Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Feb. 28, 2017 | Apr. 11, 2017 | |
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) | 4,524,970 | |
Document Type | 10-Q | |
Document Period End Date | Feb. 28, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Feb. 28, 2017 | Aug. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 3,048,948 | $ 3,395,274 |
Available for sale securities | 748,254 | 2,243,864 |
Trade excluding joint ventures, less allowance for doubtful accounts of $40,000 at February 28, 2017 and August 31, 2016 | 5,916,486 | 4,755,320 |
Trade joint ventures | 462,582 | 791,903 |
Fees for services provided to joint ventures | 1,242,569 | 1,406,587 |
Income taxes | 240,534 | 215,905 |
Inventories | 8,052,207 | 7,711,287 |
Prepaid expenses | 614,735 | 422,031 |
Total current assets | 20,326,315 | 20,942,171 |
PROPERTY AND EQUIPMENT, NET | 7,485,197 | 7,275,872 |
OTHER ASSETS: | ||
Investments in joint ventures | 21,059,113 | 19,840,774 |
Deferred income taxes | 1,614,229 | 1,639,762 |
Patents and trademarks, net | 1,305,039 | 1,278,597 |
Other | 92,874 | |
Total other assets | 23,978,381 | 22,852,007 |
Total assets | 51,789,893 | 51,070,050 |
CURRENT LIABILITIES: | ||
Accounts payable | 3,565,903 | 2,753,903 |
Accrued liabilities: | ||
Payroll and related benefits | 708,411 | 938,363 |
Other | 687,164 | 301,836 |
Total current liabilities | 4,961,478 | 3,994,102 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
EQUITY: | ||
Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding | ||
Common stock, $0.02 par value per share; authorized 10,000,000 shares; issued and outstanding 4,524,970 and 4,533,416, respectively | 90,499 | 90,668 |
Additional paid-in capital | 13,879,361 | 13,798,567 |
Retained earnings | 34,339,958 | 33,655,357 |
Accumulated other comprehensive loss | (4,015,577) | (3,009,617) |
Stockholders’ equity | 44,294,241 | 44,534,975 |
Non-controlling interest | 2,534,174 | 2,540,973 |
Total equity | 46,828,415 | 47,075,948 |
Total liabilities and equity | $ 51,789,893 | $ 51,070,050 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) | Feb. 28, 2017 | Aug. 31, 2016 |
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) | 4,524,970 | 4,533,416 |
Common stock, shares outstanding (in shares) | 4,524,970 | 4,533,416 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
NET SALES: | ||||
Net sales, excluding joint ventures | $ 8,309,586 | $ 7,027,614 | $ 17,191,551 | $ 13,529,024 |
Net sales, to joint ventures | 433,317 | 677,320 | 1,253,375 | 1,200,347 |
Total net sales | 8,742,903 | 7,704,934 | 18,444,926 | 14,729,371 |
Cost of goods sold | 5,870,186 | 5,268,224 | 12,482,952 | 10,143,647 |
Gross profit | 2,872,717 | 2,436,710 | 5,961,974 | 4,585,724 |
JOINT VENTURE OPERATIONS: | ||||
Equity in income of joint ventures | 1,383,139 | 952,667 | 2,657,143 | 1,936,420 |
Fees for services provided to joint ventures | 1,184,028 | 971,042 | 2,499,619 | 2,456,471 |
Total joint venture operations | 2,567,167 | 1,923,709 | 5,156,762 | 4,392,891 |
OPERATING EXPENSES: | ||||
Selling expenses | 2,246,482 | 1,475,433 | 4,285,566 | 3,000,516 |
General and administrative expenses | 1,842,528 | 1,806,557 | 4,314,308 | 3,981,164 |
Research and development expenses | 742,037 | 1,113,525 | 1,384,559 | 2,117,622 |
Total operating expenses | 4,831,047 | 4,395,515 | 9,984,433 | 9,099,302 |
OPERATING INCOME (LOSS) | 608,837 | (35,096) | 1,134,303 | (120,687) |
INTEREST INCOME | 4,516 | 14,384 | 8,079 | 28,557 |
INTEREST EXPENSE | (3,470) | (10,796) | (8,093) | (15,522) |
OTHER INCOME | 961 | 961 | ||
INCOME (LOSS) BEFORE INCOME TAX EXPENSE | 609,883 | (30,547) | 1,134,289 | (106,691) |
INCOME TAX EXPENSE | 124,909 | 40,466 | 242,622 | 36,964 |
NET INCOME (LOSS) | 484,974 | (71,013) | 891,667 | (143,655) |
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 98,008 | 36,776 | 207,062 | 198,485 |
NET INCOME (LOSS) ATTRIBUTABLE TO NTIC | $ 386,966 | $ (107,789) | $ 684,605 | $ (342,140) |
NET INCOME (LOSS) ATTRIBUTABLE TO NTIC PER COMMON SHARE: | ||||
Basic (in dollars per share) | $ 0.09 | $ (0.02) | $ 0.15 | $ (0.08) |
Diluted (in dollars per share) | $ 0.09 | $ (0.02) | $ 0.15 | $ (0.08) |
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING: | ||||
Basic (in shares) | 4,525,091 | 4,537,429 | 4,527,555 | 4,536,995 |
Diluted (in shares) | 4,562,024 | 4,537,429 | 4,559,485 | 4,536,995 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
NET INCOME (LOSS) | $ 484,974 | $ (71,013) | $ 891,667 | $ (143,655) |
Other comprehensive income (LOSS) – foreign currency translation adjustment | 230,991 | 380,398 | (1,019,821) | (484,730) |
COMPREHENSIVE INCOME (LOSS) | 715,965 | 309,385 | (128,154) | (628,385) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NON- CONTROLLING INTERESTS | 132,829 | 21,377 | 193,200 | 186,152 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NTIC | $ 583,136 | $ 288,008 | $ (321,354) | $ (814,537) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 891,667 | $ (143,655) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Stock-based compensation | 195,832 | 223,715 |
Depreciation expense | 385,583 | 321,437 |
Amortization expense | 59,517 | 59,517 |
Equity in income from joint ventures | (2,657,143) | (1,936,420) |
Deferred income taxes | 24,987 | |
Dividends received from joint ventures | 564,934 | 4,054,606 |
Receivables: | ||
Trade, excluding joint ventures | (1,177,496) | (165,856) |
Trade, joint ventures | 329,321 | (118,640) |
Fees for services provided to joint ventures | 164,018 | 242,537 |
Income taxes | (16,484) | (355,200) |
Inventories | (349,600) | 111,146 |
Prepaid expenses and other | (103,671) | (162,301) |
Accounts payable | 915,538 | (174,609) |
Income tax payable | (91,282) | 2,564 |
Accrued liabilities | 40,854 | (710,031) |
Net cash (used in) provided by operating activities | (823,425) | 1,248,810 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from the sale of available for sale securities | 1,495,610 | |
Purchase of available for sale securities | (705,638) | |
Additions to property and equipment | (599,063) | (346,872) |
Additions to patents | (85,959) | (28,057) |
Net cash provided by (used in) investing activities | 810,588 | (1,080,567) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividend received by non-controlling interest | (200,000) | (200,000) |
Repurchase of common stock | (148,162) | (70,549) |
Proceeds from employee stock purchase plan | 32,955 | 34,963 |
Net cash used in financing activities | (315,207) | (235,586) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH: | (18,282) | (25,298) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (346,326) | (92,641) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 3,395,274 | 2,623,981 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 3,048,948 | $ 2,531,340 |
Note 1 - Interim Financial Info
Note 1 - Interim Financial Information | 6 Months Ended |
Feb. 28, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. In the opinion of management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, which are of a normal recurring nature, and present fairly the consolidated financial position of Northern Technologies International Corporation and its subsidiaries (the Company) as of February 28, 2017 August 31, 2016 three six February 28, 2017 February 29, 2016 six February 28, 2017 February 29, 2016, These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s annual report on Form 10 August 31, 2016. Operating results for the three six February 28, 2017 may August 31, 2016. The Company evaluates events occurring after the date of the consolidated financial statements requiring recording or disclosure in the consolidated financial statements. Certain amounts reported in the consolidated financial statements for the previous reporting period have been reclassified to conform to the current period presentation. Expenses previously recorded as “Expenses incurred in support of joint ventures” have been reclassified as “General and administrative expenses” based on the reduction in direct costs associated with supporting the joint ventures. |
Note 2 - Recently Issued Accoun
Note 2 - Recently Issued Accounting Pronouncements | 6 Months Ended |
Feb. 28, 2017 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 2. Recently Issued Accounting PronouncementS In May 2014, Revenue from Contracts with Customers, Topic 606 2014 09), 2018. July 2015, one first 2019. 2014 09 In July 2015, 2015 11, Inventory first first 2018, 2015 11 In November 2015, 2015 17, Income Taxes (Topic 740) December 15, 2017, 2015 17 August 31, 2016; During February 2016, 2016 02, Leases 2016 02 12 2016 02 December 15, 2018, 2016 02 In March 2016, 2016 07, Investments – Equity Method and Joint Ventures (Topic 323): 2016 07 December 15, 2016. 2016 07 In March 2016, 2016 09, Stock Compensation December 15, 2016, 2016 09 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 | 6 Months Ended |
Feb. 28, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 3. Inventories consisted of the following: February 28, 2017 August 31, 2016 Production materials $ 1,302,043 $ 1,452,396 Finished goods 6,750,164 6,258,891 $ 8,052,207 $ 7,711,287 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment, Net | 6 Months Ended |
Feb. 28, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 4. Property and equipment, net consisted of the following: February 28, 2017 August 31, 2016 Land $ 310,365 $ 310,365 Buildings and improvements 6,980,663 6,528,252 Machinery and equipment 3,674,867 3,590,063 10,965,895 10,428,680 Less accumulated depreciation (3,480,698 ) (3,152,808 ) $ 7,485,197 $ 7,275,872 |
Note 5 - Patents and Trademarks
Note 5 - Patents and Trademarks, Net | 6 Months Ended |
Feb. 28, 2017 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 5. Patents and trademarks, net consisted of the following: February 28, 2017 August 31, 2016 Patents and trademarks $ 2,661,393 $ 2,575,435 Less accumulated amortization (1,356,354 ) (1,296,838 ) $ 1,305,039 $ 1,278,597 Patent and trademark costs are amortized over seven $120,000 five |
Note 6 - Investments in Joint V
Note 6 - Investments in Joint Ventures | 6 Months Ended |
Feb. 28, 2017 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 6. The financial statements of the Company’s foreign joint ventures are initially prepared using the accounting principles accepted in the respective joint ventures’ countries of domicile. Amounts related to foreign joint ventures reported in the below tables and the accompanying consolidated financial statements have subsequently been adjusted to conform with accounting principles generally accepted in the United States of America in all material respects. All material profits recorded on sales from the Company to its joint ventures and from joint ventures to other joint ventures have been eliminated for financial reporting purposes. Financial information from the audited and unaudited financial statements of the Company’s joint ventures in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR), Harita-NTI LTD (INDIA), Zerust OY (FINLAND) and all the Company’s other joint ventures, are summarized as follows: As of February 28, 2017 TOTAL EXCOR INDIA FINLAND All Other Current assets $ 51,803,644 $ 25,396,338 $ 4,342,356 $ 1,625,779 $ 20,439,171 Total assets 55,467,386 27,220,507 4,674,322 1,905,434 21,667,123 Current liabilities 13,028,897 3,027,106 1,485,452 484,988 8,031,351 Noncurrent liabilities 107,511 — 3,684 — 103,827 Joint ventures’ equity 42,330,978 24,193,401 3,185,186 1,420,446 13,531,945 Northern Technologies International Corporation’s share of joint ventures’ equity 21,059,113 12,096,702 1,592,593 710,221 6,659,597 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 18,984,898 $ 12,065,797 $ 727,771 $ 690,221 $ 5,501,109 Six Months Ended February 28, 2017 Total EXCOR INDIA FINLAND All Other Net sales $ 47,163,046 $ 18,285,432 $ 3,263,830 $ 1,726,555 $ 23,887,229 Gross profit 20,858,536 9,761,696 1,518,122 1,032,318 8,546,400 Net income 5,182,951 4,017,746 192,164 252,140 720,901 Northern Technologies International Corporation’s share of equity in income of joint ventures $ 2,657,143 $ 2,006,441 $ 170,549 $ 126,361 $ 353,792 Northern Technologies International Corporation’s dividends received from joint ventures $ 564,934 $ — $ 206,701 $ 200,768 $ 157,465 As of August 31, 2016 TOTAL EXCOR INDIA FINLAND All Other Current assets $ 48,922,924 $ 22,928,810 $ 4,027,016 $ 1,928,861 $ 20,038,237 Total assets 52,407,026 24,733,340 4,352,573 2,211,392 21,109,721 Current liabilities 12,433,700 3,485,213 1,097,231 546,506 7,304,730 Noncurrent liabilities 100,783 — 6,382 — 94,401 Joint ventures’ equity 39,872,543 21,248,109 3,248,960 1,664,886 13,710,588 Northern Technologies International Corporation’s share of joint ventures’ equity 19,840,774 10,624,056 1,624,480 832,442 6,759,796 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 17,779,912 $ 10,593,151 $ 759,658 $ 812,442 $ 5,614,661 Northern Technologies International Corporation's dividends received from joint ventures $ 5,503,314 $ 4,364,700 $ 326,023 $ 206,516 $ 606,075 Six Months Ended February 29, 2016 Total EXCOR INDIA FINLAND All Other Net sales $ 42,000,424 $ 15,618,735 $ 3,036,404 $ 1,581,287 $ 21,763,999 Gross profit 18,523,102 8,059,186 1,450,777 943,141 8,069,998 Net income 3,872,728 2,960,951 316,292 207,973 387,512 Northern Technologies International Corporation’s share of equity in income of joint ventures 1,936,420 1,480,975 157,474 104,070 193,900 Northern Technologies International Corporation’s dividends received from joint ventures $ 4,054,605 $ 32,523,000 $ 326,023 $ 206,516 $ 269,766 The Company did not six February 28, 2017 February 29, 2016. |
Note 7 - China Operations
Note 7 - China Operations | 6 Months Ended |
Feb. 28, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 7. Effective December 31, 2014, January 1, 2015. December 31, 2014, December 31, 2014, fourth 2016, 13). $0 August 31, 2016 13 |
Note 8 - Corporate Debt
Note 8 - Corporate Debt | 6 Months Ended |
Feb. 28, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. The Company has a revolving line of credit with PNC Bank of $3,000,000. February 28, 2017 August 31, 2016. 2.15% The revolving credit facility allows the Company to request that PNC Bank issue letters of credit up to $1,200,000. not February 28, 2017 August 31, 2016 On January 11, 2017, January 7, 2018. As of February 28, 2017 August 31, 2016, $75,201 $71,599, 2020 2022. |
Note 9 - Stockholders' Equity
Note 9 - Stockholders' Equity | 6 Months Ended |
Feb. 28, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 9. During the six February 28, 2017, 11,475 $12.92 six February 28, 2017. The Company granted stock options under the Northern Technologies International Corporation Amended and Restated 2007 2007 56,677 six February 28, 2017. $13.40, During the six February 29, 2016, 5,461 $12.92 No six February 29, 2016. The Company granted stock options under the 2007 53,447 six February 29, 2016. $14.85, |
Note 10 - Net Income (Loss) Per
Note 10 - Net Income (Loss) Per Common Share | 6 Months Ended |
Feb. 28, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 10. 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 per share assumes the exercise of stock options using the treasury stock method, if dilutive. The following is a reconciliation of the earnings per share computation for the three six February 28, 2017 February 29, 2016: Three Months Ended Six Months Ended Numerators: February 28, February February 28, February Net income (loss) attributable to NTIC $ 386,966 $ (107,789 ) $ 684,605 $ (342,140 ) Denominators: Basic – weighted shares outstanding 4,525,091 4,537,429 4,527,555 4,536,995 Weighted shares assumed upon exercise of stock options 36,933 — 31,930 — Diluted – weighted shares outstanding 4,562,024 4,537,429 4,559,485 4,536,995 Basic income (loss) per share: $ 0.09 $ (0.02 ) $ 0.15 $ (0.08 ) Diluted income (loss) per share: $ 0.09 $ (0.02 ) $ 0.15 $ (0.08 ) The dilutive impact summarized above relates to the periods when the average market price of the Company’s common stock exceeded the exercise price of the potentially dilutive option securities granted. Earnings per common share were based on the weighted average number of common shares outstanding during the periods when computing the basic earnings per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted earnings per share. There were 275,791 February 28, 2017 Excluded from the computation of diluted income per share for the three six February 28, 2017 48,067 three February 29, 2016 283,181 |
Note 11 - Stock-based Compensat
Note 11 - Stock-based Compensation | 6 Months Ended |
Feb. 28, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 11. The Company has two 2007 The 2007 2007 800,000 2007 2007 ten three four one February 28, 2017, 2007 The maximum number of shares of common stock of the Company available for issuance under the ESPP is 100,000 six September 1 March 1 90% may 423 1986, The Company granted options to purchase an aggregate of 56,677 53,447 six February 28, 2017 February 29, 2016, $195,832 $223,715 six February 28, 2017 February 29, 2016, February 28, 2017, $435,232, $195,832 2017, $159,600 $79,800 2018 2019, February 28, 2017. The Company currently estimates a ten The fair value of each option grant is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions and results for the grants: Six Months Ended February 28, February 29, Dividend yield 0.00 % 0.00 % Expected volatility 46.4 % 46.0 % Expected life of option (in years) 10 10 Average risk-free interest rate 1.63 % 1.63 % The weighted average per share fair value of options granted during six February 28, 2017 February 29, 2016 $7.69 $8.48, February 28, 2017 February 29, 2016 6.91 6.96 |
Note 12 - Segment and Geographi
Note 12 - Segment and Geographic Information | 6 Months Ended |
Feb. 28, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 12. Segment Information The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer. The Company’s business is organized into two 40 The following table sets forth the Company’s net sales for the three six February 28, 2017 February 29, 2016 Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, ZERUST® net sales $ 7,228,027 $ 6,385,337 $ 15,312,705 $ 12,363,019 Natur-Tec® net sales 1,514,876 1,319,597 3,132,221 2,366,352 Total net sales $ 8,742,903 $ 7,704,934 $ 18,444,926 $ 14,729,371 The following table sets forth the Company’s cost of goods sold for the three six February 28, 2017 February 29, 2016 Three Months Ended Six Months Ended February 28, % of February 29, % of February 28, % of February 29, % of Direct cost of goods sold ZERUST® $ 4,254,524 58.9 % $ 3,576,073 56.0 % $ 8,954,061 58.5 % $ 6,940,628 56.1 % Natur-Tec® 1,068,231 70.5 % 984,938 74.6 % 2,281,399 72.8 % 1,819,197 76.9 % Indirect cost of goods sold 547,431 — 707,213 — 1,247,492 — 1,383,822 — Total net cost of goods sold $ 5,870,186 $ 5,268,224 $ 12,482,952 $ 10,143,647 ______________________ * The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category. The Company utilizes product net sales and direct and indirect cost of goods sold for each product in reviewing the financial performance of a product type. Further allocation of Company expenses or assets, aside from amounts presented in the tables above, is not utilized in evaluating product performance, nor does such allocation occur for internal financial reporting. Geographic Information Net sales by geographic location for the three six February 28, 2017 February 29, 2016 Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, Inside the U.S.A. to unaffiliated customers $ 5,245,092 $ 4,683,208 $ 10,395,832 $ 9,522,987 Outside the U.S.A to: Joint ventures in which the Company is shareholder directly and indirectly 433,317 677,320 1,253,375 1,200,347 Unaffiliated customers 3,064,494 2,344,406 6,795,719 4,006,037 $ 8,742,903 $ 7,704,934 $ 18,444,926 $ 14,729,371 Net sales by geographic location are based on the location of the customer. Fees for services provided to joint ventures by geographic location as a percentage of total fees for services provided to joint ventures during the three six February 28, 2017 February 29, 2016 Three Months Ended February 28, % of Total Fees February 29, % of Total Fees Germany $ 199,509 16.8 % $ 192,869 19.9 % Poland 153,453 13.0 % 145,765 15.0 % Japan 145,722 12.3 % 137,476 14.2 % Thailand 87,627 7.4 % 39,322 4.0 % Korea 86,103 7.3 % 2,500 .3 % France 83,112 7.0 % 73,112 7.5 % Sweden 77,464 6.5 % 50,356 5.2 % Czech Republic 73,286 6.2 % 64,381 6.6 % Finland 66,946 5.7 % 52,896 5.5 % United Kingdom 53,241 4.5 % 64,735 6.7 % India 74,196 6.3 % 72,077 7.4 % Other 83,369 7.0 % 75,553 7.7 % $ 1,184,028 100.0 % $ 971,042 100.0 % Six Months Ended February 28, % of Total Fees February 29, % of Total Fees Germany $ 402,509 16.1 % $ 422,654 17.2 % Poland 302,657 12.1 % 285,023 11.6 % Japan 291,759 11.7 % 268,149 10.9 % Thailand 235,081 9.4 % 263,063 10.7 % Korea 191,481 7.6 % 171,902 7.0 % France 180,785 7.2 % 162,785 6.6 % Sweden 164,525 6.6 % 123,317 5.0 % Czech Republic 144,114 5.8 % 121,933 5.0 % Finland 143,282 5.7 % 121,829 5.0 % United Kingdom 139,372 5.6 % 173,646 7.1 % India 138,731 5.6 % 152,527 6.2 % Other 165,323 6.6 % 189,643 7.7 % $ 2,499,619 100.0 % $ 2,456,471 100.0 % Sales to the Company’s joint ventures are included in the foregoing geographic and segment information, however, sales by the Company’s joint ventures to other parties are not included. The foregoing geographic and segment information represents only sales and cost of goods sold recognized directly by the Company. The geographical distribution of key financial statement data is as follows: At February 28, At August 31, Brazil $ 63,765 $ 66,938 India 12,027 13,645 Germany 15,512 — China 200,452 253,931 United States 7,193,441 6,941,358 Total long-lived assets $ 7,485,197 $ 7,275,872 Six Months Ended February 28, February 29, Brazil $ 1,118,166 $ 997,636 India 733,581 549,402 Germany 217,496 — China 3,296,299 1,439,754 United States 13,079,384 11,742,579 Total net sales $ 18,444,926 $ 14,729,371 Total long-lived assets located in Brazil, India, Germany and China primarily consist of property 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. Total assets located in the United States include the Company’s investments in joint ventures. 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 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. |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 6 Months Ended |
Feb. 28, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 13. On August 26, 2016, August 31, 2017. 2017 75% 2017 2017 25% may 2017. $185,000 six February 28, 2017 no six February 29, 2016. Three joint ventures (consisting of the Company’s joint ventures in Korea, India and Thailand) accounted for 57.1% February 28, 2017 55.8% August 31, 2016. On March 23, 2015, 1 two February 28, 2017, On April 21, 2015, November 23, 2017, February 16, 2017, sua sponte March 9, 2017, February 16, 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 can 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 February 28, 2017, |
Note 14 - Fair Value Measuremen
Note 14 - Fair Value Measurements | 6 Months Ended |
Feb. 28, 2017 | |
Notes to Financial Statements | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | 14. Fair Value Measurements Assets and liabilities that are measured at fair value on a recurring basis primarily relate to marketable equity securities. These items are marked-to-market at each reporting period. The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis: Fair Value Measurements Fair Value as of Level 1 Level 2 Level 3 Available for sale securities $ 748,254 $ 748,254 $ — $ — Fair Value Measurements Fair Value as of Level 1 Level 2 Level 3 Available for sale securities $ 2,243,864 $ 2,243,864 $ — $ — There were no transfers between Level 1, 2, 3 three six February 28, 2017 February 29, 2016. |
Note 15 - Supplemental Cash Flo
Note 15 - Supplemental Cash Flow Information | 6 Months Ended |
Feb. 28, 2017 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 15. SUPPLEMENTAL CASH FLOW INFORMATION Supplemental disclosures of cash flow information consist of: Three Months Ended February 28, February 29, Cash paid for interest $ 3,470 $ 10,796 Cash paid for income taxes — — Six Months Ended February 28, February 29, Cash paid for interest $ 8,093 $ 15,522 Cash paid for income taxes — — |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | February 28, 2017 August 31, 2016 Production materials $ 1,302,043 $ 1,452,396 Finished goods 6,750,164 6,258,891 $ 8,052,207 $ 7,711,287 |
Note 4 - Property and Equipme23
Note 4 - Property and Equipment, Net (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | February 28, 2017 August 31, 2016 Land $ 310,365 $ 310,365 Buildings and improvements 6,980,663 6,528,252 Machinery and equipment 3,674,867 3,590,063 10,965,895 10,428,680 Less accumulated depreciation (3,480,698 ) (3,152,808 ) $ 7,485,197 $ 7,275,872 |
Note 5 - Patents and Trademar24
Note 5 - Patents and Trademarks, Net (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | February 28, 2017 August 31, 2016 Patents and trademarks $ 2,661,393 $ 2,575,435 Less accumulated amortization (1,356,354 ) (1,296,838 ) $ 1,305,039 $ 1,278,597 |
Note 6 - Investments in Joint25
Note 6 - Investments in Joint Ventures (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | As of February 28, 2017 TOTAL EXCOR INDIA FINLAND All Other Current assets $ 51,803,644 $ 25,396,338 $ 4,342,356 $ 1,625,779 $ 20,439,171 Total assets 55,467,386 27,220,507 4,674,322 1,905,434 21,667,123 Current liabilities 13,028,897 3,027,106 1,485,452 484,988 8,031,351 Noncurrent liabilities 107,511 — 3,684 — 103,827 Joint ventures’ equity 42,330,978 24,193,401 3,185,186 1,420,446 13,531,945 Northern Technologies International Corporation’s share of joint ventures’ equity 21,059,113 12,096,702 1,592,593 710,221 6,659,597 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 18,984,898 $ 12,065,797 $ 727,771 $ 690,221 $ 5,501,109 As of August 31, 2016 TOTAL EXCOR INDIA FINLAND All Other Current assets $ 48,922,924 $ 22,928,810 $ 4,027,016 $ 1,928,861 $ 20,038,237 Total assets 52,407,026 24,733,340 4,352,573 2,211,392 21,109,721 Current liabilities 12,433,700 3,485,213 1,097,231 546,506 7,304,730 Noncurrent liabilities 100,783 — 6,382 — 94,401 Joint ventures’ equity 39,872,543 21,248,109 3,248,960 1,664,886 13,710,588 Northern Technologies International Corporation’s share of joint ventures’ equity 19,840,774 10,624,056 1,624,480 832,442 6,759,796 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 17,779,912 $ 10,593,151 $ 759,658 $ 812,442 $ 5,614,661 Northern Technologies International Corporation's dividends received from joint ventures $ 5,503,314 $ 4,364,700 $ 326,023 $ 206,516 $ 606,075 |
Condensed Income Statement [Table Text Block] | Six Months Ended February 28, 2017 Total EXCOR INDIA FINLAND All Other Net sales $ 47,163,046 $ 18,285,432 $ 3,263,830 $ 1,726,555 $ 23,887,229 Gross profit 20,858,536 9,761,696 1,518,122 1,032,318 8,546,400 Net income 5,182,951 4,017,746 192,164 252,140 720,901 Northern Technologies International Corporation’s share of equity in income of joint ventures $ 2,657,143 $ 2,006,441 $ 170,549 $ 126,361 $ 353,792 Northern Technologies International Corporation’s dividends received from joint ventures $ 564,934 $ — $ 206,701 $ 200,768 $ 157,465 Six Months Ended February 29, 2016 Total EXCOR INDIA FINLAND All Other Net sales $ 42,000,424 $ 15,618,735 $ 3,036,404 $ 1,581,287 $ 21,763,999 Gross profit 18,523,102 8,059,186 1,450,777 943,141 8,069,998 Net income 3,872,728 2,960,951 316,292 207,973 387,512 Northern Technologies International Corporation’s share of equity in income of joint ventures 1,936,420 1,480,975 157,474 104,070 193,900 Northern Technologies International Corporation’s dividends received from joint ventures $ 4,054,605 $ 32,523,000 $ 326,023 $ 206,516 $ 269,766 |
Note 10 - Net Income (Loss) P26
Note 10 - Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended Numerators: February 28, February February 28, February Net income (loss) attributable to NTIC $ 386,966 $ (107,789 ) $ 684,605 $ (342,140 ) Denominators: Basic – weighted shares outstanding 4,525,091 4,537,429 4,527,555 4,536,995 Weighted shares assumed upon exercise of stock options 36,933 — 31,930 — Diluted – weighted shares outstanding 4,562,024 4,537,429 4,559,485 4,536,995 Basic income (loss) per share: $ 0.09 $ (0.02 ) $ 0.15 $ (0.08 ) Diluted income (loss) per share: $ 0.09 $ (0.02 ) $ 0.15 $ (0.08 ) |
Note 11 - Stock-based Compens27
Note 11 - Stock-based Compensation (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Six Months Ended February 28, February 29, Dividend yield 0.00 % 0.00 % Expected volatility 46.4 % 46.0 % Expected life of option (in years) 10 10 Average risk-free interest rate 1.63 % 1.63 % |
Note 12 - Segment and Geograp28
Note 12 - Segment and Geographic Information (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, ZERUST® net sales $ 7,228,027 $ 6,385,337 $ 15,312,705 $ 12,363,019 Natur-Tec® net sales 1,514,876 1,319,597 3,132,221 2,366,352 Total net sales $ 8,742,903 $ 7,704,934 $ 18,444,926 $ 14,729,371 |
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block] | Three Months Ended Six Months Ended February 28, % of February 29, % of February 28, % of February 29, % of Direct cost of goods sold ZERUST® $ 4,254,524 58.9 % $ 3,576,073 56.0 % $ 8,954,061 58.5 % $ 6,940,628 56.1 % Natur-Tec® 1,068,231 70.5 % 984,938 74.6 % 2,281,399 72.8 % 1,819,197 76.9 % Indirect cost of goods sold 547,431 — 707,213 — 1,247,492 — 1,383,822 — Total net cost of goods sold $ 5,870,186 $ 5,268,224 $ 12,482,952 $ 10,143,647 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, Inside the U.S.A. to unaffiliated customers $ 5,245,092 $ 4,683,208 $ 10,395,832 $ 9,522,987 Outside the U.S.A to: Joint ventures in which the Company is shareholder directly and indirectly 433,317 677,320 1,253,375 1,200,347 Unaffiliated customers 3,064,494 2,344,406 6,795,719 4,006,037 $ 8,742,903 $ 7,704,934 $ 18,444,926 $ 14,729,371 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | At February 28, At August 31, Brazil $ 63,765 $ 66,938 India 12,027 13,645 Germany 15,512 — China 200,452 253,931 United States 7,193,441 6,941,358 Total long-lived assets $ 7,485,197 $ 7,275,872 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Six Months Ended February 28, February 29, Brazil $ 1,118,166 $ 997,636 India 733,581 549,402 Germany 217,496 — China 3,296,299 1,439,754 United States 13,079,384 11,742,579 Total net sales $ 18,444,926 $ 14,729,371 |
Fees for Services Provided to Joint Ventures [Member] | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended February 28, % of Total Fees February 29, % of Total Fees Germany $ 199,509 16.8 % $ 192,869 19.9 % Poland 153,453 13.0 % 145,765 15.0 % Japan 145,722 12.3 % 137,476 14.2 % Thailand 87,627 7.4 % 39,322 4.0 % Korea 86,103 7.3 % 2,500 .3 % France 83,112 7.0 % 73,112 7.5 % Sweden 77,464 6.5 % 50,356 5.2 % Czech Republic 73,286 6.2 % 64,381 6.6 % Finland 66,946 5.7 % 52,896 5.5 % United Kingdom 53,241 4.5 % 64,735 6.7 % India 74,196 6.3 % 72,077 7.4 % Other 83,369 7.0 % 75,553 7.7 % $ 1,184,028 100.0 % $ 971,042 100.0 % Six Months Ended February 28, % of Total Fees February 29, % of Total Fees Germany $ 402,509 16.1 % $ 422,654 17.2 % Poland 302,657 12.1 % 285,023 11.6 % Japan 291,759 11.7 % 268,149 10.9 % Thailand 235,081 9.4 % 263,063 10.7 % Korea 191,481 7.6 % 171,902 7.0 % France 180,785 7.2 % 162,785 6.6 % Sweden 164,525 6.6 % 123,317 5.0 % Czech Republic 144,114 5.8 % 121,933 5.0 % Finland 143,282 5.7 % 121,829 5.0 % United Kingdom 139,372 5.6 % 173,646 7.1 % India 138,731 5.6 % 152,527 6.2 % Other 165,323 6.6 % 189,643 7.7 % $ 2,499,619 100.0 % $ 2,456,471 100.0 % |
Note 14 - Fair Value Measurem29
Note 14 - Fair Value Measurements (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
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 $ 748,254 $ 748,254 $ — $ — Fair Value Measurements Fair Value as of Level 1 Level 2 Level 3 Available for sale securities $ 2,243,864 $ 2,243,864 $ — $ — |
Note 15 - Supplemental Cash F30
Note 15 - Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Feb. 28, 2017 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Three Months Ended February 28, February 29, Cash paid for interest $ 3,470 $ 10,796 Cash paid for income taxes — — Six Months Ended February 28, February 29, Cash paid for interest $ 8,093 $ 15,522 Cash paid for income taxes — — |
Note 3 - Inventories - Inventor
Note 3 - Inventories - Inventories (Details) - USD ($) | Feb. 28, 2017 | Aug. 31, 2016 |
Production materials | $ 1,302,043 | $ 1,452,396 |
Finished goods | 6,750,164 | 6,258,891 |
Inventories | $ 8,052,207 | $ 7,711,287 |
Note 4 - Property and Equipme32
Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($) | Feb. 28, 2017 | Aug. 31, 2016 |
Land | $ 310,365 | $ 310,365 |
Buildings and improvements | 6,980,663 | 6,528,252 |
Machinery and equipment | 3,674,867 | 3,590,063 |
Gross | 10,965,895 | 10,428,680 |
Less accumulated depreciation | (3,480,698) | (3,152,808) |
Net | $ 7,485,197 | $ 7,275,872 |
Note 5 - Patents and Trademar33
Note 5 - Patents and Trademarks, Net (Details Textual) - Patents and Trademarks [Member] | 6 Months Ended |
Feb. 28, 2017USD ($) | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 120,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 120,000 |
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 |
Note 5 - Patents and Trademar34
Note 5 - Patents and Trademarks, Net - Patents and Trademarks, Net (Details) - USD ($) | Feb. 28, 2017 | Aug. 31, 2016 |
Patents and trademarkes, net | $ 1,305,039 | $ 1,278,597 |
Patents and Trademarks [Member] | ||
Patents and trademarks | 2,661,393 | 2,575,435 |
Less accumulated amortization | (1,356,354) | (1,296,838) |
Patents and trademarkes, net | $ 1,305,039 | $ 1,278,597 |
Note 6 - Investments in Joint35
Note 6 - Investments in Joint Ventures (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Payments to Acquire Interest in Joint Venture | $ 0 | $ 0 |
Note 6 - Investments in Joint36
Note 6 - Investments in Joint Ventures - Condensed Balance Sheet of EXCOR and All Other Joint Ventures (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | Aug. 31, 2016 | |
Current assets | $ 51,803,644 | $ 48,922,924 | |
Total assets | 55,467,386 | 52,407,026 | |
Current liabilities | 13,028,897 | 12,433,700 | |
Noncurrent liabilities | 107,511 | 100,783 | |
Joint ventures’ equity | 42,330,978 | 39,872,543 | |
Northern Technologies International Corporation’s share of joint ventures’ equity | 21,059,113 | 19,840,774 | |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 18,984,898 | 17,779,912 | |
Northern Technologies International Corporation's dividends received from joint ventures | 564,934 | $ 4,054,605 | 5,503,314 |
EXCOR [Member] | |||
Current assets | 25,396,338 | 22,928,810 | |
Total assets | 27,220,507 | 24,733,340 | |
Current liabilities | 3,027,106 | 3,485,213 | |
Noncurrent liabilities | |||
Joint ventures’ equity | 24,193,401 | 21,248,109 | |
Northern Technologies International Corporation’s share of joint ventures’ equity | 12,096,702 | 10,624,056 | |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 12,065,797 | 10,593,151 | |
Northern Technologies International Corporation's dividends received from joint ventures | 32,523,000 | 4,364,700 | |
Joint Venture in India [Member] | |||
Current assets | 4,342,356 | 4,027,016 | |
Total assets | 4,674,322 | 4,352,573 | |
Current liabilities | 1,485,452 | 1,097,231 | |
Noncurrent liabilities | 3,684 | 6,382 | |
Joint ventures’ equity | 3,185,186 | 3,248,960 | |
Northern Technologies International Corporation’s share of joint ventures’ equity | 1,592,593 | 1,624,480 | |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 727,771 | 759,658 | |
Northern Technologies International Corporation's dividends received from joint ventures | 206,701 | 326,023 | 326,023 |
Joint Venture in Finland [Member] | |||
Current assets | 1,625,779 | 1,928,861 | |
Total assets | 1,905,434 | 2,211,392 | |
Current liabilities | 484,988 | 546,506 | |
Noncurrent liabilities | |||
Joint ventures’ equity | 1,420,446 | 1,664,886 | |
Northern Technologies International Corporation’s share of joint ventures’ equity | 710,221 | 832,442 | |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 690,221 | 812,442 | |
Northern Technologies International Corporation's dividends received from joint ventures | 200,768 | 206,516 | 206,516 |
All Other [Member] | |||
Current assets | 20,439,171 | 20,038,237 | |
Total assets | 21,667,123 | 21,109,721 | |
Current liabilities | 8,031,351 | 7,304,730 | |
Noncurrent liabilities | 103,827 | 94,401 | |
Joint ventures’ equity | 13,531,945 | 13,710,588 | |
Northern Technologies International Corporation’s share of joint ventures’ equity | 6,659,597 | 6,759,796 | |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 5,501,109 | 5,614,661 | |
Northern Technologies International Corporation's dividends received from joint ventures | $ 157,465 | $ 269,766 | $ 606,075 |
Note 6 - Investments in Joint37
Note 6 - Investments in Joint Ventures - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | Aug. 31, 2016 | |
Net sales | $ 47,163,046 | $ 42,000,424 | |||
Gross profit | 20,858,536 | 18,523,102 | |||
Net income | 5,182,951 | 3,872,728 | |||
Northern Technologies International Corporation’s share of equity in income of joint ventures | $ 1,383,139 | $ 952,667 | 2,657,143 | 1,936,420 | |
Northern Technologies International Corporation’s dividends received from joint ventures | 564,934 | 4,054,605 | $ 5,503,314 | ||
EXCOR [Member] | |||||
Net sales | 18,285,432 | 15,618,735 | |||
Gross profit | 9,761,696 | 8,059,186 | |||
Net income | 4,017,746 | 2,960,951 | |||
Northern Technologies International Corporation’s share of equity in income of joint ventures | 2,006,441 | 1,480,975 | |||
Northern Technologies International Corporation’s dividends received from joint ventures | 32,523,000 | 4,364,700 | |||
Joint Venture in India [Member] | |||||
Net sales | 3,263,830 | 3,036,404 | |||
Gross profit | 1,518,122 | 1,450,777 | |||
Net income | 192,164 | 316,292 | |||
Northern Technologies International Corporation’s share of equity in income of joint ventures | 170,549 | 157,474 | |||
Northern Technologies International Corporation’s dividends received from joint ventures | 206,701 | 326,023 | 326,023 | ||
Joint Venture in Finland [Member] | |||||
Net sales | 1,726,555 | 1,581,287 | |||
Gross profit | 1,032,318 | 943,141 | |||
Net income | 252,140 | 207,973 | |||
Northern Technologies International Corporation’s share of equity in income of joint ventures | 126,361 | 104,070 | |||
Northern Technologies International Corporation’s dividends received from joint ventures | 200,768 | 206,516 | 206,516 | ||
All Other [Member] | |||||
Net sales | 23,887,229 | 21,763,999 | |||
Gross profit | 8,546,400 | 8,069,998 | |||
Net income | 720,901 | 387,512 | |||
Northern Technologies International Corporation’s share of equity in income of joint ventures | 353,792 | 193,900 | |||
Northern Technologies International Corporation’s dividends received from joint ventures | $ 157,465 | $ 269,766 | $ 606,075 |
Note 7 - China Operations (Deta
Note 7 - China Operations (Details Textual) | Aug. 31, 2016USD ($) |
Tianjin Zerust [Member] | |
Cost Method Investments | $ 0 |
Note 8 - Corporate Debt (Detail
Note 8 - Corporate Debt (Details Textual) - USD ($) | 6 Months Ended | |
Feb. 28, 2017 | Aug. 31, 2016 | |
PNC Bank [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 | |
Long-term Line of Credit | $ 0 | $ 0 |
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] | Letter of Credit [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | |
JP Morgan Chase Bank [Member] | ||
Letters of Credit Outstanding, Amount | $ 75,201 | $ 71,599 |
Note 9 - Stockholders' Equity (
Note 9 - Stockholders' Equity (Details Textual) - $ / shares | 6 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Stock Repurchased and Retired During Period, Shares | 11,475 | 5,461 |
Treasury Stock Acquired, Average Cost Per Share | $ 12.92 | $ 12.92 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 |
The 2007 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 56,677 | 53,447 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 13.40 | $ 14.85 |
Note 10 - Net Income (Loss) P41
Note 10 - Net Income (Loss) Per Common Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 275,791 | 275,791 | |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 48,067 | 283,181 | 48,067 |
Note 10 - Net Income (Loss) P42
Note 10 - Net Income (Loss) Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Net income (loss) attributable to NTIC | $ 386,966 | $ (107,789) | $ (107,789) | $ 684,605 | $ (342,140) |
Basic – weighted shares outstanding (in shares) | 4,525,091 | 4,537,429 | 4,537,429 | 4,527,555 | 4,536,995 |
Weighted shares assumed upon exercise of stock options (in shares) | 36,933 | 31,930 | |||
Diluted – weighted shares outstanding (in shares) | 4,562,024 | 4,537,429 | 4,537,429 | 4,559,485 | 4,536,995 |
Basic income (loss) per share: (in dollars per share) | $ 0.09 | $ (0.02) | $ (0.02) | $ 0.15 | $ (0.08) |
Diluted income (loss) per share: (in dollars per share) | $ 0.09 | $ (0.02) | $ (0.02) | $ 0.15 | $ (0.08) |
Note 11 - Stock-based Compens43
Note 11 - Stock-based Compensation (Details Textual) - USD ($) | 6 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Number of Stock-based Compensation Plans | 2 | |
Stock or Unit Option Plan Expense | $ 195,832 | $ 223,715 |
Allocated Share-based Compensation Expense, Estimate Remainder of Fiscal Year | 195,832 | |
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 | $ 7.69 | $ 8.48 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 332 days | 6 years 350 days |
Net of Estimated Forfeitures [Member] | ||
Allocated Share-based Compensation Expense, Estimate Remainder of Fiscal Year | $ 435,232 | |
The 2007 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 800,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 56,677 | 53,447 |
The 2007 Plan [Member] | One Year after Date of Grant [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
The 2007 Plan [Member] | One Year after Date of Grant [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |
ESPP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 100,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 90.00% |
Note 11 - Stock-based Compens44
Note 11 - Stock-based Compensation - Black-Scholes Option-pricing Model Assumptions (Details) | 6 Months Ended | |
Feb. 28, 2017 | Feb. 29, 2016 | |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 46.40% | 46.00% |
Expected life of option (in years) (Year) | 10 years | 10 years |
Average risk-free interest rate | 1.63% | 1.63% |
Note 12 - Segment and Geograp45
Note 12 - Segment and Geographic Information (Details Textual) | 6 Months Ended |
Feb. 28, 2017 | |
Number of Reportable Segments | 2 |
Note 12 - Segment and Geograp46
Note 12 - Segment and Geographic Information - Net Sales by Segment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Net sales by segment | $ 8,742,903 | $ 7,704,934 | $ 18,444,926 | $ 14,729,371 |
ZERUST [Member] | ||||
Net sales by segment | 7,228,027 | 6,385,337 | 15,312,705 | 12,363,019 |
NaturTec [Member] | ||||
Net sales by segment | $ 1,514,876 | $ 1,319,597 | $ 3,132,221 | $ 2,366,352 |
Note 12 - Segment and Geograp47
Note 12 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Cost of goods sold | $ 5,870,186 | $ 5,268,224 | $ 12,482,952 | $ 10,143,647 |
Precentage of product sales | ||||
Direct Cost of Goods Sold [Member] | ZERUST [Member] | ||||
Cost of goods sold | $ 4,254,524 | $ 3,576,073 | $ 8,954,061 | $ 6,940,628 |
Precentage of product sales | 58.90% | 56.00% | 58.50% | 56.10% |
Direct Cost of Goods Sold [Member] | NaturTec [Member] | ||||
Cost of goods sold | $ 1,068,231 | $ 984,938 | $ 2,281,399 | $ 1,819,197 |
Precentage of product sales | 70.50% | 74.60% | 72.80% | 76.90% |
Indirect Cost of Goods Sold [Member] | ||||
Cost of goods sold | $ 547,431 | $ 707,213 | $ 1,247,492 | $ 1,383,822 |
Precentage of product sales |
Note 12 - Segment and Geograp48
Note 12 - Segment and Geographic Information - Net Sales by Geographic Location (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Net sales by segment | $ 8,742,903 | $ 7,704,934 | $ 18,444,926 | $ 14,729,371 |
Inside the USA to Unaffiliated Customers [Member] | ||||
Net sales by segment | 5,245,092 | 4,683,208 | 10,395,832 | 9,522,987 |
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member] | ||||
Net sales by segment | 433,317 | 677,320 | 1,253,375 | 1,200,347 |
Unaffiliated Customers Outside the USA [Member] | ||||
Net sales by segment | $ 3,064,494 | $ 2,344,406 | $ 6,795,719 | $ 4,006,037 |
Note 12 - Segment and Geograp49
Note 12 - Segment and Geographic Information - Fees for Services Provided to Joint Ventures by Geographic Location as a Percentage of Total Fees (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Fees | $ 1,184,028 | $ 971,042 | $ 2,499,619 | $ 2,456,471 |
Percentage of total fees | 100.00% | 100.00% | 100.00% | 100.00% |
GERMANY | ||||
Fees | $ 199,509 | $ 192,869 | $ 402,509 | $ 422,654 |
Percentage of total fees | 16.80% | 19.90% | 16.10% | 17.20% |
POLAND | ||||
Fees | $ 153,453 | $ 145,765 | $ 302,657 | $ 285,023 |
Percentage of total fees | 13.00% | 15.00% | 12.10% | 11.60% |
JAPAN | ||||
Fees | $ 145,722 | $ 137,476 | $ 291,759 | $ 268,149 |
Percentage of total fees | 12.30% | 14.20% | 11.70% | 10.90% |
THAILAND | ||||
Fees | $ 87,627 | $ 39,322 | $ 235,081 | $ 263,063 |
Percentage of total fees | 7.40% | 4.00% | 9.40% | 10.70% |
KOREA, REPUBLIC OF | ||||
Fees | $ 86,103 | $ 2,500 | $ 191,481 | $ 171,902 |
Percentage of total fees | 7.30% | 0.30% | 7.60% | 7.00% |
FRANCE | ||||
Fees | $ 83,112 | $ 73,112 | $ 180,785 | $ 162,785 |
Percentage of total fees | 7.00% | 7.50% | 7.20% | 6.60% |
SWEDEN | ||||
Fees | $ 77,464 | $ 50,356 | $ 164,525 | $ 123,317 |
Percentage of total fees | 6.50% | 5.20% | 6.60% | 5.00% |
CZECH REPUBLIC | ||||
Fees | $ 73,286 | $ 64,381 | $ 144,114 | $ 121,933 |
Percentage of total fees | 6.20% | 6.60% | 5.80% | 5.00% |
FINLAND | ||||
Fees | $ 66,946 | $ 52,896 | $ 143,282 | $ 121,829 |
Percentage of total fees | 5.70% | 5.50% | 5.70% | 5.00% |
UNITED KINGDOM | ||||
Fees | $ 53,241 | $ 64,735 | $ 139,372 | $ 173,646 |
Percentage of total fees | 4.50% | 6.70% | 5.60% | 7.10% |
INDIA | ||||
Fees | $ 74,196 | $ 72,077 | $ 138,731 | $ 152,527 |
Percentage of total fees | 6.30% | 7.40% | 5.60% | 6.20% |
Other Countries [Member] | ||||
Fees | $ 83,369 | $ 75,553 | $ 165,323 | $ 189,643 |
Percentage of total fees | 7.00% | 7.70% | 6.60% | 7.70% |
Note 12 - Segment and Geograp50
Note 12 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($) | Feb. 28, 2017 | Aug. 31, 2016 |
Total long-lived assets | $ 7,485,197 | $ 7,275,872 |
BRAZIL | ||
Total long-lived assets | 63,765 | 66,938 |
INDIA | ||
Total long-lived assets | 12,027 | 13,645 |
GERMANY | ||
Total long-lived assets | 15,512 | |
CHINA | ||
Total long-lived assets | 200,452 | 253,931 |
UNITED STATES | ||
Total long-lived assets | $ 7,193,441 | $ 6,941,358 |
Note 12 - Segment and Geograp51
Note 12 - Segment and Geographical Information - Total Net Sales by Geographic Distribution (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Net sales by segment | $ 8,742,903 | $ 7,704,934 | $ 18,444,926 | $ 14,729,371 |
BRAZIL | ||||
Net sales by segment | 1,118,166 | 997,636 | ||
INDIA | ||||
Net sales by segment | 733,581 | 549,402 | ||
GERMANY | ||||
Net sales by segment | 217,496 | |||
CHINA | ||||
Net sales by segment | 3,296,299 | 1,439,754 | ||
UNITED STATES | ||||
Net sales by segment | $ 13,079,384 | $ 11,742,579 |
Note 13 - Commitments and Con52
Note 13 - Commitments and Contingencies (Details Textual) - USD ($) | 6 Months Ended | ||
Feb. 28, 2017 | Aug. 31, 2016 | Feb. 29, 2016 | |
Accrued Bonuses | $ 185,000 | $ 0 | |
Entity Wide Trade Joint Venture Receivables, Four Joint Ventures,Percentage | 57.10% | 55.80% | |
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% |
Note 14 - Fair Value Measurem53
Note 14 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - USD ($) | Feb. 28, 2017 | Aug. 31, 2016 |
Available for sale securities | $ 748,254 | $ 2,243,864 |
Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | 748,254 | 2,243,864 |
Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities |
Note 15 - Supplemental Cash F54
Note 15 - Supplemental Cash Flow Information - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | |
Cash paid for interest | $ 3,470 | $ 10,796 | $ 8,093 | $ 15,522 |
Cash paid for income taxes |