Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
May 31, 2017 | Jul. 13, 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) | 4,527,018 | |
Document Type | 10-Q | |
Document Period End Date | May 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | May 31, 2017 | Aug. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 3,500,164 | $ 3,395,274 |
Available for sale securities | 3,756,680 | 2,243,864 |
Trade excluding joint ventures, less allowance for doubtful accounts of $40,000 at May 31, 2017 and August 31, 2016 | 6,190,096 | 4,755,320 |
Trade joint ventures | 1,295,766 | 791,903 |
Fees for services provided to joint ventures | 1,224,977 | 1,406,587 |
Income taxes | 375,531 | 215,905 |
Inventories | 7,879,656 | 7,711,287 |
Prepaid expenses | 421,708 | 422,031 |
Total current assets | 24,644,578 | 20,942,171 |
PROPERTY AND EQUIPMENT, NET | 7,451,899 | 7,275,872 |
OTHER ASSETS: | ||
Investments in joint ventures | 18,903,473 | 19,840,774 |
Deferred income taxes | 1,614,229 | 1,639,762 |
Patents and trademarks, net | 1,314,103 | 1,278,597 |
Other | 71,685 | 92,874 |
Total other assets | 21,903,490 | 22,852,007 |
Total assets | 53,999,967 | 51,070,050 |
CURRENT LIABILITIES: | ||
Accounts payable | 3,558,280 | 2,753,903 |
Accrued liabilities: | ||
Payroll and related benefits | 984,789 | 938,363 |
Other | 247,597 | 301,836 |
Total current liabilities | 4,790,666 | 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 4,527,018 and 4,533,416, respectively | 90,540 | 90,668 |
Additional paid-in capital | 13,983,754 | 13,798,567 |
Retained earnings | 35,692,376 | 33,655,357 |
Accumulated other comprehensive loss | (3,251,765) | (3,009,617) |
Stockholders’ equity | 46,514,905 | 44,534,975 |
Non-controlling interest | 2,694,396 | 2,540,973 |
Total equity | 49,209,301 | 47,075,948 |
Total liabilities and equity | $ 53,999,967 | $ 51,070,050 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | May 31, 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) | 4,527,018 | 4,533,416 |
Common stock, shares outstanding (in shares) | 4,527,018 | 4,533,416 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
NET SALES: | ||||
Net sales, excluding joint ventures | $ 9,360,883 | $ 7,925,357 | $ 26,552,434 | $ 21,454,381 |
Net sales, to joint ventures | 862,136 | 761,218 | 2,115,511 | 1,961,565 |
Total net sales | 10,223,019 | 8,686,575 | 28,667,945 | 23,415,946 |
Cost of goods sold | 6,774,001 | 5,777,249 | 19,256,953 | 15,920,896 |
Gross profit | 3,449,018 | 2,909,326 | 9,410,992 | 7,495,050 |
JOINT VENTURE OPERATIONS: | ||||
Equity in income of joint ventures | 1,686,016 | 1,664,464 | 4,343,159 | 3,600,884 |
Fees for services provided to joint ventures | 1,442,048 | 1,351,913 | 3,941,667 | 3,808,384 |
Total joint venture operations | 3,128,064 | 3,016,377 | 8,284,826 | 7,409,268 |
OPERATING EXPENSES: | ||||
Selling expenses | 2,430,824 | 1,507,200 | 6,716,390 | 4,507,716 |
General and administrative expenses | 1,682,669 | 1,957,868 | 5,996,977 | 5,939,032 |
Research and development expenses | 733,651 | 1,231,950 | 2,118,210 | 3,349,572 |
Total operating expenses | 4,847,144 | 4,697,018 | 14,831,577 | 13,796,320 |
OPERATING INCOME | 1,729,938 | 1,228,685 | 2,864,241 | 1,107,998 |
INTEREST INCOME | 10,996 | 29,868 | 19,075 | 58,425 |
INTEREST EXPENSE | (7,409) | (15,465) | (15,502) | (30,987) |
OTHER INCOME | 6,294 | 7,255 | ||
INCOME BEFORE INCOME TAX EXPENSE | 1,733,525 | 1,249,382 | 2,867,814 | 1,142,691 |
INCOME TAX EXPENSE | 237,801 | 225,395 | 480,423 | 262,359 |
NET INCOME | 1,495,724 | 1,023,987 | 2,387,391 | 880,332 |
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 143,308 | 106,614 | 350,370 | 305,099 |
NET INCOME ATTRIBUTABLE TO NTIC | $ 1,352,416 | $ 917,373 | $ 2,037,021 | $ 575,233 |
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE: | ||||
Basic (in dollars per share) | $ 0.30 | $ 0.20 | $ 0.45 | $ 0.13 |
Diluted (in dollars per share) | $ 0.30 | $ 0.20 | $ 0.45 | $ 0.13 |
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING: | ||||
Basic (in shares) | 4,526,771 | 4,538,970 | 4,528,523 | 4,538,005 |
Diluted (in shares) | 4,591,527 | 4,563,801 | 4,571,395 | 4,587,064 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
NET INCOME | $ 1,495,724 | $ 1,023,987 | $ 2,387,391 | $ 880,332 |
Other comprehensive income (LOSS) – foreign currency translation adjustment | 780,726 | 432,360 | (239,095) | (52,370) |
COMPREHENSIVE INCOME | 2,276,450 | 1,456,347 | 2,148,296 | 827,962 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 160,223 | 124,840 | 353,423 | 310,992 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NTIC | $ 2,116,227 | $ 1,331,507 | $ 1,794,873 | $ 516,970 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
May 31, 2017 | May 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 2,387,391 | $ 880,332 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 293,748 | 325,576 |
Depreciation expense | 580,962 | 482,576 |
Amortization expense | 89,274 | 89,275 |
Equity in income from joint ventures | (4,343,159) | (3,600,884) |
Dividends received from joint ventures | 5,179,786 | 5,449,543 |
Deferred income taxes | 24,939 | |
Receivables: | ||
Trade, excluding joint ventures | (1,442,714) | (570,647) |
Trade, joint ventures | (503,863) | (73,522) |
Fees for services provided to joint ventures | 181,610 | 97,569 |
Income taxes | (154,171) | (314,038) |
Inventories | (155,011) | 17,185 |
Prepaid expenses and other | 19,197 | (58,518) |
Accounts payable | 816,845 | 692,741 |
Income tax payable | (3,466) | (377) |
Accrued liabilities | (145,203) | (363,514) |
Net cash provided by operating activities | 2,826,166 | 3,053,297 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of available for sale securities | (1,512,816) | (212,351) |
Additions to property and equipment | (760,847) | (490,481) |
Additions to patents | (124,780) | (91,836) |
Net cash used in investing activities | (2,398,443) | (794,668) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividend received by non-controlling interest | (200,000) | (200,000) |
Repurchase of common stock | (196,164) | (97,450) |
Proceeds from employee stock purchase plan | 46,475 | 68,633 |
Proceeds from exercise of stock options | 41,000 | |
Net cash used in financing activities | (308,689) | (228,817) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH: | (14,144) | (27,255) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 104,890 | 2,002,557 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 3,395,274 | 2,623,981 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 3,500,164 | $ 4,626,538 |
Note 1 - Interim Financial Info
Note 1 - Interim Financial Information | 9 Months Ended |
May 31, 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 May 31, 2017 August 31, 2016 three nine May 31, 2017 2016 nine May 31, 2017 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 nine May 31, 2017 not may August 31, 2017. 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 | 9 Months Ended |
May 31, 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 No. 2014 09 2018. July 2015, one first 2019. 2014 09 In July 2015, No. 2015 11, Inventory first first 2018, not 2015 11 In November 2015, 2015 17, Income Taxes (Topic 740 December 15, 2017, 2015 17 August 31, 2016; no During February 2016, No. 2016 02, Leases No. 2016 02 12 No. 2016 02 December 15, 2018, No. 2016 02 In March 2016, No. 2016 07, Investments – Equity Method and Joint Ventures (Topic 323 2016 07 no December 15, 2016. 2016 07 In March 2016, 2016 09, Stock Compensation December 15, 2016, 2016 09 In August 2016, No. 2016 15, “Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments 2016 15 zero 2016 15 December 15, 2017. 2016 15 not 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 |
Note 3 - Inventories
Note 3 - Inventories | 9 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 3. Inventories consisted of the following: May 31, 2017 August 31, 2016 Production materials $ 1,454,328 $ 1,452,396 Finished goods 6,425,328 6,258,891 $ 7,879,656 $ 7,711,287 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment, Net | 9 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 4. Property and equipment, net consisted of the following: May 31, 2017 August 31, 2016 Land $ 310,365 $ 310,365 Buildings and improvements 6,623,104 6,528,252 Machinery and equipment 4,170,638 3,590,063 11,104,107 10,428,680 Less accumulated depreciation (3,652,208 ) (3,152,808 ) $ 7,451,899 $ 7,275,872 |
Note 5 - Patents and Trademarks
Note 5 - Patents and Trademarks, Net | 9 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 5. Patents and trademarks, net consisted of the following: May 31, 2017 August 31, 2016 Patents and trademarks $ 2,700,215 $ 2,575,435 Less accumulated amortization (1,386,112 ) (1,296,838 ) $ 1,314,103 $ 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 | 9 Months Ended |
May 31, 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 May 31, 2017 Total EXCOR India Finland All Other Current assets $ 48,064,624 $ 19,820,904 $ 4,322,253 $ 1,929,781 $ 21,991,686 Total assets 52,062,465 21,882,519 4,658,050 2,216,723 23,305,173 Current liabilities 13,773,839 3,028,386 1,412,054 547,007 8,786,392 Noncurrent liabilities 247,572 - 14,201 - 233,371 Joint ventures’ equity 38,041,054 18,854,133 3,231,795 1,669,716 14,285,410 Northern Technologies International Corporation’s share of joint ventures’ equity 18,903,473 9,427,068 1,615,898 834,856 7,025,651 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 16,829,258 9,396,163 751,076 814,856 5,867,163 Nine Months Ended May 31, 2017 Total EXCOR India Finland All Other Net sales $ 73,098,215 $ 28,169,978 $ 5,299,600 $ 2,619,843 $ 37,008,794 Gross profit 32,376,247 15,032,724 2,463,138 1,569,152 13,311,233 Net income 8,562,834 6,184,181 611,143 413,044 1,354,466 Northern Technologies International Corporation’s share of equity in income of joint ventures 4,343,159 3,089,935 384,712 206,874 661,638 Northern Technologies International Corporation's dividends received from joint ventures $ 5,179,786 $ 4,240,400 $ 446,939 $ 200,768 $ 291,679 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 Nine Months Ended May 31, 2016 Total EXCOR India Finland All Other Net sales $ 66,223,514 $ 25,314,260 $ 5,027,226 $ 2,435,861 $ 33,446,167 Gross profit 29,745,795 13,512,404 2,427,574 1,438,756 12,367,061 Net income 7,188,274 5,409,407 697,977 342,544 738,346 Northern Technologies International Corporation’s share of equity in income of joint ventures 3,600,884 2,714,905 327,846 171,662 386,471 Northern Technologies International Corporation's dividends received from joint ventures $ 5,449,543 $ 4,364,700 $ 326,023 $ 206,516 552,304 The Company did not nine May 31, 2017 2016. |
Note 7 - China Operations
Note 7 - China Operations | 9 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 7. Effective December 31, 2014, January 1, 2015. December 31, 2014, December 31, 2014, not not fourth 2016, 13 $0 August 31, 2016 13 |
Note 8 - Corporate Debt
Note 8 - Corporate Debt | 9 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. The Company has a revolving line of credit with PNC Bank, National Association (PNC Bank) of $3,000,000. No May 31, 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 May 31, 2017 August 31, 2016 not On January 11, 2017, January 7, 2018. As of May 31, 2017 August 31, 2016, $75,201 $71,599, 2020 2022. |
Note 9 - Stockholders' Equity
Note 9 - Stockholders' Equity | 9 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 9. During the nine May 31, 2017, 14,525 $13.51 During the nine May 31, 2017, 4,000 $10.25 During the nine May 31, 2017, 2007 2007 56,677 $13.40, During the nine May 31, 2016, 7,511 $12.98 During the nine May 31, 2016, no During the nine May 31, 2016, 2007 53,447 $14.85, |
Note 10 - Net Income Per Common
Note 10 - Net Income Per Common Share | 9 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 10. Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per share assumes the exercise of stock options using the treasury stock method, if dilutive. The following is a reconciliation of the net income per share computation for the three nine May 31, 2017 2016: Three Months Ended Nine Months Ended Numerators: May 31, 2017 May 31, 2016 May 31, 2017 May 31, 2016 Net income attributable to NTIC $ 1,352,416 $ 917,373 $ 2,037,021 $ 575,233 Denominators: Basic – weighted shares outstanding 4,526,771 4,538,970 4,528,523 4,538,005 Weighted shares assumed upon exercise of stock options 64,756 24,831 42,872 49,059 Diluted – weighted shares outstanding 4,591,527 4,563,801 4,571,395 4,587,064 Basic income per share: $ 0.30 $ 0.20 $ 0.45 $ 0.13 Diluted income per share: $ 0.30 $ 0.20 $ 0.45 $ 0.13 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 271,791 May 31, 2017, Excluded from the computation of diluted income per share for the three nine May 31, 2017 48,067 three nine May 31, 2016 170,887 |
Note 11 - Stock-based Compensat
Note 11 - Stock-based Compensation | 9 Months Ended |
May 31, 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 May 31, 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 not 423 1986, The Company granted options to purchase an aggregate of 56,677 53,447 nine May 31, 2017 2016, $293,748 $325,576 nine May 31, 2017 2016, May 31, 2017, not $337,316, $97,916 2017, $159,600 $79,800 2018 2019, May 31, 2017. The fair value of each option grant is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions and results for the grants: Nine Months Ended May 31, 2017 May 31, 2016 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 nine May 31, 2017 2016 $7.69 $8.48, May 31, 2017 2016 6.73 6.71 |
Note 12 - Segment and Geographi
Note 12 - Segment and Geographic Information | 9 Months Ended |
May 31, 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 nine May 31, 2017 2016 Three Months Ended Nine Months Ended May 31, 2017 May 31, 2016 May 31, 2017 May 31, 2016 ZERUST® net sales $ 8,368,487 $ 7,185,955 $ 23,681,192 $ 19,548,974 Natur-Tec® net sales 1,854,532 1,500,620 4,986,753 3,866,972 Total net sales $ 10,223,019 $ 8,686,575 $ 28,667,945 $ 23,415,946 The following table sets forth the Company’s cost of goods sold for the three nine May 31, 2017 2016 Three Months Ended Nine Months Ended May 31, % of May 31, % of May 31, % of May 31, % of Direct cost of goods sold ZERUST® $ 4,834,355 57.8 % $ 4,028,114 56.1 % $ 13,788,416 58.2 % $ 10,968,742 56.1 % Natur-Tec® 1,327,323 71.6 % 1,119,730 74.6 % 3,608,722 72.4 % 2,938,927 76.0 % Indirect cost of goods sold 612,323 — 629,405 — 1,859,815 — 2,013,227 — Total net cost of goods sold $ 6,774,001 $ 5,777,249 $ 19,256,953 $ 15,920,896 ____________________________ * 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 Geographic Information Net sales by geographic location for the three nine May 31, 2017 2016 Three Months Ended Nine Months Ended May 31, 2017 May 31, 2016 May 31, 2017 May 31, 2016 Inside the U.S.A. to unaffiliated customers $ 5,967,459 $ 5,559,885 $ 16,363,291 $ 14,762,170 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 862,136 446,322 2,115,511 1,967,370 Unaffiliated customers 3,393,424 2,680,368 10,189,143 6,686,406 $ 10,223,019 $ 8,686,575 $ 28,667,945 $ 23,415,946 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 nine May 31, 2017 2016 Three Months Ended May 31, % of Total Fees May 31, % of Total Fees for Germany $ 212,257 14.7 % $ 242,158 17.9 % Poland 180,969 12.6 % 167,237 12.4 % Japan 153,903 10.7 % 148,091 11.0 % Sweden 150,139 10.4 % 66,239 4.9 % France 112,455 7.8 % 87,588 6.5 % Thailand 104,771 7.3 % 132,548 9.8 % Korea 92,954 6.4 % 74,085 5.5 % India 90,469 6.3 % 70,610 5.2 % United Kingdom 87,768 6.1 % 135,068 10.0 % Finland 78,012 5.4 % 55,876 4.1 % Czech Republic 74,135 5.1 % 54,537 4.0 % Other 104,216 7.2 % 117,876 8.7 % $ 1,442,048 100.0 % $ 1,351,913 100.0 % Nine Months Ended May 31, % of Total Fees May 31, % of Total Fees for Germany $ 614,766 15.6 % $ 664,812 17.4 % Poland 483,626 12.3 % 452,260 11.8 % Japan 445,662 11.3 % 416,241 10.9 % Thailand 339,852 8.6 % 395,611 10.4 % Sweden 314,664 8.0 % 189,556 5.0 % France 293,240 7.4 % 250,373 6.6 % Korea 284,435 7.2 % 247,730 6.5 % India 229,200 5.8 % 223,137 5.9 % United Kingdom 227,140 5.8 % 292,216 7.7 % Finland 221,294 5.6 % 177,704 4.7 % Czech Republic 218,249 5.5 % 176,470 4.6 % Other 269,539 6.9 % 322,274 8.5 % $ 3,941,667 100.0 % $ 3,808,384 100.0 % Sales to the Company’s joint ventures are included in the foregoing segment and geographic information, however, sales by the Company’s joint ventures to other parties are not The geographical distribution of key financial statement data is as follows: At May 31, At August 31, Brazil $ 56,246 $ 66,938 India 13,634 13,645 Germany 13,687 — China 231,114 253,931 United States 7,137,218 6,941,358 Total long-lived assets $ 7,451,899 $ 7,275,872 Nine Months Ended May 31, 2017 May 31, 2016 Brazil $ 1,683,255 $ 1,509,659 India 1,057,132 911,227 Germany 378,635 — China 4,991,807 2,473,733 United States 20,557,116 18,521,327 Total net sales $ 28,667,945 $ 23,415,946 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 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 | 9 Months Ended |
May 31, 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. $600,000 nine May 31, 2017 $215,000 nine May 31, 2016. Two joint ventures (consisting of the Company’s joint ventures in Korea and India) accounted for 21.4% May 31, 2017, three 55.8% August 31, 2016. On March 23, 2015, No 1 two May 31, 2017, not On April 21, 2015, February 16, 2017, sua sponte 2005 April 21, 2017, May 15, 2017, may June 21, 2017. September 4, 2017 two September 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 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 not not may May 31, 2017, not |
Note 14 - Fair Value Measuremen
Note 14 - Fair Value Measurements | 9 Months Ended |
May 31, 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 Using Inputs Considered as Fair Value as of May 31, 2017 Level 1 Level 2 Level 3 Available for sale securities $ 3,756,680 $ 3,756,680 $ — $ — Fair Value Measurements Using Inputs Considered as Fair Value as of August 31, 2016 Level 1 Level 2 Level 3 Available for sale securities $ 2,243,864 $ 2,243,864 $ — $ — There were no 1, 2, 3 three nine May 31, 2017 2016. |
Note 15 - Supplemental Cash Flo
Note 15 - Supplemental Cash Flow Information | 9 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 15. Supplemental disclosures of cash flow information consist of: Three Months Ended May 31, 2017 May 31, 2016 Cash paid for interest $ 7,409 $ 15,465 Cash paid for income taxes — — Nine Months Ended May 31, 2017 May 31, 2016 Cash paid for interest $ 15,502 $ 30,987 Cash paid for income taxes — — |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 9 Months Ended |
May 31, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | May 31, 2017 August 31, 2016 Production materials $ 1,454,328 $ 1,452,396 Finished goods 6,425,328 6,258,891 $ 7,879,656 $ 7,711,287 |
Note 4 - Property and Equipme23
Note 4 - Property and Equipment, Net (Tables) | 9 Months Ended |
May 31, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | May 31, 2017 August 31, 2016 Land $ 310,365 $ 310,365 Buildings and improvements 6,623,104 6,528,252 Machinery and equipment 4,170,638 3,590,063 11,104,107 10,428,680 Less accumulated depreciation (3,652,208 ) (3,152,808 ) $ 7,451,899 $ 7,275,872 |
Note 5 - Patents and Trademar24
Note 5 - Patents and Trademarks, Net (Tables) | 9 Months Ended |
May 31, 2017 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | May 31, 2017 August 31, 2016 Patents and trademarks $ 2,700,215 $ 2,575,435 Less accumulated amortization (1,386,112 ) (1,296,838 ) $ 1,314,103 $ 1,278,597 |
Note 6 - Investments in Joint25
Note 6 - Investments in Joint Ventures (Tables) | 9 Months Ended |
May 31, 2017 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | As of May 31, 2017 Total EXCOR India Finland All Other Current assets $ 48,064,624 $ 19,820,904 $ 4,322,253 $ 1,929,781 $ 21,991,686 Total assets 52,062,465 21,882,519 4,658,050 2,216,723 23,305,173 Current liabilities 13,773,839 3,028,386 1,412,054 547,007 8,786,392 Noncurrent liabilities 247,572 - 14,201 - 233,371 Joint ventures’ equity 38,041,054 18,854,133 3,231,795 1,669,716 14,285,410 Northern Technologies International Corporation’s share of joint ventures’ equity 18,903,473 9,427,068 1,615,898 834,856 7,025,651 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 16,829,258 9,396,163 751,076 814,856 5,867,163 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 |
Condensed Income Statement [Table Text Block] | Nine Months Ended May 31, 2017 Total EXCOR India Finland All Other Net sales $ 73,098,215 $ 28,169,978 $ 5,299,600 $ 2,619,843 $ 37,008,794 Gross profit 32,376,247 15,032,724 2,463,138 1,569,152 13,311,233 Net income 8,562,834 6,184,181 611,143 413,044 1,354,466 Northern Technologies International Corporation’s share of equity in income of joint ventures 4,343,159 3,089,935 384,712 206,874 661,638 Northern Technologies International Corporation's dividends received from joint ventures $ 5,179,786 $ 4,240,400 $ 446,939 $ 200,768 $ 291,679 Nine Months Ended May 31, 2016 Total EXCOR India Finland All Other Net sales $ 66,223,514 $ 25,314,260 $ 5,027,226 $ 2,435,861 $ 33,446,167 Gross profit 29,745,795 13,512,404 2,427,574 1,438,756 12,367,061 Net income 7,188,274 5,409,407 697,977 342,544 738,346 Northern Technologies International Corporation’s share of equity in income of joint ventures 3,600,884 2,714,905 327,846 171,662 386,471 Northern Technologies International Corporation's dividends received from joint ventures $ 5,449,543 $ 4,364,700 $ 326,023 $ 206,516 552,304 |
Note 10 - Net Income Per Comm26
Note 10 - Net Income Per Common Share (Tables) | 9 Months Ended |
May 31, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended Numerators: May 31, 2017 May 31, 2016 May 31, 2017 May 31, 2016 Net income attributable to NTIC $ 1,352,416 $ 917,373 $ 2,037,021 $ 575,233 Denominators: Basic – weighted shares outstanding 4,526,771 4,538,970 4,528,523 4,538,005 Weighted shares assumed upon exercise of stock options 64,756 24,831 42,872 49,059 Diluted – weighted shares outstanding 4,591,527 4,563,801 4,571,395 4,587,064 Basic income per share: $ 0.30 $ 0.20 $ 0.45 $ 0.13 Diluted income per share: $ 0.30 $ 0.20 $ 0.45 $ 0.13 |
Note 11 - Stock-based Compens27
Note 11 - Stock-based Compensation (Tables) | 9 Months Ended |
May 31, 2017 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Nine Months Ended May 31, 2017 May 31, 2016 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) | 9 Months Ended |
May 31, 2017 | |
Notes Tables | |
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block] | Three Months Ended Nine Months Ended May 31, % of May 31, % of May 31, % of May 31, % of Direct cost of goods sold ZERUST® $ 4,834,355 57.8 % $ 4,028,114 56.1 % $ 13,788,416 58.2 % $ 10,968,742 56.1 % Natur-Tec® 1,327,323 71.6 % 1,119,730 74.6 % 3,608,722 72.4 % 2,938,927 76.0 % Indirect cost of goods sold 612,323 — 629,405 — 1,859,815 — 2,013,227 — Total net cost of goods sold $ 6,774,001 $ 5,777,249 $ 19,256,953 $ 15,920,896 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended Nine Months Ended May 31, 2017 May 31, 2016 May 31, 2017 May 31, 2016 Inside the U.S.A. to unaffiliated customers $ 5,967,459 $ 5,559,885 $ 16,363,291 $ 14,762,170 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 862,136 446,322 2,115,511 1,967,370 Unaffiliated customers 3,393,424 2,680,368 10,189,143 6,686,406 $ 10,223,019 $ 8,686,575 $ 28,667,945 $ 23,415,946 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended Nine Months Ended May 31, 2017 May 31, 2016 May 31, 2017 May 31, 2016 ZERUST® net sales $ 8,368,487 $ 7,185,955 $ 23,681,192 $ 19,548,974 Natur-Tec® net sales 1,854,532 1,500,620 4,986,753 3,866,972 Total net sales $ 10,223,019 $ 8,686,575 $ 28,667,945 $ 23,415,946 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | At May 31, At August 31, Brazil $ 56,246 $ 66,938 India 13,634 13,645 Germany 13,687 — China 231,114 253,931 United States 7,137,218 6,941,358 Total long-lived assets $ 7,451,899 $ 7,275,872 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Nine Months Ended May 31, 2017 May 31, 2016 Brazil $ 1,683,255 $ 1,509,659 India 1,057,132 911,227 Germany 378,635 — China 4,991,807 2,473,733 United States 20,557,116 18,521,327 Total net sales $ 28,667,945 $ 23,415,946 |
Fees for Services Provided to Joint Ventures [Member] | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended May 31, % of Total Fees May 31, % of Total Fees for Germany $ 212,257 14.7 % $ 242,158 17.9 % Poland 180,969 12.6 % 167,237 12.4 % Japan 153,903 10.7 % 148,091 11.0 % Sweden 150,139 10.4 % 66,239 4.9 % France 112,455 7.8 % 87,588 6.5 % Thailand 104,771 7.3 % 132,548 9.8 % Korea 92,954 6.4 % 74,085 5.5 % India 90,469 6.3 % 70,610 5.2 % United Kingdom 87,768 6.1 % 135,068 10.0 % Finland 78,012 5.4 % 55,876 4.1 % Czech Republic 74,135 5.1 % 54,537 4.0 % Other 104,216 7.2 % 117,876 8.7 % $ 1,442,048 100.0 % $ 1,351,913 100.0 % Nine Months Ended May 31, % of Total Fees May 31, % of Total Fees for Germany $ 614,766 15.6 % $ 664,812 17.4 % Poland 483,626 12.3 % 452,260 11.8 % Japan 445,662 11.3 % 416,241 10.9 % Thailand 339,852 8.6 % 395,611 10.4 % Sweden 314,664 8.0 % 189,556 5.0 % France 293,240 7.4 % 250,373 6.6 % Korea 284,435 7.2 % 247,730 6.5 % India 229,200 5.8 % 223,137 5.9 % United Kingdom 227,140 5.8 % 292,216 7.7 % Finland 221,294 5.6 % 177,704 4.7 % Czech Republic 218,249 5.5 % 176,470 4.6 % Other 269,539 6.9 % 322,274 8.5 % $ 3,941,667 100.0 % $ 3,808,384 100.0 % |
Note 14 - Fair Value Measurem29
Note 14 - Fair Value Measurements (Tables) | 9 Months Ended |
May 31, 2017 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | Fair Value Measurements Using Inputs Considered as Fair Value as of May 31, 2017 Level 1 Level 2 Level 3 Available for sale securities $ 3,756,680 $ 3,756,680 $ — $ — Fair Value Measurements Using Inputs Considered as Fair Value as of August 31, 2016 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) | 9 Months Ended |
May 31, 2017 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Three Months Ended May 31, 2017 May 31, 2016 Cash paid for interest $ 7,409 $ 15,465 Cash paid for income taxes — — Nine Months Ended May 31, 2017 May 31, 2016 Cash paid for interest $ 15,502 $ 30,987 Cash paid for income taxes — — |
Note 3 - Inventories - Inventor
Note 3 - Inventories - Inventories (Details) - USD ($) | May 31, 2017 | Aug. 31, 2016 |
Production materials | $ 1,454,328 | $ 1,452,396 |
Finished goods | 6,425,328 | 6,258,891 |
Inventories | $ 7,879,656 | $ 7,711,287 |
Note 4 - Property and Equipme32
Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($) | May 31, 2017 | Aug. 31, 2016 |
Land | $ 310,365 | $ 310,365 |
Buildings and improvements | 6,623,104 | 6,528,252 |
Machinery and equipment | 4,170,638 | 3,590,063 |
Gross | 11,104,107 | 10,428,680 |
Less accumulated depreciation | (3,652,208) | (3,152,808) |
Net | $ 7,451,899 | $ 7,275,872 |
Note 5 - Patents and Trademar33
Note 5 - Patents and Trademarks, Net (Details Textual) - Patents and Trademarks [Member] | 9 Months Ended |
May 31, 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 ($) | May 31, 2017 | Aug. 31, 2016 |
Patents and trademarkes, net | $ 1,314,103 | $ 1,278,597 |
Patents and Trademarks [Member] | ||
Patents and trademarks | 2,700,215 | 2,575,435 |
Less accumulated amortization | (1,386,112) | (1,296,838) |
Patents and trademarkes, net | $ 1,314,103 | $ 1,278,597 |
Note 6 - Investments in Joint35
Note 6 - Investments in Joint Ventures (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2017 | May 31, 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 ($) | May 31, 2017 | Aug. 31, 2016 |
Total assets | $ 52,062,465 | $ 52,407,026 |
Current liabilities | 13,773,839 | 12,433,700 |
Noncurrent liabilities | 247,572 | 100,783 |
Joint ventures’ equity | 38,041,054 | 39,872,543 |
Northern Technologies International Corporation’s share of joint ventures’ equity | 18,903,473 | 19,840,774 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 16,829,258 | 17,779,912 |
Current assets | 48,064,624 | 48,922,924 |
EXCOR [Member] | ||
Total assets | 21,882,519 | 24,733,340 |
Current liabilities | 3,028,386 | 3,485,213 |
Noncurrent liabilities | ||
Joint ventures’ equity | 18,854,133 | 21,248,109 |
Northern Technologies International Corporation’s share of joint ventures’ equity | 9,427,068 | 10,624,056 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 9,396,163 | 10,593,151 |
Current assets | 19,820,904 | 22,928,810 |
Joint Venture in India [Member] | ||
Total assets | 4,658,050 | 4,352,573 |
Current liabilities | 1,412,054 | 1,097,231 |
Noncurrent liabilities | 14,201 | 6,382 |
Joint ventures’ equity | 3,231,795 | 3,248,960 |
Northern Technologies International Corporation’s share of joint ventures’ equity | 1,615,898 | 1,624,480 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 751,076 | 759,658 |
Current assets | 4,322,253 | 4,027,016 |
Joint Venture in Finland [Member] | ||
Total assets | 2,216,723 | 2,211,392 |
Current liabilities | 547,007 | 546,506 |
Noncurrent liabilities | ||
Joint ventures’ equity | 1,669,716 | 1,664,886 |
Northern Technologies International Corporation’s share of joint ventures’ equity | 834,856 | 832,442 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 814,856 | 812,442 |
Current assets | 1,929,781 | 1,928,861 |
All Other [Member] | ||
Total assets | 23,305,173 | 21,109,721 |
Current liabilities | 8,786,392 | 7,304,730 |
Noncurrent liabilities | 233,371 | 94,401 |
Joint ventures’ equity | 14,285,410 | 13,710,588 |
Northern Technologies International Corporation’s share of joint ventures’ equity | 7,025,651 | 6,759,796 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 5,867,163 | 5,614,661 |
Current assets | $ 21,991,686 | $ 20,038,237 |
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 | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Gross profit | $ 32,376,247 | $ 29,745,795 | ||
Net income | 8,562,834 | 7,188,274 | ||
Northern Technologies International Corporation’s share of equity in income of joint ventures | $ 1,686,016 | $ 1,664,464 | 4,343,159 | 3,600,884 |
Northern Technologies International Corporation's dividends received from joint ventures | 5,179,786 | 5,449,543 | ||
Net sales | 73,098,215 | 66,223,514 | ||
EXCOR [Member] | ||||
Gross profit | 15,032,724 | 13,512,404 | ||
Net income | 6,184,181 | 5,409,407 | ||
Northern Technologies International Corporation’s share of equity in income of joint ventures | 3,089,935 | 2,714,905 | ||
Northern Technologies International Corporation's dividends received from joint ventures | 4,240,400 | 4,364,700 | ||
Net sales | 28,169,978 | 25,314,260 | ||
Joint Venture in India [Member] | ||||
Gross profit | 2,463,138 | 2,427,574 | ||
Net income | 611,143 | 697,977 | ||
Northern Technologies International Corporation’s share of equity in income of joint ventures | 384,712 | 327,846 | ||
Northern Technologies International Corporation's dividends received from joint ventures | 446,939 | 326,023 | ||
Net sales | 5,299,600 | 5,027,226 | ||
Joint Venture in Finland [Member] | ||||
Gross profit | 1,569,152 | 1,438,756 | ||
Net income | 413,044 | 342,544 | ||
Northern Technologies International Corporation’s share of equity in income of joint ventures | 206,874 | 171,662 | ||
Northern Technologies International Corporation's dividends received from joint ventures | 200,768 | 206,516 | ||
Net sales | 2,619,843 | 2,435,861 | ||
All Other [Member] | ||||
Gross profit | 13,311,233 | 12,367,061 | ||
Net income | 1,354,466 | 738,346 | ||
Northern Technologies International Corporation’s share of equity in income of joint ventures | 661,638 | 386,471 | ||
Northern Technologies International Corporation's dividends received from joint ventures | 291,679 | 552,304 | ||
Net sales | $ 37,008,794 | $ 33,446,167 |
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 ($) | 9 Months Ended | |
May 31, 2017 | Aug. 31, 2016 | |
PNC Bank [Member] | ||
Letters of Credit Outstanding, Amount | $ 0 | $ 0 |
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] | 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 | 9 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 10.25 | |
Stock Repurchased and Retired During Period, Shares | 14,525 | 7,511 |
Treasury Stock Acquired, Average Cost Per Share | $ 13.51 | $ 12.98 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 4,000 | 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 Per Comm41
Note 10 - Net Income Per Common Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 271,791 | 271,791 | ||
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 48,067 | 170,887 | 48,067 | 170,887 |
Note 10 - Net Income Per Comm42
Note 10 - Net Income Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Net income attributable to NTIC | $ 1,352,416 | $ 917,373 | $ 2,037,021 | $ 575,233 |
Basic – weighted shares outstanding (in shares) | 4,526,771 | 4,538,970 | 4,528,523 | 4,538,005 |
Weighted shares assumed upon exercise of stock options (in shares) | 64,756 | 24,831 | 42,872 | 49,059 |
Diluted – weighted shares outstanding (in shares) | 4,591,527 | 4,563,801 | 4,571,395 | 4,587,064 |
Basic income per share: (in dollars per share) | $ 0.30 | $ 0.20 | $ 0.45 | $ 0.13 |
Diluted income per share: (in dollars per share) | $ 0.30 | $ 0.20 | $ 0.45 | $ 0.13 |
Note 11 - Stock-based Compens43
Note 11 - Stock-based Compensation (Details Textual) | 9 Months Ended | |
May 31, 2017USD ($)$ / sharesshares | May 31, 2016USD ($)$ / sharesshares | |
Number of Stock-based Compensation Plans | 2 | |
Stock or Unit Option Plan Expense | $ 293,748 | $ 325,576 |
Allocated Share-based Compensation Expense, Estimate Remainder of Fiscal Year | 97,916 | |
Allocated Share-based Compensation Expense, Estimate, Next Fiscal Year | 159,600 | |
Allocated Share-based Compensation Expense, Estimate, Fiscal Year Two | $ 79,800 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 7.69 | $ 8.48 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 266 days | 6 years 259 days |
Net of Estimated Forfeitures [Member] | ||
Allocated Share-based Compensation Expense, Estimate Remainder of Fiscal Year | $ 337,316 | |
The 2007 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
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, Options, Grants in Period, Gross | shares | 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 | shares | 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) | 9 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 46.40% | 46.00% |
Expected life of option (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) | 9 Months Ended |
May 31, 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 | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Net sales by segment | $ 10,223,019 | $ 8,686,575 | $ 28,667,945 | $ 23,415,946 |
ZERUST [Member] | ||||
Net sales by segment | 8,368,487 | 7,185,955 | 23,681,192 | 19,548,974 |
NaturTec [Member] | ||||
Net sales by segment | $ 1,854,532 | $ 1,500,620 | $ 4,986,753 | $ 3,866,972 |
Note 12 - Segment and Geograp47
Note 12 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | ||
Precentage of product sales | [1] | ||||
Cost of goods sold | $ 6,774,001 | $ 5,777,249 | $ 19,256,953 | $ 15,920,896 | |
Direct Cost of Goods Sold [Member] | ZERUST [Member] | |||||
Precentage of product sales | [1] | 57.80% | 56.10% | 58.20% | 56.10% |
Cost of goods sold | $ 4,834,355 | $ 4,028,114 | $ 13,788,416 | $ 10,968,742 | |
Direct Cost of Goods Sold [Member] | NaturTec [Member] | |||||
Precentage of product sales | [1] | 71.60% | 74.60% | 72.40% | 76.00% |
Cost of goods sold | $ 1,327,323 | $ 1,119,730 | $ 3,608,722 | $ 2,938,927 | |
Indirect Cost of Goods Sold [Member] | |||||
Precentage of product sales | [1] | ||||
Cost of goods sold | $ 612,323 | $ 629,405 | $ 1,859,815 | $ 2,013,227 | |
[1] | The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category. |
Note 12 - Segment and Geograp48
Note 12 - Segment and Geographic Information - Net Sales by Geographic Location (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Net sales by segment | $ 10,223,019 | $ 8,686,575 | $ 28,667,945 | $ 23,415,946 |
Inside the USA to Unaffiliated Customers [Member] | ||||
Net sales by segment | 5,967,459 | 5,559,885 | 16,363,291 | 14,762,170 |
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member] | ||||
Net sales by segment | 862,136 | 446,322 | 2,115,511 | 1,967,370 |
Unaffiliated Customers Outside the USA [Member] | ||||
Net sales by segment | $ 3,393,424 | $ 2,680,368 | $ 10,189,143 | $ 6,686,406 |
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 | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Fees | $ 1,442,048 | $ 1,351,913 | $ 3,941,667 | $ 3,808,384 |
Percentage of total fees | 100.00% | 100.00% | 100.00% | 100.00% |
GERMANY | ||||
Fees | $ 212,257 | $ 242,158 | $ 614,766 | $ 664,812 |
Percentage of total fees | 14.70% | 17.90% | 15.60% | 17.40% |
POLAND | ||||
Fees | $ 180,969 | $ 167,237 | $ 483,626 | $ 452,260 |
Percentage of total fees | 12.60% | 12.40% | 12.30% | 11.80% |
JAPAN | ||||
Fees | $ 153,903 | $ 148,091 | $ 445,662 | $ 416,241 |
Percentage of total fees | 10.70% | 11.00% | 11.30% | 10.90% |
SWEDEN | ||||
Fees | $ 150,139 | $ 66,239 | $ 314,664 | $ 189,556 |
Percentage of total fees | 10.40% | 4.90% | 8.00% | 5.00% |
THAILAND | ||||
Fees | $ 104,771 | $ 132,548 | $ 339,852 | $ 395,611 |
Percentage of total fees | 7.30% | 9.80% | 8.60% | 10.40% |
FRANCE | ||||
Fees | $ 112,455 | $ 87,588 | $ 293,240 | $ 250,373 |
Percentage of total fees | 7.80% | 6.50% | 7.40% | 6.60% |
KOREA, REPUBLIC OF | ||||
Fees | $ 92,954 | $ 74,085 | $ 284,435 | $ 247,730 |
Percentage of total fees | 6.40% | 5.50% | 7.20% | 6.50% |
INDIA | ||||
Fees | $ 90,469 | $ 70,610 | $ 229,200 | $ 223,137 |
Percentage of total fees | 6.30% | 5.20% | 5.80% | 5.90% |
UNITED KINGDOM | ||||
Fees | $ 87,768 | $ 135,068 | $ 227,140 | $ 292,216 |
Percentage of total fees | 6.10% | 10.00% | 5.80% | 7.70% |
FINLAND | ||||
Fees | $ 78,012 | $ 55,876 | $ 221,294 | $ 177,704 |
Percentage of total fees | 5.40% | 4.10% | 5.60% | 4.70% |
CZECH REPUBLIC | ||||
Fees | $ 74,135 | $ 54,537 | $ 218,249 | $ 176,470 |
Percentage of total fees | 5.10% | 4.00% | 5.50% | 4.60% |
Other Countries [Member] | ||||
Fees | $ 104,216 | $ 117,876 | $ 269,539 | $ 322,274 |
Percentage of total fees | 7.20% | 8.70% | 6.90% | 8.50% |
Note 12 - Segment and Geograp50
Note 12 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($) | May 31, 2017 | Aug. 31, 2016 |
Total long-lived assets | $ 7,451,899 | $ 7,275,872 |
BRAZIL | ||
Total long-lived assets | 56,246 | 66,938 |
INDIA | ||
Total long-lived assets | 13,634 | 13,645 |
GERMANY | ||
Total long-lived assets | 13,687 | |
CHINA | ||
Total long-lived assets | 231,114 | 253,931 |
UNITED STATES | ||
Total long-lived assets | $ 7,137,218 | $ 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 | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Net sales by segment | $ 10,223,019 | $ 8,686,575 | $ 28,667,945 | $ 23,415,946 |
BRAZIL | ||||
Net sales by segment | 1,683,255 | 1,509,659 | ||
INDIA | ||||
Net sales by segment | 1,057,132 | 911,227 | ||
GERMANY | ||||
Net sales by segment | 378,635 | |||
CHINA | ||||
Net sales by segment | 4,991,807 | 2,473,733 | ||
UNITED STATES | ||||
Net sales by segment | $ 20,557,116 | $ 18,521,327 |
Note 13 - Commitments and Con52
Note 13 - Commitments and Contingencies (Details Textual) - USD ($) | 9 Months Ended | ||
May 31, 2017 | Aug. 31, 2016 | May 31, 2016 | |
Accrued Bonuses | $ 600,000 | $ 215,000 | |
Entity Wide Trade Joint Venture Receivables, Four Joint Ventures,Percentage | 21.40% | 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 ($) | May 31, 2017 | Aug. 31, 2016 |
Available for sale securities | $ 3,756,680 | $ 2,243,864 |
Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | 3,756,680 | 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 | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Cash paid for interest | $ 7,409 | $ 15,465 | $ 15,502 | $ 30,987 |
Cash paid for income taxes |