Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Nov. 30, 2020 | Jan. 05, 2021 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000875582 | |
Entity Registrant Name | Northern Technologies International Corporation | |
Amendment Flag | false | |
Current Fiscal Year End Date | --08-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-11038 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 41-0857886 | |
Entity Address, Address Line One | 4201 Woodland Road | |
Entity Address, City or Town | Circle Pines | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55014 | |
City Area Code | 763 | |
Local Phone Number | 225-6600 | |
Title of 12(b) Security | Common stock, par value $0.02 per share | |
Trading Symbol | NTIC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,104,636 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Nov. 30, 2020 | Aug. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 6,953,341 | $ 6,403,032 |
Available for sale securities | 6,382,785 | 5,544,722 |
Receivables: | ||
Trade excluding joint ventures, less allowance for doubtful accounts of $120,000 as of November 30, 2020 and $90,000 as of August 31, 2020 | 9,551,519 | 8,072,212 |
Trade joint ventures | 675,391 | 475,900 |
Fees for services provided to joint ventures | 1,149,165 | 927,286 |
Income taxes | 10,898 | 19,907 |
Inventories | 9,835,135 | 10,961,796 |
Prepaid expenses | 917,570 | 797,495 |
Total current assets | 35,475,804 | 33,202,350 |
PROPERTY AND EQUIPMENT, NET | 7,224,297 | 7,110,789 |
OTHER ASSETS: | ||
Investments in joint ventures | 24,961,205 | 24,090,826 |
Deferred income taxes | 209,220 | 209,729 |
Patents and trademarks, net | 782,423 | 802,006 |
Operating lease right of use asset | 552,103 | 658,788 |
Total other assets | 26,504,951 | 25,761,349 |
Total assets | 69,205,052 | 66,074,488 |
CURRENT LIABILITIES: | ||
Accounts payable | 4,379,475 | 3,205,241 |
Income taxes payable | 486,800 | 310,922 |
Accrued liabilities: | ||
Payroll and related benefits | 1,304,018 | 1,314,978 |
Other | 856,532 | 880,118 |
Current portion of operating lease | 276,061 | 386,345 |
Total current liabilities | 7,302,886 | 6,097,604 |
LONG-TERM LIABILITIES: | ||
Operating lease, less current portion | 276,042 | 272,443 |
Total long-term liabilities | 276,042 | 272,443 |
COMMITMENTS AND CONTINGENCIES (Note 12) | ||
EQUITY: | ||
Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding | 0 | 0 |
Common stock, $0.02 par value per share; authorized 15,000,000 shares as of November 30, 2020 and August 31, 2020; issued and outstanding 9,104,636 and 9,099,990, respectively | 182,093 | 182,000 |
Additional paid-in capital | 17,632,811 | 17,415,043 |
Retained earnings | 43,735,209 | 42,472,810 |
Accumulated other comprehensive loss | (3,179,678) | (3,410,438) |
Stockholders’ equity | 58,370,435 | 56,659,415 |
Non-controlling interests | 3,255,689 | 3,045,026 |
Total equity | 61,626,124 | 59,704,441 |
Total liabilities and equity | $ 69,205,052 | $ 66,074,488 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Nov. 30, 2020 | Aug. 31, 2020 |
Trade receivable excluding joint ventures, allowance for doubtful accounts | $ 120,000 | $ 90,000 |
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) | 9,104,636 | 9,099,990 |
Common stock, shares outstanding (in shares) | 9,104,636 | 9,099,990 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
NET SALES: | ||
Net sales, excluding joint ventures | $ 12,198,808 | $ 14,045,784 |
Net sales, to joint ventures | 580,304 | 585,616 |
Total net sales | 12,779,112 | 14,631,400 |
Cost of goods sold | 8,313,321 | 9,805,084 |
Gross profit | 4,465,791 | 4,826,316 |
JOINT VENTURE OPERATIONS: | ||
Equity in income from joint ventures | 1,825,712 | 1,293,990 |
Fees for services provided to joint ventures | 1,336,561 | 1,358,325 |
Total joint venture operations | 3,162,273 | 2,652,315 |
OPERATING EXPENSES: | ||
Selling expenses | 2,741,768 | 2,887,292 |
General and administrative expenses | 2,093,982 | 2,049,687 |
Research and development expenses | 1,075,737 | 961,641 |
Total operating expenses | 5,911,487 | 5,898,620 |
OPERATING INCOME | 1,716,577 | 1,580,011 |
INTEREST INCOME | 69,538 | 49,038 |
INTEREST EXPENSE | (2,368) | (5,444) |
INCOME BEFORE INCOME TAX EXPENSE | 1,783,747 | 1,623,605 |
INCOME TAX EXPENSE | 378,590 | 264,066 |
NET INCOME | 1,405,157 | 1,359,539 |
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 142,758 | 146,989 |
NET INCOME ATTRIBUTABLE TO NTIC | $ 1,262,399 | $ 1,212,550 |
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE: | ||
Basic (in dollars per share) | $ 0.14 | $ 0.13 |
Diluted (in dollars per share) | $ 0.13 | $ 0.13 |
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING: | ||
Basic (in shares) | 9,104,623 | 9,095,607 |
Diluted (in shares) | 9,644,630 | 9,407,642 |
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0 | $ 0.065 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
NET INCOME | $ 1,405,157 | $ 1,359,539 |
OTHER COMPREHENSIVE INCOME (LOSS) - FOREIGN CURRENCY TRANSLATION ADJUSTMENT | 298,665 | 125,676 |
COMPREHENSIVE INCOME | 1,703,822 | 1,485,215 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 210,663 | 169,851 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NTIC | $ 1,493,159 | $ 1,315,364 |
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, 2019 | 9,086,816 | |||||
BALANCE at Aug. 31, 2019 | $ 181,736 | $ 16,013,338 | $ 44,992,719 | $ (4,593,178) | $ 3,074,679 | $ 59,669,294 |
Stock options exercised (in shares) | 6,823 | 0 | ||||
Stock options exercised | $ 137 | (137) | 0 | 0 | 0 | $ 0 |
Stock issued for employee stock purchase plan (in shares) | 3,597 | |||||
Stock issued for employee stock purchase plan | $ 72 | 35,535 | 0 | 0 | 0 | 35,607 |
Stock option expense | 0 | 318,818 | 0 | 0 | 0 | 318,818 |
Investment by non-controlling interest | 0 | 0 | 0 | 0 | 0 | 0 |
Dividends paid to shareholders | 0 | 0 | (590,879) | 0 | 0 | (590,879) |
Comprehensive income | $ 0 | 0 | 1,212,550 | 102,814 | 169,851 | 1,485,215 |
BALANCE (in shares) at Nov. 30, 2019 | 9,097,236 | |||||
BALANCE at Nov. 30, 2019 | $ 181,945 | 16,367,554 | 45,614,390 | (4,490,364) | 3,244,530 | 60,918,055 |
BALANCE (in shares) at Aug. 31, 2020 | 9,099,990 | |||||
BALANCE at Aug. 31, 2020 | $ 182,000 | 17,415,043 | 42,472,810 | (3,410,438) | 3,045,026 | $ 59,704,441 |
Stock options exercised (in shares) | 0 | |||||
Stock options exercised | $ 0 | 0 | 0 | 0 | 0 | $ 0 |
Stock issued for employee stock purchase plan (in shares) | 4,646 | |||||
Stock issued for employee stock purchase plan | $ 93 | 36,099 | 0 | 0 | 0 | 36,192 |
Stock option expense | 0 | 181,669 | 0 | 0 | 0 | 181,669 |
Investment by non-controlling interest | 0 | 0 | 0 | 0 | 0 | 0 |
Dividends paid to shareholders | 0 | 0 | 0 | 0 | 0 | 0 |
Comprehensive income | $ 0 | 0 | 1,262,399 | 230,760 | 210,663 | 1,703,822 |
BALANCE (in shares) at Nov. 30, 2020 | 9,104,636 | |||||
BALANCE at Nov. 30, 2020 | $ 182,093 | $ 17,632,811 | $ 43,735,209 | $ (3,179,678) | $ 3,255,689 | $ 61,626,124 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,405,157 | $ 1,359,539 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Stock-based compensation | 181,669 | 318,818 |
Depreciation expense | 211,932 | 211,132 |
Amortization expense | 49,989 | 58,521 |
Change in allowance for doubtful accounts | 30,000 | 0 |
Equity in income from joint ventures | (1,825,712) | (1,293,990) |
Dividends received from joint ventures | 1,125,361 | 205,432 |
Deferred income taxes | 338 | 114,166 |
Changes in current assets and liabilities: | ||
Trade, excluding joint ventures | (1,334,199) | (534,080) |
Trade, joint ventures | (199,491) | 182,798 |
Fees for services provided to joint ventures | (221,879) | (97,864) |
Income taxes | 10,001 | 262,440 |
Inventories | 1,242,101 | (734,384) |
Prepaid expenses and other | (108,751) | (97,035) |
Accounts payable | 1,046,577 | 518,930 |
Income tax payable | 156,951 | 7,970 |
Accrued liabilities | (168,924) | (2,049,549) |
Net cash provided by (used in) operating activities | 1,601,120 | (1,567,157) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of available for sale securities | (838,063) | (2,521,837) |
Proceeds from the sale of available for sale securities | 0 | 3,100,000 |
Purchases of property and equipment | (309,400) | (197,370) |
Investments in patents | (30,406) | (27,493) |
Net cash (used in) provided by investing activities | (1,177,869) | 353,300 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividends paid on NTIC common stock | 0 | (590,878) |
Proceeds from employee stock purchase plan | 36,192 | 35,607 |
Net cash provided by (used in) financing activities | 36,192 | (555,271) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS: | 90,866 | 19,166 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 550,309 | (1,749,962) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 6,403,032 | 5,856,758 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 6,953,341 | $ 4,106,796 |
Note 1 - Interim Financial Info
Note 1 - Interim Financial Information | 3 Months Ended |
Nov. 30, 2020 | |
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 November 30, 2020 August 31, 2020 three November 30, 2020 2019, three November 30, 2020 2019 three November 30, 2020 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, 2020. Management’s Discussion and Analysis of Financial Condition and Results of Operations Operating results for the three November 30, 2020 not may August 31, 2021. The Company evaluates events occurring after the date of the consolidated financial statements requiring recording or disclosure in the consolidated financial statements. Impact of COVID- 19 In March 2020, 19 19 first 2021 2021 |
Note 2 - Accounting Pronounceme
Note 2 - Accounting Pronouncements | 3 Months Ended |
Nov. 30, 2020 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 2. Accounting PronouncementS Recently Issued Accounting Pronouncements In June 2016, No. 2016 13, November 2018, No. 2018 19 April 2019, No. 2019 04 May 2019, No. 2019 05, November 2019, No. 2019 11, December 15, 2022, first 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 | 3 Months Ended |
Nov. 30, 2020 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 3. Inventories consisted of the following: November 30, 20 20 August 31, 20 20 Production materials $ 3,180,144 $ 3,866,791 Finished goods 6,654,991 7,095,005 $ 9,835,135 $ 10,961,796 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment, Net | 3 Months Ended |
Nov. 30, 2020 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 4. Property and equipment, net consisted of the following: November 30, 20 20 August 31, 20 20 Land $ 310,365 $ 310,365 Buildings and improvements 8,245,751 8,167,783 Machinery and equipment 5,111,807 4,940,912 13,667,923 13,419,060 Less accumulated depreciation (6,443,626 ) (6,308,271 ) $ 7,224,297 $ 7,110,789 |
Note 5 - Patents and Trademarks
Note 5 - Patents and Trademarks, Net | 3 Months Ended |
Nov. 30, 2020 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 5. Patents and trademarks, net consisted of the following: November 30, 20 20 August 31, 20 20 Patents and trademarks $ 2,938,258 $ 2,907,852 Less accumulated amortization (2,155,835 ) (2,105,846 ) $ 782,423 $ 802,006 Patent and trademark costs are amortized over seven four |
Note 6 - Investments in Joint V
Note 6 - Investments in Joint Ventures | 3 Months Ended |
Nov. 30, 2020 | |
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 on sales recorded that remain on the consolidated balance sheet 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 November 30, 20 20 Total EXCOR All Other Current assets $ 61,457,250 $ 28,660,652 $ 32,796,598 Total assets 65,569,012 31,051,037 34,517,975 Current liabilities 14,569,061 2,997,769 11,571,292 Noncurrent liabilities 331,743 — 331,743 Joint ventures’ equity 50,668,208 28,053,268 22,614,940 Northern Technologies International Corporation’s share of joint ventures’ equity 24,961,205 14,026,636 10,934,569 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 22,726,127 13,995,731 8,730,396 Three Months Ended November 30, 20 20 Total EXCOR All Other Net sales $ 26,777,343 $ 9,551,483 $ 17,225,860 Gross profit 12,441,761 5,699,007 6,742,754 Net income 3,651,424 2,021,074 1,630,350 Northern Technologies International Corporation’s share of equity in income from joint ventures 1,825,712 1,010,537 815,175 Northern Technologies International Corporation's dividends received from joint ventures $ 1,125,361 — $ 1,125,361 As of August 31, 20 20 Total EXCOR All Other Current assets $ 55,825,418 $ 25,742,619 $ 30,082,799 Total assets 60,295,587 28,449,772 31,845,815 Current liabilities 11,002,867 2,424,565 8,578,302 Noncurrent liabilities 365,274 — 365,274 Joint ventures’ equity 48,927,446 26,025,207 22,902,239 Northern Technologies International Corporation’s share of joint ventures’ equity 24,090,826 13,012,606 11,078,220 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 21,855,747 12,981,701 8,874,046 Three Months Ended November 30, 201 9 Total EXCOR All Other Net sales $ 25,460,294 $ 9,368,239 $ 16,092,055 Gross profit 11,357,134 5,325,488 6,031,646 Net income 2,587,980 1,642,327 945,653 Northern Technologies International Corporation’s share of equity in income from joint ventures 1,293,990 821,163 472,827 Northern Technologies International Corporation's dividends received from joint ventures $ 205,432 — $ 205,432 |
Note 7 - Corporate Debt
Note 7 - Corporate Debt | 3 Months Ended |
Nov. 30, 2020 | |
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 amounts were outstanding under the line of credit as of both November 30, 2020 August 31, 2020. 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. November 30, 2020, On December 21, 2020, (a) the rate at which amounts outstanding under the line of credit bear interest was revised to equal (i) (A) a per annum rate equal to the “London Interbank Offered Rate” for a one 75 325 (b) a provision was added that added a mechanism for determining an alternative rate of interest in the event the “London Interbank Offered Rate” is no (c) the maturity date of the line of credit was extended to January 7, 2022; (d) the fixed charge coverage ratio financial covenant was revised to be required to be maintained only as of the end of each fiscal year at a ratio of 1.10:1.0, (e) the automatic sweep by PNC Bank of the Company’s checking account and the automatic advance from the line of credit to the Company’s checking account were terminated. Except as described above, the other material terms of the revolving line of credit and loan agreement with PNC Bank and other related documents were not As of November 30, 2020 August 31, 2020, not As of November 30, 2020 August 31, 2020, 2021 2022. |
Note 8 - Stockholders' Equity
Note 8 - Stockholders' Equity | 3 Months Ended |
Nov. 30, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 8. On April 23, 2020, 19 not three November 30, 2020. October 22, 2019, November 20, 2019 November 6, 2019. During the three November 30, 2020 2019, During the three November 30, 2020, 2019 2019 three November 30, 2020, During the three November 30, 2019, 2019 three November 30, 2020, The Company issued 4,646 and 3,597 shares of common stock on September 1, 2020 2019, |
Note 9 - Net Income Per Common
Note 9 - Net Income Per Common Share | 3 Months Ended |
Nov. 30, 2020 | |
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 net income per share computation for the three November 30, 2020 2019: Three Months Ended Numerator: November 30, 20 20 November 30, 201 9 Net income attributable to NTIC $ 1,262,399 $ 1,212,550 Denominator: Basic – weighted shares outstanding 9,104,623 9,095,607 Weighted shares assumed upon exercise of stock options 540,007 312,035 Diluted – weighted shares outstanding 9,644,630 9,407,642 Basic net income per share: $ 0.14 $ 0.13 Diluted net income per share: $ 0.13 $ 0.13 The dilutive impact summarized above relates to the periods when the average market price of the Company’s common stock exceeded the exercise price of the potentially dilutive option securities granted. 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 market method when computing the diluted net income per share. Excluded from the computation of diluted net income per share for the three November 30, 2020 three November 30, 2019 |
Note 10 - Stock-based Compensat
Note 10 - Stock-based Compensation | 3 Months Ended |
Nov. 30, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 10. The Company has three 2019 2007 2007 2019 2007 no may 2007 The 2019 2019 2019 ten one three one November 30, 2020, 2019 2019 The maximum number of shares of common stock of the Company available for issuance under the ESPP is 200,000 shares, subject to adjustment as provided in the ESPP. The ESPP provides for six September 1 March 1 may not 423 1986, November 30, 2020, The Company granted options to purchase an aggregate of 419,874 and 300,770 shares of its common stock during the three November 30, 2020 2019, three November 30, 2020 2019, November 30, 2020, not 2021, 2022, November 30, 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: November 30, 2020 201 9 Dividend yield 2.37 % 2.15 % Expected volatility 45.6 % 45.1 % Expected life of option (in years) 10 10 Average risk-free interest rate 0.28 % 1.57 % The weighted average per share fair value of options granted during the three November 30, 2020 2019 November 30, 2020 2019 On November 6, 2020, 2019 2019 2021 January 15, 2021. 2019 2019 first |
Note 11 - Segment and Geographi
Note 11 - Segment and Geographic Information | 3 Months Ended |
Nov. 30, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 11. Segment Information The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s business is organized into two reportable segments: ZERUST ® ® ® 40 ® The following table sets forth the Company’s net sales for the three November 30, 2020 2019 Three Months Ended November 30, 20 20 November 30, 201 9 ZERUST ® $ 10,220,551 $ 9,949,512 Natur-Tec ® 2,558,561 4,681,888 Total net sales $ 12,779,112 $ 14,631,400 The following table sets forth the Company’s cost of goods sold for the three November 30, 2020 2019 November 30, 20 20 % of Product Sales* November 30, 201 9 % of Product Sales* Direct cost of goods sold ZERUST ® $ 5,771,089 56.5 % $ 5,543,354 55.7 % Natur-Tec ® 1,767,630 69.1 % 3,614,419 77.2 % Indirect cost of goods sold 774,602 NA 647,311 NA Total net cost of goods sold $ 8,313,321 $ 9,805,084 * 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 November 30, 2020 2019 Three Months Ended November 30, 20 20 November 30, 201 9 Inside the U.S.A. to unaffiliated customers $ 4,861,355 $ 6,147,086 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 580,304 585,616 Unaffiliated customers 7,337,453 7,898,698 $ 12,779,112 $ 14,631,400 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 November 30, 2020 2019 Three Months Ended November 30, 20 % of Total Fees for Services Provided to Joint Ventures November 30, 9 % of Total Fees for Services Provided to Joint Ventures Germany $ 228,826 17.1 % $ 212,101 15.6 % Poland 189,410 14.2 % 194,978 14.4 % Japan 179,962 13.5 % 163,929 12.1 % France 105,907 7.9 % 93,631 6.9 % Sweden 90,489 6.8 % 109,506 8.1 % Thailand 89,932 6.7 % 102,334 7.5 % India 88,208 6.6 % 82,960 6.1 % South Korea 85,079 6.4 % 76,032 5.6 % Finland 76,283 5.7 % 67,942 5.0 % Czech Republic 69,353 5.2 % 89,014 6.6 % United Kingdom 61,915 4.6 % 85,478 6.3 % Other 71,197 5.3 % 80,421 5.9 % $ 1,336,561 100.0 % $ 1,358,325 100.0 % The geographical distribution of total long-lived assets and net sales is as follows: At November 30, 20 20 At August 31, 20 20 China $ 367,953 $ 376,088 Other 420,228 172,833 United States 6,436,116 6,561,868 Total long-lived assets $ 7,224,297 $ 7,110,789 Three Months Ended November 30, 2020 November 30, 201 9 China $ 4,543,978 $ 3,861,572 Brazil 713,853 891,978 India 1,200,468 2,036,210 Other 1,459,458 1,694,554 United States 4,861,355 6,147,086 Total net sales $ 12,779,112 $ 14,631,400 Long-lived assets located in China, Brazil, Germany, and India consist of property and equipment. These assets are periodically reviewed to assure the net realizable value from the estimated future production based on forecasted sales exceeds the carrying value of the assets. 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 | 3 Months Ended |
Nov. 30, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12. Annual Bonus Plan On August 27, 2020, August 31, 2021. 2021, 2021 2021, may 2021. three November 30, 2020 three November 30, 2019. Concentrations Three joint ventures (consisting of the Company’s joint ventures in South Korea, USA and India) accounted for 55.6% of the Company’s trade joint venture receivables at November 30, 2020, three November 30, 2019. Legal Matters 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 November 30, 2020, not |
Note 13 - Fair Value Measuremen
Note 13 - Fair Value Measurements | 3 Months Ended |
Nov. 30, 2020 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | 13. 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 costs. The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis: Fair Value Measurements Using Inputs Considered as Fair value as of November 30, 20 20 Level 1 Level 2 Level 3 Available for sale securities $ 6,382,785 $ 6,382,785 $ — $ — Fair Value Measurements Using Inputs Considered as Fair value as of August 31, 20 20 Level 1 Level 2 Level 3 Available for sale securities $ 5,544,722 $ 5,544,722 $ — $ — There were no 1, 2, 3 three November 30, 2020 2019. |
Note 14 - Supplemental Cash Flo
Note 14 - Supplemental Cash Flows Information | 3 Months Ended |
Nov. 30, 2020 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 14. Supplemental disclosures of cash flow information consisted of: Three Months Ended November 30, 2020 November 30, 201 9 Cash paid for interest $ 2,368 $ 5,444 Non-cash financing activity consisted of: Three Months Ended November 30, 2020 November 30, 201 9 Dividends declared, not paid $ — — |
Note 15 - Income Taxes
Note 15 - Income Taxes | 3 Months Ended |
Nov. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15. Income tax expense for the three November 30, 2020 November 30, 2020. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Nov. 30, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In June 2016, No. 2016 13, November 2018, No. 2018 19 April 2019, No. 2019 04 May 2019, No. 2019 05, November 2019, No. 2019 11, December 15, 2022, first 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) | 3 Months Ended |
Nov. 30, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | November 30, 20 20 August 31, 20 20 Production materials $ 3,180,144 $ 3,866,791 Finished goods 6,654,991 7,095,005 $ 9,835,135 $ 10,961,796 |
Note 4 - Property and Equipme_2
Note 4 - Property and Equipment, Net (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | November 30, 20 20 August 31, 20 20 Land $ 310,365 $ 310,365 Buildings and improvements 8,245,751 8,167,783 Machinery and equipment 5,111,807 4,940,912 13,667,923 13,419,060 Less accumulated depreciation (6,443,626 ) (6,308,271 ) $ 7,224,297 $ 7,110,789 |
Note 5 - Patents and Trademar_2
Note 5 - Patents and Trademarks, Net (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | November 30, 20 20 August 31, 20 20 Patents and trademarks $ 2,938,258 $ 2,907,852 Less accumulated amortization (2,155,835 ) (2,105,846 ) $ 782,423 $ 802,006 |
Note 6 - Investments in Joint_2
Note 6 - Investments in Joint Ventures (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | As of November 30, 20 20 Total EXCOR All Other Current assets $ 61,457,250 $ 28,660,652 $ 32,796,598 Total assets 65,569,012 31,051,037 34,517,975 Current liabilities 14,569,061 2,997,769 11,571,292 Noncurrent liabilities 331,743 — 331,743 Joint ventures’ equity 50,668,208 28,053,268 22,614,940 Northern Technologies International Corporation’s share of joint ventures’ equity 24,961,205 14,026,636 10,934,569 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 22,726,127 13,995,731 8,730,396 As of August 31, 20 20 Total EXCOR All Other Current assets $ 55,825,418 $ 25,742,619 $ 30,082,799 Total assets 60,295,587 28,449,772 31,845,815 Current liabilities 11,002,867 2,424,565 8,578,302 Noncurrent liabilities 365,274 — 365,274 Joint ventures’ equity 48,927,446 26,025,207 22,902,239 Northern Technologies International Corporation’s share of joint ventures’ equity 24,090,826 13,012,606 11,078,220 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 21,855,747 12,981,701 8,874,046 |
Condensed Income Statement [Table Text Block] | Three Months Ended November 30, 20 20 Total EXCOR All Other Net sales $ 26,777,343 $ 9,551,483 $ 17,225,860 Gross profit 12,441,761 5,699,007 6,742,754 Net income 3,651,424 2,021,074 1,630,350 Northern Technologies International Corporation’s share of equity in income from joint ventures 1,825,712 1,010,537 815,175 Northern Technologies International Corporation's dividends received from joint ventures $ 1,125,361 — $ 1,125,361 Three Months Ended November 30, 201 9 Total EXCOR All Other Net sales $ 25,460,294 $ 9,368,239 $ 16,092,055 Gross profit 11,357,134 5,325,488 6,031,646 Net income 2,587,980 1,642,327 945,653 Northern Technologies International Corporation’s share of equity in income from joint ventures 1,293,990 821,163 472,827 Northern Technologies International Corporation's dividends received from joint ventures $ 205,432 — $ 205,432 |
Note 9 - Net Income Per Commo_2
Note 9 - Net Income Per Common Share (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Numerator: November 30, 20 20 November 30, 201 9 Net income attributable to NTIC $ 1,262,399 $ 1,212,550 Denominator: Basic – weighted shares outstanding 9,104,623 9,095,607 Weighted shares assumed upon exercise of stock options 540,007 312,035 Diluted – weighted shares outstanding 9,644,630 9,407,642 Basic net income per share: $ 0.14 $ 0.13 Diluted net income per share: $ 0.13 $ 0.13 |
Note 10 - Stock-based Compens_2
Note 10 - Stock-based Compensation (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | November 30, 2020 201 9 Dividend yield 2.37 % 2.15 % Expected volatility 45.6 % 45.1 % Expected life of option (in years) 10 10 Average risk-free interest rate 0.28 % 1.57 % |
Note 11 - Segment and Geograp_2
Note 11 - Segment and Geographic Information (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended November 30, 20 20 November 30, 201 9 ZERUST ® $ 10,220,551 $ 9,949,512 Natur-Tec ® 2,558,561 4,681,888 Total net sales $ 12,779,112 $ 14,631,400 |
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block] | November 30, 20 20 % of Product Sales* November 30, 201 9 % of Product Sales* Direct cost of goods sold ZERUST ® $ 5,771,089 56.5 % $ 5,543,354 55.7 % Natur-Tec ® 1,767,630 69.1 % 3,614,419 77.2 % Indirect cost of goods sold 774,602 NA 647,311 NA Total net cost of goods sold $ 8,313,321 $ 9,805,084 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended November 30, 20 20 November 30, 201 9 Inside the U.S.A. to unaffiliated customers $ 4,861,355 $ 6,147,086 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 580,304 585,616 Unaffiliated customers 7,337,453 7,898,698 $ 12,779,112 $ 14,631,400 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | At November 30, 20 20 At August 31, 20 20 China $ 367,953 $ 376,088 Other 420,228 172,833 United States 6,436,116 6,561,868 Total long-lived assets $ 7,224,297 $ 7,110,789 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Three Months Ended November 30, 2020 November 30, 201 9 China $ 4,543,978 $ 3,861,572 Brazil 713,853 891,978 India 1,200,468 2,036,210 Other 1,459,458 1,694,554 United States 4,861,355 6,147,086 Total net sales $ 12,779,112 $ 14,631,400 |
Fees for Services Provided to Joint Ventures [Member] | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended November 30, 20 % of Total Fees for Services Provided to Joint Ventures November 30, 9 % of Total Fees for Services Provided to Joint Ventures Germany $ 228,826 17.1 % $ 212,101 15.6 % Poland 189,410 14.2 % 194,978 14.4 % Japan 179,962 13.5 % 163,929 12.1 % France 105,907 7.9 % 93,631 6.9 % Sweden 90,489 6.8 % 109,506 8.1 % Thailand 89,932 6.7 % 102,334 7.5 % India 88,208 6.6 % 82,960 6.1 % South Korea 85,079 6.4 % 76,032 5.6 % Finland 76,283 5.7 % 67,942 5.0 % Czech Republic 69,353 5.2 % 89,014 6.6 % United Kingdom 61,915 4.6 % 85,478 6.3 % Other 71,197 5.3 % 80,421 5.9 % $ 1,336,561 100.0 % $ 1,358,325 100.0 % |
Note 13 - Fair Value Measurem_2
Note 13 - Fair Value Measurements (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Notes Tables | |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | Fair Value Measurements Using Inputs Considered as Fair value as of November 30, 20 20 Level 1 Level 2 Level 3 Available for sale securities $ 6,382,785 $ 6,382,785 $ — $ — Fair Value Measurements Using Inputs Considered as Fair value as of August 31, 20 20 Level 1 Level 2 Level 3 Available for sale securities $ 5,544,722 $ 5,544,722 $ — $ — |
Note 14 - Supplemental Cash F_2
Note 14 - Supplemental Cash Flows Information (Tables) | 3 Months Ended |
Nov. 30, 2020 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Three Months Ended November 30, 2020 November 30, 201 9 Cash paid for interest $ 2,368 $ 5,444 Three Months Ended November 30, 2020 November 30, 201 9 Dividends declared, not paid $ — — |
Note 3 - Inventories - Inventor
Note 3 - Inventories - Inventories (Details) - USD ($) | Nov. 30, 2020 | Aug. 31, 2020 |
Production materials | $ 3,180,144 | $ 3,866,791 |
Finished goods | 6,654,991 | 7,095,005 |
Total inventory | $ 9,835,135 | $ 10,961,796 |
Note 4 - Property and Equipme_3
Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($) | Nov. 30, 2020 | Aug. 31, 2020 |
Land | $ 310,365 | $ 310,365 |
Buildings and improvements | 8,245,751 | 8,167,783 |
Machinery and equipment | 5,111,807 | 4,940,912 |
Gross | 13,667,923 | 13,419,060 |
Less accumulated depreciation | (6,443,626) | (6,308,271) |
Net | $ 7,224,297 | $ 7,110,789 |
Note 5 - Patents and Trademar_3
Note 5 - Patents and Trademarks, Net (Details Textual) - Patents and Trademarks [Member] | 3 Months Ended |
Nov. 30, 2020USD ($) | |
Finite-Lived Intangible Asset, Useful Life (Year) | 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 ($) | Nov. 30, 2020 | Aug. 31, 2020 |
Patents and trademarkes, net | $ 782,423 | $ 802,006 |
Patents and Trademarks [Member] | ||
Patents and trademarks | 2,938,258 | 2,907,852 |
Less accumulated amortization | (2,155,835) | (2,105,846) |
Patents and trademarkes, net | $ 782,423 | $ 802,006 |
Note 6 - Investments in Joint_3
Note 6 - Investments in Joint Ventures - Condensed Balance Sheet of EXCOR and All Other Joint Ventures (Details) - USD ($) | Nov. 30, 2020 | Aug. 31, 2020 |
Current assets | $ 35,475,804 | $ 33,202,350 |
Total assets | 69,205,052 | 66,074,488 |
Current liabilities | 7,302,886 | 6,097,604 |
Noncurrent liabilities | 276,042 | 272,443 |
Joint ventures’ equity | 58,370,435 | 56,659,415 |
Investments in joint ventures | 24,961,205 | 24,090,826 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||
Current assets | 61,457,250 | 55,825,418 |
Total assets | 65,569,012 | 60,295,587 |
Current liabilities | 14,569,061 | 11,002,867 |
Noncurrent liabilities | 331,743 | 365,274 |
Joint ventures’ equity | 50,668,208 | 48,927,446 |
Investments in joint ventures | 24,961,205 | 24,090,826 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 22,726,127 | 21,855,747 |
EXCOR [Member] | ||
Current assets | 28,660,652 | 25,742,619 |
Total assets | 31,051,037 | 28,449,772 |
Current liabilities | 2,997,769 | 2,424,565 |
Noncurrent liabilities | 0 | 0 |
Joint ventures’ equity | 28,053,268 | 26,025,207 |
Investments in joint ventures | 14,026,636 | 13,012,606 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 13,995,731 | 12,981,701 |
All Other [Member] | ||
Current assets | 32,796,598 | 30,082,799 |
Total assets | 34,517,975 | 31,845,815 |
Current liabilities | 11,571,292 | 8,578,302 |
Noncurrent liabilities | 331,743 | 365,274 |
Joint ventures’ equity | 22,614,940 | 22,902,239 |
Investments in joint ventures | 10,934,569 | 11,078,220 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | $ 8,730,396 | $ 8,874,046 |
Note 6 - Investments in Joint_4
Note 6 - Investments in Joint Ventures - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Net sales | $ 12,779,112 | $ 14,631,400 |
Gross profit | 4,465,791 | 4,826,316 |
Net income | 1,262,399 | 1,212,550 |
Northern Technologies International Corporation’s share of equity in income from joint ventures | 1,825,712 | 1,293,990 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||
Net sales | 26,777,343 | 25,460,294 |
Gross profit | 12,441,761 | 11,357,134 |
Net income | 3,651,424 | 2,587,980 |
Northern Technologies International Corporation’s share of equity in income from joint ventures | 1,825,712 | 1,293,990 |
Northern Technologies International Corporation's dividends received from joint ventures | 1,125,361 | 205,432 |
EXCOR [Member] | ||
Net sales | 9,551,483 | 9,368,239 |
Gross profit | 5,699,007 | 5,325,488 |
Net income | 2,021,074 | 1,642,327 |
Northern Technologies International Corporation’s share of equity in income from joint ventures | 1,010,537 | 821,163 |
Northern Technologies International Corporation's dividends received from joint ventures | 0 | 0 |
All Other [Member] | ||
Net sales | 17,225,860 | 16,092,055 |
Gross profit | 6,742,754 | 6,031,646 |
Net income | 1,630,350 | 945,653 |
Northern Technologies International Corporation’s share of equity in income from joint ventures | 815,175 | 472,827 |
Northern Technologies International Corporation's dividends received from joint ventures | $ 1,125,361 | $ 205,432 |
Note 7 - Corporate Debt (Detail
Note 7 - Corporate Debt (Details Textual) | Dec. 21, 2020 | Nov. 30, 2020USD ($) | Aug. 31, 2020USD ($) |
Term Loan and Line of Credit, Agreements, Loan Agreements [Member] | |||
Debt Instrument, Covenants, Fixed Charge Coverage Ratio | 1.10 | ||
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] | Subsequent Event [Member] | |||
Debt Instrument, Basis Spread on Interest Rate | 3.25% | ||
PNC Bank [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Subsequent Event [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
JP Morgan Chase Bank [Member] | |||
Letters of Credit Outstanding, Amount | $ 88,831 | $ 88,831 |
Note 8 - Stockholders' Equity (
Note 8 - Stockholders' Equity (Details Textual) - $ / shares | Sep. 01, 2020 | Oct. 22, 2019 | Sep. 01, 2019 | Nov. 30, 2020 | Nov. 30, 2019 |
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.065 | $ 0 | $ 0.065 | ||
Stock Repurchased and Retired During Period, Shares (in shares) | 0 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 419,874 | 300,770 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares) | 0 | 0 | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares) | 4,646 | 3,597 | |||
The 2019 Plan [member] | Employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 419,874 | 300,770 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 8.24 | $ 10.80 |
Note 9 - Net Income Per Commo_3
Note 9 - Net Income Per Common Share (Details Textual) - shares | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Share-based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 605,629 | 141,768 |
Note 9 - Net (Loss) Income Per
Note 9 - Net (Loss) Income Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Net income | $ 1,262,399 | $ 1,212,550 |
Basic – weighted shares outstanding (in shares) | 9,104,623 | 9,095,607 |
Weighted shares assumed upon exercise of stock options (in shares) | 540,007 | 312,035 |
Diluted – weighted shares outstanding (in shares) | 9,644,630 | 9,407,642 |
Basic net income per share: (in dollars per share) | $ 0.14 | $ 0.13 |
Diluted net income per share: (in dollars per share) | $ 0.13 | $ 0.13 |
Note 10 - Stock-based Compens_3
Note 10 - Stock-based Compensation (Details Textual) - USD ($) | Nov. 06, 2020 | Nov. 30, 2020 | Nov. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 419,874 | 300,770 | |
Share-based Payment Arrangement, Expense | $ 181,669 | $ 318,818 | |
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | 1,149,172 | ||
Allocated Share-based Compensation Expense, Estimate Remainder of Fiscal Year | 482,505 | ||
Allocated Share-based Compensation Expense, Estimate, Fiscal Year Two | $ 333,334 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 3.12 | $ 4.30 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 6 years 10 months 24 days | 6 years 9 months 10 days | |
The 2019 Plan [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 800,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 720,644 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 79,356 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares) | 800,000 | ||
The 2019 Plan [member] | Non-employee Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Annual Compensation Expense Per Person | $ 200,000 | ||
The 2019 Plan [member] | Non-employee Chairman, Lead independent Director, or Non-employee Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Annual Compensation Expense Per Person, First Service Year | $ 250,000 | ||
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 (Year) | 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 (Year) | 3 years | ||
ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 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 (in shares) | 80,047 |
Note 10 - Stock-based Compens_4
Note 10 - Stock-based Compensation - Black-Scholes Option-pricing Model Assumptions (Details) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Dividend yield | 2.37% | 2.15% |
Expected volatility | 45.60% | 45.10% |
Expected life of option (in years) (Year) | 10 years | 10 years |
Average risk-free interest rate | 0.28% | 1.57% |
Note 11 - Segment and Geograp_3
Note 11 - Segment and Geographic Information (Details Textual) | 3 Months Ended |
Nov. 30, 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 | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Net sales | $ 12,779,112 | $ 14,631,400 |
ZERUST [Member] | ||
Net sales | 10,220,551 | 9,949,512 |
NaturTec [Member] | ||
Net sales | $ 2,558,561 | $ 4,681,888 |
Note 11 - Segment and Geograp_5
Note 11 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($) | 3 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | ||
Cost of goods sold | $ 8,313,321 | $ 9,805,084 | |
Direct Cost of Goods Sold [Member] | ZERUST [Member] | |||
Cost of goods sold | $ 5,771,089 | $ 5,543,354 | |
Percent of product sales | [1] | 56.50% | 55.70% |
Direct Cost of Goods Sold [Member] | NaturTec [Member] | |||
Cost of goods sold | $ 1,767,630 | $ 3,614,419 | |
Percent of product sales | [1] | 69.10% | 77.20% |
Indirect Cost of Goods Sold [Member] | |||
Cost of goods sold | $ 774,602 | $ 647,311 | |
[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 | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Net sales | $ 12,779,112 | $ 14,631,400 |
Inside the USA to Unaffiliated Customers [Member] | ||
Net sales | 4,861,355 | 6,147,086 |
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member] | ||
Net sales | 580,304 | 585,616 |
Unaffiliated Customers Outside the USA [Member] | ||
Net sales | $ 7,337,453 | $ 7,898,698 |
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 | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Fees | $ 1,336,561 | $ 1,358,325 |
Percentage of Total Fees | 100.00% | 100.00% |
GERMANY | ||
Fees | $ 228,826 | $ 212,101 |
Percentage of Total Fees | 17.10% | 15.60% |
POLAND | ||
Fees | $ 189,410 | $ 194,978 |
Percentage of Total Fees | 14.20% | 14.40% |
JAPAN | ||
Fees | $ 179,962 | $ 163,929 |
Percentage of Total Fees | 13.50% | 12.10% |
FRANCE | ||
Fees | $ 105,907 | $ 93,631 |
Percentage of Total Fees | 7.90% | 6.90% |
SWEDEN | ||
Fees | $ 90,489 | $ 109,506 |
Percentage of Total Fees | 6.80% | 8.10% |
THAILAND | ||
Fees | $ 89,932 | $ 102,334 |
Percentage of Total Fees | 6.70% | 7.50% |
INDIA | ||
Fees | $ 88,208 | $ 82,960 |
Percentage of Total Fees | 6.60% | 6.10% |
KOREA, REPUBLIC OF | ||
Fees | $ 85,079 | $ 76,032 |
Percentage of Total Fees | 6.40% | 5.60% |
FINLAND | ||
Fees | $ 76,283 | $ 67,942 |
Percentage of Total Fees | 5.70% | 5.00% |
CZECHIA | ||
Fees | $ 69,353 | $ 89,014 |
Percentage of Total Fees | 5.20% | 6.60% |
UNITED KINGDOM | ||
Fees | $ 61,915 | $ 85,478 |
Percentage of Total Fees | 4.60% | 6.30% |
Other Countries [Member] | ||
Fees | $ 71,197 | $ 80,421 |
Percentage of Total Fees | 5.30% | 5.90% |
Note 11 - Segment and Geograp_8
Note 11 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($) | Nov. 30, 2020 | Aug. 31, 2020 |
Total long-lived assets | $ 7,224,297 | $ 7,110,789 |
CHINA | ||
Total long-lived assets | 367,953 | 376,088 |
Other Countries [Member] | ||
Total long-lived assets | 420,228 | 172,833 |
UNITED STATES | ||
Total long-lived assets | $ 6,436,116 | $ 6,561,868 |
Note 11 - Segment and Geograp_9
Note 11 - Segment and Geographic Information - Total Net Sales by Geographic Distribution (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Net sales | $ 12,779,112 | $ 14,631,400 |
CHINA | ||
Net sales | 4,543,978 | 3,861,572 |
BRAZIL | ||
Net sales | 713,853 | 891,978 |
INDIA | ||
Net sales | 1,200,468 | 2,036,210 |
Other Countries [Member] | ||
Net sales | 1,459,458 | 1,694,554 |
UNITED STATES | ||
Net sales | $ 4,861,355 | $ 6,147,086 |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Details Textual) - USD ($) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Accrued Bonuses | $ 516,667 | $ 400,000 |
Entity Wide Trade Joint Venture Receivables, Three Joint Ventures, Percentage | 55.60% | 51.40% |
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 Measurem_3
Note 13 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - USD ($) | Nov. 30, 2020 | Aug. 31, 2020 |
Available for sale securities | $ 6,382,785 | $ 5,544,722 |
Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | 6,382,785 | 5,544,722 |
Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities | $ 0 | $ 0 |
Note 14 - Supplemental Cash F_3
Note 14 - Supplemental Cash Flows Information - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Cash paid for interest | $ 2,368 | $ 5,444 |
Dividends declared, not paid | $ 0 | $ 0 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Income Tax Expense (Benefit), Total | $ 378,590 | $ 264,066 |