Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
May 31, 2021 | Jul. 09, 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 | Q3 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 31, 2021 | |
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 $0.02 per share | |
Trading Symbol | NTIC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,109,861 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | May 31, 2021 | Aug. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 5,880,923 | $ 6,403,032 |
Available for sale securities | 5,125,052 | 5,544,722 |
Receivables: | ||
Trade, excluding joint ventures, less allowance for doubtful accounts of $120,000 at May 31, 2021 and $90,000 at August 31, 2020 | 11,165,605 | 8,072,212 |
Trade, joint ventures | 1,040,049 | 475,900 |
Fees for services provided to joint ventures | 1,427,240 | 927,286 |
Income taxes | 247,895 | 19,907 |
Inventories | 11,306,598 | 10,961,796 |
Prepaid expenses | 1,035,046 | 797,495 |
Total current assets | 37,228,408 | 33,202,350 |
PROPERTY AND EQUIPMENT, NET | 7,177,012 | 7,110,789 |
OTHER ASSETS: | ||
Investments in joint ventures | 26,937,857 | 24,090,826 |
Deferred income taxes | 223,739 | 209,729 |
Patents and trademarks, net | 746,305 | 802,006 |
Operating lease right of use asset | 486,854 | 658,788 |
Total other assets | 28,394,755 | 25,761,349 |
Total assets | 72,800,175 | 66,074,488 |
CURRENT LIABILITIES: | ||
Accounts payable | 4,103,932 | 3,205,241 |
Income taxes payable | 166,574 | 310,922 |
Accrued liabilities: | ||
Payroll and related benefits | 2,295,421 | 1,314,978 |
Other | 873,280 | 880,118 |
Current portion of operating lease | 113,688 | 386,345 |
Total current liabilities | 7,552,895 | 6,097,604 |
LONG-TERM LIABILITIES: | ||
Operating lease, less current portion | 373,166 | 272,443 |
Total long-term liabilities | 373,166 | 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 May 31, 2021 and August 31, 2020; issued and outstanding 9,109,861 and 9,099,990, respectively | 182,197 | 182,000 |
Additional paid-in capital | 17,992,518 | 17,415,043 |
Retained earnings | 45,917,757 | 42,472,810 |
Accumulated other comprehensive loss | (2,717,935) | (3,410,438) |
Stockholders’ equity | 61,374,537 | 56,659,415 |
Non-controlling interests | 3,499,577 | 3,045,026 |
Total equity | 64,874,114 | 59,704,441 |
Total liabilities and equity | $ 72,800,175 | $ 66,074,488 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | May 31, 2021 | 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) | 9,109,861 | 9,099,990 |
Common stock, shares outstanding (in shares) | 9,109,861 | 9,099,990 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
NET SALES: | ||||
Net sales, excluding joint ventures | $ 14,164,604 | $ 9,071,072 | $ 38,619,353 | $ 36,105,009 |
Net sales, to joint ventures | 1,253,920 | 673,751 | 2,361,165 | 1,504,997 |
Total net sales | 15,418,524 | 9,744,823 | 40,980,518 | 37,610,006 |
Cost of goods sold | 10,152,582 | 6,499,102 | 26,997,582 | 24,991,487 |
Gross profit | 5,265,942 | 3,245,721 | 13,982,936 | 12,618,519 |
JOINT VENTURE OPERATIONS: | ||||
Equity in income from joint ventures | 2,033,536 | 811,787 | 5,779,260 | 3,466,581 |
Fees for services provided to joint ventures | 1,589,621 | 876,706 | 4,388,866 | 3,491,244 |
Total joint venture operations | 3,623,157 | 1,688,493 | 10,168,126 | 6,957,825 |
OPERATING EXPENSES: | ||||
Selling expenses | 3,171,657 | 2,487,396 | 8,745,433 | 8,484,928 |
General and administrative expenses | 2,072,195 | 2,213,552 | 6,125,151 | 6,608,352 |
Research and development expenses | 1,066,493 | 950,127 | 3,217,410 | 2,918,163 |
Total operating expenses | 6,310,345 | 5,651,075 | 18,087,994 | 18,011,443 |
OPERATING INCOME (LOSS) | 2,578,754 | (716,861) | 6,063,068 | 1,564,901 |
INTEREST INCOME (EXPENSE) | 7,632 | (73,378) | 85,191 | 15,881 |
INCOME (LOSS) BEFORE INCOME TAX EXPENSE | 2,586,386 | (790,239) | 6,148,259 | 1,580,782 |
INCOME TAX EXPENSE | 276,338 | 142,285 | 929,588 | 869,945 |
NET INCOME (LOSS) | 2,310,048 | (932,524) | 5,218,671 | 710,837 |
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 256,132 | 32,697 | 589,781 | 283,674 |
NET INCOME (LOSS) ATTRIBUTABLE TO NTIC | $ 2,053,916 | $ (965,221) | $ 4,628,890 | $ 427,163 |
NET INCOME (LOSS) ATTRIBUTABLE TO NTIC PER COMMON SHARE: | ||||
Basic (in dollars per share) | $ 0.23 | $ (0.11) | $ 0.51 | $ 0.05 |
Diluted (in dollars per share) | $ 0.21 | $ (0.11) | $ 0.47 | $ 0.05 |
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING: | ||||
Basic (in shares) | 9,109,861 | 9,099,990 | 9,107,243 | 9,096,981 |
Diluted (in shares) | 9,972,000 | 9,099,990 | 9,829,052 | 9,312,914 |
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.065 | $ 0 | $ 0.13 | $ 0.13 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
NET INCOME (LOSS) | $ 2,310,048 | $ (932,524) | $ 5,218,671 | $ 710,837 |
OTHER COMPREHENSIVE INCOME (LOSS) –FOREIGN CURRENCY TRANSLATION ADJUSTMENT | 262,267 | (281,177) | 757,273 | (313,844) |
COMPREHENSIVE INCOME (LOSS) | 2,572,315 | (1,213,701) | 5,975,944 | 396,993 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NON- CONTROLLING INTERESTS | 266,771 | (21,492) | 654,551 | 205,989 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NTIC | $ 2,305,544 | $ (1,192,209) | $ 5,321,393 | $ 191,004 |
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 issued for employee stock purchase plan | 127 | 64,068 | 0 | 0 | 0 | 64,195 |
Stock option expense | 0 | 998,122 | 0 | 0 | 0 | 998,122 |
Dividends paid to shareholders | 0 | 0 | (1,182,200) | 0 | 0 | (1,182,200) |
Net income | 0 | 0 | 427,163 | 0 | 283,674 | 710,837 |
Other comprehensive gain | 0 | 0 | 0 | (236,159) | (77,685) | (313,844) |
Dividend received by non-controlling interest | $ 0 | 0 | 0 | 0 | (200,000) | (200,000) |
Stock issued for employee stock purchase plan (in shares) | 6,351 | |||||
Stock options exercised | $ 137 | (137) | 0 | 0 | 0 | 0 |
BALANCE (in shares) at May. 31, 2020 | 9,099,990 | |||||
BALANCE at May. 31, 2020 | $ 182,000 | 17,075,391 | 44,237,682 | (4,829,337) | 3,080,668 | 59,746,404 |
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 |
Stock issued for employee stock purchase plan | 55 | 28,532 | 0 | 0 | 0 | 28,587 |
Stock option expense | 0 | 339,652 | 0 | 0 | 0 | 339,652 |
Net income | 0 | 0 | (965,221) | 0 | 32,697 | (932,524) |
Other comprehensive gain | 0 | 0 | 0 | (226,988) | (54,189) | (281,177) |
Dividend received by non-controlling interest | $ 0 | 0 | 0 | 0 | (200,000) | (200,000) |
BALANCE (in shares) at May. 31, 2020 | 9,099,990 | |||||
BALANCE at May. 31, 2020 | $ 182,000 | 17,075,391 | 44,237,682 | (4,829,337) | 3,080,668 | 59,746,404 |
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 issued for employee stock purchase plan | 197 | 74,137 | 0 | 0 | 0 | 74,334 |
Stock option expense | 0 | 503,338 | 0 | 0 | 0 | 503,338 |
Dividends paid to shareholders | 0 | 0 | (1,183,943) | 0 | 0 | (1,183,943) |
Net income | 0 | 0 | 4,628,890 | 0 | 589,781 | 5,218,671 |
Other comprehensive gain | 0 | 0 | 0 | 692,503 | 64,770 | 757,273 |
Dividend received by non-controlling interest | $ 0 | 0 | 0 | 0 | (200,000) | (200,000) |
Stock issued for employee stock purchase plan (in shares) | 9,871 | |||||
BALANCE (in shares) at May. 31, 2021 | 9,109,861 | |||||
BALANCE at May. 31, 2021 | $ 182,197 | 17,992,518 | 45,917,757 | (2,717,935) | 3,499,577 | 64,874,114 |
BALANCE (in shares) at Feb. 28, 2021 | 9,104,636 | |||||
BALANCE at Feb. 28, 2021 | $ 182,093 | 17,793,646 | 44,455,982 | (2,969,563) | 3,232,806 | 62,694,964 |
Stock issued for employee stock purchase plan | 104 | 38,038 | 0 | 0 | 0 | 38,142 |
Stock option expense | 0 | 160,834 | 0 | 0 | 0 | 160,834 |
Dividends paid to shareholders | 0 | 0 | (592,141) | 0 | 0 | (592,141) |
Net income | 0 | 0 | 2,053,916 | 0 | 256,132 | 2,310,048 |
Other comprehensive gain | $ 0 | 0 | 0 | 251,628 | 10,639 | 262,267 |
BALANCE (in shares) at May. 31, 2021 | 9,109,861 | |||||
BALANCE at May. 31, 2021 | $ 182,197 | $ 17,992,518 | $ 45,917,757 | $ (2,717,935) | $ 3,499,577 | $ 64,874,114 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 5,218,671 | $ 710,837 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 503,338 | 998,122 |
Allowance for doubtful accounts | 30,000 | 0 |
Depreciation expense | 681,484 | 637,030 |
Amortization expense | 151,710 | 175,465 |
Loss on disposal of property and equipment and patents | 0 | 173,809 |
Equity in income from joint ventures | (5,779,260) | (3,466,581) |
Dividends received from joint ventures | 3,505,455 | 5,648,153 |
Deferred income taxes | (8,526) | 109,646 |
Changes in current assets and liabilities: | ||
Trade, excluding joint ventures | (2,904,707) | 2,065,641 |
Trade, joint ventures | (564,149) | (32,904) |
Fees for services provided to joint ventures | (499,954) | 391,880 |
Income taxes | (223,024) | 174,623 |
Inventories | (177,927) | (1,729,133) |
Prepaid expenses and other | (223,457) | 368,769 |
Accounts payable | 703,100 | (882,962) |
Income tax payable | (162,615) | 40,983 |
Accrued liabilities | 803,555 | (2,370,845) |
Net cash provided by operating activities | 1,053,695 | 3,012,533 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from the sale of property and equipment | 0 | 2,190 |
Purchase of available for sale securities | (800,000) | (4,000,000) |
Proceeds from the sale of available for sale securities | 1,219,670 | 2,114,565 |
Purchases of property and equipment | (723,441) | (375,087) |
Investments in patents | (96,009) | (79,139) |
Net cash used in investing activities | (399,780) | (2,337,471) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividend received by non-controlling interest | (200,000) | (200,000) |
Dividends paid on NTIC common stock | (1,183,943) | (1,182,200) |
Proceeds from employee stock purchase plan | 74,334 | 64,195 |
Net cash used in financing activities | (1,309,609) | (1,318,005) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 133,585 | (163,093) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (522,109) | (806,036) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 6,403,032 | 5,856,758 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 5,880,923 | $ 5,050,722 |
Note 1 - Interim Financial Info
Note 1 - Interim Financial Information | 9 Months Ended |
May 31, 2021 | |
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 May 31, 2021 August 31, 2020, three nine May 31, 2021 2020, three nine May 31, 2021 2020, nine May 31, 2021 2020, 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 nine May 31, 2021 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 nine 2021 2021 |
Note 2 - Accounting Pronounceme
Note 2 - Accounting Pronouncements | 9 Months Ended |
May 31, 2021 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | 2. ACCOUNTING PRONOUNCEMENTS Recently Issued Accounting Pronouncements In June 2016, No. 2016 13, Measurement of Credit Losses on Financial Instruments 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 | 9 Months Ended |
May 31, 2021 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 3. INVENTORIES Inventories consisted of the following: May 31, 2021 August 31, 2020 Production materials $ 4,574,380 $ 3,866,791 Finished goods 6,732,218 7,095,005 $ 11,306,598 $ 10,961,796 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment, Net | 9 Months Ended |
May 31, 2021 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 4. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: May 31, 2021 August 31, 2020 Land $ 310,365 $ 310,365 Buildings and improvements 8,516,604 8,167,783 Machinery and equipment 5,242,174 4,940,912 14,069,143 13,419,060 Less accumulated depreciation (6,892,131 ) (6,308,271 ) $ 7,177,012 $ 7,110,789 |
Note 5 - Patents and Trademarks
Note 5 - Patents and Trademarks, Net | 9 Months Ended |
May 31, 2021 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 5. PATENTS AND TRADEMARKS, NET Patents and trademarks, net consisted of the following: May 31, 2021 August 31, 2020 Patents and trademarks $ 3,003,862 $ 2,907,852 Less accumulated amortization (2,257,557 ) (2,105,846 ) $ 746,305 $ 802,006 Patent and trademark costs are amortized over seven four |
Note 6 - Investments in Joint V
Note 6 - Investments in Joint Ventures | 9 Months Ended |
May 31, 2021 | |
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 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 May 31, 2021 Total EXCOR All Other Current assets $ 68,123,606 $ 30,658,702 $ 37,464,904 Total assets 72,216,965 33,027,046 39,189,919 Current liabilities 16,369,403 3,570,261 12,799,142 Noncurrent liabilities 1,225,790 — 1,225,790 Joint ventures’ equity 54,621,772 29,456,785 25,164,987 Northern Technologies International Corporation’s share of joint ventures’ equity 26,937,857 14,728,395 12,209,462 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 24,702,778 14,697,490 10,005,288 Three Months Ended May 31, 2021 Total EXCOR All Other Net sales $ 31,959,539 $ 12,103,263 $ 19,856,276 Gross profit 14,280,775 6,863,786 7,416,989 Net income 4,051,518 2,068,326 1,983,192 Northern Technologies International Corporation’s share of equity in income from joint ventures 2,033,536 1,039,576 993,960 Northern Technologies International Corporation’s dividends received from joint ventures 181,952 — 181,952 Nine Months Ended May 31, 2021 Total EXCOR All Other Net sales $ 87,795,284 $ 32,196,843 $ 55,598,441 Gross profit 39,802,014 18,661,980 21,140,034 Net income 11,540,949 6,351,721 5,189,228 Northern Technologies International Corporation’s share of equity in income from joint ventures 5,779,260 3,182,691 2,596,569 Northern Technologies International Corporation’s dividends received from joint ventures 3,505,455 1,809,900 1,695,555 As of August 31, 2020 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 May 31, 2020 Total EXCOR All Other Net sales $ 18,782,233 $ 7,753,631 $ 11,028,602 Gross profit 8,647,784 4,478,739 4,169,045 Net income 1,610,524 1,071,899 538,625 Northern Technologies International Corporation’s share of equity in income from joint ventures 811,787 536,540 275,247 Northern Technologies International Corporation’s dividends received from joint ventures 89,227 — 89,227 Nine Months Ended May 31, 2020 Total EXCOR All Other Net sales $ 68,531,897 $ 26,102,046 $ 42,429,851 Gross profit 31,107,491 15,066,309 16,041,182 Net income 6,920,047 4,492,254 2,427,793 Northern Technologies International Corporation’s share of equity in income from joint ventures 3,466,581 2,246,930 1,219,651 Northern Technologies International Corporation’s dividends received from joint ventures 5,648,153 4,675,850 972,303 |
Note 7 - Corporate Debt
Note 7 - Corporate Debt | 9 Months Ended |
May 31, 2021 | |
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 amounts were outstanding under the line of credit as of May 31, 2021 August 31, 2020. one January 7, 2022. As of May 31, 2021 August 31, 2020, not May 31, 2021 August 31, 2020, 2021 2022. |
Note 8 - Stockholders' Equity
Note 8 - Stockholders' Equity | 9 Months Ended |
May 31, 2021 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 8. STOCKHOLDERS EQUITY On April 23, 2020, 19 January 15, 2021, nine May 31, 2021, Declaration Date Amount Record Date Payable Date January 15, 2021 $0.065 February 3, 2021 February 17, 2021 April 23, 2021 $0.065 May 5, 2021 May 19, 2021 During the nine May 31, 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 nine May 31, 2021 2020, The Company issued 4,646 and 3,597 shares of common stock on September 1, 2020 2019, March 1, 2021 2020, May 31, 2021, |
Note 9 - Net Income (Loss) Per
Note 9 - Net Income (Loss) Per Common Share | 9 Months Ended |
May 31, 2021 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 9. NET INCOME (LOSS) PER COMMON SHARE Basic net income (loss) 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. There was no three May 31, 2020 three May 31, 2020. The following is a reconciliation of the net income (loss) per share computation for the three nine May 31, 2021 2020: Three Months Ended May 31, Nine Months Ended May 31, Numerator 2021 2020 2021 2020 Net income (loss) attributable to NTIC $ 2,053,916 $ (965,221 ) $ 4,628,890 $ 427,163 Denominator Basic – weighted shares outstanding 9,109,861 9,099,990 9,107,243 9,096,981 Weighted shares assumed upon exercise of stock options 862,139 — 721,809 215,933 Diluted – weighted shares outstanding 9,972,000 9,099,990 9,829,052 9,312,914 Basic net income (loss) per share: $ 0.23 $ (0.11 ) $ 0.51 $ 0.05 Diluted net income (loss) per share: $ 0.21 $ (0.11 ) $ 0.47 $ 0.05 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 nine May 31, 2021 nine May 31, 2020 |
Note 10 - Stock-based Compensat
Note 10 - Stock-based Compensation | 9 Months Ended |
May 31, 2021 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 10. STOCK-BASED COMPENSATION The Company has three 2019 2007 2007 2019 2007 no may 2007 The 2019 January 15, 2021, 2019 2019 2019 ten one three one May 31, 2021, 2019 2019 May 31, 2021, 2007 The Company granted options to purchase an aggregate of 419,874 and 300,770 shares of its common stock during the nine May 31, 2021 2020, nine May 31, 2021 2020, May 31, 2021, not 2021, 2022 2023, May 31, 2021. The fair value of each option grant is estimated on the grant date using the Black-Scholes option pricing model with the following assumptions and results for the grants: Nine Months Ended May 31, 2021 2020 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 nine May 31, 2021 2020 May 31, 2021 2020 |
Note 11 - Segment and Geographi
Note 11 - Segment and Geographic Information | 9 Months Ended |
May 31, 2021 | |
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 reportable segments: ZERUST® and Natur-Tec®. The Company has been selling its proprietary ZERUST® rust and corrosion inhibiting products and services to the automotive, electronics, electrical, mechanical, military and retail consumer markets for over 40 The following table sets forth the Company’s net sales for the three nine May 31, 2021 2020 Three Months Ended May 31, Nine Months Ended May 31, 2021 2020 2021 2020 ZERUST® net sales $ 12,378,215 $ 7,356,781 $ 32,882,882 $ 26,322,515 Natur-Tec® net sales 3,040,309 2,388,042 8,097,636 11,287,491 Total net sales $ 15,418,524 $ 9,744,823 $ 40,980,518 $ 37,610,006 The following table sets forth the Company’s cost of goods sold for the three nine May 31, 2021 2020 Three Months Ended May 31, Nine Months Ended May 31, 2021 % of Segment Sales* 2020 % of Segment Sales* 2021 % of Segment Sales* 2020 % of Segment Sales* Direct cost of goods sold ZERUST® $ 7,091,220 57.3 % $ 4,011,244 54.5 % $ 18,928,272 57.6 % $ 14,193,113 53.9 % Natur-Tec® 2,251,996 74.1 % 1,842,539 77.2 % 5,703,807 70.4 % 8,733,016 77.4 % Indirect cost of goods sold 809,366 — 645,319 — 2,365,503 — 2,065,358 — Total net cost of goods sold $ 10,152,582 $ 6,499,102 $ 26,997,582 $ 24,991,487 ______________________________ * The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category. The Company utilizes product net sales and direct and indirect cost of goods sold for each product in reviewing the financial performance of a product type. Further allocation of Company expenses or assets, aside from amounts presented in the tables above, is not Geographic Information Net sales by geographic location for the three nine May 31, 2021 2020 Three Months Ended May 31, Nine Months Ended May 31, 2021 2020 2021 2020 Inside the U.S.A. to unaffiliated customers $ 6,717,886 $ 4,051,709 $ 16,198,372 $ 16,558,301 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 1,253,919 673,751 2,361,165 1,504,997 Unaffiliated customers 7,446,719 5,019,363 22,420,981 19,546,708 $ 15,418,524 $ 9,744,823 $ 40,980,518 $ 37,610,006 Net sales by geographic location are based on the location of the customer. Fees for services provided to joint ventures by geographic location as a percentage of total fees for services provided to joint ventures during the three nine May 31, 2021 2020 Three Months Ended May 31, 2021 % of Total Fees for Services Provided to Joint Ventures 2020 % of Total Fees for Services Provided to Joint Ventures Germany $ 232,026 14.6 % $ 199,877 22.8 % Poland 226,174 14.2 % 75,118 8.6 % Japan 200,270 12.6 % 139,268 15.9 % Sweden 127,710 8.0 % 51,767 5.9 % France 119,172 7.5 % 61,716 7.0 % Thailand 108,842 6.9 % 67,919 7.7 % India 107,021 6.7 % 24,842 2.8 % Czech Republic 109,680 6.9 % 46,709 5.3 % United Kingdom 113,886 7.2 % 52,484 6.0 % South Korea 78,507 4.9 % 54,951 6.3 % Finland 75,577 4.8 % 52,870 6.0 % Other 90,756 5.7 % 49,185 5.6 % $ 1,589,621 100.0 % $ 876,706 100.0 % Nine Months Ended May 31, 2021 % of Total Fees for Services Provided to Joint Ventures 2020 % of Total Fees for Services Provided to Joint Ventures Germany $ 692,770 15.8 % $ 620,106 17.8 % Poland 626,527 14.3 % 441,011 12.6 % Japan 561,725 12.8 % 453,347 13.0 % Sweden 365,095 8.3 % 259,671 7.4 % France 322,717 7.4 % 241,056 6.9 % Thailand 306,151 7.0 % 261,132 7.5 % India 290,713 6.6 % 187,826 5.4 % Czech Republic 268,571 6.1 % 215,923 6.2 % United Kingdom 247,560 5.6 % 202,241 5.8 % South Korea 241,805 5.5 % 206,272 5.9 % Finland 223,356 5.1 % 194,813 5.6 % Other 241,876 5.5 % 207,846 6.0 % $ 4,388,866 100.0 % $ 3,491,244 100.0 % The geographical distribution of total property and equipment and net sales is as follows: At May 31, 2021 At August 31, 2020 China $ 384,523 $ 376,088 Other 421,662 172,833 United States 6,370,827 6,561,868 Total property and equipment $ 7,177,012 $ 7,110,789 Three Months Ended May 31, Nine Months Ended May 31, 2021 2020 2021 2020 China $ 4,037,493 $ 3,089,135 13,025,127 $ 9,975,091 Brazil 1,237,586 365,222 2,756,008 2,080,418 India 1,540,734 631,551 4,036,208 4,727,325 Other 1,884,825 1,607,206 4,964,803 4,268,871 United States 6,717,886 4,051,709 16,198,372 16,558,301 Total net sales $ 15,418,524 $ 9,744,823 $ 40,980,518 $ 37,610,006 Long-lived assets located in China and other locations outside of the United States 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® products and services. |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 9 Months Ended |
May 31, 2021 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12. COMMITMENTS AND CONTINGENCIES Annual Bonus Plan On August 27, 2020, August 31, 2021. 2021, 2021 2021, may 2021. nine May 31, 2021, nine May 31, 2020. Concentrations Three joint ventures (consisting of the Company’s joint ventures in India, South Korea and Thailand) accounted for 73.7% of the Company’s trade joint venture receivables at May 31, 2021, two May 31, 2020. 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 May 31, 2021, not |
Note 13 - Fair Value Measuremen
Note 13 - Fair Value Measurements | 9 Months Ended |
May 31, 2021 | |
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 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 May 31, 2021 Level 1 Level 2 Level 3 Available for sale securities $ 5,125,052 $ 5,125,052 $ — $ — Fair Value Measurements Using Inputs Considered as Fair value as of August 31, 2020 Level 1 Level 2 Level 3 Available for sale securities $ 5,544,722 $ 5,544,722 $ — $ — There were no 1, 2, 3 three nine May 31, 2021 2020. |
Note 14 - Income Taxes
Note 14 - Income Taxes | 9 Months Ended |
May 31, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 14. INCOME TAXES Income tax expense for the three nine May 31, 2021 three nine May 31, 2020. May 31, 2021 August 31, 2020. |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 9 Months Ended |
May 31, 2021 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | May 31, 2021 August 31, 2020 Production materials $ 4,574,380 $ 3,866,791 Finished goods 6,732,218 7,095,005 $ 11,306,598 $ 10,961,796 |
Note 4 - Property and Equipme_2
Note 4 - Property and Equipment, Net (Tables) | 9 Months Ended |
May 31, 2021 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | May 31, 2021 August 31, 2020 Land $ 310,365 $ 310,365 Buildings and improvements 8,516,604 8,167,783 Machinery and equipment 5,242,174 4,940,912 14,069,143 13,419,060 Less accumulated depreciation (6,892,131 ) (6,308,271 ) $ 7,177,012 $ 7,110,789 |
Note 5 - Patents and Trademar_2
Note 5 - Patents and Trademarks, Net (Tables) | 9 Months Ended |
May 31, 2021 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | May 31, 2021 August 31, 2020 Patents and trademarks $ 3,003,862 $ 2,907,852 Less accumulated amortization (2,257,557 ) (2,105,846 ) $ 746,305 $ 802,006 |
Note 6 - Investments in Joint_2
Note 6 - Investments in Joint Ventures (Tables) | 9 Months Ended |
May 31, 2021 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | As of May 31, 2021 Total EXCOR All Other Current assets $ 68,123,606 $ 30,658,702 $ 37,464,904 Total assets 72,216,965 33,027,046 39,189,919 Current liabilities 16,369,403 3,570,261 12,799,142 Noncurrent liabilities 1,225,790 — 1,225,790 Joint ventures’ equity 54,621,772 29,456,785 25,164,987 Northern Technologies International Corporation’s share of joint ventures’ equity 26,937,857 14,728,395 12,209,462 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 24,702,778 14,697,490 10,005,288 As of August 31, 2020 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 May 31, 2021 Total EXCOR All Other Net sales $ 31,959,539 $ 12,103,263 $ 19,856,276 Gross profit 14,280,775 6,863,786 7,416,989 Net income 4,051,518 2,068,326 1,983,192 Northern Technologies International Corporation’s share of equity in income from joint ventures 2,033,536 1,039,576 993,960 Northern Technologies International Corporation’s dividends received from joint ventures 181,952 — 181,952 Nine Months Ended May 31, 2021 Total EXCOR All Other Net sales $ 87,795,284 $ 32,196,843 $ 55,598,441 Gross profit 39,802,014 18,661,980 21,140,034 Net income 11,540,949 6,351,721 5,189,228 Northern Technologies International Corporation’s share of equity in income from joint ventures 5,779,260 3,182,691 2,596,569 Northern Technologies International Corporation’s dividends received from joint ventures 3,505,455 1,809,900 1,695,555 Three Months Ended May 31, 2020 Total EXCOR All Other Net sales $ 18,782,233 $ 7,753,631 $ 11,028,602 Gross profit 8,647,784 4,478,739 4,169,045 Net income 1,610,524 1,071,899 538,625 Northern Technologies International Corporation’s share of equity in income from joint ventures 811,787 536,540 275,247 Northern Technologies International Corporation’s dividends received from joint ventures 89,227 — 89,227 Nine Months Ended May 31, 2020 Total EXCOR All Other Net sales $ 68,531,897 $ 26,102,046 $ 42,429,851 Gross profit 31,107,491 15,066,309 16,041,182 Net income 6,920,047 4,492,254 2,427,793 Northern Technologies International Corporation’s share of equity in income from joint ventures 3,466,581 2,246,930 1,219,651 Northern Technologies International Corporation’s dividends received from joint ventures 5,648,153 4,675,850 972,303 |
Note 8 - Stockholders' Equity (
Note 8 - Stockholders' Equity (Tables) | 9 Months Ended |
May 31, 2021 | |
Notes Tables | |
Dividends Declared [Table Text Block] | Declaration Date Amount Record Date Payable Date January 15, 2021 $0.065 February 3, 2021 February 17, 2021 April 23, 2021 $0.065 May 5, 2021 May 19, 2021 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 |
Note 9 - Net Income (Loss) Pe_2
Note 9 - Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
May 31, 2021 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended May 31, Nine Months Ended May 31, Numerator 2021 2020 2021 2020 Net income (loss) attributable to NTIC $ 2,053,916 $ (965,221 ) $ 4,628,890 $ 427,163 Denominator Basic – weighted shares outstanding 9,109,861 9,099,990 9,107,243 9,096,981 Weighted shares assumed upon exercise of stock options 862,139 — 721,809 215,933 Diluted – weighted shares outstanding 9,972,000 9,099,990 9,829,052 9,312,914 Basic net income (loss) per share: $ 0.23 $ (0.11 ) $ 0.51 $ 0.05 Diluted net income (loss) per share: $ 0.21 $ (0.11 ) $ 0.47 $ 0.05 |
Note 10 - Stock-based Compens_2
Note 10 - Stock-based Compensation (Tables) | 9 Months Ended |
May 31, 2021 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Nine Months Ended May 31, 2021 2020 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) | 9 Months Ended |
May 31, 2021 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended May 31, Nine Months Ended May 31, 2021 2020 2021 2020 ZERUST® net sales $ 12,378,215 $ 7,356,781 $ 32,882,882 $ 26,322,515 Natur-Tec® net sales 3,040,309 2,388,042 8,097,636 11,287,491 Total net sales $ 15,418,524 $ 9,744,823 $ 40,980,518 $ 37,610,006 |
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block] | Three Months Ended May 31, Nine Months Ended May 31, 2021 % of Segment Sales* 2020 % of Segment Sales* 2021 % of Segment Sales* 2020 % of Segment Sales* Direct cost of goods sold ZERUST® $ 7,091,220 57.3 % $ 4,011,244 54.5 % $ 18,928,272 57.6 % $ 14,193,113 53.9 % Natur-Tec® 2,251,996 74.1 % 1,842,539 77.2 % 5,703,807 70.4 % 8,733,016 77.4 % Indirect cost of goods sold 809,366 — 645,319 — 2,365,503 — 2,065,358 — Total net cost of goods sold $ 10,152,582 $ 6,499,102 $ 26,997,582 $ 24,991,487 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended May 31, Nine Months Ended May 31, 2021 2020 2021 2020 Inside the U.S.A. to unaffiliated customers $ 6,717,886 $ 4,051,709 $ 16,198,372 $ 16,558,301 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 1,253,919 673,751 2,361,165 1,504,997 Unaffiliated customers 7,446,719 5,019,363 22,420,981 19,546,708 $ 15,418,524 $ 9,744,823 $ 40,980,518 $ 37,610,006 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | At May 31, 2021 At August 31, 2020 China $ 384,523 $ 376,088 Other 421,662 172,833 United States 6,370,827 6,561,868 Total property and equipment $ 7,177,012 $ 7,110,789 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Three Months Ended May 31, Nine Months Ended May 31, 2021 2020 2021 2020 China $ 4,037,493 $ 3,089,135 13,025,127 $ 9,975,091 Brazil 1,237,586 365,222 2,756,008 2,080,418 India 1,540,734 631,551 4,036,208 4,727,325 Other 1,884,825 1,607,206 4,964,803 4,268,871 United States 6,717,886 4,051,709 16,198,372 16,558,301 Total net sales $ 15,418,524 $ 9,744,823 $ 40,980,518 $ 37,610,006 |
Fees for Services Provided to Joint Ventures [Member] | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended May 31, 2021 % of Total Fees for Services Provided to Joint Ventures 2020 % of Total Fees for Services Provided to Joint Ventures Germany $ 232,026 14.6 % $ 199,877 22.8 % Poland 226,174 14.2 % 75,118 8.6 % Japan 200,270 12.6 % 139,268 15.9 % Sweden 127,710 8.0 % 51,767 5.9 % France 119,172 7.5 % 61,716 7.0 % Thailand 108,842 6.9 % 67,919 7.7 % India 107,021 6.7 % 24,842 2.8 % Czech Republic 109,680 6.9 % 46,709 5.3 % United Kingdom 113,886 7.2 % 52,484 6.0 % South Korea 78,507 4.9 % 54,951 6.3 % Finland 75,577 4.8 % 52,870 6.0 % Other 90,756 5.7 % 49,185 5.6 % $ 1,589,621 100.0 % $ 876,706 100.0 % Nine Months Ended May 31, 2021 % of Total Fees for Services Provided to Joint Ventures 2020 % of Total Fees for Services Provided to Joint Ventures Germany $ 692,770 15.8 % $ 620,106 17.8 % Poland 626,527 14.3 % 441,011 12.6 % Japan 561,725 12.8 % 453,347 13.0 % Sweden 365,095 8.3 % 259,671 7.4 % France 322,717 7.4 % 241,056 6.9 % Thailand 306,151 7.0 % 261,132 7.5 % India 290,713 6.6 % 187,826 5.4 % Czech Republic 268,571 6.1 % 215,923 6.2 % United Kingdom 247,560 5.6 % 202,241 5.8 % South Korea 241,805 5.5 % 206,272 5.9 % Finland 223,356 5.1 % 194,813 5.6 % Other 241,876 5.5 % 207,846 6.0 % $ 4,388,866 100.0 % $ 3,491,244 100.0 % |
Note 13 - Fair Value Measurem_2
Note 13 - Fair Value Measurements (Tables) | 9 Months Ended |
May 31, 2021 | |
Notes Tables | |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | Fair Value Measurements Using Inputs Considered as Fair value as of May 31, 2021 Level 1 Level 2 Level 3 Available for sale securities $ 5,125,052 $ 5,125,052 $ — $ — Fair Value Measurements Using Inputs Considered as Fair value as of August 31, 2020 Level 1 Level 2 Level 3 Available for sale securities $ 5,544,722 $ 5,544,722 $ — $ — |
Note 3 - Inventories - Inventor
Note 3 - Inventories - Inventories (Details) - USD ($) | May 31, 2021 | Aug. 31, 2020 |
Production materials | $ 4,574,380 | $ 3,866,791 |
Finished goods | 6,732,218 | 7,095,005 |
Total inventory | $ 11,306,598 | $ 10,961,796 |
Note 4 - Property and Equipme_3
Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($) | May 31, 2021 | Aug. 31, 2020 |
Land | $ 310,365 | $ 310,365 |
Buildings and improvements | 8,516,604 | 8,167,783 |
Machinery and equipment | 5,242,174 | 4,940,912 |
Gross | 14,069,143 | 13,419,060 |
Less accumulated depreciation | (6,892,131) | (6,308,271) |
Net | $ 7,177,012 | $ 7,110,789 |
Note 5 - Patents and Trademar_3
Note 5 - Patents and Trademarks, Net (Details Textual) - Patents and Trademarks [Member] | 9 Months Ended |
May 31, 2021USD ($) | |
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 ($) | May 31, 2021 | Aug. 31, 2020 |
Patents and trademarkes, net | $ 746,305 | $ 802,006 |
Patents and Trademarks [Member] | ||
Patents and trademarks | 3,003,862 | 2,907,852 |
Less accumulated amortization | (2,257,557) | (2,105,846) |
Patents and trademarkes, net | $ 746,305 | $ 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 ($) | May 31, 2021 | Aug. 31, 2020 |
Current assets | $ 37,228,408 | $ 33,202,350 |
Total assets | 72,800,175 | 66,074,488 |
Current liabilities | 7,552,895 | 6,097,604 |
Noncurrent liabilities | 373,166 | 272,443 |
Joint ventures’ equity | 61,374,537 | 56,659,415 |
Investments in joint ventures | 26,937,857 | 24,090,826 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||
Current assets | 68,123,606 | 55,825,418 |
Total assets | 72,216,965 | 60,295,587 |
Current liabilities | 16,369,403 | 11,002,867 |
Noncurrent liabilities | 1,225,790 | 365,274 |
Joint ventures’ equity | 54,621,772 | 48,927,446 |
Investments in joint ventures | 26,937,857 | 24,090,826 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 24,702,778 | 21,855,747 |
EXCOR [Member] | ||
Current assets | 30,658,702 | 25,742,619 |
Total assets | 33,027,046 | 28,449,772 |
Current liabilities | 3,570,261 | 2,424,565 |
Noncurrent liabilities | 0 | 0 |
Joint ventures’ equity | 29,456,785 | 26,025,207 |
Investments in joint ventures | 14,728,395 | 13,012,606 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 14,697,490 | 12,981,701 |
All Other [Member] | ||
Current assets | 37,464,904 | 30,082,799 |
Total assets | 39,189,919 | 31,845,815 |
Current liabilities | 12,799,142 | 8,578,302 |
Noncurrent liabilities | 1,225,790 | 365,274 |
Joint ventures’ equity | 25,164,987 | 22,902,239 |
Investments in joint ventures | 12,209,462 | 11,078,220 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | $ 10,005,288 | $ 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 | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Net sales | $ 15,418,524 | $ 9,744,823 | $ 40,980,518 | $ 37,610,006 |
Gross profit | 5,265,942 | 3,245,721 | 13,982,936 | 12,618,519 |
Net income | 2,053,916 | (965,221) | 4,628,890 | 427,163 |
Northern Technologies International Corporation’s share of equity in income from joint ventures | 2,033,536 | 811,787 | 5,779,260 | 3,466,581 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||
Net sales | 31,959,539 | 18,782,233 | 87,795,284 | 68,531,897 |
Gross profit | 14,280,775 | 8,647,784 | 39,802,014 | 31,107,491 |
Net income | 4,051,518 | 1,610,524 | 11,540,949 | 6,920,047 |
Northern Technologies International Corporation’s share of equity in income from joint ventures | 2,033,536 | 811,787 | 5,779,260 | 3,466,581 |
Northern Technologies International Corporation’s dividends received from joint ventures | 181,952 | 89,227 | 3,505,455 | 5,648,153 |
EXCOR [Member] | ||||
Net sales | 12,103,263 | 7,753,631 | 32,196,843 | 26,102,046 |
Gross profit | 6,863,786 | 4,478,739 | 18,661,980 | 15,066,309 |
Net income | 2,068,326 | 1,071,899 | 6,351,721 | 4,492,254 |
Northern Technologies International Corporation’s share of equity in income from joint ventures | 1,039,576 | 536,540 | 3,182,691 | 2,246,930 |
Northern Technologies International Corporation’s dividends received from joint ventures | 0 | 0 | 1,809,900 | 4,675,850 |
All Other [Member] | ||||
Net sales | 19,856,276 | 11,028,602 | 55,598,441 | 42,429,851 |
Gross profit | 7,416,989 | 4,169,045 | 21,140,034 | 16,041,182 |
Net income | 1,983,192 | 538,625 | 5,189,228 | 2,427,793 |
Northern Technologies International Corporation’s share of equity in income from joint ventures | 993,960 | 275,247 | 2,596,569 | 1,219,651 |
Northern Technologies International Corporation’s dividends received from joint ventures | $ 181,952 | $ 89,227 | $ 1,695,555 | $ 972,303 |
Note 7 - Corporate Debt (Detail
Note 7 - Corporate Debt (Details Textual) - USD ($) | 6 Months Ended | |||
Feb. 28, 2021 | May 31, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | |
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 | ||
Debt Instrument, Basis Spread on Interest Rate | 3.25% | |||
PNC Bank [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||
JP Morgan Chase Bank [Member] | ||||
Letters of Credit Outstanding, Amount | $ 104,363 | $ 104,363 |
Note 8 - Stockholders' Equity_2
Note 8 - Stockholders' Equity (Details Textual) - shares | Mar. 01, 2021 | Sep. 01, 2020 | Mar. 01, 2020 | Sep. 01, 2019 | May 31, 2021 | May 31, 2020 |
Stock Repurchased and Retired During Period, Shares (in shares) | 0 | 0 | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares) | 5,225 | 4,646 | 2,754 | 3,597 | ||
ESPP [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 74,822 |
Note 8 - Stockholders' Equity -
Note 8 - Stockholders' Equity - Cash Dividends Declared (Details) - $ / shares | Apr. 23, 2021 | Jan. 15, 2021 | Jan. 22, 2020 | Oct. 22, 2019 | May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 |
Amount (in dollars per share) | $ 0.065 | $ 0.065 | $ 0.065 | $ 0.065 | $ 0.065 | $ 0 | $ 0.13 | $ 0.13 |
Record date | May 5, 2021 | Feb. 3, 2021 | Feb. 5, 2020 | Nov. 6, 2019 | ||||
Payable date | May 19, 2021 | Feb. 17, 2021 | Feb. 19, 2020 | Nov. 20, 2019 |
Note 9 - Net Income (Loss) Pe_3
Note 9 - Net Income (Loss) Per Common Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 71,273 | |||
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 136,221 | 136,221 | 633,176 |
Note 9 - Net Income (Loss) Pe_4
Note 9 - Net Income (Loss) Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Net income | $ 2,053,916 | $ (965,221) | $ 4,628,890 | $ 427,163 |
Basic – weighted shares outstanding (in shares) | 9,109,861 | 9,099,990 | 9,107,243 | 9,096,981 |
Weighted shares assumed upon exercise of stock options (in shares) | 862,139 | 0 | 721,809 | 215,933 |
Diluted – weighted shares outstanding (in shares) | 9,972,000 | 9,099,990 | 9,829,052 | 9,312,914 |
Basic net income (loss) per share: (in dollars per share) | $ 0.23 | $ (0.11) | $ 0.51 | $ 0.05 |
Diluted net income (loss) per share: (in dollars per share) | $ 0.21 | $ (0.11) | $ 0.47 | $ 0.05 |
Note 10 - Stock-based Compens_3
Note 10 - Stock-based Compensation (Details Textual) - USD ($) | Jan. 15, 2021 | May 31, 2021 | May 31, 2020 |
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 | $ 503,339 | $ 998,122 | |
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | 827,502 | ||
Allocated Share-based Compensation Expense, Estimate Remainder of Fiscal Year | 160,835 | ||
Allocated Share-based Compensation Expense, Estimate, Fiscal Year Two | 333,333 | ||
Allocated Share Based Compensation Expense, Estimate, Fiscal Year Three | $ 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 4 months 24 days | 6 years 3 months 7 days | |
The 2019 Plan [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares) | 800,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 1,600,000 | ||
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) | 879,356 | ||
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 | ||
The 2007 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 783,652 |
Note 10 - Stock-based Compens_4
Note 10 - Stock-based Compensation - Black-Scholes Option-pricing Model Assumptions (Details) | 9 Months Ended | |
May 31, 2021 | May 31, 2020 | |
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) | 9 Months Ended |
May 31, 2021 | |
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 | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Net sales | $ 15,418,524 | $ 9,744,823 | $ 40,980,518 | $ 37,610,006 |
ZERUST [Member] | ||||
Net sales | 12,378,215 | 7,356,781 | 32,882,882 | 26,322,515 |
NaturTec [Member] | ||||
Net sales | $ 3,040,309 | $ 2,388,042 | $ 8,097,636 | $ 11,287,491 |
Note 11 - Segment and Geograp_5
Note 11 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||||
Cost of goods sold | $ 10,152,582 | $ 6,499,102 | $ 26,997,582 | $ 24,991,487 | |||
Direct Cost of Goods Sold [Member] | ZERUST [Member] | |||||||
Cost of goods sold | $ 7,091,220 | $ 4,011,244 | $ 18,928,272 | [1] | $ 14,193,113 | [1] | |
Percent of product sales | [1] | 57.30% | 54.50% | 57.60% | 53.90% | ||
Direct Cost of Goods Sold [Member] | NaturTec [Member] | |||||||
Cost of goods sold | $ 2,251,996 | $ 1,842,539 | $ 5,703,807 | [1] | $ 8,733,016 | [1] | |
Percent of product sales | [1] | 74.10% | 77.20% | 70.40% | 77.40% | ||
Indirect Cost of Goods Sold [Member] | |||||||
Cost of goods sold | $ 809,366 | $ 645,319 | $ 2,365,503 | $ 2,065,358 | |||
[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 | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Net sales | $ 15,418,524 | $ 9,744,823 | $ 40,980,518 | $ 37,610,006 |
Inside the USA to Unaffiliated Customers [Member] | ||||
Net sales | 6,717,886 | 4,051,709 | 16,198,372 | 16,558,301 |
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member] | ||||
Net sales | 1,253,919 | 673,751 | 2,361,165 | 1,504,997 |
Unaffiliated Customers Outside the USA [Member] | ||||
Net sales | $ 7,446,719 | $ 5,019,363 | $ 22,420,981 | $ 19,546,708 |
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 | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Fees | $ 1,589,621 | $ 876,706 | $ 4,388,866 | $ 3,491,244 |
Percentage of Total Fees | 100.00% | 100.00% | 100.00% | 100.00% |
GERMANY | ||||
Fees | $ 232,026 | $ 199,877 | $ 692,770 | $ 620,106 |
Percentage of Total Fees | 14.60% | 22.80% | 15.80% | 17.80% |
POLAND | ||||
Fees | $ 226,174 | $ 75,118 | $ 626,527 | $ 441,011 |
Percentage of Total Fees | 14.20% | 8.60% | 14.30% | 12.60% |
JAPAN | ||||
Fees | $ 200,270 | $ 139,268 | $ 561,725 | $ 453,347 |
Percentage of Total Fees | 12.60% | 15.90% | 12.80% | 13.00% |
SWEDEN | ||||
Fees | $ 127,710 | $ 51,767 | $ 365,095 | $ 259,671 |
Percentage of Total Fees | 8.00% | 5.90% | 8.30% | 7.40% |
FRANCE | ||||
Fees | $ 119,172 | $ 61,716 | $ 322,717 | $ 241,056 |
Percentage of Total Fees | 7.50% | 7.00% | 7.40% | 6.90% |
THAILAND | ||||
Fees | $ 108,842 | $ 67,919 | $ 306,151 | $ 261,132 |
Percentage of Total Fees | 6.90% | 7.70% | 7.00% | 7.50% |
INDIA | ||||
Fees | $ 107,021 | $ 24,842 | $ 290,713 | $ 187,826 |
Percentage of Total Fees | 6.70% | 2.80% | 6.60% | 5.40% |
CZECHIA | ||||
Fees | $ 109,680 | $ 46,709 | $ 268,571 | $ 215,923 |
Percentage of Total Fees | 6.90% | 5.30% | 6.10% | 6.20% |
UNITED KINGDOM | ||||
Fees | $ 113,886 | $ 52,484 | $ 247,560 | $ 202,241 |
Percentage of Total Fees | 7.20% | 6.00% | 5.60% | 5.80% |
KOREA, REPUBLIC OF | ||||
Fees | $ 78,507 | $ 54,951 | $ 241,805 | $ 206,272 |
Percentage of Total Fees | 4.90% | 6.30% | 5.50% | 5.90% |
FINLAND | ||||
Fees | $ 75,577 | $ 52,870 | $ 223,356 | $ 194,813 |
Percentage of Total Fees | 4.80% | 6.00% | 5.10% | 5.60% |
Other Countries [Member] | ||||
Fees | $ 90,756 | $ 49,185 | $ 241,876 | $ 207,846 |
Percentage of Total Fees | 5.70% | 5.60% | 5.50% | 6.00% |
Note 11 - Segment and Geograp_8
Note 11 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($) | May 31, 2021 | Aug. 31, 2020 |
Total long-lived assets | $ 7,177,012 | $ 7,110,789 |
CHINA | ||
Total long-lived assets | 384,523 | 376,088 |
Other Countries [Member] | ||
Total long-lived assets | 421,662 | 172,833 |
UNITED STATES | ||
Total long-lived assets | $ 6,370,827 | $ 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 | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Net sales | $ 15,418,524 | $ 9,744,823 | $ 40,980,518 | $ 37,610,006 |
CHINA | ||||
Net sales | 4,037,493 | 3,089,135 | 13,025,127 | 9,975,091 |
BRAZIL | ||||
Net sales | 1,237,586 | 365,222 | 2,756,008 | 2,080,418 |
INDIA | ||||
Net sales | 1,540,734 | 631,551 | 4,036,208 | 4,727,325 |
Other Countries [Member] | ||||
Net sales | 1,884,825 | 1,607,206 | 4,964,803 | 4,268,871 |
UNITED STATES | ||||
Net sales | $ 6,717,886 | $ 4,051,709 | $ 16,198,372 | $ 16,558,301 |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Details Textual) - USD ($) | 6 Months Ended | ||
Feb. 28, 2021 | May 31, 2021 | May 31, 2020 | |
Accrued Bonuses | $ 1,766,667 | $ 1,200,000 | |
Entity Wide Trade Joint Venture Receivables, Three Joint Ventures, Percentage | 73.70% | 56.20% | |
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 ($) | May 31, 2021 | Aug. 31, 2020 |
Available for sale securities | $ 5,125,052 | $ 5,544,722 |
Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | 5,125,052 | 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 - Income Taxes (Details
Note 14 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | |
Income Tax Expense (Benefit), Total | $ 276,338 | $ 142,285 | $ 929,588 | $ 869,945 |