Northern Technologies International (NTIC) 10-Q 16 Jul 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	May 31, 2018	Jul. 13, 2018
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)		4,541,304
Document Type	10-Q
Document Period End Date	May 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	May 31, 2018	Aug. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 4,610,325	$ 6,360,201
Available for sale securities	3,282,915	3,766,984
Receivables:
Trade excluding joint ventures, less allowance for doubtful accounts of $50,000 at May 31, 2018 and $40,000 at August 31, 2017	8,692,708	5,912,631
Trade joint ventures	597,805	691,752
Fees for services provided to joint ventures	1,352,249	1,302,944
Income taxes	369,136	137,256
Inventories	9,174,743	7,456,552
Prepaid expenses	1,081,190	439,298
Total current assets	29,161,071	26,067,618
PROPERTY AND EQUIPMENT, NET	7,233,307	7,359,662
OTHER ASSETS:
Investments in joint ventures	22,412,792	20,035,074
Deferred income taxes	1,056,565	1,756,565
Patents and trademarks, net	1,196,222	1,322,089
Other	153,846	71,685
Total other assets	24,819,425	23,185,413
Total assets	61,213,803	56,612,693
CURRENT LIABILITIES:
Accounts payable	3,316,169	2,676,610
Income taxes payable	112,686
Accrued liabilities:
Payroll and related benefits	1,804,451	1,540,386
Other	1,115,595	677,621
Total current liabilities	6,348,901	4,894,617
COMMITMENTS AND CONTINGENCIES (Note 12)
EQUITY:
Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding
Common stock, $0.02 par value per share; authorized 15,000,000 shares as of May 31, 2018 and 10,000,000 shares as of August 31, 2017; issued and outstanding 4,541,304 and 4,535,018, respectively	90,826	90,700
Additional paid-in capital	14,516,510	14,163,509
Retained earnings	40,275,326	37,077,483
Accumulated other comprehensive loss	(3,058,672)	(2,471,064)
Stockholders’ equity	51,823,990	48,860,628
Non-controlling interest	3,040,912	2,857,448
Total equity	54,864,902	51,718,076
Total liabilities and equity	$ 61,213,803	$ 56,612,693

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands	May 31, 2018	Aug. 31, 2017
Trade allowance	$ 50,000	$ 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

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
NET SALES:
Net sales, excluding joint ventures	$ 12,044,513	$ 9,360,883	$ 34,479,773	$ 26,552,434
Net sales, to joint ventures	879,324	862,136	2,201,077	2,115,511
Total net sales	12,923,837	10,223,019	36,680,850	28,667,945
Cost of goods sold	8,592,366	6,774,001	24,493,672	19,256,953
Gross profit	4,331,471	3,449,018	12,187,178	9,410,992
JOINT VENTURE OPERATIONS:
Equity in income from joint ventures	2,246,066	1,686,016	5,793,391	4,343,159
Fees for services provided to joint ventures	1,508,500	1,442,048	4,624,532	3,941,667
Total joint venture operations	3,754,566	3,128,064	10,417,923	8,284,826
OPERATING EXPENSES:
Selling expenses	2,784,694	2,430,824	8,028,279	6,716,390
General and administrative expenses	1,987,785	1,682,669	6,012,746	5,996,977
Research and development expenses	860,347	733,651	2,581,824	2,118,210
Total operating expenses	5,632,826	4,847,144	16,622,849	14,831,577
OPERATING INCOME	2,453,211	1,729,938	5,982,252	2,864,241
INTEREST INCOME	35,630	10,996	84,569	19,075
INTEREST EXPENSE	(3,139)	(7,409)	(14,007)	(15,502)
INCOME BEFORE INCOME TAX EXPENSE	2,485,702	1,733,525	6,052,814	2,867,814
INCOME TAX EXPENSE	181,683	237,801	1,128,583	480,423
NET INCOME	2,304,019	1,495,724	4,924,231	2,387,391
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	161,267	143,308	365,006	350,370
NET INCOME ATTRIBUTABLE TO NTIC	$ 2,142,752	$ 1,352,416	$ 4,559,225	$ 2,037,021
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE:
Basic (in dollars per share)	$ 0.47	$ 0.30	$ 1	$ 0.45
Diluted (in dollars per share)	$ 0.46	$ 0.30	$ 0.98	$ 0.45
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING:
Basic (in shares)	4,539,353	4,526,771	4,538,838	4,528,523
Diluted (in shares)	4,707,032	4,591,527	4,663,847	4,571,395
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 0.10	$ 0	$ 0.30	$ 0

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
NET INCOME	$ 2,304,019	$ 1,495,724	$ 4,924,231	$ 2,387,391
OTHER COMPREHENSIVE INCOME (LOSS) – FOREIGN CURRENCY TRANSLATION ADJUSTMENT	(1,011,686)	780,726	(569,151)	(239,095)
COMPREHENSIVE INCOME	1,292,333	2,276,450	4,355,080	2,148,296
COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	137,501	160,223	383,463	353,423
COMPREHENSIVE INCOME ATTRIBUTABLE TO NTIC	$ 1,154,832	$ 2,116,227	$ 3,971,617	$ 1,794,873

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	May 31, 2018	May 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 4,924,231	$ 2,387,391
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Stock-based compensation	309,743	293,748
Depreciation expense	631,399	580,962
Amortization expense	188,460	89,274
Gain on disposal of assets	(11,662)
Equity in income from joint ventures	(5,793,391)	(4,343,159)
Dividends received from joint ventures	2,941,807	5,179,786
Deferred income taxes	700,000	24,939
Changes in current assets and liabilities:
Trade, excluding joint ventures	(2,827,606)	(1,442,714)
Trade, joint ventures	93,947	(503,863)
Fees for services provided to joint ventures	(49,305)	181,610
Income taxes	(267,131)	(154,171)
Inventories	(1,773,085)	(155,011)
Prepaid expenses and other	(718,839)	19,197
Accounts payable	728,657	816,845
Income tax payable	104,643	(3,466)
Accrued liabilities	676,138	(145,202)
Net cash (used in) provided by operating activities	(141,994)	2,826,166
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of available for sale securities	(1,018,596)	(3,013,572)
Proceeds from the sale of available for sale securities	1,502,665	1,500,756
Additions to property and equipment	(500,924)	(760,847)
Additions to patents	(62,594)	(124,780)
Net cash used in investing activities	(79,449)	(2,398,443)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividend received by non-controlling interest	(200,000)	(200,000)
Repurchase of common stock		(196,164)
Dividends paid on NTIC common stock	(1,361,382)
Proceeds from employee stock purchase plan	27,951	46,475
Proceeds from option exercises	15,433	41,000
Net cash used in financing activities	(1,517,998)	(308,689)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS:	(10,435)	(14,144)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(1,749,876)	104,890
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	6,360,201	3,395,274
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 4,610,325	$ 3,500,164

Note 1 - Interim Financial Info

Note 1 - Interim Financial Information	9 Months Ended
	May 31, 2018
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, 2018 August 31, 2017 three nine May 31, 2018 2017 nine May 31, 2018 2017, 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, 2017. Operating results for the three nine May 31, 2018 not may August 31, 2018. The Company evaluates events occurring after the date of the consolidated financial statements requiring recording or disclosure in the consolidated financial statements.

Note 2 - Accounting Pronounceme

Note 2 - Accounting Pronouncements	9 Months Ended
	May 31, 2018
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	2. Accounting PronouncementS Recently Issued Accounting Pronouncements In May 2014, 606, Revenue from Contracts with Customers 606. five September 1, 2018. 606, not During February 2016, No. 2016 02, Leases No. 2016 02 12 No. 2016 02 December 15, 2018, first 2020. No. 2016 02 In August 2016, No. 2016 15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments. No. 2016 15 zero No. 2016 15 December 15, 2017. No. 2016 15 In February 2018, No. 2018 02, Income Statement – Reporting Comprehensive Income (Topic 220 No. 2018 02, not No. 2018 02 2020, In December 2017, No. 118 No. 2018 05, Income Taxes 740 No. 118” may not December 22, 2017. No. 118 one No. 118 not no No. 118 15 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, 2018
Notes to Financial Statements
Inventory Disclosure [Text Block]	3. Inventories consisted of the following: May 31, 2018 August 31, 2017 Production materials $ 1,296,106 $ 1,747,189 Finished goods 7,878,637 5,709,363 $ 9,174,743 $ 7,456,552

Note 4 - Property and Equipment

Note 4 - Property and Equipment, Net	9 Months Ended
	May 31, 2018
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	4. Property and equipment, net consisted of the following: May 31, 2018 August 31, 2017 Land $ 310,365 $ 310,365 Buildings and improvements 6,903,231 6,847,177 Machinery and equipment 4,554,692 4,171,387 11,768,288 11,328,929 Less accumulated depreciation (4,534,981 ) (3,969,267 ) $ 7,233,307 $ 7,359,662

Note 5 - Patents and Trademarks

Note 5 - Patents and Trademarks, Net	9 Months Ended
	May 31, 2018
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	5. Patents and trademarks, net consisted of the following: May 31, 2018 August 31, 2017 Patents and trademarks $ 2,800,553 $ 2,737,959 Less accumulated amortization (1,604,331 ) (1,415,870 ) $ 1,196,222 $ 1,322,089 Patent and trademark costs are amortized over seven $ 240,000 five

Note 6 - Investments in Joint V

Note 6 - Investments in Joint Ventures	9 Months Ended
	May 31, 2018
Notes to Financial Statements
Equity Method Investments and Joint Ventures Disclosure [Text Block]	6. The consolidated 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 U.S. GAAP in all material respects. All material profits recorded that remain on the consolidated balance sheet on sales from the Company to its joint ventures and from joint ventures to other joint ventures have been eliminated for financial reporting purposes. Financial information from the audited and unaudited financial statements of the Company’s joint venture in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR) and all the Company’s other joint ventures, are summarized as follows: As of May 31, 2018 Total EXCOR All Other Current assets $ 58,113,904 $ 25,734,914 $ 32,378,990 Total assets 62,004,849 27,838,358 34,166,491 Current liabilities 16,622,611 3,830,246 12,792,365 Noncurrent liabilities 110,926 - 110,926 Joint ventures’ equity 45,271,314 24,008,112 21,263,202 Northern Technologies International Corporation’s share of joint ventures’ equity 22,412,792 12,004,058 10,408,734 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 20,383,580 11,973,153 8,410,427 Three Months Ended May 31, 2018 Total EXCOR All Other Net sales $ 31,480,885 $ 12,219,414 $ 19,261,471 Gross profit 14,209,819 6,823,609 7,386,210 Net income 4,540,968 3,113,660 1,427,308 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 2,246,066 $ 1,558,243 $ 687,823 Nine Months Ended May 31, 2018 Total EXCOR All Other Net sales $ 90,200,146 $ 35,450,664 $ 54,749,482 Gross profit 40,529,217 19,315,099 21,214,118 Net income 11,753,467 8,272,237 3,481,230 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 5,793,391 $ 4,138,814 $ 1,654,577 Northern Technologies International Corporation’s dividends received from joint ventures $ 2,941,807 $ 1,780,392 $ 1,161,415 As of August 31, 2017 Total EXCOR All Other Current assets $ 51,518,210 $ 22,142,514 $ 29,375,696 Total assets 55,633,891 24,301,194 31,332,697 Current liabilities 15,118,074 4,469,567 10,648,507 Noncurrent liabilities 181,210 — 181,210 Joint ventures’ equity 40,334,607 19,831,627 20,502,980 Northern Technologies International Corporation’s share of joint ventures’ equity 20,035,074 9,915,816 10,119,258 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 17,960,860 9,884,911 8,075,949 Northern Technologies International Corporation’s dividends received from joint ventures $ 6,377,054 $ 5,379,062 $ 997,992 Three Months Ended May 31, 2017 Total EXCOR All Other Net sales $ 25,935,169 $ 9,884,546 $ 16,050,623 Gross profit 11,517,711 5,271,028 6,246,683 Net income 3,379,883 2,166,435 1,213,448 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 1,686,016 $ 1,083,494 $ 602,522 Nine Months Ended May 31, 2017 Total EXCOR All Other Net sales $ 73,098,215 $ 28,169,978 $ 44,928,237 Gross profit 32,376,247 15,032,724 17,343,523 Net income 8,562,834 6,184,181 2,378,653 Northern Technologies International Corporation’s share of equity in income from joint ventures 4,343,159 3,089,935 1,253,224 Northern Technologies International Corporation’s dividends received from joint ventures $ 5,179,786 $ 4,240,400 $ 939,386 The Company did not three nine May 31, 2018 2017.

Note 7 - Corporate Debt

Note 7 - Corporate Debt	9 Months Ended
	May 31, 2018
Notes to Financial Statements
Debt Disclosure [Text Block]	7. The Company has a revolving line of credit with PNC Bank, National Association (PNC Bank) of $3,000,000. No May 31, 2018 August 31, 2017. 2.15% The line of credit is governed under a loan agreement. The loan agreement contains standard covenants, including affirmative financial covenants, such as the maintenance of a minimum fixed charge coverage ratio, and negative covenants, which, among other things, limit the incurrence of additional indebtedness, loans and equity investments, disposition of assets, mergers and consolidations and other matters customarily restricted in such agreements. Under the loan agreement, the Company is subject to a minimum fixed charge coverage ratio of 1.10:1.00. May 31, 2018, The revolving credit facility allows the Company to request that PNC Bank issue letters of credit up to $1,200,000. not May 31, 2018 August 31, 2017 not As of May 31, 2018, August 31, 2017, $88,831 $89,543, 2020 2022. On January 5, 2018, January 7, 2019.

Note 8 - Stockholders' Equity

Note 8 - Stockholders' Equity	9 Months Ended
	May 31, 2018
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	8. During the nine May 31, 2018, Declaration Date Amount Record Date Payable Date November 20, 2017 $0.10 December 8, 2017 December 21, 2017 January 24, 2018 $0.10 February 8, 2018 February 21, 2018 April 25, 2018 $0.10 May 9, 2018 May 23, 2018 During the nine May 31, 2018, no During the nine May 31, 2018, 4,410 $11.59 The Company granted stock options under the Northern Technologies International Corporation Amended and Restated 2007 2007 47,252 nine May 31, 2018. $18.35, The Company issued 891 3,029 September 1, 2017 2016, 985 1098 March 1, 2018 2017, The Company held its 2018 2018 January 12, 2018. 2018 10,000,000 15,000,000 January 16, 2018 may 2018 14A November 27, 2017 ( 2018 not 2018 may 2018 not not 5,000,000 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 56,677 $13.40,

Note 9 - Net Income Per Common

Note 9 - Net Income Per Common Share	9 Months Ended
	May 31, 2018
Notes to Financial Statements
Earnings Per Share [Text Block]	9. 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 earnings per share computation: Three Months Ended Nine Months Ended Numerators: May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Net income attributable to NTIC $ 2,142,752 $ 1,352,416 $ 4,559,225 $ 2,037,021 Denominators: Basic – weighted shares outstanding 4,539,353 4,526,771 4,538,838 4,528,523 Weighted shares assumed upon exercise of stock options 167,679 64,756 125,009 42,872 Diluted – weighted shares outstanding 4,707,032 4,591,527 4,663,847 4,571,395 Basic income per share: $ 0.47 $ 0.30 $ 1.00 $ 0.45 Diluted income per share: $ 0.46 $ 0.30 $ 0.98 $ 0.45 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 no three nine May 31, 2018. three nine May 31, 2017 48,067

Note 10 - Stock-based Compensat

Note 10 - Stock-based Compensation	9 Months Ended
	May 31, 2018
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	10. The Company has two 2007 The 2007 2007 800,000 2007 2007 ten three four one May 31, 2018, 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 47,252 56,677 nine May 31, 2018 2017, $309,473 $293,748 nine May 31, 2018 2017, May 31, 2018, not $322,402. $103,267 2018, $153,901 $65,234 2019 2020, May 31, 2018. 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, 2018 May 31, 2017 Dividend yield 2.18% 0.00% Expected volatility 45.9% 46.4% Expected life of option 10 years 10 years Average risk-free interest rate 1.87% 1.63% The weighted average per share fair value of options granted during the nine May 31, 2018 2017 $7.75 $7.69, May 31, 2018 2017 6.52 6.73

Note 11 - Segment and Geographi

Note 11 - Segment and Geographic Information	9 Months Ended
	May 31, 2018
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	11. 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, 2018 2017 Three Months Ended Nine Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 ZERUST® net sales $ 10,382,884 $ 8,368,487 $ 30,102,080 $ 23,681,192 Natur-Tec® net sales 2,540,953 1,854,532 6,578,770 4,986,753 Total net sales $ 12,923,837 $ 10,223,019 $ 36,680,850 $ 28,667,945 The following table sets forth the Company’s cost of goods sold for the three nine May 31, 2018 2017 Three Months Ended Nine Months Ended May 31, 2018 % of Segment Sales* May 31, 2017 % of Segment Sales* May 31, 2018 % of Segment Sales* May 31, 2017 % of Segment Sales* Direct cost of goods sold ZERUST® $ 6,139,699 59.1 % $ 4,834,355 57.8 % $ 17,948,941 59.6 % $ 13,788,416 58.2 % Natur-Tec® 1,812,084 71.3 % 1,327,323 71.6 % 4,738,523 72.0 % 3,608,722 72.4 % Indirect cost of goods sold 640,583 — 612,323 — 1,806,208 — 1,859,815 — Total net cost of goods sold $ 8,592,366 $ 6,774,001 $ 24,493,672 $ 19,256,953 ______________________________________ * 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, 2018 2017 Three Months Ended Nine Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Inside the U.S.A. to unaffiliated customers $ 7,434,991 $ 5,967,459 $ 19,771,031 $ 16,363,291 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 879,324 862,136 2,201,077 2,115,511 Unaffiliated customers 4,609,522 3,393,424 14,708,742 10,189,143 $ 12,923,837 $ 10,223,019 $ 36,680,850 $ 28,667,945 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, 2018 2017 Three Months Ended May 31, 2018 % of Total Fees for Services Provided to Joint Ventures May 31, 2017 % of Total Fees for Services Provided to Joint Ventures Germany $ 224,366 14.9 % $ 212,257 14.7 % Poland 185,107 12.3 % 180,969 12.6 % Japan 183,335 12.2 % 153,903 10.7 % Sweden 155,588 10.3 % 150,139 10.4 % France 146,949 9.7 % 112,455 7.8 % Thailand 110,894 7.4 % 104,771 7.3 % Czech Republic 100,131 6.6 % 74,135 5.1 % Korea 96,574 6.4 % 92,954 6.4 % Finland 81,402 5.4 % 78,012 5.4 % United Kingdom 80,931 5.4 % 87,768 6.1 % India 49,778 3.3 % 90,469 6.3 % Other 93,445 6.1 % 104,216 7.2 % $ 1,508,500 100.0 % $ 1,442,048 100.0 % Nine Months Ended May 31, 2018 % of Total Fees for Services Provided to Joint Ventures May 31, 2017 % of Total Fees for Services Provided to Joint Ventures Germany $ 680,939 14.7 % $ 614,766 15.6 % Poland 598,221 13.0 % 483,626 12.3 % Japan 529,412 11.4 % 445,662 11.3 % Sweden 448,707 9.7 % 314,664 8.0 % France 416,913 9.0 % 293,240 7.4 % Thailand 325,205 7.0 % 339,852 8.6 % Czech Republic 283,193 6.1 % 218,249 5.5 % Korea 279,524 6.0 % 284,435 7.2 % United Kingdom 275,137 6.0 % 227,140 5.8 % India 274,980 5.9 % 229,200 5.8 % Finland 247,574 5.4 % 221,294 5.6 % Other 264,727 5.8 % 269,539 6.9 % $ 4,624,532 100.0 % $ 3,941,667 100.0 % The geographical distribution of key financial statement data is as follows: At May 31, 2018 At August 31, 2017 China $ 251,848 $ 228,458 Brazil 81,161 54,646 Germany 10,155 14,171 India 21,628 14,712 United States 6,868,515 7,047,675 Total property and equipment $ 7,233,307 $ 7,359,662 Three Months Ended Nine Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 China $ 3,069,232 $ 1,695,508 $ 9,176,174 $ 4,991,807 Brazil 853,675 565,089 2,310,131 1,683,255 India 564,339 323,551 1,642,633 1,057,132 Germany 312,057 161,139 556,859 378,635 Other 955,418 583,752 2,318,569 2,115,511 United States 7,169,116 6,893,980 20,676,484 18,441,605 Total net sales $ 12,923,837 $ 10,223,019 $ 36,680,850 $ 28,667,945 Total property and equipment 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. 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 primarily related to ZERUST® products and services.

Note 12 - Commitments and Conti

Note 12 - Commitments and Contingencies	9 Months Ended
	May 31, 2018
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	12. On August 31, 2017, August 31, 2018. 2018 75% 2018 2018 25% may 2018. $1,380,000 nine May 31, 2018 $600,000 nine May 31, 2017. Three joint ventures (consisting of the Company’s joint ventures in South Korea, India and United States) accounted for 51.8% May 31, 2018, three 60.7% August 31, 2017. From time to time, the Company is subject to various other claims and legal actions in the ordinary course of its business. The Company records a liability in its consolidated financial statements for costs related to claims, including future legal costs, settlements and judgments, where the Company has assessed that a loss is probable and an amount could be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when no not not may May 31, 2018, not

Note 13 - Fair Value Measuremen

Note 13 - Fair Value Measurements	9 Months Ended
	May 31, 2018
Notes to Financial Statements
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]	13. 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 $ 3,282,915 $ 3,282,915 $ — $ — Fair Value Measurements Fair value as of Level 1 Level 2 Level 3 Available for sale securities $ 3,766,984 $ 3,766,984 $ — $ — There were no 1, 2, 3 three nine May 31, 2018 2017.

Note 14 - Supplemental Cash Flo

Note 14 - Supplemental Cash Flow Information	9 Months Ended
	May 31, 2018
Notes to Financial Statements
Cash Flow, Supplemental Disclosures [Text Block]	14. Supplemental disclosures of cash flow information consisted of: Three Months Ended May 31, 2018 May 31, 2017 Cash paid for interest $ 3,139 $ 7,409 Cash paid for income taxes 45,000 — Nine Months Ended May 31, 2018 May 31, 2017 Cash paid for interest $ 14,007 $ 15,502 Cash paid for income taxes 45,000 —

Note 15 - Income Taxes

Note 15 - Income Taxes	9 Months Ended
	May 31, 2018
Notes to Financial Statements
Income Tax Disclosure [Text Block]	15. On December 22, 2017, August 31 2018, not 35% 21% January 1, 2018, December 31, 2017, one 25.7% August 31, 2018 35% 21% January 1, 2018. The Company recognized the income tax effects of the Tax Reform Act in its 2018 No. 118, 740, Income Taxes 740 740 The Company recorded income tax expense during the three nine May 31, 2018 $181,683 $1,128,583, $237,801 $480,423 three nine May 31, 2017. The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Accordingly, the Company’s deferred tax assets and liabilities were re-measured to reflect the reduction in the U.S. corporate income tax rate from 35% 21% January 1, 2018, $700,000 nine May 31, 2018 $700,000 May 31, 2018 August 31, 2017. $700,000 may No three May 31, 2018. The one $489,000, not zero nine May 31, 2018. $489,000 one December 2017 No three May 31, 2018. The Company continues to analyze the impact of other provisions of the Tax Reform Act on its financial statements and operations, including the impact of the global intangible low-taxed income (GILTI) rules, and the impact of the Tax Reform Act on the Company’s indefinite reinvestment assertion with respect to the undistributed earnings of certain foreign subsidiaries and joint ventures. Any additional impacts from the enactment of the Tax Reform Act will be recorded as they are identified during the measurement period as provided for in accordance with SAB No. 118.

Note 3 - Inventories (Tables)

Note 3 - Inventories (Tables)	9 Months Ended
	May 31, 2018
Notes Tables
Schedule of Inventory, Current [Table Text Block]	May 31, 2018 August 31, 2017 Production materials $ 1,296,106 $ 1,747,189 Finished goods 7,878,637 5,709,363 $ 9,174,743 $ 7,456,552

Note 4 - Property and Equipme23

Note 4 - Property and Equipment, Net (Tables)	9 Months Ended
	May 31, 2018
Notes Tables
Property, Plant and Equipment [Table Text Block]	May 31, 2018 August 31, 2017 Land $ 310,365 $ 310,365 Buildings and improvements 6,903,231 6,847,177 Machinery and equipment 4,554,692 4,171,387 11,768,288 11,328,929 Less accumulated depreciation (4,534,981 ) (3,969,267 ) $ 7,233,307 $ 7,359,662

Note 5 - Patents and Trademar24

Note 5 - Patents and Trademarks, Net (Tables)	9 Months Ended
	May 31, 2018
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	May 31, 2018 August 31, 2017 Patents and trademarks $ 2,800,553 $ 2,737,959 Less accumulated amortization (1,604,331 ) (1,415,870 ) $ 1,196,222 $ 1,322,089

Note 6 - Investments in Joint25

Note 6 - Investments in Joint Ventures (Tables)	9 Months Ended
	May 31, 2018
Notes Tables
Condensed Balance Sheet [Table Text Block]	As of May 31, 2018 Total EXCOR All Other Current assets $ 58,113,904 $ 25,734,914 $ 32,378,990 Total assets 62,004,849 27,838,358 34,166,491 Current liabilities 16,622,611 3,830,246 12,792,365 Noncurrent liabilities 110,926 - 110,926 Joint ventures’ equity 45,271,314 24,008,112 21,263,202 Northern Technologies International Corporation’s share of joint ventures’ equity 22,412,792 12,004,058 10,408,734 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 20,383,580 11,973,153 8,410,427 As of August 31, 2017 Total EXCOR All Other Current assets $ 51,518,210 $ 22,142,514 $ 29,375,696 Total assets 55,633,891 24,301,194 31,332,697 Current liabilities 15,118,074 4,469,567 10,648,507 Noncurrent liabilities 181,210 — 181,210 Joint ventures’ equity 40,334,607 19,831,627 20,502,980 Northern Technologies International Corporation’s share of joint ventures’ equity 20,035,074 9,915,816 10,119,258 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 17,960,860 9,884,911 8,075,949 Northern Technologies International Corporation’s dividends received from joint ventures $ 6,377,054 $ 5,379,062 $ 997,992
Condensed Income Statement [Table Text Block]	Three Months Ended May 31, 2018 Total EXCOR All Other Net sales $ 31,480,885 $ 12,219,414 $ 19,261,471 Gross profit 14,209,819 6,823,609 7,386,210 Net income 4,540,968 3,113,660 1,427,308 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 2,246,066 $ 1,558,243 $ 687,823 Nine Months Ended May 31, 2018 Total EXCOR All Other Net sales $ 90,200,146 $ 35,450,664 $ 54,749,482 Gross profit 40,529,217 19,315,099 21,214,118 Net income 11,753,467 8,272,237 3,481,230 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 5,793,391 $ 4,138,814 $ 1,654,577 Northern Technologies International Corporation’s dividends received from joint ventures $ 2,941,807 $ 1,780,392 $ 1,161,415 Three Months Ended May 31, 2017 Total EXCOR All Other Net sales $ 25,935,169 $ 9,884,546 $ 16,050,623 Gross profit 11,517,711 5,271,028 6,246,683 Net income 3,379,883 2,166,435 1,213,448 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 1,686,016 $ 1,083,494 $ 602,522 Nine Months Ended May 31, 2017 Total EXCOR All Other Net sales $ 73,098,215 $ 28,169,978 $ 44,928,237 Gross profit 32,376,247 15,032,724 17,343,523 Net income 8,562,834 6,184,181 2,378,653 Northern Technologies International Corporation’s share of equity in income from joint ventures 4,343,159 3,089,935 1,253,224 Northern Technologies International Corporation’s dividends received from joint ventures $ 5,179,786 $ 4,240,400 $ 939,386

Note 8 - Stockholders' Equity (

Note 8 - Stockholders' Equity (Tables)	9 Months Ended
	May 31, 2018
Notes Tables
Dividends Declared [Table Text Block]	Declaration Date Amount Record Date Payable Date November 20, 2017 $0.10 December 8, 2017 December 21, 2017 January 24, 2018 $0.10 February 8, 2018 February 21, 2018 April 25, 2018 $0.10 May 9, 2018 May 23, 2018

Note 9 - Net Income Per Commo27

Note 9 - Net Income Per Common Share (Tables)	9 Months Ended
	May 31, 2018
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended Nine Months Ended Numerators: May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Net income attributable to NTIC $ 2,142,752 $ 1,352,416 $ 4,559,225 $ 2,037,021 Denominators: Basic – weighted shares outstanding 4,539,353 4,526,771 4,538,838 4,528,523 Weighted shares assumed upon exercise of stock options 167,679 64,756 125,009 42,872 Diluted – weighted shares outstanding 4,707,032 4,591,527 4,663,847 4,571,395 Basic income per share: $ 0.47 $ 0.30 $ 1.00 $ 0.45 Diluted income per share: $ 0.46 $ 0.30 $ 0.98 $ 0.45

Note 10 - Stock-based Compens28

Note 10 - Stock-based Compensation (Tables)	9 Months Ended
	May 31, 2018
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Nine Months Ended May 31, 2018 May 31, 2017 Dividend yield 2.18% 0.00% Expected volatility 45.9% 46.4% Expected life of option 10 years 10 years Average risk-free interest rate 1.87% 1.63%

Note 11 - Segment and Geograp29

Note 11 - Segment and Geographic Information (Tables)	9 Months Ended
	May 31, 2018
Notes Tables
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	Three Months Ended Nine Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 ZERUST® net sales $ 10,382,884 $ 8,368,487 $ 30,102,080 $ 23,681,192 Natur-Tec® net sales 2,540,953 1,854,532 6,578,770 4,986,753 Total net sales $ 12,923,837 $ 10,223,019 $ 36,680,850 $ 28,667,945
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block]	Three Months Ended Nine Months Ended May 31, 2018 % of Segment Sales* May 31, 2017 % of Segment Sales* May 31, 2018 % of Segment Sales* May 31, 2017 % of Segment Sales* Direct cost of goods sold ZERUST® $ 6,139,699 59.1 % $ 4,834,355 57.8 % $ 17,948,941 59.6 % $ 13,788,416 58.2 % Natur-Tec® 1,812,084 71.3 % 1,327,323 71.6 % 4,738,523 72.0 % 3,608,722 72.4 % Indirect cost of goods sold 640,583 — 612,323 — 1,806,208 — 1,859,815 — Total net cost of goods sold $ 8,592,366 $ 6,774,001 $ 24,493,672 $ 19,256,953
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	Three Months Ended Nine Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 Inside the U.S.A. to unaffiliated customers $ 7,434,991 $ 5,967,459 $ 19,771,031 $ 16,363,291 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 879,324 862,136 2,201,077 2,115,511 Unaffiliated customers 4,609,522 3,393,424 14,708,742 10,189,143 $ 12,923,837 $ 10,223,019 $ 36,680,850 $ 28,667,945
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	At May 31, 2018 At August 31, 2017 China $ 251,848 $ 228,458 Brazil 81,161 54,646 Germany 10,155 14,171 India 21,628 14,712 United States 6,868,515 7,047,675 Total property and equipment $ 7,233,307 $ 7,359,662
Revenue from External Customers by Geographic Areas [Table Text Block]	Three Months Ended Nine Months Ended May 31, 2018 May 31, 2017 May 31, 2018 May 31, 2017 China $ 3,069,232 $ 1,695,508 $ 9,176,174 $ 4,991,807 Brazil 853,675 565,089 2,310,131 1,683,255 India 564,339 323,551 1,642,633 1,057,132 Germany 312,057 161,139 556,859 378,635 Other 955,418 583,752 2,318,569 2,115,511 United States 7,169,116 6,893,980 20,676,484 18,441,605 Total net sales $ 12,923,837 $ 10,223,019 $ 36,680,850 $ 28,667,945
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, 2018 % of Total Fees for Services Provided to Joint Ventures May 31, 2017 % of Total Fees for Services Provided to Joint Ventures Germany $ 224,366 14.9 % $ 212,257 14.7 % Poland 185,107 12.3 % 180,969 12.6 % Japan 183,335 12.2 % 153,903 10.7 % Sweden 155,588 10.3 % 150,139 10.4 % France 146,949 9.7 % 112,455 7.8 % Thailand 110,894 7.4 % 104,771 7.3 % Czech Republic 100,131 6.6 % 74,135 5.1 % Korea 96,574 6.4 % 92,954 6.4 % Finland 81,402 5.4 % 78,012 5.4 % United Kingdom 80,931 5.4 % 87,768 6.1 % India 49,778 3.3 % 90,469 6.3 % Other 93,445 6.1 % 104,216 7.2 % $ 1,508,500 100.0 % $ 1,442,048 100.0 % Nine Months Ended May 31, 2018 % of Total Fees for Services Provided to Joint Ventures May 31, 2017 % of Total Fees for Services Provided to Joint Ventures Germany $ 680,939 14.7 % $ 614,766 15.6 % Poland 598,221 13.0 % 483,626 12.3 % Japan 529,412 11.4 % 445,662 11.3 % Sweden 448,707 9.7 % 314,664 8.0 % France 416,913 9.0 % 293,240 7.4 % Thailand 325,205 7.0 % 339,852 8.6 % Czech Republic 283,193 6.1 % 218,249 5.5 % Korea 279,524 6.0 % 284,435 7.2 % United Kingdom 275,137 6.0 % 227,140 5.8 % India 274,980 5.9 % 229,200 5.8 % Finland 247,574 5.4 % 221,294 5.6 % Other 264,727 5.8 % 269,539 6.9 % $ 4,624,532 100.0 % $ 3,941,667 100.0 %

Note 13 - Fair Value Measurem30

Note 13 - Fair Value Measurements (Tables)	9 Months Ended
	May 31, 2018
Notes Tables
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]	Fair Value Measurements Fair value as of Level 1 Level 2 Level 3 Available for sale securities $ 3,282,915 $ 3,282,915 $ — $ — Fair Value Measurements Fair value as of Level 1 Level 2 Level 3 Available for sale securities $ 3,766,984 $ 3,766,984 $ — $ —

Note 14 - Supplemental Cash F31

Note 14 - Supplemental Cash Flow Information (Tables)	9 Months Ended
	May 31, 2018
Notes Tables
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	Three Months Ended May 31, 2018 May 31, 2017 Cash paid for interest $ 3,139 $ 7,409 Cash paid for income taxes 45,000 — Nine Months Ended May 31, 2018 May 31, 2017 Cash paid for interest $ 14,007 $ 15,502 Cash paid for income taxes 45,000 —

Note 3 - Inventories - Inventor

Note 3 - Inventories - Inventories (Details) - USD ($)	May 31, 2018	Aug. 31, 2017
Production materials	$ 1,296,106	$ 1,747,189
Finished goods	7,878,637	5,709,363
Total inventory	$ 9,174,743	$ 7,456,552

Note 4 - Property and Equipme33

Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($)	May 31, 2018	Aug. 31, 2017
Land	$ 310,365	$ 310,365
Buildings and improvements	6,903,231	6,847,177
Machinery and equipment	4,554,692	4,171,387
Gross	11,768,288	11,328,929
Less accumulated depreciation	(4,534,981)	(3,969,267)
Net	$ 7,233,307	$ 7,359,662

Note 5 - Patents and Trademar34

Note 5 - Patents and Trademarks, Net (Details Textual) - Patents and Trademarks [Member]	9 Months Ended
	May 31, 2018USD ($)
Finite-Lived Intangible Asset, Useful Life	7 years
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 240,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	240,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	240,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	240,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 240,000

Note 5 - Patents and Trademar35

Note 5 - Patents and Trademarks, Net - Patents and Trademarks, Net (Details) - USD ($)	May 31, 2018	Aug. 31, 2017
Patents and trademarkes, net	$ 1,196,222	$ 1,322,089
Patents and Trademarks [Member]
Patents and trademarks	2,800,553	2,737,959
Less accumulated amortization	(1,604,331)	(1,415,870)
Patents and trademarkes, net	$ 1,196,222	$ 1,322,089

Note 6 - Investments in Joint36

Note 6 - Investments in Joint Ventures (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Payments to Acquire Interest in Joint Venture	$ 0	$ 0	$ 0	$ 0

Note 6 - Investments in Joint37

Note 6 - Investments in Joint Ventures - Condensed Balance Sheet of EXCOR and All Other Joint Ventures (Details) - USD ($)	9 Months Ended		12 Months Ended
	May 31, 2018	May 31, 2017	Aug. 31, 2017
Current assets	$ 58,113,904		$ 51,518,210
Total assets	62,004,849		55,633,891
Current liabilities	16,622,611		15,118,074
Noncurrent liabilities	110,926		181,210
Joint ventures’ equity	45,271,314		40,334,607
Northern Technologies International Corporation’s share of joint ventures’ equity	22,412,792		20,035,074
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	20,383,580		17,960,860
Northern Technologies International Corporation’s dividends received from joint ventures	2,941,807	$ 5,179,786	6,377,054
EXCOR [Member]
Current assets	25,734,914		22,142,514
Total assets	27,838,358		24,301,194
Current liabilities	3,830,246		4,469,567
Noncurrent liabilities
Joint ventures’ equity	24,008,112		19,831,627
Northern Technologies International Corporation’s share of joint ventures’ equity	12,004,058		9,915,816
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	11,973,153		9,884,911
Northern Technologies International Corporation’s dividends received from joint ventures	1,780,392	4,240,400	5,379,062
All Other [Member]
Current assets	32,378,990		29,375,696
Total assets	34,166,491		31,332,697
Current liabilities	12,792,365		10,648,507
Noncurrent liabilities	110,926		181,210
Joint ventures’ equity	21,263,202		20,502,980
Northern Technologies International Corporation’s share of joint ventures’ equity	10,408,734		10,119,258
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	8,410,427		8,075,949
Northern Technologies International Corporation’s dividends received from joint ventures	$ 1,161,415	$ 939,386	$ 997,992

Note 6 - Investments in Joint38

Note 6 - Investments in Joint Ventures - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017	Aug. 31, 2017
Net sales	$ 31,480,885	$ 25,935,169	$ 90,200,146	$ 73,098,215
Gross profit	14,209,819	11,517,711	40,529,217	32,376,247
Net income	4,540,968	3,379,883	11,753,467	8,562,834
Northern Technologies International Corporation’s share of equity in income from joint ventures	2,246,066	1,686,016	5,793,391	4,343,159
Northern Technologies International Corporation’s dividends received from joint ventures			2,941,807	5,179,786	$ 6,377,054
EXCOR [Member]
Net sales	12,219,414	9,884,546	35,450,664	28,169,978
Gross profit	6,823,609	5,271,028	19,315,099	15,032,724
Net income	3,113,660	2,166,435	8,272,237	6,184,181
Northern Technologies International Corporation’s share of equity in income from joint ventures	1,558,243	1,083,494	4,138,814	3,089,935
Northern Technologies International Corporation’s dividends received from joint ventures			1,780,392	4,240,400	5,379,062
All Other [Member]
Net sales	19,261,471	16,050,623	54,749,482	44,928,237
Gross profit	7,386,210	6,246,683	21,214,118	17,343,523
Net income	1,427,308	1,213,448	3,481,230	2,378,653
Northern Technologies International Corporation’s share of equity in income from joint ventures	$ 687,823	$ 602,522	1,654,577	1,253,224
Northern Technologies International Corporation’s dividends received from joint ventures			$ 1,161,415	$ 939,386	$ 997,992

Note 7 - Corporate Debt (Detail

Note 7 - Corporate Debt (Details Textual)	9 Months Ended
	May 31, 2018USD ($)	Aug. 31, 2017USD ($)
Term Loan and Line of Credit, Agreements, Loan Agreements [Member]
Debt Instrument, Covenants, Fixed Charge Coverage Ratio	1.1
PNC Bank [Member]
Letters of Credit Outstanding, Amount	$ 0	$ 0
PNC Bank [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	3,000,000
Long-term Line of Credit, Total	$ 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	$ 88,831	$ 89,543

Note 8 - Stockholders' Equity40

Note 8 - Stockholders' Equity (Details Textual) - $ / shares	Mar. 01, 2018	Sep. 01, 2017	Mar. 01, 2017	Sep. 01, 2016	May 31, 2018	May 31, 2018	May 31, 2017	Jan. 15, 2018
Stock Repurchased and Retired During Period, Shares						0	14,525
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period						4,410	4,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price						$ 11.59	$ 10.25
Stock Issued During Period, Shares, Employee Stock Purchase Plans	985	891	1,098	3,029
Common Stock, Shares Authorized					15,000,000	15,000,000		10,000,000
Common Stock, Additional Shares Authorized					5,000,000
Treasury Stock Acquired, Average Cost Per Share							$ 13.51
The 2007 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						47,252	56,677
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price						$ 18.35	$ 13.40

Note 8 - Stockholders' Equity -

Note 8 - Stockholders' Equity - Schedule of Dividends Payable (Details) - $ / shares	Apr. 25, 2018	Jan. 24, 2018	Nov. 20, 2017	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Declaration date	Apr. 25, 2018	Jan. 24, 2018	Nov. 20, 2017
Amount (in dollars per share)	$ 0.10	$ 0.10	$ 0.10	$ 0.10	$ 0	$ 0.30	$ 0
Record date	May 9, 2018	Feb. 8, 2018	Dec. 8, 2017
Payable date	May 23, 2018	Feb. 21, 2018	Dec. 21, 2017

Note 9 - Net Income Per Commo42

Note 9 - Net Income Per Common Share (Details Textual) - shares	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	48,067	0	48,067

Note 9 - Net Income Per Commo43

Note 9 - Net Income Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Net income attributable to NTIC	$ 2,142,752	$ 1,352,416	$ 4,559,225	$ 2,037,021
Basic – weighted shares outstanding (in shares)	4,539,353	4,526,771	4,538,838	4,528,523
Weighted shares assumed upon exercise of stock options (in shares)	167,679	64,756	125,009	42,872
Diluted – weighted shares outstanding (in shares)	4,707,032	4,591,527	4,663,847	4,571,395
Basic income per share: (in dollars per share)	$ 0.47	$ 0.30	$ 1	$ 0.45
Diluted income per share: (in dollars per share)	$ 0.46	$ 0.30	$ 0.98	$ 0.45

Note 10 - Stock-based Compens44

Note 10 - Stock-based Compensation (Details Textual)	9 Months Ended
	May 31, 2018USD ($)$ / sharesshares	May 31, 2017USD ($)$ / sharesshares
Number of Stock-based Compensation Plans	2
Stock or Unit Option Plan Expense	$ 309,473	$ 293,748
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	322,402
Allocated Share-based Compensation Expense, Estimate Remainder of Fiscal Year	103,267
Allocated Share-based Compensation Expense, Estimate, Next Fiscal Year	153,901
Allocated Share-based Compensation Expense, Estimate, Fiscal Year Two	$ 65,234
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 7.75	$ 7.69
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	6 years 189 days	6 years 266 days
The 2007 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares	800,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares	47,252	56,677
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 10 - Stock-based Compens45

Note 10 - Stock-based Compensation - Black-scholes Option-pricing Model Assumptions (Details)	9 Months Ended
	May 31, 2018	May 31, 2017
Dividend yield	2.18%	0.00%
Expected volatility	45.90%	46.40%
Expected life of option (Year)	10 years	10 years
Average risk-free interest rate	1.87%	1.63%

Note 11 - Segment and Geograp46

Note 11 - Segment and Geographic Information (Details Textual)	9 Months Ended
	May 31, 2018
Number of Reportable Segments	2

Note 11 - Segment and Geograp47

Note 11 - Segment and Geographic Information - Net Sales by Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Total net sales	$ 12,923,837	$ 10,223,019	$ 36,680,850	$ 28,667,945
ZERUST [Member]
Total net sales	10,382,884	8,368,487	30,102,080	23,681,192
NaturTec [Member]
Total net sales	$ 2,540,953	$ 1,854,532	$ 6,578,770	$ 4,986,753

Note 11 - Segment and Geograp48

Note 11 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($)		3 Months Ended		9 Months Ended
		May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Cost of goods sold		$ 8,592,366	$ 6,774,001	$ 24,493,672	$ 19,256,953
ZERUST®	[1]
Direct Cost of Goods Sold [Member] | ZERUST [Member]
Cost of goods sold		$ 6,139,699	$ 4,834,355	$ 17,948,941	$ 13,788,416
ZERUST®	[1]	59.10%	57.80%	59.60%	58.20%
Direct Cost of Goods Sold [Member] | NaturTec [Member]
Cost of goods sold		$ 1,812,084	$ 1,327,323	$ 4,738,523	$ 3,608,722
ZERUST®	[1]	71.30%	71.60%	72.00%	72.40%
Indirect Cost of Goods Sold [Member]
Cost of goods sold		$ 640,583	$ 612,323	$ 1,806,208	$ 1,859,815
ZERUST®	[1]
[1]	The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category.

Note 11 - Segment and Geograp49

Note 11 - Segment and Geographic Information - Net Sales by Geographic Location (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Total net sales	$ 12,923,837	$ 10,223,019	$ 36,680,850	$ 28,667,945
Inside the USA to Unaffiliated Customers [Member]
Total net sales	7,434,991	5,967,459	19,771,031	16,363,291
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member]
Total net sales	879,324	862,136	2,201,077	2,115,511
Unaffiliated Customers Outside the USA [Member]
Total net sales	$ 4,609,522	$ 3,393,424	$ 14,708,742	$ 10,189,143

Note 11 - Segment and Geograp50

Note 11 - 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, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Fees	$ 1,508,500	$ 1,442,048	$ 4,624,532	$ 3,941,667
Percentage of total fees	100.00%	100.00%	100.00%	100.00%
GERMANY
Fees	$ 224,366	$ 212,257	$ 680,939	$ 614,766
Percentage of total fees	14.90%	14.70%	14.70%	15.60%
POLAND
Fees	$ 185,107	$ 180,969	$ 598,221	$ 483,626
Percentage of total fees	12.30%	12.60%	13.00%	12.30%
JAPAN
Fees	$ 183,335	$ 153,903	$ 529,412	$ 445,662
Percentage of total fees	12.20%	10.70%	11.40%	11.30%
SWEDEN
Fees	$ 155,588	$ 150,139	$ 448,707	$ 314,664
Percentage of total fees	10.30%	10.40%	9.70%	8.00%
FRANCE
Fees	$ 146,949	$ 112,455	$ 416,913	$ 293,240
Percentage of total fees	9.70%	7.80%	9.00%	7.40%
THAILAND
Fees	$ 110,894	$ 104,771	$ 325,205	$ 339,852
Percentage of total fees	7.40%	7.30%	7.00%	8.60%
CZECH REPUBLIC
Fees	$ 100,131	$ 74,135	$ 283,193	$ 218,249
Percentage of total fees	6.60%	5.10%	6.10%	5.50%
KOREA, REPUBLIC OF
Fees	$ 96,574	$ 92,954	$ 279,524	$ 284,435
Percentage of total fees	6.40%	6.40%	6.00%	7.20%
FINLAND
Fees	$ 81,402	$ 78,012	$ 247,574	$ 221,294
Percentage of total fees	5.40%	5.40%	5.40%	5.60%
UNITED KINGDOM
Fees	$ 80,931	$ 87,768	$ 275,137	$ 227,140
Percentage of total fees	5.40%	6.10%	6.00%	5.80%
INDIA
Fees	$ 49,778	$ 90,469	$ 274,980	$ 229,200
Percentage of total fees	3.30%	6.30%	5.90%	5.80%
Other Countries [Member]
Fees	$ 93,445	$ 104,216	$ 264,727	$ 269,539
Percentage of total fees	6.10%	7.20%	5.80%	6.90%

Note 11 - Segment and Geograp51

Note 11 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($)	May 31, 2018	Aug. 31, 2017
Property and equipment	$ 7,233,307	$ 7,359,662
CHINA
Property and equipment	251,848	228,458
BRAZIL
Property and equipment	81,161	54,646
GERMANY
Property and equipment	10,155	14,171
INDIA
Property and equipment	21,628	14,712
UNITED STATES
Property and equipment	$ 6,868,515	$ 7,047,675

Note 11 - Segment and Geograp52

Note 11 - Segment and Geographic Information - Total Net Sales by Geographic Distribution (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Total net sales	$ 12,923,837	$ 10,223,019	$ 36,680,850	$ 28,667,945
CHINA
Total net sales	3,069,232	1,695,508	9,176,174	4,991,807
BRAZIL
Total net sales	853,675	565,089	2,310,131	1,683,255
INDIA
Total net sales	564,339	323,551	1,642,633	1,057,132
GERMANY
Total net sales	312,057	161,139	556,859	378,635
Other Countries [Member]
Total net sales	955,418	583,752	2,318,569	2,115,511
UNITED STATES
Total net sales	$ 7,169,116	$ 6,893,980	$ 20,676,484	$ 18,441,605

Note 12 - Commitments and Con53

Note 12 - Commitments and Contingencies (Details Textual) - USD ($)	9 Months Ended
	May 31, 2018	Aug. 31, 2017	May 31, 2017
Accrued Bonuses	$ 1,380,000		$ 600,000
Entity Wide Trade Joint Venture Receivables, Three Joint Ventures,Percentage	51.80%	60.70%
Fiscal 2018 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 13 - Fair Value Measurem54

Note 13 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - USD ($)	May 31, 2018	Aug. 31, 2017
Available for sale securities	$ 3,282,915	$ 3,766,984
Fair Value, Inputs, Level 1 [Member]
Available for sale securities	3,282,915	3,766,984
Fair Value, Inputs, Level 2 [Member]
Available for sale securities
Fair Value, Inputs, Level 3 [Member]
Available for sale securities

Note 14 - Supplemental Cash F55

Note 14 - Supplemental Cash Flow Information - Supplemental Disclosures of Cash Flow Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017
Cash paid for interest	$ 3,139	$ 7,409	$ 14,007	$ 15,502
Cash paid for income taxes	$ 45,000		$ 45,000

Note 15 - Income Taxes (Details

Note 15 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	May 31, 2018	May 31, 2017	May 31, 2018	May 31, 2017	Aug. 31, 2018	Aug. 31, 2017
Income Tax Expense (Benefit), Total	$ 181,683	$ 237,801	$ 1,128,583	$ 480,423
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability			700,000			$ 700,000
Provisional Adjustments Related to Transition of Tax on Deemed Repatriation of Accumulated Foreign Income			$ 489,000
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent					25.70%