its portion of the cumulative undistributed earnings of foreign joint ventures that are essentially permanent in duration. The Company’s portion of the cumulative undistributed earnings of foreign joint ventures that are essentially permanent in duration were $17,779,912 and $18,483,377 at August 31, 2016 and 2015, respectively. During fiscal 2016, the Company recorded deferred income tax expense of $32,000 representing foreign withholding taxes to be paid with respect to the portion of the cumulative undistributed earnings of foreign joint ventures that it determined were not essentially permanent in duration. If some or all of the undistributed earnings of the joint ventures are remitted to the Company in the future, income taxes, if any, after the application of foreign tax credits will be provided at that time. To the extent undistributed earnings of the Company’s joint ventures are distributed in the future, it is not expected to result in any material additional U.S. income tax liability after the application of foreign tax credits. The tax effect of the temporary differences and tax carryforwards comprising the net deferred taxes shown on the consolidated balance sheets at August 31, 2016 and 2015 are as follows: August 31, 2016 2015 Accrued compensation $ 150,600 $ 237,700 Inventory costs 95,300 81,200 Accrued joint venture expenses 54,200 93,200 Other accrued expenses 87,000 53,800 Goodwill and other intangible assets 1,332,000 1,123,200 Stock-based compensation 210,600 308,900 Foreign tax credit carryforward 5,679,000 4,654,800 Other credit and loss carryforwards 3,214,300 2,262,000 Total deferred tax assets 10,823,000 8,814,800 Valuation allowance (8,893,300 ) (6,889,900 ) Total deferred tax assets after valuation allowance 1,929,700 1,924,900 Property and equipment (215,600 ) (204,000 ) Other (74,300 ) (120,800 ) Total deferred tax liabilities (289,900 ) (324,800 ) Net deferred tax assets $ 1,639,800 $ 1,600,100 The Company has revised the presentation of net deferred tax assets to comply with the disclosure guidance in ASC 740 to reflect total deferred tax assets and total deferred tax liabilities, rather than current deferred taxes and non-current deferred taxes. In November 2015, the FASB issued ASU 2015-17 which simplifies the presentation of deferred income taxes and requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. For public business entities, the amendments in ASU 2015-17 are effective for annual periods beginning after December 15, 2016. The Company has elected to early adopt ASU 2015-17 prospectively as of August 31, 2016. Prior periods were not retroactively adjusted. At August 31, 2016, the Company had foreign tax credit carryforwards of approximately $5,679,000, of which approximately $350,600 will expire if not utilized by August 31, 2017. In addition, the Company had federal and state tax credit carryforwards of $2,643,300 at August 31, 2016 which begin to expire in fiscal 2019. These federal and state tax credit carryforwards consist primarily of federal and Minnesota research and development credit carryforwards. The Company also has foreign net operating loss carryforwards of $571,000 at August 31, 2016 which begin to expire in fiscal 2020. As of August 31, 2016, the Company recorded a valuation allowance of $5,679,000 with respect to the foreign tax credit carryforwards. In addition, the Company has recorded a valuation allowance of $2,643,300 with respect to federal and state tax credit carryforwards, and had recorded a valuation allowance of $571,000 with respect to the foreign net operating loss carryforwards. As of August 31, 2015, the Company had recorded a valuation allowance of $4,654,800 with respect to the foreign tax credit carryforwards. In addition, the Company had recorded a valuation allowance of $2,335,200 with respect to federal and state tax credit carryforwards. The Company records a tax valuation allowance to reduce deferred tax assets to the amount expected to be realized when it is more likely than not that some portion or all of its deferred tax assets will not be realized. The Company determined based on all available evidence, including historical data and projections of future results, that it is more likely than not that all of its deferred tax assets, except for its foreign tax credit carryforward, federal and Minnesota research and development credit carryforwards, and capital loss carryforwards will be fully realized. The Company determined that its deferred tax asset related to foreign tax credit carryforwards will not be realized due to insufficient federal taxable income within the carryforward period and the fact that for ordering purposes the foreign tax credit carryforwards are not allowed to be used until after any current year foreign tax credits are utilized. In addition, based on historical data and future projections, the Company determined that it is more likely than not that its deferred tax asset related to federal and Minnesota research and development credit carryforwards will not be realized due to insufficient federal and Minnesota taxable income within the carryforward period after considering the foreign tax credit usage. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Fiscal Year Ended August 31, 2016 2015 Gross unrecognized tax benefits – beginning balance $ 203,000 $ 180,000 Gross increases - prior period tax positions 15,000 15,000 Gross increases – current period tax positions 20,000 8,000 Gross unrecognized tax benefits – ending balance $ 238,000 $ 203,000 The entire amount of unrecognized tax benefits would affect the effective tax rate. It is not expected that the amount of unrecognized tax benefits will change significantly in the next 12 months. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the Company’s income tax provision. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet. There was no liability for the payment of interest and penalties at both August 31, 2016 and August 31, 2015. The Company is subject to taxation in the United States and various states and foreign jurisdictions. With few exceptions, as of August 31, 2016, the Company is no longer subject to federal, state, local, or foreign examinations by tax authorities for years prior to August 31, 2013.

Note 16 - Commitments and Conti

Note 16 - Commitments and Contingencies	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	16. COMMITMENTS AND CONTINGENCIES On August 26, 2016, 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, 2017. For fiscal 2017 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 2017 compared to a pre-established target EBITOI for fiscal 2017 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 2017. 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 EBITOI for fiscal 2016 compared to a pre-established target 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 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 2016. Accrued bonuses as of August 31, 2016 and 2015 were $450,000 and $620,000, respectively. Three joint ventures (consisting of the Company’s joint ventures in Korea, India and Thailand) accounted for 55.8% of the Company’s trade joint venture receivables at August 31, 2016. Four joint ventures (consisting of the Company’s joint ventures in Korea, India, Thailand and Tianjin Zerust) 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, Mr. Tao Meng and his wife, Ms. Hui Xu, 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. Tao Meng and Ms. Hui Xu have engaged in self-dealing, usurped business opportunities, and received economic benefits that were required to go to Tianjin Zerust. As of August 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. The case has been set for a mandatory settlement conference with the court on May 30, 2017 and the case will be set for the trial block beginning July 31, 2017 and ending August 18, 2017. 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 August 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. The Company has leases for office and warehouse space in the United States of America, China, India, Germany and Brazil with monthly rents ranging from $1,090 to $11,539, which expire through August 31, 2023. Future minimum rents due under these leases are as follows for each of the next five years ended August 31: FY 2017 191,631 FY 2018 176,040 FY 2019 60,652 FY 2020 40,579 FY 2021 40,579 Thereafter 88,463 $ 597,944

Note 17 - Statements of Cash Fl

Note 17 - Statements of Cash Flows	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Cash Flow, Supplemental Disclosures [Text Block]	17. STATEMENTS OF CASH FLOWS Supplemental disclosures of cash flow information consist of: Fiscal Year Ended 2016 2015 Cash paid during the year for income tax $ 610,000 $ 542,000 Cash paid during the year for interest 13,261 20,960

Note 18 - Fair Value Measuremen

Note 18 - Fair Value Measurements	12 Months Ended
	Aug. 31, 2016
Notes to Financial Statements
Fair Value, Measurement Inputs, Disclosure [Text Block]	18. Fair Value Measurements The Company follows the authoritative guidance on fair value measurements and disclosures with respect to assets and liabilities that are measured at fair value on both a recurring and non-recurring basis. Under this guidance, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability, developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and financial liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels defined as follows: Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 - Inputs are unobservable for the asset or liability. See the section below titled Valuation Techniques for further discussion of how the Company determines fair value for investments. Assets and Liabilities That Are Measured at Fair Value on a Recurring Basis Assets and liabilities that are measured at fair value on a recurring basis primarily relate to marketable equity securities. These items are marked-to-market at each reporting period. The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis: Fair Value Measurements Fair value as of Level 1 Level 2 Level 3 Available for sale securities $ 2,243,864 $ 2,243,864 $ — $ — Fair Value Measurements Fair value as of Level 1 Level 2 Level 3 Available for sale securities $ 2,027,441 $ 2,027,441 $ — $ — Valuation Techniques Financial assets that are classified as Level 1 securities include cash equivalents and available for sale securities. These are valued using quoted market prices in an active market. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s policy is to recognize transfers into and out of levels within the fair value hierarchy at the end of the fiscal quarter in which the actual event or change in circumstances that caused the transfer occurs. There were no transfers between Level 1, Level 2, or Level 3 during the fiscal years ended August 31, 2016 or August 31, 2015. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement.

Significant Accounting Policies

Significant Accounting Policies (Policies)	12 Months Ended
	Aug. 31, 2016
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Principles of Consolidation
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block]	Non-Controlling Interests
Revenue Recognition, Deferred Revenue [Policy Text Block]	Net Sales Revenue Recognition
Receivables, Policy [Policy Text Block]	Trade Receivable
Receivables from Joint Ventures Policy [Policy Text Block ]	Trade Receivables from Joint Ventures Fees for Services Provided to Joint Ventures –
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block]	Available for Sale Securities
Inventory, Policy [Policy Text Block]	Inventories
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Depreciation Buildings and improvements (years) 5 - 30 Machinery and equipment (years) 3 - 10
Intangible Assets, Finite-Lived, Policy [Policy Text Block]	Patents
Equity Method Investments, Policy [Policy Text Block]	Investments in Joint Ventures Investment at Carrying Value Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. Fair value is calculated based on publicly available market information or other estimates determined by management. The Company employs a systematic methodology on a quarterly basis that considers available quantitative and qualitative evidence in evaluating potential impairment of our investments. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, credit quality of debt instrument issuers, the duration and extent to which the fair value is less than cost, and for equity securities, the Company’s intent and ability to hold, or plans to sell, the investment. The Company also considers specific adverse conditions related to the financial health of and business outlook for the investee, including industry and sector performance, changes in technology, and operational and financing cash flow factors. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to other income (expense) and a new cost basis in the investment is established.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	Recoverability of Long-Lived Assets
Income Tax, Policy [Policy Text Block]	Income Taxes The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In the event the Company determines that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions on the basis of a two-step process whereby the Company determines whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and those tax positions that meet the more-likely-than-not recognition threshold. The Company recognizes the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority.
Foreign Currency Transactions and Translations Policy [Policy Text Block]	Foreign Currency Translation (Accumulated Other Comprehensive Income (Loss)) The Company (excluding NTIC China, Zerust Brazil, Natur-Tec India, NTI Asean, Zerust Mexico and its joint ventures) conducts all foreign transactions based on the U.S. dollar. Since investments in joint ventures are accounted for using the equity method, any changes in foreign currency exchange rates are reflected as a foreign currency translation adjustment and does not change the equity in income from joint ventures reflected in the Company’s consolidated statements of operations.
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments
Shipping and Handling Cost, Policy [Policy Text Block]	Shipping and Handling
Research, Development, and Computer Software, Policy [Policy Text Block]	Research and Development
Stockholders' Equity, Policy [Policy Text Block]	Common Stock
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Stock-Based Compensation
Use of Estimates, Policy [Policy Text Block]	Use of Estimates

Note 1 - Nature of Business a27

Note 1 - Nature of Business and Significant Accounting Policies (Tables)	12 Months Ended
	Aug. 31, 2016
Notes Tables
Property and Equipment Useful Life [Table Text Block]	Buildings and improvements (years) 5 - 30 Machinery and equipment (years) 3 - 10

Note 3 - Inventories (Tables)

Note 3 - Inventories (Tables)	12 Months Ended
	Aug. 31, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	August 31, 2016 August 31, 2015 Production materials $ 1,452,396 $ 1,445,014 Finished goods 6,258,891 6,023,427 $ 7,711,287 $ 7,468,441

Note 4 - Property and Equipme29

Note 4 - Property and Equipment, Net (Tables)	12 Months Ended
	Aug. 31, 2016
Notes Tables
Property, Plant and Equipment [Table Text Block]	August 31, 2016 August 31, 2015 Land $ 310,365 $ 310,365 Buildings and improvements 6,528,252 6,180,089 Machinery and equipment 3,590,063 4,090,619 10,428,680 10,581,073 Less accumulated depreciation (3,152,808 ) (3,287,910 ) $ 7,275,872 $ 7,293,163

Note 5 - Patents and Trademar30

Note 5 - Patents and Trademarks, Net (Tables)	12 Months Ended
	Aug. 31, 2016
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	August 31, 2016 August 31, 2015 Patents and trademarks $ 2,575,435 $ 2,440,022 Less accumulated amortization (1,296,838 ) (1,177,803 ) $ 1,278,597 $ 1,262,219

Note 6 - Investments in Joint31

Note 6 - Investments in Joint Ventures (Tables)	12 Months Ended
	Aug. 31, 2016
Notes Tables
Condensed Balance Sheet [Table Text Block]	As of August 31, 2016 Total EXCOR All Other Current assets $ 48,922,924 $ 22,928,810 $ 25,994,114 Total assets 52,407,026 24,733,340 27,673,686 Current liabilities 12,433,700 3,485,231 8,948,469 Noncurrent liabilities 100,783 — 100,783 Joint ventures’ equity 39,872,543 21,248,109 18,624,434 Northern Technologies International Corporation’s share of joint ventures’ equity 19,840,774 10,624,056 9,216,728 Northern Technologies International Corporation's share of joint ventures’ undistributed earnings 17,779,912 $ 10,593,151 $ 7,186,761 Northern Technologies International Corporation's dividends received from joint ventures $ 5,503,314 $ 4,364,700 $ 1,165,614 As of 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 Northern Technologies International Corporation's dividends received from joint ventures $ 2,983,338 $ 2,440,200 $ 543,138
Condensed Income Statement [Table Text Block]	Fiscal Year Ended August 31, 2016 Total EXCOR All Other Net sales $ 90,646,833 $ 35,138,214 $ 55,508,619 Gross profit 40,440,726 18,635,421 21,805,305 Net income 9,534,771 7,049,462 2,485,309 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 4,743,831 $ 3,534,113 $ 1,209,718 Fiscal Year Ended August 31, 2015 Total EXCOR All Other Net sales $ 99,026,251 $ 36,872,664 $ 62,153,587 Gross profit 48,397,318 19,993,763 28,403,555 Net income 11,849,107 8,201,659 3,647,448 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 5,936,565 $ 4,091,608 $ 1,844,957

Note 7 - China Operations (Tabl

Note 7 - China Operations (Tables)	12 Months Ended
	Aug. 31, 2016
Notes Tables
Equity Method Investments [Table Text Block]	Investment Equity method investment – August 31, 2015 $ 2,243,524 Equity in earnings – fiscal year 2016 132,824 Reclassification of translation gains on foreign currency translation (492,680 ) Recording the impairment of the cost basis investment (1,883,668 ) Investment at carrying value – August 31, 2016 $ -

Note 9 - Stockholders' Equity (

Note 9 - Stockholders' Equity (Tables)	12 Months Ended
	Aug. 31, 2016
Exercised [Member]
Notes Tables
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Options Exercise 18,000 $ 9.76 18,000 7.65 2,333 10.20
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Number of Weighted Average Exercise Price Aggregate Outstanding at August 31, 2014 239,000 $ 11.66 Options granted 45,067 20.10 Options exercised (38,333 ) 9.00 Options terminated (4,000 ) 10.20 Outstanding at August 31, 2015 241,734 13.72 Options granted 53,447 14.85 Options exercised 0 0.00 Options terminated (12,000 ) 13.38 Outstanding at August 31, 2016 283,181 $ 13.95 $ 392,370 Exercisable at August 31, 2016 188,600 $ 13.45 $ 336,683

Note 10 - Net Income (Loss) P34

Note 10 - Net Income (Loss) Per Common Share (Tables)	12 Months Ended
	Aug. 31, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Numerator: August 31, 2016 August 31, 2015 Net (loss) income attributable to NTIC $ (867,514 ) $ 1,789,571 Denominator: Basic-weighted shares outstanding 4,537,504 4,521,788 Weighted shares assumed upon exercise of stock options 0 127,272 Diluted – weighted shares outstanding 4,537,504 4,649,060 Basic income (loss) earnings per share: $ (0.19 ) $ 0.40 Diluted income (loss) earnings per share: $ (0.19 ) $ 0.38

Note 11 - Stock-based Compens35

Note 11 - Stock-based Compensation (Tables)	12 Months Ended
	Aug. 31, 2016
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	August 31, 2016 August 31, 2015 Dividend yield 0.00 % 0.00 % Expected volatility 46.0 % 46.6 % Expected life of option (years) 10 10 Weighted average risk-free interest rate 1.63 % 1.63 %
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Number of Weighted Average Exercise Price Aggregate Outstanding at August 31, 2014 239,000 $ 11.66 Options granted 45,067 20.10 Options exercised (38,333 ) 9.00 Options terminated (4,000 ) 10.20 Outstanding at August 31, 2015 241,734 13.72 Options granted 53,447 14.85 Options exercised 0 0.00 Options terminated (12,000 ) 13.38 Outstanding at August 31, 2016 283,181 $ 13.95 $ 392,370 Exercisable at August 31, 2016 188,600 $ 13.45 $ 336,683

Note 12 - Segment and Geograp36

Note 12 - Segment and Geographic Information (Tables)	12 Months Ended
	Aug. 31, 2016
Fees for Services Provided to Joint Ventures [Member]
Notes Tables
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	Fiscal 2016 Fiscal 2015 Germany $ 845,857 $ 873,400 Japan 646,015 599,108 Poland 599,391 600,255 Thailand 537,212 554,881 United Kingdom 386,761 396,514 Korea 352,393 192,539 France 329,805 412,608 India 300,506 277,548 Sweden 265,745 323,610 Finland 252,578 281,620 Czech 237,062 229,185 China 0 494,080 Other 384,385 480,143 $ 5,137,710 $ 5,715,491
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	Fiscal 2016 Fiscal 2015 ZERUST ® $ 27,577,566 $ 26,042,909 Natur-Tec ® 5,355,999 4,279,784 Total net sales $ 32,933,565 $ 30,322,693
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block]	Fiscal 2016 Fiscal 2015 Direct cost of goods sold ZERUST ® $ 15,588,133 $ 14,399,456 Natur-Tec ® 4,076,249 3,232,353 Indirect cost of goods sold 2,655,774 2,924,124 Total net cost of goods sold $ 22,320,156 $ 20,555,932
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	Fiscal Year Ended August 31, 2016 2015 Inside the U.S.A. to unaffiliated customers $ 20,304,480 $ 19,329,979 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 2,721,905 2,831,301 Unaffiliated customers 9,907,180 8,161,413 $ 32,933,565 $ 30,322,693
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	At August 31, 2016 At August 31, 2015 China $ 253,931 $ 45,220 Brazil 66,938 46,918 India 13,645 16,402 United States 8,219,955 8,446,842 Total long-lived assets $ 8,554,469 $ 8,555,382
Revenue from External Customers by Geographic Areas [Table Text Block]	Fiscal Year Ended August 31, 2016 Fiscal Year Ended August 31, 2015 China $ 4,114,288 $ 1,070,422 Brazil 2,172,297 2,623,938 India 1,104,947 967,241 Other 5,237,553 6,331,113 United States 20,304,480 19,329,979 Total net sales $ 32,933,565 $ 30,322,693

Note 15 - Income Taxes (Tables)

Note 15 - Income Taxes (Tables)	12 Months Ended
	Aug. 31, 2016
Notes Tables
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Fiscal Year Ended August 31, 2016 2015 Current: Federal $ — $ — State 20,000 (37,000 ) Foreign 647,000 542,000 667,000 505,000 Deferred: Federal 6,000 87,000 State — 5,000 Foreign (47,000 ) 52,000 (41,000 ) 144,000 $ 626,000 $ 649,000
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	Fiscal Year Ended August 31, 2016 2015 Tax computed at statutory rates $ (195,000 ) $ 1,076,000 State income tax, net of federal benefit 20,000 (32,000 ) Tax effect on equity in (income) loss of international joint ventures (956,000 ) (1,986,000 ) Tax effect on dividends received from joint ventures and investment at carrying value 2,681,000 1,470,000 Tax effect of foreign operations 997,000 996,000 Foreign tax credit (3,178,000 ) (1,937,000 ) Research and development credit (408,000 ) (314,000 ) Valuation allowance 1,620,000 1,379,000 Stock based compensation 90,000 99,000 Non-controlling interest (148,000 ) (204,000 ) Other 103,000 102,000 $ 626,000 $ 649,000
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	August 31, 2016 2015 Accrued compensation $ 150,600 $ 237,700 Inventory costs 95,300 81,200 Accrued joint venture expenses 54,200 93,200 Other accrued expenses 87,000 53,800 Goodwill and other intangible assets 1,332,000 1,123,200 Stock-based compensation 210,600 308,900 Foreign tax credit carryforward 5,679,000 4,654,800 Other credit and loss carryforwards 3,214,300 2,262,000 Total deferred tax assets 10,823,000 8,814,800 Valuation allowance (8,893,300 ) (6,889,900 ) Total deferred tax assets after valuation allowance 1,929,700 1,924,900 Property and equipment (215,600 ) (204,000 ) Other (74,300 ) (120,800 ) Total deferred tax liabilities (289,900 ) (324,800 ) Net deferred tax assets $ 1,639,800 $ 1,600,100
Summary of Income Tax Contingencies [Table Text Block]	Fiscal Year Ended August 31, 2016 2015 Gross unrecognized tax benefits – beginning balance $ 203,000 $ 180,000 Gross increases - prior period tax positions 15,000 15,000 Gross increases – current period tax positions 20,000 8,000 Gross unrecognized tax benefits – ending balance $ 238,000 $ 203,000

Note 16 - Commitments and Con38

Note 16 - Commitments and Contingencies (Tables)	12 Months Ended
	Aug. 31, 2016
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	FY 2017 191,631 FY 2018 176,040 FY 2019 60,652 FY 2020 40,579 FY 2021 40,579 Thereafter 88,463 $ 597,944

Note 17 - Statements of Cash 39

Note 17 - Statements of Cash Flows (Tables)	12 Months Ended
	Aug. 31, 2016
Notes Tables
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	Fiscal Year Ended 2016 2015 Cash paid during the year for income tax $ 610,000 $ 542,000 Cash paid during the year for interest 13,261 20,960

Note 18 - Fair Value Measurem40

Note 18 - Fair Value Measurements (Tables)	12 Months Ended
	Aug. 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 $ 2,243,864 $ 2,243,864 $ — $ — Fair Value Measurements Fair value as of Level 1 Level 2 Level 3 Available for sale securities $ 2,027,441 $ 2,027,441 $ — $ —

Note 1 - Nature of Business a41

Note 1 - Nature of Business and Significant Accounting Policies (Details Textual)	12 Months Ended
	Aug. 31, 2016USD ($)	Aug. 31, 2015USD ($)
Maximum [Member]
Noncontrolling Interest, Ownership Percentage by Parent	50.00%
Zerust Brazil [Member]
Equity Method Investment, Ownership Percentage	85.00%
NTI Asean LLC [Member]
Equity Method Investment, Ownership Percentage	60.00%
NaturTec [Member]
Equity Method Investment, Ownership Percentage	90.00%
Allowance for Doubtful Accounts Receivable	$ 40,000	$ 40,000
Number of Countries in which Entity Operates	60
Number of Operating Segments	2
Number of Joint Venture Arrangements	19

Note 1 - Nature of Business a42

Note 1 - Nature of Business and Significant Accounting Policies - Property and Equipment, Useful Life (Details)	12 Months Ended
	Aug. 31, 2016
Building and Building Improvements [Member] | Minimum [Member]
Property and equipment	5 years
Building and Building Improvements [Member] | Maximum [Member]
Property and equipment	30 years
Machinery and Equipment [Member] | Minimum [Member]
Property and equipment	3 years
Machinery and Equipment [Member] | Maximum [Member]
Property and equipment	10 years

Note 3 - Inventories - Inventor

Note 3 - Inventories - Inventories (Details) - USD ($)	Aug. 31, 2016	Aug. 31, 2015
Production materials	$ 1,452,396	$ 1,445,014
Finished goods	6,258,891	6,023,427
Inventories	$ 7,711,287	$ 7,468,441

Note 4 - Property and Equipme44

Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($)	Aug. 31, 2016	Aug. 31, 2015
Land	$ 310,365	$ 310,365
Buildings and improvements	6,528,252	6,180,089
Machinery and equipment	3,590,063	4,090,619
Gross	10,428,680	10,581,073
Less accumulated depreciation	(3,152,808)	(3,287,910)
Net	$ 7,275,872	$ 7,293,163

Note 5 - Patents and Trademar45

Note 5 - Patents and Trademarks, Net (Details Textual) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Patents and Trademarks [Member]
Finite-Lived Intangible Assets, Amortization Expense, Year Two	$ 120,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	120,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	120,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 120,000
Finite-Lived Intangible Asset, Useful Life	7 years
Amortization	$ 119,032	$ 87,663
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	120,000
Amortization	$ 119,032	$ 87,663

Note 5 - Patents and Trademar46

Note 5 - Patents and Trademarks, Net - Patents and Trademarks, Net (Details) - USD ($)	Aug. 31, 2016	Aug. 31, 2015
Patents and Trademarks [Member]
Patents and trademarks	$ 2,575,435	$ 2,440,022
Less accumulated amortization	(1,296,838)	(1,177,803)
Patents and trademarkes, net	1,278,597	1,262,219
Patents and trademarkes, net	$ 1,278,597	$ 1,262,219

Note 6 - Investments in Joint47

Note 6 - Investments in Joint Ventures (Details Textual) - USD ($)	Nov. 30, 2013	Aug. 31, 2016	Aug. 31, 2015
Mutec [Member]
Financing Receivable, Net	$ 168,000
Notes Receivable Term	4 years
Due from Joint Ventures		$ 92,874	$ 125,891
Payments to Acquire Interest in Joint Venture		$ 0	$ 0

Note 6 - Investments in Joint48

Note 6 - Investments in Joint Ventures - Condensed Balance Sheet of EXCOR and All Other Joint Ventures (Details) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
EXCOR [Member]
Current assets	$ 22,928,810	$ 22,620,323
Total assets	24,733,340	24,606,880
Current liabilities	3,485,231	3,360,142
Noncurrent liabilities
Joint ventures’ equity	21,248,109	21,246,738
Northern Technologies International Corporation’s share of joint ventures’ equity	10,624,056	11,571,361
Northern Technologies International Corporation's share of joint ventures’ undistributed earnings	10,593,151	11,540,456
Northern Technologies International Corporation's dividends received from joint ventures	4,364,700	2,440,200
All Other [Member]
Current assets	25,994,114	26,674,793
Total assets	27,673,686	28,247,058
Current liabilities	8,948,469	8,928,241
Noncurrent liabilities	100,783	1,215,139
Joint ventures’ equity	18,624,434	18,103,679
Northern Technologies International Corporation’s share of joint ventures’ equity	9,216,728	8,972,877
Northern Technologies International Corporation's share of joint ventures’ undistributed earnings	7,186,761	6,942,921
Northern Technologies International Corporation's dividends received from joint ventures	1,165,614	543,138
Current assets	48,922,924	49,295,116
Total assets	52,407,026	52,853,938
Current liabilities	12,433,700	12,288,383
Noncurrent liabilities	100,783	1,215,139
Joint ventures’ equity	39,872,543	39,350,417
Northern Technologies International Corporation’s share of joint ventures’ equity	19,840,774	20,544,238
Northern Technologies International Corporation's share of joint ventures’ undistributed earnings	17,779,912	18,483,377
Northern Technologies International Corporation's dividends received from joint ventures	$ 5,503,314	$ 2,983,338

Note 6 - Condensed Income State

Note 6 - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
EXCOR [Member]
Net sales	$ 35,138,214	$ 36,872,664
Gross profit	18,635,421	19,993,763
Net income	7,049,462	8,201,659
Northern Technologies International Corporation’s share of equity in income from joint ventures	3,534,113	4,091,608
All Other [Member]
Net sales	55,508,619	62,153,587
Gross profit	21,805,305	28,403,555
Net income	2,485,309	3,647,448
Northern Technologies International Corporation’s share of equity in income from joint ventures	1,209,718	1,844,957
Net sales	90,646,833	99,026,251
Gross profit	40,440,726	48,397,318
Net income	9,534,771	11,849,107
Northern Technologies International Corporation’s share of equity in income from joint ventures	$ 4,743,831	$ 5,936,565

Note 7 - China Operations (Deta

Note 7 - China Operations (Details Textual) - USD ($)	Aug. 31, 2016	Aug. 31, 2015
Tianjin Zerust [Member]
Cost Method Investments	$ 0
Cost Method Investments		$ 1,883,668

Note 7 - China Operations - Inv

Note 7 - China Operations - Investment in Tianjin Zerust (Details) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Tianjin Zerust [Member]
Equity method investment – August 31, 2015	$ 2,243,524
Equity in earnings – fiscal year 2016	132,824
Reclassification of translation gains on foreign currency translation	(492,680)
Recording the impairment of the cost basis investment	(1,883,668)
Investment at carrying value – August 31, 2016		$ 2,243,524
Equity method investment – August 31, 2015	20,544,238
Recording the impairment of the cost basis investment	(1,883,668)
Investment at carrying value – August 31, 2016	$ 19,840,774	$ 20,544,238

Note 8 - Corporate Debt (Detail

Note 8 - Corporate Debt (Details Textual)	12 Months Ended
	Aug. 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
PNC Bank [Member] | Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	1,200,000
PNC Bank [Member]
Letters of Credit Outstanding, Amount	0	$ 0
JP Morgan Chase Bank [Member]
Letters of Credit Outstanding, Amount	$ 71,599
Term Loan and Line of Credit, Agreements, Loan Agreements [Member]
Debt Instrument, Covenants, Fixed Charge Coverage Ratio	1.1

Note 9 - Stockholders' Equity53

Note 9 - Stockholders' Equity (Details Textual) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Jan. 15, 2015
The 2007 Plan [Member]
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	38,333
Stock Repurchase Program, Authorized Amount			$ 3,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 2,836,656
Stock Repurchased and Retired During Period, Shares	11,211
Treasury Stock Acquired, Average Cost Per Share	$ 12.40
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, Intrinsic Value		$ 297,696

Note 9 - Exercised Stock Option

Note 9 - Exercised Stock Options (Details) - shares	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Exercise 1 [Member]
Options Exercised (in shares)		9.76
Exercise 2 [Member]
Options Exercised (in shares)		7.65
Exercise 3 [Member]
Options Exercised (in shares)		10.2
Options Exercised (in shares)	0	38,333

Note 10 - Net Income (Loss) P55

Note 10 - Net Income (Loss) Per Common Share (Details Textual) - shares	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	170,887	45,067

Note 10 - Net Income (Loss) P56

Note 10 - Net Income (Loss) Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Net (loss) income attributable to NTIC	$ (867,514)	$ 1,789,571
Basic-weighted shares outstanding (in shares)	4,537,504	4,521,788
Weighted shares assumed upon exercise of stock options (in shares)	0	127,272
Diluted – weighted shares outstanding (in shares)	4,537,504	4,649,060
Basic income (loss) earnings per share: (in dollars per share)	$ (0.19)	$ 0.40
Diluted income (loss) earnings per share: (in dollars per share)	$ (0.19)	$ 0.38

Note 11 - Stock-based Compens57

Note 11 - Stock-based Compensation (Details Textual)	Mar. 01, 2016shares	Sep. 01, 2015shares	Sep. 01, 2014shares	May 31, 2016shares	Aug. 31, 2016USD ($)$ / shares	Aug. 31, 2015USD ($)$ / shares
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 | shares				800,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period				10 years
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares				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					$ 427,437	$ 495,683
Number of Stock-based Compensation Plans				2
Stock Issued During Period, Shares, Employee Stock Purchase Plans | shares	3,144	2,438	3,206
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options					239,400
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 | $ / shares					$ 8.48	$ 11.58
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term					6 years 167 days	5 years 219 days

Note 11 - Stock-based Compens58

Note 11 - Stock-based Compensation - Black-Scholes Option-pricing Model Assumptions (Details)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Dividend yield	0.00%	0.00%
Expected volatility	46.00%	46.60%
Expected life of option (years)	10 years	10 years
Weighted average risk-free interest rate	1.63%	1.63%

Note 11- Stock-based Compensati

Note 11- Stock-based Compensation - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Number of shares, Outstanding (in shares)	241,734	239,000
Weighted average exercise price, Outstanding (in dollars per share)	$ 13.72	$ 11.66
Number of shares, Options granted (in shares)	53,447	45,067
Weighted average exercise price, Options granted (in dollars per share)	$ 14.85	$ 20.10
Number of shares, Options exercised (in shares)	0	(38,333)
Weighted average exercise price, Options exercised (in dollars per share)	$ 0	$ 9
Number of shares, Options terminated (in shares)	(12,000)	(4,000)
Weighted average exercise price, Options terminated (in dollars per share)	$ 13.38	$ 10.20
Number of shares, Outstanding (in shares)	283,181	241,734
Weighted average exercise price, Outstanding (in dollars per share)	$ 13.95	$ 13.72
Aggregate intrinsic value, Outstanding	$ 392,370
Number of shares, Exercisable (in shares)	188,600
Weighted average exercise price, Exercisable (in dollars per share)	$ 13.45
Aggregate intrinsic value, Exercisable	$ 336,683

Note 12 - Segment and Geograp60

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

Note 12 - Segment and Geograp61

Note 12 - Segment and Geographic Information - Net Sales by Segment (Details) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
ZERUST [Member]
Net sales by segment	$ 27,577,566	$ 26,042,909
NaturTec [Member]
Net sales by segment	5,355,999	4,279,784
Net sales by segment	$ 32,933,565	$ 30,322,693

Note 12 - Segment and Geograp62

Note 12 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Direct Cost of Goods Sold [Member] | ZERUST [Member]
Cost of goods sold	$ 15,588,133	$ 14,399,456
Direct Cost of Goods Sold [Member] | NaturTec [Member]
Cost of goods sold	4,076,249	3,232,353
Indirect Cost of Goods Sold [Member]
Cost of goods sold	2,655,774	2,924,124
Cost of goods sold	$ 22,320,156	$ 20,555,932

Note 12 - Segment and Geograp63

Note 12 - Segment and Geographic Location - Net Sales by Geographic Location (Details) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Inside the USA to Unaffiliated Customers [Member]
Net sales by segment	$ 20,304,480	$ 19,329,979
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member]
Net sales by segment	2,721,905	2,831,301
Unaffiliated Customers Outside the USA [Member]
Net sales by segment	9,907,180	8,161,413
Net sales by segment	$ 32,933,565	$ 30,322,693

Note 12 - Segment and Geograp64

Note 12 - Segment and Geographic Information - Fees for Services Provided to Joint Ventures by Geographic Location as a Percentage of Total Fees (Details) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
GERMANY
Fees	$ 845,857	$ 873,400
JAPAN
Fees	646,015	599,108
POLAND
Fees	599,391	600,255
THAILAND
Fees	537,212	554,881
UNITED KINGDOM
Fees	386,761	396,514
KOREA, REPUBLIC OF
Fees	352,393	192,539
FRANCE
Fees	329,805	412,608
INDIA
Fees	300,506	277,548
SWEDEN
Fees	265,745	323,610
FINLAND
Fees	252,578	281,620
CZECH REPUBLIC
Fees	237,062	229,185
CHINA
Fees	0	494,080
Other Countries [Member]
Fees	384,385	480,143
Fees	$ 5,137,710	$ 5,715,491

Note 12 - Segment and Geograp65

Note 12 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($)	Aug. 31, 2016	Aug. 31, 2015
CHINA
Total long-lived assets	$ 253,931	$ 45,220
BRAZIL
Total long-lived assets	66,938	46,918
INDIA
Total long-lived assets	13,645	16,402
UNITED STATES
Total long-lived assets	8,219,955	8,446,842
Total long-lived assets	$ 7,275,872	$ 7,293,163

Note 12 - Segment and Geograp66

Note 12 - Segment and Geographic Information - Total Net Sales by Geographic Distribution (Details) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
CHINA
Total net sales	$ 4,114,288	$ 1,070,422
BRAZIL
Total net sales	2,172,297	2,623,938
INDIA
Total net sales	1,104,947	967,241
Other Countries [Member]
Total net sales	5,237,553	6,331,113
UNITED STATES
Total net sales	20,304,480	19,329,979
Total net sales	$ 32,933,565	$ 30,322,693

Note 13 - Retirement Plan (Deta

Note 13 - Retirement Plan (Details Textual) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	15.00%
Defined Contribution Plan Maximum Amount of Employees Contributions Percent	50.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	3.50%
Defined Contribution Plan, Cost Recognized	$ 215,785	$ 214,008

Note 14 - Related Party Trans68

Note 14 - Related Party Transactions (Details Textual) - Bioplastic Polymers LLC [Member] - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Consulting Payment Expense [Member]
Related Party Transaction, Amounts of Transaction	$ 100,000
Royalty Payment Expense [Member]
Related Party Transaction, Amounts of Transaction	$ 31,463	$ 21,327

Note 15 - Income Taxes (Details

Note 15 - Income Taxes (Details Textual) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Deferred Tax Expenses Related to Undistributed Earnings of Foreign Joint Ventures [Member]
Deferred Income Tax Expense (Benefit)	$ 32,000
Foreign Tax Authority [Member]
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	350,600
Tax Credit Carryforward, Valuation Allowance	5,679,000	$ 4,654,800
Operating Loss Carryforwards, Valuation Allowance	571,000
Federal and State Tax [Member]
Operating Loss Carryforwards	2,643,300
Tax Credit Carryforward, Valuation Allowance	2,643,300	2,335,200
Capital Loss Carryforward [Member]
Deferred Tax Assets, Capital Loss Carryforwards	571,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	0	0
Undistributed Earnings of Foreign Subsidiaries	17,779,912	18,483,377
Deferred Income Tax Expense (Benefit)	(41,000)	144,000
Deferred Tax Assets, Tax Credit Carryforwards, Foreign	$ 5,679,000	$ 4,654,800

Note 15 - Income Taxes - Provis

Note 15 - Income Taxes - Provision for Income Taxes (Details) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Current:
Federal
State	20,000	(37,000)
Foreign	647,000	542,000
Total current	667,000	505,000
Deferred:
Federal	6,000	87,000
State		5,000
Foreign	(47,000)	52,000
Total deferred	(41,000)	144,000
Total income tax expense	$ 626,120	$ 648,674

Note 15 - Income Taxes - Reconc

Note 15 - Income Taxes - Reconciliations of the Expected Federal Income Tax at the Statutory Rate with the Provisions for Income Taxes (Details) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Tax computed at statutory rates	$ (195,000)	$ 1,076,000
State income tax, net of federal benefit	20,000	(32,000)
Tax effect on equity in (income) loss of international joint ventures	(956,000)	(1,986,000)
Tax effect on dividends received from joint ventures and investment at carrying value	2,681,000	1,470,000
Tax effect of foreign operations	997,000	996,000
Foreign tax credit	(3,178,000)	(1,937,000)
Research and development credit	(408,000)	(314,000)
Valuation allowance	1,620,000	1,379,000
Stock based compensation	90,000	99,000
Non-controlling interest	(148,000)	(204,000)
Other	103,000	102,000
Total income tax expense	$ 626,120	$ 648,674

Note 15 - Income Taxes - Tax Ef

Note 15 - Income Taxes - Tax Effect of the Temporary Differences and Tax Carry Forwards Comprising Net Deferred Taxes (Details) - USD ($)	Aug. 31, 2016	Aug. 31, 2015
Accrued compensation	$ 150,600	$ 237,700
Inventory costs	95,300	81,200
Accrued joint venture expenses	54,200	93,200
Other accrued expenses	87,000	53,800
Goodwill and other intangible assets	1,332,000	1,123,200
Stock-based compensation	210,600	308,900
Foreign tax credit carryforward	5,679,000	4,654,800
Other credit and loss carryforwards	3,214,300	2,262,000
Total deferred tax assets	10,823,000	8,814,800
Valuation allowance	(8,893,300)	(6,889,900)
Total deferred tax assets after valuation allowance	1,929,700	1,924,900
Property and equipment	(215,600)	(204,000)
Other	(74,300)	(120,800)
Total deferred tax liabilities	(289,900)	(324,800)
Net deferred tax assets	$ 1,639,800	$ 1,600,100

Note 15 - Income Taxes - Reco73

Note 15 - Income Taxes - Reconciliation of the Total Amounts of Unrecognized Tax Benefits (Details) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Gross unrecognized tax benefits – beginning balance	$ 203,000	$ 180,000
Gross increases - prior period tax positions	15,000	15,000
Gross increases – current period tax positions	20,000	8,000
Gross unrecognized tax benefits – ending balance	$ 238,000	$ 203,000

Note 16 - Commitments and Con74

Note 16 - Commitments and Contingencies (Details Textual)	12 Months Ended
	Aug. 31, 2016USD ($)	Aug. 31, 2015USD ($)
Fiscal 2017 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%
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%
Office and Warehouse Space [Member] | United States, China, India, Germany, and Brazil [Member] | Minimum [Member]
Operating Leases, Monthly Rent Expense	$ 1,090
Office and Warehouse Space [Member] | United States, China, India, Germany, and Brazil [Member] | Maximum [Member]
Operating Leases, Monthly Rent Expense	11,539
Accrued Bonuses	$ 450,000	$ 620,000
Number of Joint Ventures Accounted For Certain Percentage of Company's Trade Joint Venture Receivables	3	4
Entity Wide Trade Joint Venture Receivables, Four Joint Ventures,Percentage	55.80%	67.00%

Note 16 - Commitments and Con75

Note 16 - Commitments and Contingencies - Future Minimum Rents Due (Details)	Aug. 31, 2016USD ($)
FY 2,017	$ 191,631
FY 2,018	176,040
FY 2,019	60,652
FY 2,020	40,579
FY 2,021	40,579
Thereafter	88,463
Total future minimum payments due	$ 597,944

Note 17 - Statements of Cash 76

Note 17 - Statements of Cash Flows - Supplemental Disclosures of Cash Flow Information (Details) - USD ($)	12 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Cash paid during the year for income tax	$ 610,000	$ 542,000
Cash paid during the year for interest	$ 13,261	$ 20,960

Note 18 - Fair Value Measurem77

Note 18 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - USD ($)	Aug. 31, 2016	Aug. 31, 2015
Fair Value, Inputs, Level 1 [Member]
Available for sale securities	$ 2,243,864	$ 2,027,441
Available for sale securities	$ 2,243,864	$ 2,027,441