Northern Technologies International (NTIC) 10-Q 8 Apr 20 2020 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Feb. 29, 2020	Apr. 08, 2020
Document Information [Line Items]
Entity Registrant Name	Northern Technologies International Corporation
Entity Central Index Key	0000875582
Trading Symbol	ntic
Current Fiscal Year End Date	--08-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding (in shares)		9,097,236
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Feb. 29, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false
Title of 12(b) Security	Common stock, par value $0.02 per share

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 5,626,410	$ 5,856,758
Available for sale securities	6,512,166	3,565,258
Receivables:
Trade excluding joint ventures, less allowance for doubtful accounts of $65,000 at February 29, 2020 and August 31, 2019	9,810,545	9,779,518
Trade joint ventures	539,175	824,473
Fees for services provided to joint ventures	1,195,219	1,268,000
Income taxes	56,819	457,018
Inventories	11,424,384	10,488,728
Prepaid expenses	949,893	1,062,609
Total current assets	36,114,611	33,302,362
PROPERTY AND EQUIPMENT, NET	7,227,524	7,358,159
OTHER ASSETS:
Investments in joint ventures	21,297,202	24,207,339
Deferred income taxes	1,694,499	1,634,258
Patents and trademarks, net	930,132	1,008,969
Operating lease right of use asset	520,601
Total other assets	24,442,434	26,850,566
Total assets	67,784,569	67,511,087
CURRENT LIABILITIES:
Accounts payable	4,373,988	4,505,531
Income taxes payable	3,169	6,759
Accrued liabilities:
Payroll and related benefits	1,259,122	1,857,971
Other	835,823	1,471,532
Current portion of operating lease	211,495
Total current liabilities	6,683,597	7,841,793
LONG-TERM LIABILITIES:
Operating lease, less current portion	309,106
Total long-term liabilities	309,106
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 February 29, 2020 and August 31, 2019; issued and outstanding 9,097,236 and 9,086,816, respectively	181,945	181,736
Additional paid-in capital	16,707,207	16,013,338
Retained earnings	45,202,903	44,992,719
Accumulated other comprehensive loss	(4,602,349)	(4,593,178)
Stockholders’ equity	57,489,706	56,594,615
Non-controlling interests	3,302,160	3,074,679
Total equity	60,791,866	59,669,294
Total liabilities and equity	$ 67,784,569	$ 67,511,087

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Trade receivable excluding joint ventures, allowance for doubtful accounts	$ 65,000	$ 65,000
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)	15,000,000	15,000,000
Common stock, shares issued (in shares)	9,097,236	9,086,816
Common stock, shares outstanding (in shares)	9,097,236	9,086,816

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
NET SALES:
Net sales, excluding joint ventures	$ 12,988,153	$ 12,606,449	$ 27,033,937	$ 26,217,314
Net sales, to joint ventures	245,630	708,955	831,246	1,192,142
Total net sales	13,233,783	13,315,404	27,865,183	27,409,456
Cost of goods sold	8,687,301	9,284,099	18,492,385	18,745,236
Gross profit	4,546,482	4,031,305	9,372,798	8,664,220
JOINT VENTURE OPERATIONS:
Equity in income from joint ventures	1,360,804	1,715,216	2,654,794	3,719,378
Fees for services provided to joint ventures	1,256,213	1,436,774	2,614,538	2,865,209
Total joint venture operations	2,617,017	3,151,990	5,269,332	6,584,587
OPERATING EXPENSES:
Selling expenses	3,110,240	2,505,081	5,997,532	5,316,175
General and administrative expenses	2,345,113	1,963,537	4,394,800	4,459,334
Research and development expenses	1,006,395	927,537	1,968,036	1,799,694
Total operating expenses	6,461,748	5,396,155	12,360,368	11,575,203
OPERATING INCOME	701,751	1,787,140	2,281,762	3,673,604
INTEREST INCOME	55,042	15,122	104,080	27,909
INTEREST EXPENSE	(9,377)	(3,835)	(14,821)	(6,192)
INCOME BEFORE INCOME TAX EXPENSE	747,416	1,798,427	2,371,021	3,695,321
INCOME TAX EXPENSE	463,594	246,371	727,660	502,074
NET INCOME	283,822	1,552,056	1,643,361	3,193,247
NET INCOME ATTRIBUTABLE TO NON- CONTROLLING INTERESTS	103,988	150,488	250,977	294,620
NET INCOME ATTRIBUTABLE TO NTIC	$ 179,834	$ 1,401,568	$ 1,392,384	$ 2,898,627
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE:
Basic (in dollars per share)	$ 0.02	$ 0.16	$ 0.15	$ 0.32
Diluted (in dollars per share)	$ 0.02	$ 0.15	$ 0.15	$ 0.31
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING:
Basic (in shares)	9,097,236	9,084,354	9,095,604	9,084,350
Diluted (in shares)	9,461,727	9,447,860	9,383,867	9,463,216
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 0.065	$ 0.06	$ 0.13	$ 0.12

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Net income	$ 283,822	$ 1,552,056	$ 1,643,361	$ 3,193,247
Other comprehensive income (LOSS) – foreign currency translation adjustment	(158,343)	194,838	(32,667)	(102,980)
COMPREHENSIVE INCOME	125,479	1,746,894	1,610,694	3,090,267
COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	57,630	169,499	227,481	336,699
COMPREHENSIVE INCOME ATTRIBUTABLE TO NTIC	$ 67,849	$ 1,577,395	$ 1,383,213	$ 2,753,568

Consolidated Statements of Equi

Consolidated Statements of Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]	Total
BALANCE (in shares) at Aug. 31, 2018	9,082,606
BALANCE at Aug. 31, 2018	$ 181,652	$ 14,528,951	$ 41,963,341	$ (3,597,199)	$ 2,742,309	$ 55,819,054
Stock issued for employee stock purchase plan	36	17,645				17,681
Stock option expense		715,960				715,960
Dividends paid to stockholders			(1,090,125)			(1,090,125)
Dividend received by non-controlling interest					(200,000)	(200,000)
Net income (loss)			2,898,627		294,620	3,193,247
Other comprehensive income (loss)				(145,059)	42,079	$ (102,980)
Stock options exercised (in shares)						0
Stock issued for employee stock purchase plan (in shares)	1,748
Investment by non-controlling interest					134,034	$ 134,034
BALANCE (in shares) at Feb. 28, 2019	9,084,354
BALANCE at Feb. 28, 2019	$ 181,688	15,262,556	43,771,843	(3,742,258)	3,013,042	58,486,871
BALANCE (in shares) at Nov. 30, 2018	9,084,354
BALANCE at Nov. 30, 2018	$ 181,688	14,904,576	42,915,335	(3,918,085)	3,043,543	57,127,057
Stock issued for employee stock purchase plan
Stock option expense		357,980				357,980
Dividends paid to stockholders			(545,060)			(545,064)
Dividend received by non-controlling interest					(200,000)	(200,000)
Net income (loss)			1,401,568		150,544	1,552,056
Other comprehensive income (loss)				175,827	19,011	194,838
BALANCE (in shares) at Feb. 28, 2019	9,084,354
BALANCE at Feb. 28, 2019	$ 181,688	15,262,556	43,771,843	(3,742,258)	3,013,042	58,486,871
BALANCE (in shares) at Aug. 31, 2019	9,086,816
BALANCE at Aug. 31, 2019	$ 181,736	16,013,338	44,992,718	(4,593,178)	3,074,679	59,669,294
Stock issued for employee stock purchase plan	72	35,536				35,608
Stock option expense		658,470				658,470
Dividends paid to stockholders			(1,182,199)			(1,182,199)
Dividend received by non-controlling interest
Net income (loss)			1,392,384		250,977	1,643,361
Other comprehensive income (loss)				(9,171)	(23,496)	$ (32,667)
Stock options exercised (in shares)	6,823					0
Stock options exercised	$ 137	(137)
Stock issued for employee stock purchase plan (in shares)	3,597
BALANCE (in shares) at Feb. 29, 2020	9,097,236
BALANCE at Feb. 29, 2020	$ 181,945	16,707,207	45,202,903	(4,602,349)	3,302,160	60,791,866
BALANCE (in shares) at Nov. 30, 2019	9,097,236
BALANCE at Nov. 30, 2019	$ 181,945	16,367,555	45,614,389	(4,490,364)	3,244,530	60,918,055
Stock issued for employee stock purchase plan
Stock option expense		339,652				339,652
Dividends paid to stockholders			(591,320)			(591,320)
Dividend received by non-controlling interest
Net income (loss)			179,834		103,988	283,822
Other comprehensive income (loss)				(111,985)	(46,358)	(158,343)
BALANCE (in shares) at Feb. 29, 2020	9,097,236
BALANCE at Feb. 29, 2020	$ 181,945	$ 16,707,207	$ 45,202,903	$ (4,602,349)	$ 3,302,160	$ 60,791,866

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,643,361	$ 3,193,247
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	658,470	715,960
Depreciation expense	428,711	429,377
Amortization expense	118,171	129,346
Equity in income from joint ventures	(2,654,794)	(3,719,378)
Deferred income taxes	111,768	135,167
Dividends received from joint ventures	5,558,926	2,027,243
Gain on sale of property and equipment		(36,285)
Changes in current assets and liabilities:
Trade, excluding joint ventures	(10,778)	730,647
Trade, joint ventures	285,298	82,157
Fees for services provided to joint ventures	72,781	18,762
Income taxes	221,211	(222,609)
Inventories	(908,423)	(2,048,648)
Prepaid expenses and other	122,676	215,178
Accounts payable	850,534	113,849
Income tax payable	(10,833)	15,607
Accrued liabilities	(2,284,150)	(1,517,466)
Net cash provided by operating activities	4,207,710	262,153
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of available for sale securities	4,000,000	2,072,842
Purchase of available for sale securities	(6,946,908)
Purchases of property and equipment	(296,786)	(439,899)
Investments in patents	(45,414)	(57,401)
Net cash (used in) provided by investing activities	(3,289,108)	1,575,542
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividend received by non-controlling interest		(200,000)
Investment by non-controlling interest		134,035
Dividends paid on NTIC common stock	(1,182,199)	(1,090,125)
Proceeds from employee stock purchase plan	35,608	17,681
Principal payments on finance lease obligations
Net cash used in financing activities	(1,146,591)	(1,138,409)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(2,359)	74,068
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(230,348)	773,354
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	5,856,758	4,163,023
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 5,626,410	$ 4,936,377

Note 1 - Interim Financial Info

Note 1 - Interim Financial Information	6 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. INTERIM FINANCIAL INFORMATION In the opinion of management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, which are of a normal recurring nature, and present fairly the consolidated financial position of Northern Technologies International Corporation and its subsidiaries (the Company) as of February 29, 2020 August 31, 2019, three six February 29, 2020 February 28, 2019, three six February 29, 2020 February 28, 2019, six February 29, 2020 February 28, 2019, 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, 2019. Management’s Discussion and Analysis of Financial Condition and Results of Operations On June 3, 2019, two one 100% June 28, 2019 June 17, 2019. two one Operating results for the three six February 29, 2020 not may August 31, 2020. 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	6 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	2. Accounting PronouncementS New Accounting Pronouncements Adopted In February 2016, No. 2016 02, Leases 2016 02 840, Leases 2016 02 September 1, 2019. The FASB has subsequently issued the following amendments to ASU 2016 02, September 1, 2019, · ASU No. 2018 01, Leases (Topic 842 842 not 842 842 not 840, Leases · ASU No. 2018 10, Codification Improvements to Topic 842, 2016 02. · ASU No. 2018 11, Leases (Topic 842 2016 02 not · ASU No. 2018 20, Narrow-Scope Improvements for Lessors 2016 02. Additional information and disclosures required by this new standard are contained in Note 12, The Company adopted the new leasing standards on September 1, 2019, September 1, 2019; not 842 not September 1, 2019. $600,000 . Recently Issued Accounting Pronouncements In February 2018, No. 2018 02, Income Statement – Reporting Comprehensive Income (Topic 220 No. 2018 02, not No. 2018 02 first 2020, 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	6 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Inventory Disclosure [Text Block]	3. INVENTORIES Inventories consisted of the following: February 29, 2020 August 31, 2019 Production materials $ 3,908,268 $ 1,980,816 Finished goods 7,516,116 8,507,912 $ 11,424,384 $ 10,488,728

Note 4 - Property and Equipment

Note 4 - Property and Equipment, Net	6 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	4. PROPERTY AND EQUIPMENT, NET Property and equipment, net, consisted of the following: February 29, 2020 August 31, 2019 Land $ 310,365 $ 310,365 Buildings and improvements 7,942,162 7,749,980 Machinery and equipment 4,991,681 4,903,664 13,244,208 12,964,009 Less accumulated depreciation (6,016,684 ) (5,605,850 ) $ 7,227,524 $ 7,358,159

Note 5 - Patents and Trademarks

Note 5 - Patents and Trademarks, Net	6 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	5. PATENTS AND TRADEMARKS, NET Patents and trademarks, net, consisted of the following: February 29, 2020 August 31, 2019 Patents and trademarks $ 2,978,210 $ 2,938,876 Less accumulated amortization (2,048,078 ) (1,929,907 ) $ 930,132 $ 1,008,969 Patent and trademark costs are amortized over seven $200,000 five

Note 6 - Investments in Joint V

Note 6 - Investments in Joint Ventures	6 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Equity Method Investments and Joint Ventures Disclosure [Text Block]	6. INVESTMENTS IN JOINT VENTURES 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 of 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 February 29, 2020 Total EXCOR All Other Current assets $ 52,843,263 $ 23,302,245 $ 29,541,018 Total assets 56,806,232 25,573,425 31,232,807 Current liabilities 13,446,110 3,357,346 10,088,764 Noncurrent liabilities 19,924 0 19,924 Joint ventures’ equity 43,340,198 22,216,079 21,124,119 Northern Technologies International Corporation’s share of joint ventures’ equity 21,297,202 11,108,042 10,189,160 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 19,267,931 11,077,137 8,190,794 Three Months Ended February 29, 2020 Total EXCOR All Other Net sales $ 24,289,370 $ 8,980,176 $ 15,309,194 Gross profit 11,102,573 5,262,082 5,840,491 Net income 2,721,542 1,778,027 943,516 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 1,360,804 $ 889,226 $ 471,578 Northern Technologies International Corporation's dividends received from joint ventures $ 5,353,552 $ 4,675,850 $ 677,702 Six Months Ended February 29, 2020 Total EXCOR All Other Net sales $ 49,749,664 $ 18,348,415 $ 31,401,249 Gross profit 22,459,707 10,587,570 11,872,137 Net income 5,309,523 3,420,354 1,889,169 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 2,654,794 $ 1,710,390 $ 944,404 Northern Technologies International Corporation's dividends received from joint ventures $ 5,558,926 $ 4,675,850 $ 883,133 As of August 31, 2019 Total EXCOR All Other Current assets $ 59,162,834 $ 29,139,787 $ 30,023,047 Total assets 63,326,703 31,666,841 31,659,862 Current liabilities 14,145,499 3,573,160 10,572,339 Noncurrent liabilities 20,797 — 20,797 Joint ventures’ equity 49,160,407 28,093,681 21,066,726 Northern Technologies International Corporation’s share of joint ventures’ equity 24,207,339 14,046,842 10,160,497 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 22,178,126 14,015,937 8,162,189 Three Months Ended February 28, 2019 Total EXCOR All Other Net sales $ 27,749,880 $ 11,092,133 $ 16,657,747 Gross profit 12,632,547 6,306,084 6,326,463 Net income 3,450,976 2,440,323 1,010,653 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 1,715,216 $ 1,221,006 $ 494,210 Northern Technologies International Corporation's dividends received from joint ventures $ 540,538 $ — $ 540,538 Six Months Ended February 28, 2019 Total EXCOR All Other Net sales $ 58,229,806 $ 23,961,656 $ 34,268,150 Gross profit 25,989,438 12,989,658 12,999,780 Net income 7,614,767 5,480,125 2,134,642 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 3,719,378 $ 2,740,907 $ 978,471 Northern Technologies International Corporation's dividends received from joint ventures $ 2,027,243 $ 843,750 $ 183,493 The Company did not six February 29, 2020 February 28, 2019.

Note 7 - Corporate Debt

Note 7 - Corporate Debt	6 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Debt Disclosure [Text Block]	7. CORPORATE DEBT The Company has a revolving line of credit with PNC Bank, National Association (PNC Bank) of $3,000,000. No February 29, 2020 August 31, 2019. 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. February 29, 2020, The revolving credit facility allows the Company to request that PNC Bank issue letters of credit up to $1,200,000. not February 29, 2020 August 31, 2019 not On December 16, 2019, January 7, 2020 January 7, 2021. As of February 29, 2020 August 31, 2019, $88,831 May 2020 May 2022.

Note 8 - Stockholders' Equity

Note 8 - Stockholders' Equity	6 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	8. STOCKHOLDERS’ EQUITY On June 3, 2019, two one 100% June 28, 2019 June 17, 2019. two one During the six February 29, 2020, Declaration Date Amount Record Date Payable Date October 22, 2019 $0.065 November 6, 2019 November 20, 2019 January 22, 2020 $0.065 February 5, 2020 February 19, 2020 During the six February 28, 2019, Declaration Date Amount Record Date Payable Date October 24, 2018 $0.06 November 7, 2018 November 21, 2018 January 23, 2019 $0.06 February 6, 2019 February 22, 2019 During the six February 29, 2020 February 28, 2019, no During the six February 29, 2020, 2019 2019 300,770 $10.87, six February 29, 2020, no During the six February 28, 2019, 2007 2007 141,767 $18.23, six February 28, 2019, no The Company issued 3,597 1,748 September 1, 2019 2018,

Note 9 - Net Income Per Common

Note 9 - Net Income Per Common Share	6 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Earnings Per Share [Text Block]	9. NET INCOME PER COMMON SHARE Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per share assumes the exercise of stock options using the treasury stock method, if dilutive. The following is a reconciliation of the net income per share computation for the three six February 29, 2020 February 28, 2019: Three Months Ended Six Months Ended Numerator: February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Net income attributable to NTIC $ 179,834 $ 1,401,568 $ 1,392,384 $ 2,898,627 Denominator: Basic – weighted shares outstanding 9,097,236 9,084,354 9,095,604 9,084,350 Weighted shares assumed upon exercise of stock options 364,491 363,506 288,263 378,866 Diluted – weighted shares outstanding 9,461,727 9,447,860 9,383,867 9,463,216 Basic net income per share: $ 0.02 $ 0.16 $ 0.15 $ 0.32 Diluted net income per share: $ 0.02 $ 0.15 $ 0.15 $ 0.31 *Share and per share data have been adjusted for all periods presented to reflect the two one June 28, 2019. 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. Net income per common share was based on the weighted average number of common shares outstanding during the periods when computing basic net income per share. When dilutive, stock options are included as equivalents using the treasury stock method when computing the diluted net income per share. Excluded from the computation of diluted income per share for the three six February 29, 2020 141,768 three six February 28, 2019, 141,768

Note 10 - Stock-based Compensat

Note 10 - Stock-based Compensation	6 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Share-based Payment Arrangement [Text Block]	10. STOCK-BASED COMPENSATION The Company has three 2019 2019 2007 2019 2007 no may 2007 The 2019 2019 800,000 2019 ten one three one February 29, 2020, 300,770 2019 The maximum number of shares of common stock of the Company available for issuance under the ESPP is 200,000 six September 1 March 1 90% may not 423 1986, February 29, 2020, 87,447 The Company granted options to purchase an aggregate of 300,770 141,768 six February 29, 2020 February 28, 2019, $658,470 $715,960 six February 29, 2020 February 28, 2019, February 29, 2020, not $700,138. $679,304 2020 $20,834 2021, February 29, 2020. 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: Three and Six Months Ended February 29, 2020 February 28, 2019 Dividend yield 2.15% 1.32% Expected volatility 45.2% 45.8% Expected life of option (years) 10 10 Average risk-free interest rate 1.57% 2.75% The weighted average per share fair value of options granted during the six February 29, 2020 February 28, 2019 $4.30 $9.02, February 29, 2020 February 28, 2019 6.53 6.40

Note 11 - Segment and Geographi

Note 11 - Segment and Geographic Information	6 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	11. SEGMENT AND GEOGRAPHIC INFORMATION Segment Information The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s business is organized into two ® ® ® 40 ® The following table sets forth the Company’s net sales for the three six February 29, 2020 February 28, 2019 Three Months Ended Six Months Ended February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 ZERUST ® $ 9,016,222 $ 9,108,395 $ 18,965,734 $ 19,173,569 Natur-Tec ® 4,217,561 4,207,009 8,899,449 8,235,887 Total net sales $ 13,233,783 $ 13,315,404 $ 27,865,183 $ 27,409,456 The following table sets forth the Company’s cost of goods sold for the three six February 29, 2020 February 28, 2019 Three Months Ended Six Months Ended February 29, 2020 % of Segment Sales* February 28, 2019 % of Segment Sales* February 29, 2020 % of Segment Sales* February 28, 2019 % of Segment Sales* Direct cost of goods sold ZERUST ® $ 4,638,514 51.4 % $ 5,249,617 57.6 % $ 10,081,686 53.7 % $ 10,871,316 56.7 % Natur-Tec ® 3,276,058 77.7 % 3,354,693 79.7 % 6,890,477 77.4 % 6,510,768 79.1 % Indirect cost of goods sold 772,729 — 679,789 — 1,420,040 — 1,363,152 — Total net cost of goods sold $ 8,687,301 $ 9,284,099 $ 18,492,385 $ 18,745,236 ____________________________ * 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 six February 29, 2020 February 28, 2019 Three Months Ended Six Months Ended February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Inside the U.S.A. to unaffiliated customers $ 6,628,647 $ 6,467,940 $ 14,527,345 $ 13,391,874 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 245,630 708,955 831,246 1,192,142 Unaffiliated customers 6,359,506 6,138,509 12,506,592 12,825,440 $ 13,233,783 $ 13,315,404 $ 27,865,183 $ 27,409,456 Net sales by geographic location are based on the location of the customer. Fees for services provided to joint ventures by geographic location as a percentage of total fees for services provided to joint ventures during the three six February 29, 2020 February 28, 2019 Three Months Ended February 29, % of Total Fees for Services Provided to Joint Ventures February 28, % of Total Fees for Services Provided to Joint Ventures Germany $ 208,128 16.6 % $ 215,337 15.0 % Poland 170,916 13.6 % 188,529 13.1 % Japan 150,150 12.0 % 167,496 11.7 % Sweden 98,398 7.8 % 149,750 10.4 % Thailand 90,878 7.2 % 105,299 7.3 % France 85,709 6.8 % 106,270 7.4 % United Kingdom 64,279 5.1 % 96,209 6.7 % Czech Republic 80,200 6.4 % 93,928 6.6 % India 80,024 6.4 % 85,401 5.9 % South Korea 75,289 6.0 % 87,413 6.1 % Finland 74,001 5.9 % 64,648 4.5 % Other 78,241 6.2 % 76,494 5.3 % $ 1,256,213 100.0 % $ 1,436,774 100.0 % Six Months Ended February 29, % of Total Fees for Services Provided to Joint Ventures February 28, % of Total Fees for Services Provided to Joint Ventures Germany $ 420,229 16.1 % $ 430,328 15.0 % Poland 365,894 14.0 % 370,374 12.9 % Japan 314,079 12.0 % 337,296 11.7 % Sweden 207,904 8.0 % 279,993 9.8 % Thailand 193,212 7.4 % 203,647 7.1 % France 179,340 6.9 % 216,332 7.6 % United Kingdom 149,758 5.7 % 190,990 6.7 % Czech Republic 169,214 6.5 % 183,620 6.4 % India 162,984 6.2 % 180,128 6.3 % South Korea 151,321 5.8 % 173,880 6.1 % Finland 141,942 5.4 % 146,464 5.1 % Other 158,661 6.1 % 152,157 5.3 % $ 2,614,538 100.0 % $ 2,865,209 100.0 % The geographical distribution of key financial statement data is as follows: At At China $ 397,139 $ 337,162 Brazil 79,825 101,548 Germany 23,734 14,791 India 72,951 61,748 United States 6,653,875 6,842,910 Total property and equipment $ 7,227,524 $ 7,358,159 Three Months Ended February 29, 2020 February 28, 2019 China $ 3,024,384 $ 3,005,199 Brazil 823,218 726,799 India 2,059,564 2,224,149 Other 967,111 891,317 United States 6,359,506 6,467,940 Total net sales $ 13,233,783 $ 13,315,404 Six Months Ended February 29, 2020 February 28, 2019 China $ 6,885,956 $ 6,173,259 Brazil 1,715,196 1,551,595 India 4,095,774 3,875,790 Other 2,661,665 2,416,938 United States 12,506,592 13,391,874 Total net sales $ 27,865,183 $ 27,409,456 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. 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 primarily related to ZERUST ®

Note 12 - Commitments and Conti

Note 12 - Commitments and Contingencies	6 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	12. COMMITMENTS AND CONTINGENCIES Operating Leases The Company currently has 19 March 31, 2020 June 30, 2024. five ten first The Company records lease liabilities within current liabilities or long-term liabilities based upon the length of time associated with the lease payments. The Company records its long-term operating leases as right-of-use assets. Upon initial adoption, using the modified retrospective transition approach, no 12 842. None The Company has made certain assumptions and judgments when applying ASC 842, not 842. not no Present Value of Long-term Leases (in thousands): February 29, 2020 Right-of-use assets, net $ 520,601 Current portion of lease liability 211,495 Lease liability, less current portion 309,106 Total lease liability $ 520,601 As of February 29, 2020, 2.1 not February 29, 2020, 4.32% Future minimum payments for the next five February 29, 2020 Fiscal 2020 $ 143,527 Fiscal 2021 263,392 Fiscal 2022 125,648 Fiscal 2023 10,222 Thereafter 2,570 Total future minimum lease payments 545,359 Less amount representing interest (24,758 ) Present value of obligations under operating leases 520,601 Less current portion (211,495 ) Long-term operating lease obligations $ 309,106 Annual Bonus Plan On August 31, 2019, August 31, 2020. 2020 75% 2020 2020, 25% may 2020. $800,000 six February 29, 2020, $900,000 six February 28, 2019. Two joint ventures (consisting of the Company’s joint ventures in South Korea and Thailand) accounted for 55.8% February 29, 2020, five 69.6% August 31, 2019. 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 February 29, 2020, not

Note 13 - Fair Value Measuremen

Note 13 - Fair Value Measurements	6 Months Ended
	Feb. 29, 2020
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, and the Company estimates that market value approximates cost. 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 $ 6,512,166 $ 6,512,166 $ — $ — Fair Value Measurements Fair value as of Level 1 Level 2 Level 3 Available for sale securities $ 3,565,258 $ 3,565,258 $ — $ — There were no 1, 2, 3 three six February 29, 2020 February 28, 2019.

Note 14 - Supplemental Cash Flo

Note 14 - Supplemental Cash Flow Information	6 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Cash Flow, Supplemental Disclosures [Text Block]	14. SUPPLEMENTAL CASH FLOW INFORMATION Supplemental disclosures of cash flow information consisted of: Three Months Ended Six Months Ended February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Cash paid for interest $ 9,377 $ 3,835 $ 14,821 $ 6,192 Cash paid for income taxes — $ 53,975 — $ 53,975

Note 15 - Subsequent Event

Note 15 - Subsequent Event	6 Months Ended
	Feb. 29, 2020
Notes to Financial Statements
Subsequent Events [Text Block]	15. SUBSEQUENT EVENT The Company evaluated its February 29, 2020 19 January 18, 2020 not February 28, 2020. third 2020 April 15, 2020.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Feb. 29, 2020
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	New Accounting Pronouncements Adopted In February 2016, No. 2016 02, Leases 2016 02 840, Leases 2016 02 September 1, 2019. The FASB has subsequently issued the following amendments to ASU 2016 02, September 1, 2019, · ASU No. 2018 01, Leases (Topic 842 842 not 842 842 not 840, Leases · ASU No. 2018 10, Codification Improvements to Topic 842, 2016 02. · ASU No. 2018 11, Leases (Topic 842 2016 02 not · ASU No. 2018 20, Narrow-Scope Improvements for Lessors 2016 02. Additional information and disclosures required by this new standard are contained in Note 12, The Company adopted the new leasing standards on September 1, 2019, September 1, 2019; not 842 not September 1, 2019. $600,000 . Recently Issued Accounting Pronouncements In February 2018, No. 2018 02, Income Statement – Reporting Comprehensive Income (Topic 220 No. 2018 02, not No. 2018 02 first 2020, 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 (Tables)

Note 3 - Inventories (Tables)	6 Months Ended
	Feb. 29, 2020
Notes Tables
Schedule of Inventory, Current [Table Text Block]	February 29, 2020 August 31, 2019 Production materials $ 3,908,268 $ 1,980,816 Finished goods 7,516,116 8,507,912 $ 11,424,384 $ 10,488,728

Note 4 - Property and Equipme_2

Note 4 - Property and Equipment, Net (Tables)	6 Months Ended
	Feb. 29, 2020
Notes Tables
Property, Plant and Equipment [Table Text Block]	February 29, 2020 August 31, 2019 Land $ 310,365 $ 310,365 Buildings and improvements 7,942,162 7,749,980 Machinery and equipment 4,991,681 4,903,664 13,244,208 12,964,009 Less accumulated depreciation (6,016,684 ) (5,605,850 ) $ 7,227,524 $ 7,358,159

Note 5 - Patents and Trademar_2

Note 5 - Patents and Trademarks, Net (Tables)	6 Months Ended
	Feb. 29, 2020
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	February 29, 2020 August 31, 2019 Patents and trademarks $ 2,978,210 $ 2,938,876 Less accumulated amortization (2,048,078 ) (1,929,907 ) $ 930,132 $ 1,008,969

Note 6 - Investments in Joint_2

Note 6 - Investments in Joint Ventures (Tables)	6 Months Ended
	Feb. 29, 2020
Notes Tables
Condensed Balance Sheet [Table Text Block]	As of February 29, 2020 Total EXCOR All Other Current assets $ 52,843,263 $ 23,302,245 $ 29,541,018 Total assets 56,806,232 25,573,425 31,232,807 Current liabilities 13,446,110 3,357,346 10,088,764 Noncurrent liabilities 19,924 0 19,924 Joint ventures’ equity 43,340,198 22,216,079 21,124,119 Northern Technologies International Corporation’s share of joint ventures’ equity 21,297,202 11,108,042 10,189,160 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 19,267,931 11,077,137 8,190,794 As of August 31, 2019 Total EXCOR All Other Current assets $ 59,162,834 $ 29,139,787 $ 30,023,047 Total assets 63,326,703 31,666,841 31,659,862 Current liabilities 14,145,499 3,573,160 10,572,339 Noncurrent liabilities 20,797 — 20,797 Joint ventures’ equity 49,160,407 28,093,681 21,066,726 Northern Technologies International Corporation’s share of joint ventures’ equity 24,207,339 14,046,842 10,160,497 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 22,178,126 14,015,937 8,162,189
Condensed Income Statement [Table Text Block]	Three Months Ended February 29, 2020 Total EXCOR All Other Net sales $ 24,289,370 $ 8,980,176 $ 15,309,194 Gross profit 11,102,573 5,262,082 5,840,491 Net income 2,721,542 1,778,027 943,516 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 1,360,804 $ 889,226 $ 471,578 Northern Technologies International Corporation's dividends received from joint ventures $ 5,353,552 $ 4,675,850 $ 677,702 Six Months Ended February 29, 2020 Total EXCOR All Other Net sales $ 49,749,664 $ 18,348,415 $ 31,401,249 Gross profit 22,459,707 10,587,570 11,872,137 Net income 5,309,523 3,420,354 1,889,169 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 2,654,794 $ 1,710,390 $ 944,404 Northern Technologies International Corporation's dividends received from joint ventures $ 5,558,926 $ 4,675,850 $ 883,133 Three Months Ended February 28, 2019 Total EXCOR All Other Net sales $ 27,749,880 $ 11,092,133 $ 16,657,747 Gross profit 12,632,547 6,306,084 6,326,463 Net income 3,450,976 2,440,323 1,010,653 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 1,715,216 $ 1,221,006 $ 494,210 Northern Technologies International Corporation's dividends received from joint ventures $ 540,538 $ — $ 540,538 Six Months Ended February 28, 2019 Total EXCOR All Other Net sales $ 58,229,806 $ 23,961,656 $ 34,268,150 Gross profit 25,989,438 12,989,658 12,999,780 Net income 7,614,767 5,480,125 2,134,642 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 3,719,378 $ 2,740,907 $ 978,471 Northern Technologies International Corporation's dividends received from joint ventures $ 2,027,243 $ 843,750 $ 183,493

Note 8 - Stockholders' Equity (

Note 8 - Stockholders' Equity (Tables)	6 Months Ended
	Feb. 29, 2020
Notes Tables
Dividends Declared [Table Text Block]	Declaration Date Amount Record Date Payable Date October 22, 2019 $0.065 November 6, 2019 November 20, 2019 January 22, 2020 $0.065 February 5, 2020 February 19, 2020 Declaration Date Amount Record Date Payable Date October 24, 2018 $0.06 November 7, 2018 November 21, 2018 January 23, 2019 $0.06 February 6, 2019 February 22, 2019

Note 9 - Net Income Per Commo_2

Note 9 - Net Income Per Common Share (Tables)	6 Months Ended
	Feb. 29, 2020
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended Six Months Ended Numerator: February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Net income attributable to NTIC $ 179,834 $ 1,401,568 $ 1,392,384 $ 2,898,627 Denominator: Basic – weighted shares outstanding 9,097,236 9,084,354 9,095,604 9,084,350 Weighted shares assumed upon exercise of stock options 364,491 363,506 288,263 378,866 Diluted – weighted shares outstanding 9,461,727 9,447,860 9,383,867 9,463,216 Basic net income per share: $ 0.02 $ 0.16 $ 0.15 $ 0.32 Diluted net income per share: $ 0.02 $ 0.15 $ 0.15 $ 0.31

Note 10 - Stock-based Compens_2

Note 10 - Stock-based Compensation (Tables)	6 Months Ended
	Feb. 29, 2020
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Three and Six Months Ended February 29, 2020 February 28, 2019 Dividend yield 2.15% 1.32% Expected volatility 45.2% 45.8% Expected life of option (years) 10 10 Average risk-free interest rate 1.57% 2.75%

Note 11 - Segment and Geograp_2

Note 11 - Segment and Geographic Information (Tables)	6 Months Ended
	Feb. 29, 2020
Notes Tables
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	Three Months Ended Six Months Ended February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 ZERUST ® $ 9,016,222 $ 9,108,395 $ 18,965,734 $ 19,173,569 Natur-Tec ® 4,217,561 4,207,009 8,899,449 8,235,887 Total net sales $ 13,233,783 $ 13,315,404 $ 27,865,183 $ 27,409,456
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block]	Three Months Ended Six Months Ended February 29, 2020 % of Segment Sales* February 28, 2019 % of Segment Sales* February 29, 2020 % of Segment Sales* February 28, 2019 % of Segment Sales* Direct cost of goods sold ZERUST ® $ 4,638,514 51.4 % $ 5,249,617 57.6 % $ 10,081,686 53.7 % $ 10,871,316 56.7 % Natur-Tec ® 3,276,058 77.7 % 3,354,693 79.7 % 6,890,477 77.4 % 6,510,768 79.1 % Indirect cost of goods sold 772,729 — 679,789 — 1,420,040 — 1,363,152 — Total net cost of goods sold $ 8,687,301 $ 9,284,099 $ 18,492,385 $ 18,745,236
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	Three Months Ended Six Months Ended February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Inside the U.S.A. to unaffiliated customers $ 6,628,647 $ 6,467,940 $ 14,527,345 $ 13,391,874 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 245,630 708,955 831,246 1,192,142 Unaffiliated customers 6,359,506 6,138,509 12,506,592 12,825,440 $ 13,233,783 $ 13,315,404 $ 27,865,183 $ 27,409,456
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	At At China $ 397,139 $ 337,162 Brazil 79,825 101,548 Germany 23,734 14,791 India 72,951 61,748 United States 6,653,875 6,842,910 Total property and equipment $ 7,227,524 $ 7,358,159
Revenue from External Customers by Geographic Areas [Table Text Block]	Three Months Ended February 29, 2020 February 28, 2019 China $ 3,024,384 $ 3,005,199 Brazil 823,218 726,799 India 2,059,564 2,224,149 Other 967,111 891,317 United States 6,359,506 6,467,940 Total net sales $ 13,233,783 $ 13,315,404 Six Months Ended February 29, 2020 February 28, 2019 China $ 6,885,956 $ 6,173,259 Brazil 1,715,196 1,551,595 India 4,095,774 3,875,790 Other 2,661,665 2,416,938 United States 12,506,592 13,391,874 Total net sales $ 27,865,183 $ 27,409,456
Fees for Services Provided to Joint Ventures [Member]
Notes Tables
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	Three Months Ended February 29, % of Total Fees for Services Provided to Joint Ventures February 28, % of Total Fees for Services Provided to Joint Ventures Germany $ 208,128 16.6 % $ 215,337 15.0 % Poland 170,916 13.6 % 188,529 13.1 % Japan 150,150 12.0 % 167,496 11.7 % Sweden 98,398 7.8 % 149,750 10.4 % Thailand 90,878 7.2 % 105,299 7.3 % France 85,709 6.8 % 106,270 7.4 % United Kingdom 64,279 5.1 % 96,209 6.7 % Czech Republic 80,200 6.4 % 93,928 6.6 % India 80,024 6.4 % 85,401 5.9 % South Korea 75,289 6.0 % 87,413 6.1 % Finland 74,001 5.9 % 64,648 4.5 % Other 78,241 6.2 % 76,494 5.3 % $ 1,256,213 100.0 % $ 1,436,774 100.0 % Six Months Ended February 29, % of Total Fees for Services Provided to Joint Ventures February 28, % of Total Fees for Services Provided to Joint Ventures Germany $ 420,229 16.1 % $ 430,328 15.0 % Poland 365,894 14.0 % 370,374 12.9 % Japan 314,079 12.0 % 337,296 11.7 % Sweden 207,904 8.0 % 279,993 9.8 % Thailand 193,212 7.4 % 203,647 7.1 % France 179,340 6.9 % 216,332 7.6 % United Kingdom 149,758 5.7 % 190,990 6.7 % Czech Republic 169,214 6.5 % 183,620 6.4 % India 162,984 6.2 % 180,128 6.3 % South Korea 151,321 5.8 % 173,880 6.1 % Finland 141,942 5.4 % 146,464 5.1 % Other 158,661 6.1 % 152,157 5.3 % $ 2,614,538 100.0 % $ 2,865,209 100.0 %

Note 12 - Commitments and Con_2

Note 12 - Commitments and Contingencies (Tables)	6 Months Ended
	Feb. 29, 2020
Notes Tables
Schedule of Components of Operating Lease Assets and Liabilities [Table Text Block]	(in thousands): February 29, 2020 Right-of-use assets, net $ 520,601 Current portion of lease liability 211,495 Lease liability, less current portion 309,106 Total lease liability $ 520,601
Lessee, Operating Lease, Liability, Maturity [Table Text Block]	Fiscal 2020 $ 143,527 Fiscal 2021 263,392 Fiscal 2022 125,648 Fiscal 2023 10,222 Thereafter 2,570 Total future minimum lease payments 545,359 Less amount representing interest (24,758 ) Present value of obligations under operating leases 520,601 Less current portion (211,495 ) Long-term operating lease obligations $ 309,106

Note 13 - Fair Value Measurem_2

Note 13 - Fair Value Measurements (Tables)	6 Months Ended
	Feb. 29, 2020
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 $ 6,512,166 $ 6,512,166 $ — $ — Fair Value Measurements Fair value as of Level 1 Level 2 Level 3 Available for sale securities $ 3,565,258 $ 3,565,258 $ — $ —

Note 14 - Supplemental Cash F_2

Note 14 - Supplemental Cash Flow Information (Tables)	6 Months Ended
	Feb. 29, 2020
Notes Tables
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	Three Months Ended Six Months Ended February 29, 2020 February 28, 2019 February 29, 2020 February 28, 2019 Cash paid for interest $ 9,377 $ 3,835 $ 14,821 $ 6,192 Cash paid for income taxes — $ 53,975 — $ 53,975

Note 1 - Interim Financial In_2

Note 1 - Interim Financial Information (Details Textual)	Jun. 28, 2019	Jun. 03, 2019
Stockholders' Equity Note, Stock Split, Conversion Ratio	2	2

Note 2 - Accounting Pronounce_2

Note 2 - Accounting Pronouncements (Details Textual) - USD ($)	Feb. 29, 2020	Sep. 01, 2019
Operating Lease, Liability, Total	$ 520,601
Operating Lease, Right-of-Use Asset	$ 520,601
Accounting Standards Update 2016-02 [Member]
Operating Lease, Liability, Total		$ 600,000
Operating Lease, Right-of-Use Asset		$ 600,000

Note 3 - Inventories - Inventor

Note 3 - Inventories - Inventories (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Production materials	$ 3,908,268	$ 1,980,816
Finished goods	7,516,116	8,507,912
Total inventory	$ 11,424,384	$ 10,488,728

Note 4 - Property and Equipme_3

Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Land	$ 310,365	$ 310,365
Buildings and improvements	7,942,162	7,749,980
Machinery and equipment	4,991,681	4,903,664
Gross	13,244,208	12,964,009
Less accumulated depreciation	(6,016,684)	(5,605,850)
Net	$ 7,227,524	$ 7,358,159

Note 5 - Patents and Trademar_3

Note 5 - Patents and Trademarks, Net (Details Textual) - Patents and Trademarks [Member]	6 Months Ended
	Feb. 29, 2020USD ($)
Finite-Lived Intangible Asset, Useful Life	7 years
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 200,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	200,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	200,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	200,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 200,000

Note 5 - Patents and Trademar_4

Note 5 - Patents and Trademarks, Net - Patents and Trademarks, Net (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Patents and trademarkes, net	$ 930,132	$ 1,008,969
Patents and Trademarks [Member]
Patents and trademarks	2,978,210	2,938,876
Less accumulated amortization	(2,048,078)	(1,929,907)
Patents and trademarkes, net	$ 930,132	$ 1,008,969

Note 6 - Investments in Joint_3

Note 6 - Investments in Joint Ventures (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Payments to Acquire Interest in Joint Venture	$ 0	$ 0

Note 6 - Investments in Joint_4

Note 6 - Investments in Joint Ventures - Condensed Balance Sheet of EXCOR and All Other Joint Ventures (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Current assets	$ 52,843,263	$ 59,162,834
Total assets	56,806,232	63,326,703
Current liabilities	13,446,110	14,145,499
Noncurrent liabilities	19,924	20,797
Joint ventures’ equity	43,340,198	49,160,407
Northern Technologies International Corporation’s share of joint ventures’ equity	21,297,202	24,207,339
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	19,267,931	22,178,126
EXCOR [Member]
Current assets	23,302,245	29,139,787
Total assets	25,573,425	31,666,841
Current liabilities	3,357,346	3,573,160
Noncurrent liabilities	0
Joint ventures’ equity	22,216,079	28,093,681
Northern Technologies International Corporation’s share of joint ventures’ equity	11,108,042	14,046,842
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	11,077,137	14,015,937
All Other [Member]
Current assets	29,541,018	30,023,047
Total assets	31,232,807	31,659,862
Current liabilities	10,088,764	10,572,339
Noncurrent liabilities	19,924	20,797
Joint ventures’ equity	21,124,119	21,066,726
Northern Technologies International Corporation’s share of joint ventures’ equity	10,189,160	10,160,497
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$ 8,190,794	$ 8,162,189

Note 6 - Investments in Joint_5

Note 6 - Investments in Joint Ventures - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Net sales	$ 24,289,370	$ 27,749,880	$ 49,749,664	$ 58,229,806
Gross profit	11,102,573	12,632,547	22,459,707	25,989,438
Net income	2,721,542	3,450,976	5,309,523	7,614,767
Northern Technologies International Corporation’s share of equity in income from joint ventures	1,360,804	1,715,216	2,654,794	3,719,378
Northern Technologies International Corporation's dividends received from joint ventures	5,353,552	540,538	5,558,926	2,027,243
EXCOR [Member]
Net sales	8,980,176	11,092,133	18,348,415	23,961,656
Gross profit	5,262,082	6,306,084	10,587,570	12,989,658
Net income	1,778,027	2,440,323	3,420,354	5,480,125
Northern Technologies International Corporation’s share of equity in income from joint ventures	889,226	1,221,006	1,710,390	2,740,907
Northern Technologies International Corporation's dividends received from joint ventures	4,675,850		4,675,850	843,750
All Other [Member]
Net sales	15,309,194	16,657,747	31,401,249	34,268,150
Gross profit	5,840,491	6,326,463	11,872,137	12,999,780
Net income	943,516	1,010,653	1,889,169	2,134,642
Northern Technologies International Corporation’s share of equity in income from joint ventures	471,578	494,210	944,404	978,471
Northern Technologies International Corporation's dividends received from joint ventures	$ 677,702	$ 540,538	$ 883,133	$ 183,493

Note 7 - Corporate Debt (Detail

Note 7 - Corporate Debt (Details Textual)	6 Months Ended
	Feb. 29, 2020USD ($)	Aug. 31, 2019USD ($)
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	$ 88,831

Note 8 - Stockholders' Equity_2

Note 8 - Stockholders' Equity (Details Textual)	Sep. 01, 2019shares	Jun. 28, 2019	Jun. 03, 2019	Sep. 01, 2018shares	Nov. 30, 2018shares	Feb. 29, 2020$ / sharesshares	Feb. 28, 2019$ / sharesshares
Stockholders' Equity Note, Stock Split, Conversion Ratio		2	2
Stock Repurchased and Retired During Period, Shares					0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						300,770	141,768
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period						0	0
Stock Issued During Period, Shares, Employee Stock Purchase Plans	3,597			1,748
The 2019 Plan [member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						300,770
The 2019 Plan [member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						300,770
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares						$ 10.87
The 2007 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross							141,767
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares							$ 18.23

Note 8 - Stockholders' Equity -

Note 8 - Stockholders' Equity - Cash Dividends Declared (Details) - $ / shares	Jan. 22, 2020	Oct. 22, 2019	Jan. 23, 2019	Oct. 24, 2018	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Declaration date	Jan. 22, 2020	Oct. 22, 2019	Jan. 23, 2019	Oct. 24, 2018
Amount (in dollars per share)	$ 0.065	$ 0.065	$ 0.06	$ 0.06	$ 0.065	$ 0.06	$ 0.13	$ 0.12
Record date	Feb. 5, 2020	Nov. 6, 2019	Feb. 6, 2019	Nov. 7, 2018
Payable date	Feb. 19, 2020	Nov. 20, 2019	Feb. 22, 2019	Nov. 21, 2018

Note 9 - Net Income Per Commo_3

Note 9 - Net Income Per Common Share (Details Textual)	Jun. 28, 2019	Jun. 03, 2019	Feb. 29, 2020shares	Feb. 28, 2019shares	Feb. 29, 2020shares	Feb. 28, 2019shares
Stockholders' Equity Note, Stock Split, Conversion Ratio	2	2
Share-based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			141,768	141,768	141,768	141,768

Note 9 - Net Income Per Commo_4

Note 9 - Net Income Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Net income attributable to NTIC	$ 179,834	$ 1,401,568	$ 1,392,384	$ 2,898,627
Basic – weighted shares outstanding (in shares)	9,097,236	9,084,354	9,095,604	9,084,350
Weighted shares assumed upon exercise of stock options (in shares)	364,491	363,506	288,263	378,866
Diluted – weighted shares outstanding (in shares)	9,461,727	9,447,860	9,383,867	9,463,216
Basic net income per share: (in dollars per share)	$ 0.02	$ 0.16	$ 0.15	$ 0.32
Diluted net income per share: (in dollars per share)	$ 0.02	$ 0.15	$ 0.15	$ 0.31

Note 10 - Stock-based Compens_3

Note 10 - Stock-based Compensation (Details Textual) - USD ($)	6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	300,770	141,768
Share-based Payment Arrangement, Expense	$ 658,470	$ 715,960
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount	700,138
Allocated Share-based Compensation Expense, Estimate Remainder of Fiscal Year	679,304
Allocated Share-based Compensation Expense, Estimate, Fiscal Year Two	$ 20,834
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 4.30	$ 9.02
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	6 years 193 days	6 years 146 days
The 2019 Plan [member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	800,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	300,770
The 2019 Plan [member] | One Year after Date of Grant [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
The 2019 Plan [member] | One Year after Date of Grant [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	200,000
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	90.00%
Common Stock, Capital Shares Reserved for Future Issuance	87,447

Note 10 - Stock-based Compens_4

Note 10 - Stock-based Compensation - Black-Scholes Option-pricing Model Assumptions (Details)	6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Dividend yield	2.15%	1.32%
Expected volatility	45.20%	45.80%
Expected life of option (years) (Year)	10 years	10 years
Average risk-free interest rate	1.57%	2.75%

Note 11 - Segment and Geograp_3

Note 11 - Segment and Geographic Information (Details Textual)	6 Months Ended
	Feb. 29, 2020
Number of Reportable Segments	2

Note 11 - Segment and Geograp_4

Note 11 - Segment and Geographic Information - Net Sales by Segment (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Net sales by segment	$ 13,233,783	$ 13,315,404	$ 27,865,183	$ 27,409,456
ZERUST [Member]
Net sales by segment	9,016,222	9,108,395	18,965,734	19,173,569
NaturTec [Member]
Net sales by segment	$ 4,217,561	$ 4,207,009	$ 8,899,449	$ 8,235,887

Note 11 - Segment and Geograp_5

Note 11 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($)		3 Months Ended		6 Months Ended
		Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Cost of goods sold		$ 8,687,301	$ 9,284,099	$ 18,492,385	$ 18,745,236
Percent of product sales	[1]
Direct Cost of Goods Sold [Member] | ZERUST [Member]
Cost of goods sold		$ 4,638,514	$ 5,249,617	$ 10,081,686	$ 10,871,316
Percent of product sales	[1]	51.40%	57.60%	53.70%	56.70%
Direct Cost of Goods Sold [Member] | NaturTec [Member]
Cost of goods sold		$ 3,276,058	$ 3,354,693	$ 6,890,477	$ 6,510,768
Percent of product sales	[1]	77.70%	79.70%	77.40%	79.10%
Indirect Cost of Goods Sold [Member]
Cost of goods sold		$ 772,729	$ 679,789	$ 1,420,040	$ 1,363,152
Percent of product sales	[1]
[1]	The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category.

Note 11 - Segment and Geograp_6

Note 11 - Segment and Geographic Information - Net Sales by Geographic Location (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Net sales by segment	$ 13,233,783	$ 13,315,404	$ 27,865,183	$ 27,409,456
Inside the USA to Unaffiliated Customers [Member]
Net sales by segment	6,628,647	6,467,940	14,527,345	13,391,874
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member]
Net sales by segment	245,630	708,955	831,246	1,192,142
Unaffiliated Customers Outside the USA [Member]
Net sales by segment	$ 6,359,506	$ 6,138,509	$ 12,506,592	$ 12,825,440

Note 11 - Segment and Geograp_7

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		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Fees	$ 1,256,213	$ 1,436,774	$ 2,614,538	$ 2,865,209
Percentage of Total Fees	100.00%	100.00%	100.00%	100.00%
GERMANY
Fees	$ 208,128	$ 215,337	$ 420,229	$ 430,328
Percentage of Total Fees	16.60%	15.00%	16.10%	15.00%
POLAND
Fees	$ 170,916	$ 188,529	$ 365,894	$ 370,374
Percentage of Total Fees	13.60%	13.10%	14.00%	12.90%
JAPAN
Fees	$ 150,150	$ 167,496	$ 314,079	$ 337,296
Percentage of Total Fees	12.00%	11.70%	12.00%	11.70%
SWEDEN
Fees	$ 98,398	$ 149,750	$ 207,904	$ 279,993
Percentage of Total Fees	7.80%	10.40%	8.00%	9.80%
THAILAND
Fees	$ 90,878	$ 105,299	$ 193,212	$ 203,647
Percentage of Total Fees	7.20%	7.30%	7.40%	7.10%
FRANCE
Fees	$ 85,709	$ 106,270	$ 179,340	$ 216,332
Percentage of Total Fees	6.80%	7.40%	6.90%	7.60%
UNITED KINGDOM
Fees	$ 64,279	$ 96,209	$ 149,758	$ 190,990
Percentage of Total Fees	5.10%	6.70%	5.70%	6.70%
CZECH REPUBLIC
Fees	$ 80,200	$ 93,928	$ 169,214	$ 183,620
Percentage of Total Fees	6.40%	6.60%	6.50%	6.40%
INDIA
Fees	$ 80,024	$ 85,401	$ 162,984	$ 180,128
Percentage of Total Fees	6.40%	5.90%	6.20%	6.30%
KOREA, REPUBLIC OF
Fees	$ 75,289	$ 87,413	$ 151,321	$ 173,880
Percentage of Total Fees	6.00%	6.10%	5.80%	6.10%
FINLAND
Fees	$ 74,001	$ 64,648	$ 141,942	$ 146,464
Percentage of Total Fees	5.90%	4.50%	5.40%	5.10%
Other Countries [Member]
Fees	$ 78,241	$ 76,494	$ 158,661	$ 152,157
Percentage of Total Fees	6.20%	5.30%	6.10%	5.30%

Note 11 - Segment and Geograp_8

Note 11 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Total property and equipment	$ 7,227,524	$ 7,358,159
CHINA
Total property and equipment	397,139	337,162
BRAZIL
Total property and equipment	79,825	101,548
GERMANY
Total property and equipment	23,734	14,791
INDIA
Total property and equipment	72,951	61,748
UNITED STATES
Total property and equipment	$ 6,653,875	$ 6,842,910

Note 11 - Segment and Geograp_9

Note 11 - Segment and Geographic Information - Total Net Sales by Geographic Distribution (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Net sales by segment	$ 13,233,783	$ 13,315,404	$ 27,865,183	$ 27,409,456
CHINA
Net sales by segment	3,024,384	3,005,199	6,885,956	6,173,259
BRAZIL
Net sales by segment	823,218	726,799	1,715,196	1,551,595
INDIA
Net sales by segment	2,059,564	2,224,149	4,095,774	3,875,790
Other Countries [Member]
Net sales by segment	967,111	891,317	2,661,665	2,416,938
UNITED STATES
Net sales by segment	$ 6,359,506	$ 6,467,940	$ 12,506,592	$ 13,391,874

Note 12 - Commitments and Con_3

Note 12 - Commitments and Contingencies (Details Textual) - USD ($)	6 Months Ended
	Feb. 29, 2020	Aug. 31, 2019	Feb. 28, 2019
Lessee, Operating Lease, Option to Extend Term One	5 years
Lessee, Operating Lease, Option to Extend Term Two	10 years
Finance and Operating Lease, Weighted Average Remaining Lease Term	2 years 36 days
Operating Lease, Weighted Average Discount Rate, Percent	4.32%
Accrued Bonuses	$ 800,000		$ 900,000
Entity Wide Trade Joint Venture Receivables, Three Joint Ventures,Percentage	55.80%	69.60%
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%
Buildings, Equipment and Vehicles [Member]
Number of Operating Lease	19

Note 12 - Commitments and Con_4

Note 12 - Commitments and Contingencies - Present Value of Long-term Leases (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Right-of-use assets, net	$ 520,601
Current portion of lease liability	211,495
Lease liability, less current portion	309,106
Total lease liability	$ 520,601

Note 12 - Commitments and Con_5

Note 12 - Commitments and Contingencies - Future Minimum Rents Due (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Fiscal 2020	$ 143,527
Fiscal 2021	263,392
Fiscal 2022	125,648
Fiscal 2023	10,222
Thereafter	2,570
Total future minimum lease payments	545,359
Less amount representing interest	(24,758)
Present value of obligations under operating leases	520,601
Less current portion	(211,495)
Long-term operating lease obligations	$ 309,106

Note 13 - Fair Value Measurem_3

Note 13 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Available for sale securities	$ 6,512,166	$ 3,565,258
Fair Value, Inputs, Level 1 [Member]
Available for sale securities	6,512,166	3,565,258
Fair Value, Inputs, Level 2 [Member]
Available for sale securities
Fair Value, Inputs, Level 3 [Member]
Available for sale securities

Note 14 - Supplemental Cash F_3

Note 14 - Supplemental Cash Flow Information - Supplemental Disclosures of Cash Flow Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Cash paid for interest	$ 9,377	$ 3,835	$ 14,821	$ 6,192
Cash paid for income taxes		$ 53,975		$ 53,975