Northern Technologies International (NTIC) 10-Q 12 Jan 22 2022 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Nov. 30, 2021	Jan. 06, 2022
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	2022
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Nov. 30, 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 P.O. Box 69
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		9,203,446

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Nov. 30, 2021	Aug. 31, 2021
CURRENT ASSETS:
Cash and cash equivalents	$ 8,047,565	$ 7,680,641
Available for sale securities	4,634	4,634
Receivables:
Trade, excluding joint ventures, less allowance for doubtful accounts of $382,000 as of November 30, 2021 and August 31, 2021	13,107,126	11,128,805
Trade, joint ventures	791,246	624,808
Fees for services provided to joint ventures	1,200,869	1,505,127
Income taxes	500,061	386,574
Inventories	11,439,738	11,114,207
Prepaid expenses	2,173,851	1,302,293
Total current assets	37,265,090	33,747,089
PROPERTY AND EQUIPMENT, NET	12,194,674	11,821,458
OTHER ASSETS:
Investments in joint ventures	21,357,911	27,623,768
Deferred income taxes	0	92,554
Intangible assets, net	6,279,000	0
Goodwill	4,782,376	0
Operating lease right of use asset	655,819	376,438
Total other assets	33,784,981	28,802,332
Total assets	83,244,745	74,370,879
CURRENT LIABILITIES:
Accounts payable	5,466,381	4,290,972
Line of credit	2,500,000
Income taxes payable	96,596	178,923
Accrued liabilities:
Payroll and related benefits	1,604,109	2,879,468
Other	1,407,724	894,497
Current portion of operating lease	314,918	272,336
Total current liabilities	11,389,728	8,516,196
LONG-TERM LIABILITIES:
Deferred income tax, net	1,883,272	0
Operating lease, less current portion	340,901	104,102
Total long-term liabilities	2,224,173	104,102
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, 2021 and August 31, 2021; issued and outstanding 9,203,446 and 9,184,811, respectively	184,069	183,696
Additional paid-in capital	19,146,510	18,736,268
Retained earnings	50,823,730	46,973,092
Accumulated other comprehensive loss	(3,862,085)	(3,525,030)
Stockholders’ equity	66,292,224	62,368,026
Non-controlling interests	3,338,620	3,382,555
Total equity	69,630,844	65,750,581
Total liabilities and equity	83,244,745	74,370,879
Patents and Trademarks [Member]
OTHER ASSETS:
Intangible assets, net	$ 709,875	$ 709,572

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
NET SALES:
Net sales, excluding joint ventures	$ 17,352,974	$ 12,198,808
Net sales, to joint ventures	840,439	580,304
Total net sales	18,193,413	12,779,112
Cost of goods sold	12,490,483	8,313,321
Gross profit	5,702,930	4,465,791
JOINT VENTURE OPERATIONS:
Equity in income from joint ventures	1,374,749	1,825,712
Fees for services provided to joint ventures	1,258,858	1,336,561
Total joint venture operations	2,633,607	3,162,273
OPERATING EXPENSES:
Selling expenses	3,237,758	2,741,768
General and administrative expenses	2,596,347	2,093,982
Research and development expenses	1,235,821	1,075,737
Total operating expenses	7,069,926	5,911,487
OPERATING INCOME	1,266,611	1,716,577
REMEASUREMENT GAIN ON ACQUISITION OF EQUITY METHOD INVESTEE	3,951,550	0
INTEREST INCOME	10,943	69,538
INTEREST EXPENSE	(2,891)	(2,368)
INCOME BEFORE INCOME TAX EXPENSE	5,226,213	1,783,747
INCOME TAX EXPENSE	504,380	378,590
NET INCOME	4,721,833	1,405,157
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	228,074	142,758
NET INCOME ATTRIBUTABLE TO NTIC	$ 4,493,759	$ 1,262,399
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE:
Basic (in dollars per share)	$ 0.49	$ 0.14
Diluted (in dollars per share)	$ 0.46	$ 0.13
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING:
Basic (in shares)	9,199,976	9,104,623
Diluted (in shares)	9,779,770	9,644,630
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 0.07	$ 0

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Net income	$ 4,721,833	$ 1,405,157
OTHER COMPREHENSIVE INCOME (LOSS) – FOREIGN CURRENCY TRANSLATION ADJUSTMENT	(409,064)	298,665
COMPREHENSIVE INCOME	4,312,769	1,703,822
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	(156,065)	210,663
COMPREHENSIVE INCOME ATTRIBUTABLE TO NTIC	$ 4,468,834	$ 1,493,159

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, 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 (in shares)	4,646
Stock issued for employee stock purchase plan	$ 93	36,099		0	0	36,192
Stock option expense	0	181,669		0	0	181,669
Net income	0	0	1,262,399	0	142,758	1,405,157
Comprehensive income (loss)	$ 0	0	0	230,760	67,905	298,665
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
BALANCE (in shares) at Aug. 31, 2021	9,184,811
BALANCE at Aug. 31, 2021	$ 183,696	18,736,268	46,973,092	(3,525,030)	3,382,555	65,750,581
Stock issued for employee stock purchase plan (in shares)	2,635
Stock issued for employee stock purchase plan	$ 53	38,479	0	0	0	38,532
Stock option expense	0	232,883	0	0	0	232,883
Net income	0	0	4,493,759	0	228,074	4,721,833
Comprehensive income (loss)	$ 0	0	0	(337,055)	(72,009)	(409,064)
Stock options exercised (in shares)	16,000
Stock options exercised	$ 320	138,880	0	0	0	139,200
Investment by non-controlling interest	0	0	0	0	(200,000)	(200,000)
Dividends paid to shareholders	$ 0	0	(643,121)	0	0	(643,121)
BALANCE (in shares) at Nov. 30, 2021	9,203,446
BALANCE at Nov. 30, 2021	$ 184,069	$ 19,146,510	$ 50,823,730	$ (3,862,085)	$ 3,338,620	$ 69,630,844

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	2 Months Ended	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2021	Nov. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 4,721,833	$ 4,721,833	$ 1,405,157
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	232,883		181,669
Depreciation expense	215,306		211,932
Amortization expense	119,894		49,989
Change in allowance for doubtful accounts	0		30,000
Remeasurement gain on acquisition of equity method investee	(3,951,550)	(3,951,550)	0
Equity in income from joint ventures	(1,374,749)	(1,374,749)	(1,825,712)
Dividends received from joint ventures	5,042,271		1,125,361
Deferred income taxes	126,852		338
Changes in current assets and liabilities:
Trade, excluding joint ventures	(308,325)		(1,334,199)
Trade, joint ventures	(166,438)		(199,491)
Fees for services provided to joint ventures	304,258		(221,879)
Income taxes	(119,978)		10,001
Inventories	516,283		1,242,101
Prepaid expenses and other	(418,888)		(108,751)
Accounts payable	98,545		1,046,577
Income tax payable	(102,074)		156,951
Accrued liabilities	(1,617,099)		(168,924)
Net cash provided by operating activities	3,319,024		1,601,120
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of Zerust India business, net of cash acquired (see Note 3)	(5,062,003)		0
Purchase of available for sale securities	0		(838,063)
Purchases of property and equipment	(315,390)		(309,400)
Investments in patents	(52,197)		(30,406)
Net cash used in investing activities	(5,429,590)		(1,177,869)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from line of credit	2,500,000		0
Dividends paid on NTIC common stock	(643,121)		0
Proceeds from the exercise of stock options	139,200		0
Dividends received by non-controlling interest	(200,000)		0
Proceeds from employee stock purchase plan	38,532		36,192
Net cash provided by financing activities	1,834,611		36,192
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS:	642,879		90,866
NET INCREASE IN CASH AND CASH EQUIVALENTS	366,924		550,309
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	7,680,641		6,403,032
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 8,047,565	$ 8,047,565	$ 6,953,341

Note 1 - Interim Financial Info

Note 1 - Interim Financial Information	3 Months Ended
	Nov. 30, 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 November 30, 2021 August 31, 2021 three November 30, 2021 2020, three November 30, 2021 2020 three November 30, 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, 2021. Management s Discussion and Analysis of Financial Condition and Results of Operations Operating results for the three November 30, 2021 not may August 31, 2022. 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 2022 2022. first 2022,

Note 2 - Accounting Pronounceme

Note 2 - Accounting Pronouncements	3 Months Ended
	Nov. 30, 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 - Business Combination

Note 3 - Business Combination	3 Months Ended
	Nov. 30, 2021
Notes to Financial Statements
Business Combination Disclosure [Text Block]	3. BUSINESS COMBINATION On September 21, 2021, September 1, 2021, September 1, 2021, The purchase price of $6.25 million was funded with cash on hand and borrowings under the Company’s revolving line of credit, which was increased in connection with the transaction to $5.0 million. Because the Company increased its ownership interest in Zerust India to 100%, the acquisition of Zerust India has been accounted for in accordance with Accounting Standards Codification (ASC) 805, September 1, 2021, The following table summarizes the preliminary purchase price allocation that includes the fair values of the separately identifiable assets acquired and liabilities assumed as of September 1, 2021: Cash and cash equivalents $ 1,187,997 Trade account receivable 1,954,769 Inventories 886,650 Prepaid expenses and other 396,545 Property, plant and equipment 219,077 Operating lease, right of use asset 355,000 Customer relationships 6,347,000 Goodwill 4,782,376 Current liabilities (1,370,314 ) Deferred tax liability (1,904,100 ) Operating lease (355,000 ) Net assets acquired $ 12,500,000 Less: Fair value of previously held equity method investment (1,637,362 ) Cumulative foreign currency translation (661,088 ) Gain recognized on acquisition (3,951,550 ) (6,250,000 ) Cash paid for acquisition $ 6,250,000 The excess of the fair value of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The fair values of assets acquired and liabilities assumed may not one The fair value of the intangible asset associated with customer relationships was estimated using a discounted cash flow method with the application of the multi-period excess earnings method. Under this method, an intangible asset’s fair value is equal to the present value of the incremental after-tax cash flows attributable to only the subject intangible asset after deducting contributory asset charges. The rate used to discount the estimated future net cash flows to their present values for the intangible assets was based upon a weighted average cost of capital calculation. The discount rate was determined after consideration of market rates of return on debt and equity capital, the weighted average return on invested capital and the risk associated with achieving forecasted sales related to the assets acquired from Zerust India. The weighted average discount rate used to determine the fair value of the customer relationships was 15.3%. The amortization period for the intangible assets is 15 Authoritative guidance on accounting for business combinations requires that an acquirer re-measure its previously held equity interest in the acquisition at its acquisition date fair value and recognize the resulting gain or loss in earnings. As such, since the Company acquired the remaining 50% September 1, 2021, three November 30, 2021. three November 30, 2021. The Company has included the financial results of Zerust India in the consolidated financial statements from September 1, 2021. three November 30, 2021. Unaudited consolidated pro forma information assuming the acquisition had occurred on September 1, 2020. three November 30, 2020 September 1, 2020 three November 30, 2020 not not may not may may

Note 4 - Inventories

Note 4 - Inventories	3 Months Ended
	Nov. 30, 2021
Notes to Financial Statements
Inventory Disclosure [Text Block]	4. INVENTORIES Inventories consisted of the following: November 30, 2021 August 31, 2021 Production materials $ 4,590,008 $ 4,453,688 Finished goods 6,849,730 6,660,519 $ 11,439,738 $ 11,114,207

Note 5 - Property and Equipment

Note 5 - Property and Equipment, Net	3 Months Ended
	Nov. 30, 2021
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	5. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: November 30, 2021 August 31, 2021 Land $ 310,365 $ 310,365 Buildings and improvements 13,723,824 13,149,258 Machinery and equipment 5,477,338 5,453,679 19,511,527 18,913,302 Less accumulated depreciation (7,316,853 ) (7,091,844 ) $ 12,194,674 $ 11,821,458

Note 6 - Patents and Trademarks

Note 6 - Patents and Trademarks, Net	3 Months Ended
	Nov. 30, 2021
Patents and Trademarks [Member]
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	6. PATENTS AND TRADEMARKS, NET Patents and trademarks, net consisted of the following: November 30, 2021 August 31, 2021 Patents and trademarks $ 3,070,704 $ 3,018,507 Less accumulated amortization (2,360,829 ) (2,308,935 ) $ 709,875 $ 709,572 Patent and trademark costs are amortized over seven four

Note 7 - Investments in Joint V

Note 7 - Investments in Joint Ventures	3 Months Ended
	Nov. 30, 2021
Notes to Financial Statements
Equity Method Investments and Joint Ventures Disclosure [Text Block]	7. 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 November 30, 2021 Total EXCOR All Other Current assets $ 54,945,793 $ 25,127,390 $ 29,818,403 Total assets 58,833,491 27,282,965 31,550,526 Current liabilities 14,079,093 4,139,822 9,939,271 Noncurrent liabilities 1,288,670 - 1,288,670 Joint ventures’ equity 43,465,728 23,143,143 20,322,585 Northern Technologies International Corporation’s share of joint ventures’ equity 21,357,911 11,571,573 9,786,338 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 19,142,941 11,540,668 7,602,273 Three Months Ended November 30, 2021 Total EXCOR All Other Net sales $ 27,022,995 $ 11,300,228 $ 15,722,767 Gross profit 11,032,959 5,468,986 5,563,973 Net income 2,777,605 1,821,547 956,058 Northern Technologies International Corporation’s share of equity in income from joint ventures 1,374,749 910,773 463,976 Northern Technologies International Corporation's dividends received from joint ventures 5,042,271 4,255,200 787,071 As of August 31, 2021 Total EXCOR All Other(1) Current assets $ 69,394,796 $ 33,886,655 $ 35,508,141 Total assets 73,814,402 36,211,520 37,602,882 Current liabilities 16,366,398 5,386,377 10,980,021 Noncurrent liabilities 1,455,524 — 1,455,524 Joint ventures’ equity 55,992,480 30,825,144 25,167,336 Northern Technologies International Corporation’s share of joint ventures’ equity 27,623,768 15,412,574 12,211,194 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 24,702,778 14,697,490 10,005,288 Three Months Ended November 30, 2020 Total EXCOR All Other(1) 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 __________________ ( 1 Includes Zerust India since Zerust India was not August 31, 2021 November 30, 2020. 3

Note 8 - Intangible Assets, Net

Note 8 - Intangible Assets, Net	3 Months Ended
	Nov. 30, 2021
Customer Relationships and Assembled Workforce [Member]
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	8. INTANGIBLE ASSET, NET Intangible asset, net consisted of the following as of November 30, 2021: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 6,347,000 $ (68,000 ) $ 6,279,000 The customer relationships was established as a part of purchase accounting related to our Zerust India acquisition. See Note 3 three November 30, 2021. five

Note 9 - Corporate Debt

Note 9 - Corporate Debt	3 Months Ended
	Nov. 30, 2021
Notes to Financial Statements
Debt Disclosure [Text Block]	9. CORPORATE DEBT The Company has a revolving line of credit with PNC Bank, National Association (“PNC Bank”) of $5,000,000 as of November 30, 2021. August 31, 2021. November 30, 2021 August 31, 2021. three November 30, 2021 February 22, 2022. 1.10:1.00. November 30, 2021, As of November 30, 2021 August 31, 2021, not November 30, 2021 August 31, 2021, 2021 2022.

Note 10 - Stockholders' Equity

Note 10 - Stockholders' Equity	3 Months Ended
	Nov. 30, 2021
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	10. STOCKHOLDERS EQUITY On April 23, 2020, 19 not three November 30, 2020. January 15, 2021, October 20, 2021, November 17, 2021 November 3, 2021. During the three November 30, 2021 2020, During the three November 30, 2021, 2019 2019 three November 30, 2021, During the three November 30, 2020, 2019 three November 30, 2020, no The Company issued 2,636 and 4,646 shares of common stock on September 1, 2021 2020, November 30, 2021,

Note 11 - Net Income Per Common

Note 11 - Net Income Per Common Share	3 Months Ended
	Nov. 30, 2021
Notes to Financial Statements
Earnings Per Share [Text Block]	11. NET INCOME PER COMMON SHARE Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per share assumes the exercise of stock options using the treasury stock method, if dilutive. The following is a reconciliation of the net income per share computation for the three November 30, 2021 2020: Three Months Ended Numerator: November 30, 2021 November 30, 2020 Net income attributable to NTIC $ 4,493,759 $ 1,262,399 Denominator: Basic – weighted shares outstanding 9,199,976 9,104,623 Weighted shares assumed upon exercise of stock options 579,794 540,007 Diluted – weighted shares outstanding 9,779,770 9,644,630 Basic net income per share: $ 0.49 $ 0.14 Diluted net income per share: $ 0.46 $ 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, 2021 three November 30, 2020

Note 12 - Stock-based Compensat

Note 12 - Stock-based Compensation	3 Months Ended
	Nov. 30, 2021
Notes to Financial Statements
Share-based Payment Arrangement [Text Block]	12. 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 November 30, 2021, 2019 2019 November 30, 2021, 2007 The Company granted options to purchase an aggregate of 174,840 and 419,874 shares of its common stock during the three November 30, 2021 2020, three November 30, 2021 2020, November 30, 2021, not 2022, 2023 2024, November 30, 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: November 30, 2021 2020 Dividend yield 1.65 % 2.37 % Expected volatility 45.4 % 45.6 % Expected life of option (in years) 10 10 Average risk-free interest rate 0.77 % 0.28 % The weighted average per share fair value of options granted during the three November 30, 2021 2020 November 30, 2021 2020

Note 13 - Segment and Geographi

Note 13 - Segment and Geographic Information	3 Months Ended
	Nov. 30, 2021
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	13. 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 45 The following table sets forth the Company’s net sales for the three November 30, 2021 2020 Three Months Ended November 30, 2021 November 30, 2020 ZERUST® net sales $ 14,423,785 $ 10,220,551 Natur-Tec® net sales 3,769,628 2,558,561 Total net sales $ 18,193,413 $ 12,779,112 The following table sets forth the Company’s cost of goods sold for the three November 30, 2021 2020 November 30, 2021 % of Product Sales* November 30, 2020 % of Product Sales* Direct cost of goods sold ZERUST® $ 8,706,667 60.4 % $ 5,771,089 56.5 % Natur-Tec® 2,922,098 77.5 % 1,767,630 69.1 % Indirect cost of goods sold 861,718 NA 774,602 NA Total net cost of goods sold …. $ 12,490,483 $ 8,313,321 * 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, 2021 2020 Three Months Ended November 30, 2021 November 30, 2020 Inside the U.S.A. to unaffiliated customers $ 6,156,322 $ 4,861,355 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 840,439 580,304 Unaffiliated customers 11,196,652 7,337,453 $ 18,193,413 $ 12,779,112 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, 2021 2020 Three Months Ended November 30, 2021 % of Total Fees for Services Provided to Joint Ventures November 30, 2020 % of Total Fees for Services Provided to Joint Ventures Germany $ 218,430 17.3 % $ 228,826 17.1 % Poland 176,927 14.1 % 189,410 14.2 % Japan 166,807 13.3 % 179,962 13.5 % France 116,292 9.2 % 105,907 7.9 % Sweden 108,070 8.6 % 90,489 6.8 % United Kingdom 94,927 7.5 % 61,915 4.6 % Thailand 87,554 7.0 % 89,932 6.7 % Finland 80,173 6.4 % 76,283 5.7 % Czech Republic 70,098 5.6 % 69,353 5.2 % South Korea 62,626 5.0 % 85,079 6.4 % Other 76,954 6.0 % 71,197 5.3 % $ 1,258,858 100.0 % $ 1,336,561 100.0 % The geographical distribution of total property and equipment and net sales is as follows: As of November 30, 2021 As of August 31, 2021 China $ 5,380,922 $ 5,110,071 Other 668,393 453,199 United States 6,145,359 6,258,188 Total property and equipment, net $ 12,194,674 $ 11,821,458 Three Months Ended November 30, 2021 November 30, 2020 China $ 4,057,853 $ 4,543,978 Brazil 1,296,217 713,853 India 4,476,984 1,200,468 Other 2,206,037 1,459,458 United States 6,156,322 4,861,355 Total net sales $ 18,193,413 $ 12,779,112 Long-lived assets consist of property and equipment and intangible assets. 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 14 - Commitments and Conti

Note 14 - Commitments and Contingencies	3 Months Ended
	Nov. 30, 2021
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	14. COMMITMENTS AND CONTINGENCIES Annual Bonus Plan On August 26, 2021, August 31, 2022. 2022, 2022 2022, may 2022. three November 30, 2021 three November 30, 2020. Concentrations Two joint ventures (consisting of the Company’s joint ventures in the Korea and Japan) accounted for 42.4% of the Company’s trade joint venture receivables as of November 30, 2021, three November 30, 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 November 30, 2021, not

Note 15 - Fair Value Measuremen

Note 15 - Fair Value Measurements	3 Months Ended
	Nov. 30, 2021
Notes to Financial Statements
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]	15. 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 November 30, 2021 Level 1 Level 2 Level 3 Available for sale securities $ 4,634 $ 4,634 $ — $ — Fair Value Measurements Using Inputs Considered as Fair value as of August 31, 2021 Level 1 Level 2 Level 3 Available for sale securities $ 4,634 $ 4,634 $ — $ — There were no 1, 2, 3 three November 30, 2021 2020.

Note 16 - Supplemental Cash Flo

Note 16 - Supplemental Cash Flow Information	3 Months Ended
	Nov. 30, 2021
Notes to Financial Statements
Cash Flow, Supplemental Disclosures [Text Block]	16. SUPPLEMENTAL CASH FLOW INFORMATION Supplemental disclosures of cash flow information consisted of: Three Months Ended November 30, 2021 November 30, 2020 Cash paid for interest $ 2,891 $ 2,368

Note 17 - Income Taxes

Note 17 - Income Taxes	3 Months Ended
	Nov. 30, 2021
Notes to Financial Statements
Income Tax Disclosure [Text Block]	17. INCOME TAXES Income tax expense for the three November 30, 2021 November 30, 2021 August 31, 2021.

Note 18 - Subsequent Event

Note 18 - Subsequent Event	3 Months Ended
	Nov. 30, 2021
Notes to Financial Statements
Subsequent Events [Text Block]	18. SUBSEQUENT EVENT On January 4, 2022, January 7, 2023 February 23, 2022 January 7, 2023, not

Note 3 - Business Combination (

Note 3 - Business Combination (Tables)	3 Months Ended
	Nov. 30, 2021
Notes Tables
Schedule of Business Acquisitions, by Acquisition [Table Text Block]	Cash and cash equivalents $ 1,187,997 Trade account receivable 1,954,769 Inventories 886,650 Prepaid expenses and other 396,545 Property, plant and equipment 219,077 Operating lease, right of use asset 355,000 Customer relationships 6,347,000 Goodwill 4,782,376 Current liabilities (1,370,314 ) Deferred tax liability (1,904,100 ) Operating lease (355,000 ) Net assets acquired $ 12,500,000 Less: Fair value of previously held equity method investment (1,637,362 ) Cumulative foreign currency translation (661,088 ) Gain recognized on acquisition (3,951,550 ) (6,250,000 ) Cash paid for acquisition $ 6,250,000

Note 4 - Inventories (Tables)

Note 4 - Inventories (Tables)	3 Months Ended
	Nov. 30, 2021
Notes Tables
Schedule of Inventory, Current [Table Text Block]	November 30, 2021 August 31, 2021 Production materials $ 4,590,008 $ 4,453,688 Finished goods 6,849,730 6,660,519 $ 11,439,738 $ 11,114,207

Note 5 - Property and Equipme_2

Note 5 - Property and Equipment, Net (Tables)	3 Months Ended
	Nov. 30, 2021
Notes Tables
Property, Plant and Equipment [Table Text Block]	November 30, 2021 August 31, 2021 Land $ 310,365 $ 310,365 Buildings and improvements 13,723,824 13,149,258 Machinery and equipment 5,477,338 5,453,679 19,511,527 18,913,302 Less accumulated depreciation (7,316,853 ) (7,091,844 ) $ 12,194,674 $ 11,821,458

Note 6 - Patents and Trademar_2

Note 6 - Patents and Trademarks, Net (Tables)	3 Months Ended
	Nov. 30, 2021
Patents and Trademarks [Member]
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	November 30, 2021 August 31, 2021 Patents and trademarks $ 3,070,704 $ 3,018,507 Less accumulated amortization (2,360,829 ) (2,308,935 ) $ 709,875 $ 709,572

Note 7 - Investments in Joint_2

Note 7 - Investments in Joint Ventures (Tables)	3 Months Ended
	Nov. 30, 2021
Notes Tables
Condensed Balance Sheet [Table Text Block]	As of November 30, 2021 Total EXCOR All Other Current assets $ 54,945,793 $ 25,127,390 $ 29,818,403 Total assets 58,833,491 27,282,965 31,550,526 Current liabilities 14,079,093 4,139,822 9,939,271 Noncurrent liabilities 1,288,670 - 1,288,670 Joint ventures’ equity 43,465,728 23,143,143 20,322,585 Northern Technologies International Corporation’s share of joint ventures’ equity 21,357,911 11,571,573 9,786,338 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 19,142,941 11,540,668 7,602,273 As of August 31, 2021 Total EXCOR All Other(1) Current assets $ 69,394,796 $ 33,886,655 $ 35,508,141 Total assets 73,814,402 36,211,520 37,602,882 Current liabilities 16,366,398 5,386,377 10,980,021 Noncurrent liabilities 1,455,524 — 1,455,524 Joint ventures’ equity 55,992,480 30,825,144 25,167,336 Northern Technologies International Corporation’s share of joint ventures’ equity 27,623,768 15,412,574 12,211,194 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 24,702,778 14,697,490 10,005,288
Condensed Income Statement [Table Text Block]	Three Months Ended November 30, 2021 Total EXCOR All Other Net sales $ 27,022,995 $ 11,300,228 $ 15,722,767 Gross profit 11,032,959 5,468,986 5,563,973 Net income 2,777,605 1,821,547 956,058 Northern Technologies International Corporation’s share of equity in income from joint ventures 1,374,749 910,773 463,976 Northern Technologies International Corporation's dividends received from joint ventures 5,042,271 4,255,200 787,071 Three Months Ended November 30, 2020 Total EXCOR All Other(1) 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

Note 8 - Intangible Assets, N_2

Note 8 - Intangible Assets, Net (Tables)	3 Months Ended
	Nov. 30, 2021
Customer Relationships and Assembled Workforce [Member]
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 6,347,000 $ (68,000 ) $ 6,279,000

Note 11 - Net Income Per Comm_2

Note 11 - Net Income Per Common Share (Tables)	3 Months Ended
	Nov. 30, 2021
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended Numerator: November 30, 2021 November 30, 2020 Net income attributable to NTIC $ 4,493,759 $ 1,262,399 Denominator: Basic – weighted shares outstanding 9,199,976 9,104,623 Weighted shares assumed upon exercise of stock options 579,794 540,007 Diluted – weighted shares outstanding 9,779,770 9,644,630 Basic net income per share: $ 0.49 $ 0.14 Diluted net income per share: $ 0.46 $ 0.13

Note 12 - Stock-based Compens_2

Note 12 - Stock-based Compensation (Tables)	3 Months Ended
	Nov. 30, 2021
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	November 30, 2021 2020 Dividend yield 1.65 % 2.37 % Expected volatility 45.4 % 45.6 % Expected life of option (in years) 10 10 Average risk-free interest rate 0.77 % 0.28 %

Note 13 - Segment and Geograp_2

Note 13 - Segment and Geographic Information (Tables)	3 Months Ended
	Nov. 30, 2021
Notes Tables
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	Three Months Ended November 30, 2021 November 30, 2020 ZERUST® net sales $ 14,423,785 $ 10,220,551 Natur-Tec® net sales 3,769,628 2,558,561 Total net sales $ 18,193,413 $ 12,779,112
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block]	November 30, 2021 % of Product Sales* November 30, 2020 % of Product Sales* Direct cost of goods sold ZERUST® $ 8,706,667 60.4 % $ 5,771,089 56.5 % Natur-Tec® 2,922,098 77.5 % 1,767,630 69.1 % Indirect cost of goods sold 861,718 NA 774,602 NA Total net cost of goods sold …. $ 12,490,483 $ 8,313,321
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	Three Months Ended November 30, 2021 November 30, 2020 Inside the U.S.A. to unaffiliated customers $ 6,156,322 $ 4,861,355 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 840,439 580,304 Unaffiliated customers 11,196,652 7,337,453 $ 18,193,413 $ 12,779,112
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	As of November 30, 2021 As of August 31, 2021 China $ 5,380,922 $ 5,110,071 Other 668,393 453,199 United States 6,145,359 6,258,188 Total property and equipment, net $ 12,194,674 $ 11,821,458
Revenue from External Customers by Geographic Areas [Table Text Block]	Three Months Ended November 30, 2021 November 30, 2020 China $ 4,057,853 $ 4,543,978 Brazil 1,296,217 713,853 India 4,476,984 1,200,468 Other 2,206,037 1,459,458 United States 6,156,322 4,861,355 Total net sales $ 18,193,413 $ 12,779,112
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, 2021 % of Total Fees for Services Provided to Joint Ventures November 30, 2020 % of Total Fees for Services Provided to Joint Ventures Germany $ 218,430 17.3 % $ 228,826 17.1 % Poland 176,927 14.1 % 189,410 14.2 % Japan 166,807 13.3 % 179,962 13.5 % France 116,292 9.2 % 105,907 7.9 % Sweden 108,070 8.6 % 90,489 6.8 % United Kingdom 94,927 7.5 % 61,915 4.6 % Thailand 87,554 7.0 % 89,932 6.7 % Finland 80,173 6.4 % 76,283 5.7 % Czech Republic 70,098 5.6 % 69,353 5.2 % South Korea 62,626 5.0 % 85,079 6.4 % Other 76,954 6.0 % 71,197 5.3 % $ 1,258,858 100.0 % $ 1,336,561 100.0 %

Note 15 - Fair Value Measurem_2

Note 15 - Fair Value Measurements (Tables)	3 Months Ended
	Nov. 30, 2021
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, 2021 Level 1 Level 2 Level 3 Available for sale securities $ 4,634 $ 4,634 $ — $ — Fair Value Measurements Using Inputs Considered as Fair value as of August 31, 2021 Level 1 Level 2 Level 3 Available for sale securities $ 4,634 $ 4,634 $ — $ —

Note 16 - Supplemental Cash F_2

Note 16 - Supplemental Cash Flow Information (Tables)	3 Months Ended
	Nov. 30, 2021
Notes Tables
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	Three Months Ended November 30, 2021 November 30, 2020 Cash paid for interest $ 2,891 $ 2,368

Note 3 - Business Combination_2

Note 3 - Business Combination (Details Textual) - USD ($)	Sep. 01, 2021	Nov. 30, 2021	Nov. 30, 2021	Nov. 30, 2020	Aug. 31, 2021	Aug. 30, 2021
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net, Total		$ 3,951,550	$ 3,951,550	$ 0
Revenues, Total			18,193,413	12,779,112
Revolving Credit Facility [Member] | PNC Bank [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 5,000,000	$ 5,000,000	5,000,000		$ 5,000,000	$ 3,000,000
Harita-NTI Limited [Member]
Business Acquisition, Percentage of Voting Interests Acquired	50.00%
Business Combination, Consideration Transferred, Total	$ 6,250,000
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage	50.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, including Subsequent Acquisition, Percentage, Total	100.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net, Total	$ 3,951,550		3,951,550
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual			2,452,812
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual			292,528
Business Combination, Acquisition Related Costs			$ 50,000
Business Acquisition, Pro Forma Revenue				$ 14,806,403
Harita-NTI Limited [Member] | Customer Relationships [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Discount Rate	15.30%
Harita-NTI Limited [Member] | Customer Relationships and Assembled Workforce [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Year)	15 years

Note 3 - Business Combination -

Note 3 - Business Combination - Preliminary Purchase Price Allocation (Details) - USD ($)	Sep. 01, 2021	Nov. 30, 2021	Nov. 30, 2021	Nov. 30, 2020	Aug. 31, 2021
Goodwill		$ 4,782,376	$ 4,782,376		$ 0
Gain recognized on acquisition		$ (3,951,550)	(3,951,550)	$ 0
Harita-NTI Limited [Member]
Cash and cash equivalents	$ 1,187,997
Trade account receivable	1,954,769
Inventories	886,650
Prepaid expenses and other	396,545
Property, plant and equipment	219,077
Customer relationships	6,347,000
Goodwill	4,782,376
Current liabilities	(1,370,314)
Deferred tax liability	(1,904,100)
Operating lease	(355,000)
Net assets acquired	12,500,000
Fair value of previously held equity method investment	(1,637,362)
Cumulative foreign currency translation	(661,088)
Gain recognized on acquisition	(3,951,550)		$ (3,951,550)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest, Total	(6,250,000)
Cash paid for acquisition	6,250,000
Harita-NTI Limited [Member] | Customer Relationships [Member]
Operating lease, right of use asset	$ (355,000)

Note 4 - Inventories - Inventor

Note 4 - Inventories - Inventories (Details) - USD ($)	Nov. 30, 2021	Aug. 31, 2021
Production materials	$ 4,590,008	$ 4,453,688
Finished goods	6,849,730	6,660,519
Total inventory	$ 11,439,738	$ 11,114,207

Note 5 - Property and Equipme_3

Note 5 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($)	Nov. 30, 2021	Aug. 31, 2021
Land	$ 310,365	$ 310,365
Buildings and improvements	13,723,824	13,149,258
Machinery and equipment	5,477,338	5,453,679
Gross	19,511,527	18,913,302
Less accumulated depreciation	(7,316,853)	(7,091,844)
Net	$ 12,194,674	$ 11,821,458

Note 6 - Patents and Trademar_3

Note 6 - Patents and Trademarks, Net (Details Textual) - Patents and Trademarks [Member]	3 Months Ended
	Nov. 30, 2021USD ($)
Finite-Lived Intangible Asset, Useful Life (Year)	7 years
Finite-Lived Intangible Asset, Expected Amortization, Year One	$ 190,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	190,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	190,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	$ 190,000

Note 6 - Patents and Trademar_4

Note 6 - Patents and Trademarks, Net - Patents and Trademarks, Net (Details) - USD ($)	Nov. 30, 2021	Aug. 31, 2021
Patents and trademarkes, net	$ 6,279,000	$ 0
Patents and Trademarks [Member]
Patents and trademarks	3,070,704	3,018,507
Less accumulated amortization	(2,360,829)	(2,308,935)
Patents and trademarkes, net	$ 709,875	$ 709,572

Note 7 - Investments in Joint_3

Note 7 - Investments in Joint Ventures - Condensed Balance Sheet of EXCOR and All Other Joint Ventures (Details) - USD ($)		Nov. 30, 2021	Aug. 31, 2021
Current assets		$ 37,265,090	$ 33,747,089
Total assets		83,244,745	74,370,879
Current liabilities		11,389,728	8,516,196
Noncurrent liabilities		2,224,173	104,102
Joint ventures’ equity		66,292,224	62,368,026
Investments in joint ventures		21,357,911	27,623,768
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Current assets		54,945,793	69,394,796
Total assets		58,833,491	73,814,402
Current liabilities		14,079,093	16,366,398
Noncurrent liabilities		1,288,670	1,455,524
Joint ventures’ equity		43,465,728	55,992,480
Investments in joint ventures		21,357,911	27,623,768
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		19,142,941	24,702,778
EXCOR [Member]
Current assets		25,127,390	33,886,655
Total assets		27,282,965	36,211,520
Current liabilities		4,139,822	5,386,377
Noncurrent liabilities		0	0
Joint ventures’ equity		23,143,143	30,825,144
Investments in joint ventures		11,571,573	15,412,574
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		11,540,668	14,697,490
All Other [Member]
Current assets		29,818,403
Total assets		31,550,526
Current liabilities		9,939,271
Noncurrent liabilities		1,288,670
Joint ventures’ equity		20,322,585
Investments in joint ventures		9,786,338
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		$ 7,602,273
Joint Ventures in France [Member]
Current assets	[1]		35,508,141
Total assets	[1]		37,602,882
Current liabilities	[1]		10,980,021
Noncurrent liabilities	[1]		1,455,524
Joint ventures’ equity	[1]		25,167,336
Investments in joint ventures	[1]		12,211,194
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	[1]		$ 10,005,288
[1]	Includes Harita-NTI since Harita-NTI was not a consolidated subsidiary of the Company as of Augut 31, 2021 or November 30, 2020. See Note 3.

Note 7 - Investments in Joint_4

Note 7 - Investments in Joint Ventures - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($)		2 Months Ended	3 Months Ended
		Nov. 30, 2021	Nov. 30, 2021	Nov. 30, 2020
Revenues, Total			$ 18,193,413	$ 12,779,112
Gross profit			5,702,930	4,465,791
Net income			4,493,759	1,262,399
Northern Technologies International Corporation’s share of equity in income from joint ventures		$ 1,374,749	1,374,749	1,825,712
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Revenues, Total			27,022,995	26,777,343
Gross profit			11,032,959	12,441,761
Net income			2,777,605	3,651,424
Northern Technologies International Corporation’s share of equity in income from joint ventures			1,374,749	1,825,712
Northern Technologies International Corporation's dividends received from joint ventures			5,042,271	1,125,361
EXCOR [Member]
Revenues, Total			11,300,228	9,551,483
Gross profit			5,468,986	5,699,007
Net income			1,821,547	2,021,074
Northern Technologies International Corporation’s share of equity in income from joint ventures			910,773	1,010,537
Northern Technologies International Corporation's dividends received from joint ventures			4,255,200	0
All Other [Member]
Revenues, Total			15,722,767
Gross profit			5,563,973
Net income			956,058
Northern Technologies International Corporation’s share of equity in income from joint ventures			463,976
Northern Technologies International Corporation's dividends received from joint ventures			$ 787,071
Joint Ventures in France [Member]
Revenues, Total	[1]			17,225,860
Gross profit	[1]			6,742,754
Net income	[1]			1,630,350
Northern Technologies International Corporation’s share of equity in income from joint ventures	[1]			815,175
Northern Technologies International Corporation's dividends received from joint ventures	[1]			$ 1,125,361
[1]	Includes Harita-NTI since Harita-NTI was not a consolidated subsidiary of the Company as of Augut 31, 2021 or November 30, 2020. See Note 3.

Note 8 - Intangible Assets, N_3

Note 8 - Intangible Assets, Net (Details Textual) - Customer Relationships and Assembled Workforce [Member]	3 Months Ended
	Nov. 30, 2021USD ($)
Finite-Lived Intangible Asset, Useful Life (Year)	15 years
Amortization of Intangible Assets, Total	$ 68,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	423,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	423,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	423,000
Finite-Lived Intangible Asset, Expected Amortization, Year Five	$ 423,000

Note 8 - Intangible Assets, N_4

Note 8 - Intangible Assets, Net (Details) - USD ($)	Nov. 30, 2021	Aug. 31, 2021
Customer relationships	$ 6,279,000	$ 0
Customer Relationships [Member]
Patents and trademarks	6,347,000
Less accumulated amortization	(68,000)
Customer relationships	$ 6,279,000

Note 9 - Corporate Debt (Detail

Note 9 - Corporate Debt (Details Textual)	3 Months Ended
	Nov. 30, 2021USD ($)	Sep. 01, 2021USD ($)	Aug. 31, 2021USD ($)	Aug. 30, 2021USD ($)
PNC Bank [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 5,000,000	$ 5,000,000	$ 5,000,000	$ 3,000,000
Long-term Line of Credit, Total	$ 2,500,000		0
Debt, Weighted Average Interest Rate	2.57%
Debt Instrument, Covenants, Fixed Charge Coverage Ratio	1.10
Letters of Credit Outstanding, Amount	$ 0		0
PNC Bank [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.50%
JP Morgan Chase Bank [Member]
Letters of Credit Outstanding, Amount	$ 104,363		$ 104,363

Note 10 - Stockholders' Equity

Note 10 - Stockholders' Equity (Details Textual) - $ / shares	Oct. 20, 2021	Sep. 01, 2021	Sep. 01, 2020	Nov. 30, 2021	Nov. 30, 2020
Common Stock, Dividends, Per Share, Declared (in dollars per share)	$ 0.07			$ 0.07	$ 0
Dividends Payable, Date Declared	Nov. 17, 2021
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)				174,840	419,874
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares)		2,636	4,646
Dividends Payable, Date of Record	Nov. 17, 2021
The 2019 Plan [member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)				895,484
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)				704,516
The 2019 Plan [member] | Employees and Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)				174,840	419,874
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share)				$ 16.97	$ 8.24
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares)				16,000	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in dollars per share)				$ 8.70
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)				72,186

Note 11 - Net Income Per Comm_3

Note 11 - Net Income Per Common Share (Details Textual) - shares	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Share-based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	311,061	605,629

Note 11 - Net Income Per Comm_4

Note 11 - Net Income Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($)	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Net income	$ 4,493,759	$ 1,262,399
Basic – weighted shares outstanding (in shares)	9,199,976	9,104,623
Weighted shares assumed upon exercise of stock options (in shares)	579,794	540,007
Diluted – weighted shares outstanding (in shares)	9,779,770	9,644,630
Basic net income per share: (in dollars per share)	$ 0.49	$ 0.14
Diluted net income per share: (in dollars per share)	$ 0.46	$ 0.13

Note 12 - Stock-based Compens_3

Note 12 - Stock-based Compensation (Details Textual) - USD ($)	Jan. 15, 2021	Nov. 30, 2021	Nov. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)		174,840	419,874
Share-based Payment Arrangement, Expense		$ 232,883	$ 181,669
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount		1,708,368
Allocated Share-based Compensation Expense, Estimate Remainder of Fiscal Year		698,649
Allocated Share-based Compensation Expense, Estimate, Fiscal Year Two		671,526
Allocated Share Based Compensation Expense, Estimate, Fiscal Year Three		$ 338,193
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)		$ 7.29	$ 3.12
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year)		6 years 4 months 28 days	6 years 10 months 24 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, Grants in Period, Gross (in shares)		895,484
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)		704,516
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)		690,007

Note 12 - Stock-based Compens_4

Note 12 - Stock-based Compensation - Black-Scholes Option-pricing Model Assumptions (Details)	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Dividend yield	1.65%	2.37%
Expected volatility	45.40%	45.60%
Expected life of option (in years) (Year)	10 years	10 years
Average risk-free interest rate	0.77%	0.28%

Note 13 - Segment and Geograp_3

Note 13 - Segment and Geographic Information (Details Textual)	3 Months Ended
	Nov. 30, 2021
Number of Reportable Segments	2

Note 13 - Segment and Geograp_4

Note 13 - Segment and Geographic Information - Net Sales by Segment (Details) - USD ($)	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Revenues, Total	$ 18,193,413	$ 12,779,112
ZERUST [Member]
Revenues, Total	14,423,785	10,220,551
NaturTec [Member]
Revenues, Total	$ 3,769,628	$ 2,558,561

Note 13 - Segment and Geograp_5

Note 13 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($)		3 Months Ended
		Nov. 30, 2021	Nov. 30, 2020
Cost of goods sold		$ 12,490,483	$ 8,313,321
Direct Cost of Goods Sold [Member] | ZERUST [Member]
Cost of goods sold		$ 8,706,667	$ 5,771,089
Percent of product sales	[1]	60.40%	56.50%
Direct Cost of Goods Sold [Member] | NaturTec [Member]
Cost of goods sold		$ 2,922,098	$ 1,767,630
Percent of product sales	[1]	77.50%	69.10%
Indirect Cost of Goods Sold [Member]
Cost of goods sold		$ 861,718	$ 774,602
[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 13 - Segment and Geograp_6

Note 13 - Segment and Geographic Information - Net Sales by Geographic Location (Details) - USD ($)	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Revenues, Total	$ 18,193,413	$ 12,779,112
Inside the USA to Unaffiliated Customers [Member]
Revenues, Total	6,156,322	4,861,355
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member]
Revenues, Total	840,439	580,304
Unaffiliated Customers Outside the USA [Member]
Revenues, Total	$ 11,196,652	$ 7,337,453

Note 13 - Segment and Geograp_7

Note 13 - 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, 2021	Nov. 30, 2020
Fees	$ 1,258,858	$ 1,336,561
Percentage of Total Fees	100.00%	100.00%
GERMANY
Fees	$ 218,430	$ 228,826
Percentage of Total Fees	17.30%	17.10%
POLAND
Fees	$ 176,927	$ 189,410
Percentage of Total Fees	14.10%	14.20%
JAPAN
Fees	$ 166,807	$ 179,962
Percentage of Total Fees	13.30%	13.50%
FRANCE
Fees	$ 116,292	$ 105,907
Percentage of Total Fees	9.20%	7.90%
SWEDEN
Fees	$ 108,070	$ 90,489
Percentage of Total Fees	8.60%	6.80%
UNITED KINGDOM
Fees	$ 94,927	$ 61,915
Percentage of Total Fees	7.50%	4.60%
THAILAND
Fees	$ 87,554	$ 89,932
Percentage of Total Fees	7.00%	6.70%
FINLAND
Fees	$ 80,173	$ 76,283
Percentage of Total Fees	6.40%	5.70%
CZECHIA
Fees	$ 70,098	$ 69,353
Percentage of Total Fees	5.60%	5.20%
KOREA, REPUBLIC OF
Fees	$ 62,626	$ 85,079
Percentage of Total Fees	5.00%	6.40%
Other Countries [Member]
Fees	$ 76,954	$ 71,197
Percentage of Total Fees	6.00%	5.30%

Note 13 - Segment and Geograp_8

Note 13 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($)	Nov. 30, 2021	Aug. 31, 2021
Total long-lived assets	$ 12,194,674	$ 11,821,458
CHINA
Total long-lived assets	5,380,922	5,110,071
Other Countries [Member]
Total long-lived assets	668,393	453,199
UNITED STATES
Total long-lived assets	$ 6,145,359	$ 6,258,188

Note 13 - Segment and Geograp_9

Note 13 - Segment and Geographic Information - Total Net Sales by Geographic Distribution (Details) - USD ($)	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Revenues, Total	$ 18,193,413	$ 12,779,112
CHINA
Revenues, Total	4,057,853	4,543,978
BRAZIL
Revenues, Total	1,296,217	713,853
INDIA
Revenues, Total	4,476,984	1,200,468
Other Countries [Member]
Revenues, Total	2,206,037	1,459,458
UNITED STATES
Revenues, Total	$ 6,156,322	$ 4,861,355

Note 14 - Commitments and Con_2

Note 14 - Commitments and Contingencies (Details Textual) - USD ($)	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Accrued Bonuses	$ 483,334	$ 516,667
Entity Wide Trade Joint Venture Receivables, Two Joint Ventures, Percentage	42.40%
Entity Wide Trade Joint Venture Receivables, Three Joint Ventures, Percentage		55.60%
Fiscal 2018 Bonus Plan [Member] | Executive Officer [Member]
Percentage of Individual Bonus Payout Determined by Actual Versus Targeted EBITOI Results	75.00%
Percentage of Individuals Payout Determined Upon Achievement of Certain Pre-Established Individual Performance Objectives	25.00%

Note 15 - Fair Value Measurem_3

Note 15 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($)	Nov. 30, 2021	Aug. 31, 2021
Available for sale securities	$ 4,634	$ 4,634
Fair Value, Inputs, Level 1 [Member]
Available for sale securities	4,634	4,634
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 16 - Supplemental Cash F_3

Note 16 - Supplemental Cash Flow Information - Supplemental Disclosures of Cash Flow Information (Details) - USD ($)	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Cash paid for interest	$ 2,891	$ 2,368

Note 17 - Income Taxes (Details

Note 17 - Income Taxes (Details Textual) - USD ($)	3 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Income Tax Expense (Benefit), Total	$ 504,380	$ 378,590

Note 18 - Subsequent Event (Det

Note 18 - Subsequent Event (Details Textual) - Revolving Credit Facility [Member] - PNC Bank [Member] - USD ($)	Jan. 04, 2022	Feb. 23, 2022	Nov. 30, 2021	Sep. 01, 2021	Aug. 31, 2021	Aug. 30, 2021
Line of Credit Facility, Maximum Borrowing Capacity			$ 5,000,000	$ 5,000,000	$ 5,000,000	$ 3,000,000
Forecast [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 3,000,000
Bloomberg Short-Term Bank Yield Index [Member] | Subsequent Event [Member]
Debt Instrument, Basis Spread on Variable Rate	2.50%