Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Aug. 31, 2022 | Nov. 14, 2022 | Feb. 28, 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 | FY | ||
Document Fiscal Year Focus | 2022 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Aug. 31, 2022 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 121,500,000 | ||
Entity Common Stock, Shares Outstanding | 9,366,357 | ||
Auditor Name | Baker Tilly US, LLP | ||
Auditor Location | Minneapolis, Minnesota | ||
Auditor Firm ID | 23 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Aug. 31, 2022 | Aug. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 5,333,890 | $ 7,680,641 |
Available for sale securities | 5,590 | 4,634 |
Receivables: | ||
Trade excluding joint ventures, less allowance for doubtful accounts of $439,000 as of August 31, 2022 and $382,000 as of August 31, 2021 | 14,136,930 | 11,128,805 |
Trade, joint ventures | 697,861 | 624,808 |
Fees for services provided to joint ventures | 1,765,117 | 1,505,127 |
Income taxes | 0 | 386,574 |
Inventories | 16,341,729 | 11,114,207 |
Prepaid expenses | 1,953,764 | 1,302,293 |
Total current assets | 40,234,881 | 33,747,089 |
PROPERTY AND EQUIPMENT, NET | 12,170,493 | 11,821,458 |
OTHER ASSETS: | ||
Investments in joint ventures | 21,814,754 | 27,623,768 |
Deferred income taxes | 0 | 92,554 |
Goodwill | 4,782,376 | 0 |
Operating lease right of use assets | 557,571 | 376,438 |
Total other assets | 33,788,579 | 28,802,332 |
Total assets | 86,193,953 | 74,370,879 |
CURRENT LIABILITIES: | ||
Accounts payable | 7,796,494 | 4,290,972 |
Line of credit | 5,900,000 | 0 |
Income taxes payable | 30,742 | 178,923 |
Accrued liabilities: | ||
Payroll and related benefits | 2,297,543 | 2,879,468 |
Other | 667,292 | 894,497 |
Current portion of operating lease | 373,330 | 272,336 |
Total current liabilities | 17,065,401 | 8,516,196 |
LONG-TERM LIABILITIES: | ||
Deferred income tax, net | 1,700,015 | 0 |
Operating lease, less current portion | 184,241 | 104,102 |
Total long-term liabilities | 1,884,256 | 104,102 |
COMMITMENTS AND CONTINGENCIES (Note 17) | ||
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 August 31, 2022 and August 31, 2021; issued and outstanding 9,232,483 and 9,184,811, respectively | 184,650 | 183,696 |
Additional paid-in capital | 19,939,131 | 18,736,268 |
Retained earnings | 50,716,613 | 46,973,092 |
Accumulated other comprehensive loss | (7,245,132) | (3,525,030) |
Stockholders’ equity | 63,595,262 | 62,368,026 |
Non-controlling interests | 3,649,034 | 3,382,555 |
Total equity | 67,244,296 | 65,750,581 |
Total liabilities and equity | 86,193,953 | 74,370,879 |
Patents and Trademarks [Member] | ||
OTHER ASSETS: | ||
Intangible assets, net | 710,011 | 709,572 |
Intangible Assets Excluding Patents and Trademarks [Member] | ||
OTHER ASSETS: | ||
Intangible assets, net | $ 5,923,867 | $ 0 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Aug. 31, 2022 | Aug. 31, 2021 |
Trade receivable excluding joint ventures, allowance for doubtful accounts | $ 439,000 | $ 382,000 |
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) | 9,232,483 | 9,184,811 |
Common stock, shares outstanding (in shares) | 9,232,483 | 9,184,811 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | ||
NET SALES: | |||
Net sales, excluding joint ventures | $ 71,190,801 | $ 53,470,623 | |
Net sales, to joint ventures | 2,968,089 | 3,023,196 | |
Total net sales | 74,158,890 | 56,493,819 | |
Cost of goods sold | 51,090,298 | 36,920,814 | [1] |
Gross profit | 23,068,592 | 19,573,005 | |
JOINT VENTURE OPERATIONS: | |||
Equity in income from joint ventures | 4,725,918 | 7,465,214 | |
Fees for services provided to joint ventures | 5,767,682 | 5,964,260 | |
To Total joint venture operations | 10,493,600 | 13,429,474 | |
OPERATING EXPENSES: | |||
Selling expenses | 13,038,180 | 12,016,974 | |
General and administrative expenses | 10,600,603 | 8,262,173 | |
Research and development expenses | 4,775,334 | 4,400,479 | |
Total operating expenses | 28,414,117 | 24,679,626 | |
OPERATING INCOME | 5,148,075 | 8,322,853 | |
REMEASUREMENT GAIN ON ACQUISITION OF EQUITY METHOD INVESTEE | 3,951,550 | 0 | |
INTEREST INCOME | 49,241 | 151,875 | |
INTEREST EXPENSE | (89,096) | (16,086) | |
INCOME BEFORE INCOME TAX EXPENSE | 9,059,770 | 8,458,642 | |
INCOME TAX EXPENSE | 1,873,836 | 1,461,905 | |
NET INCOME | 7,185,934 | 6,996,737 | |
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 861,234 | 715,499 | |
NET INCOME ATTRIBUTABLE TO NTIC | $ 6,324,700 | $ 6,281,238 | |
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE: | |||
Basic (in dollars per share) | $ 0.69 | $ 0.69 | |
Diluted (in dollars per share) | $ 0.66 | $ 0.64 | |
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING: | |||
Basic (in shares) | 9,216,216 | 9,116,472 | |
Diluted (in shares) | 9,635,028 | 9,874,139 | |
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.28 | $ 0.195 | |
[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. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Net income | $ 7,185,934 | $ 6,996,737 |
OTHER COMPREHENSIVE INCOME – FOREIGN CURRENCY TRANSLATION ADJUSTMENT | (3,912,128) | (92,562) |
COMPREHENSIVE INCOME | 3,273,806 | 6,904,175 |
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | (669,208) | (737,529) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NTIC | $ 2,604,598 | $ 6,166,646 |
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 options exercised (in shares) | 74,950 | 74,950 | ||||
Stock options exercised | $ 1,499 | 582,915 | 0 | 0 | 0 | $ 584,414 |
Stock issued for employee stock purchase plan (in shares) | 9,871 | |||||
Stock issued for employee stock purchase plan | $ 197 | 74,136 | 0 | 0 | 0 | 74,333 |
Stock option expense | 0 | 664,174 | 0 | 0 | 0 | 664,174 |
Dividends paid to stockholders | 0 | 0 | (1,780,956) | 0 | (1,780,956) | |
Dividend received by non-controlling interest | 0 | 0 | 0 | 0 | (400,000) | (400,000) |
Net income | 0 | 0 | 6,281,238 | 0 | 715,499 | 6,996,737 |
Other comprehensive income (loss) | $ 0 | 0 | 0 | (114,592) | 22,030 | (92,562) |
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 options exercised (in shares) | 42,071 | |||||
Stock options exercised | $ 842 | 197,798 | 0 | 0 | 0 | 198,640 |
Stock issued for employee stock purchase plan (in shares) | 5,601 | |||||
Stock issued for employee stock purchase plan | $ 112 | 73,533 | 0 | 0 | 0 | 73,645 |
Stock option expense | 0 | 931,532 | 0 | 0 | 0 | 931,532 |
Dividends paid to stockholders | 0 | 0 | (2,581,179) | 0 | (2,581,179) | |
Dividend received by non-controlling interest | 0 | 0 | 0 | 0 | (402,729) | (402,729) |
Net income | 0 | 0 | 6,324,700 | 0 | 861,234 | 7,185,934 |
Other comprehensive income (loss) | $ 0 | 0 | 0 | (3,720,102) | (192,026) | (3,912,128) |
Balance (in shares) at Aug. 31, 2022 | 9,232,483 | |||||
Balance at Aug. 31, 2022 | $ 184,650 | $ 19,939,131 | $ 50,716,613 | $ (7,245,132) | $ 3,649,034 | $ 67,244,296 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 7,185,934 | $ 6,996,737 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 931,532 | 664,174 |
Depreciation expense | 938,489 | 905,299 |
Amortization expense | 629,843 | 203,088 |
Remeasurement gain on acquisition of equity method investee | (3,951,550) | 0 |
Change in allowance for doubtful accounts | 57,000 | 262,000 |
Equity in income from joint ventures | (4,725,918) | (7,465,214) |
Dividends received from joint ventures | 5,723,176 | 3,665,365 |
Deferred income taxes | (81,500) | 114,620 |
Changes in current assets and liabilities: | ||
Trade, excluding joint ventures | (2,091,353) | (3,030,655) |
Trade, joint ventures | (73,053) | (148,908) |
Fees for services provided to joint ventures | (259,550) | (577,841) |
Income taxes | 284,025 | (362,438) |
Inventories | (4,818,860) | 58,314 |
Prepaid expenses and other | 3,111 | (487,771) |
Accounts payable | 3,010,526 | 866,597 |
Income tax payable | (493,091) | (160,231) |
Accrued liabilities | (1,122,713) | 1,389,804 |
Net cash provided by operating activities | 1,146,078 | 2,892,940 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of Zerust India business, net of cash acquired (see Note 3) | (5,062,003) | 0 |
Investment in joint venture | (341,392) | 0 |
Purchase of available for sale securities | 0 | (800,000) |
Proceeds from the sale of available for sale securities | (956) | 6,340,088 |
Purchases of property and equipment | (1,496,674) | (5,532,750) |
Investments in patents | (207,149) | (110,654) |
Net cash used in investing activities | (7,108,174) | (103,316) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividend received by non-controlling interest | (402,729) | (400,000) |
Proceeds from line of credit | 5,900,000 | 0 |
Dividends paid on NTIC common stock | (2,581,179) | (1,780,956) |
Proceeds from employee stock purchase plan | 73,645 | 74,333 |
Proceeds from exercise of stock options | 198,640 | 584,414 |
Net cash provided by (used in) financing activities | 3,188,377 | (1,522,209) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 426,968 | 10,194 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (2,346,751) | 1,277,609 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 7,680,641 | 6,403,032 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 5,333,890 | $ 7,680,641 |
Note 1 - Nature of Business and
Note 1 - Nature of Business and Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2022 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Nature of Business 50 two The Company participates, either directly or indirectly, in 16 active joint venture arrangements in North America, Europe, and Asia. Each of these joint ventures generally manufactures and markets products in the geographic territory to which it is assigned. While most of the Company’s joint ventures exclusively sell rust and corrosion inhibiting products, some of the joint ventures also sell the Company’s Natur-Tec® resin compounds and finished products. The profits of joint ventures are shared by the respective joint venture owners in accordance with their respective ownership percentages. The Company typically owns 50% or less of its joint venture entities and does not Impact of COVID- 19 19 2022 2023. 2022, Principles of Consolidation not September 1, 2021, September 1, 2021. Non-Controlling Interests Net Sales no When determining recognition of revenue arrangements the Company performs the following five 1 2 3 4 5 five Generally, the Company’s performance obligations are satisfied when the customers take possession of the products, which normally occurs at the shipping point or destination depending on the terms of the contracts. The Company’s services are generally sold based upon quotes or contracts with customers that include a fixed or determinable price, and sales arrangements do not not not Revenue Recognition Individually promised goods and services in a contract are considered a distinct performance obligation and accounted for separately if the customer can benefit from the individual good or service on its own or with other resources that are readily available to the customer and the good or service is separately identifiable from other promises in the arrangement. When an arrangement includes multiple performance obligations, the consideration is allocated between the performance obligations in proportion to their estimated standalone selling price. Costs related to products delivered are recognized in the period incurred, unless criteria for capitalization of costs are met. Costs of revenues consist primarily of direct labor, manufacturing overhead, materials, and components. The Company does not The Company excludes government assessed and imposed taxes on revenue generating transactions that are invoiced to customers from revenue. The Company includes freight billed to customers in revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold. The timing of revenue recognition, billing, and cash collections results in accounts receivable on the consolidated balance sheet. Performance Obligations service consultants work directly with the end users of NTIC’s ZERUST® rust and corrosion inhibiting products to analyze their specific needs and develop systems to meet their performance requirements. The Company sells its products to both distributors and end-users. Each unit of product delivered under a customer order represents a distinct and separate performance obligation, as the customer can benefit from each unit on its own or with other resources that are readily available to the customer, and each unit of product is separately identifiable from other products in the arrangement. The transaction price for the Company’s products is the invoiced amount. The Company does not not 606 10 50 14 not one no one Revenue is recognized when transfer of control occurs, as defined by the terms in the customer agreement. The Company immediately recognizes incidental items that are immaterial in the context of the contract. The Company has applied the practical expedient in paragraph 606 10 25 16A not 606 10 32 18 one not thirty ninety The Company estimates returns based on an analysis of historical experience if the right to return products is granted to its customers. The Company does not not not no not Sales Commissions not 340 40 25 4 one Product Warranty not not may International Revenue 13, Trade Receivables 30 not not August 31, 2022 August 31, 2021, Trade Receivables from Joint Ventures 90 not not August 31, 2022 2021. Fees for Services Provided to Joint Ventures Cash and Cash Equivalents three may Available for Sale Securities not Inventories first first Property and Depreciation Buildings and improvements 5-30 years Machinery and equipment 3-10 years Patents and Trademarks Investments in Joint Ventures zero August 31 not may August 31, 2022 2021. 20% The Company classifies distributions received from its joint ventures based on the nature of the distributions, generally, in operating activities on the consolidated statements of cash flows. If the Company is no no Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. Fair value is calculated based on publicly available market information or other estimates determined by management. The Company employs a systematic methodology on a quarterly basis that considers available quantitative and qualitative evidence in evaluating potential impairment of our investments. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, credit quality, the duration and extent to which the fair value is less than cost, and for equity securities, the Company’s intent and ability to hold, or plans to sell, the investment. The Company also considers specific adverse conditions related to the financial health of and business outlook for the investee, including industry and sector performance, changes in technology, and operational and financing cash flow factors. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to other income (expense), and a new cost basis in the investment is established. Recoverability of Long-Lived Assets may not Acquisitions of Businesses Goodwill and Other Intangible Assets August 31), not The Company assesses qualitative factors to determine whether the existence of events or circumstances would indicate that it is more likely than not not no August 31, 2022. Income Taxes The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not The Company records uncertain tax positions on the basis of a two not not 50 Foreign Currency Translation (Accumulated Other Comprehensive Income (Loss)) The Company (excluding NTIC China, Zerust Brazil, Natur-Tec India, Natur Tec Lanka, Zerust India, Zerust Singapore, Zerust Vietnam, NTI Asean, Zerust Mexico, NTI Europe, and NTIC’s joint ventures) conducts all foreign transactions based on the U.S. dollar. Since investments in joint ventures are accounted for using the equity method, any changes in foreign currency exchange rates are reflected as a foreign currency translation adjustment and do not Fair Value of Financial Instruments Shipping and Handling Research and Development Common Stock Stock-Based Compensation Subsequent Events Use of Estimates |
Note 2 - Accounting Pronounceme
Note 2 - Accounting Pronouncements | 12 Months Ended |
Aug. 31, 2022 | |
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 | 12 Months Ended |
Aug. 31, 2022 | |
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 $6,250,000 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 $5,000,000. 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 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 liability (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 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, August 31, 2022. August 31, 2022. The Company has included the financial results of Zerust India in the consolidated financial statements from September 1, 2021. August 31, 2022. Unaudited consolidated pro forma information assuming the acquisition had occurred on September 1, 2020 August 31, 2021 not may not may may |
Note 4 - Inventories
Note 4 - Inventories | 12 Months Ended |
Aug. 31, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 4. INVENTORIES Inventories consisted of the following: August 31, 2022 August 31, 2021 Production materials $ 6,496,656 $ 4,453,688 Finished goods 9,845,073 6,660,519 $ 16,341,729 $ 11,114,207 |
Note 5 - Property and Equipment
Note 5 - Property and Equipment, Net | 12 Months Ended |
Aug. 31, 2022 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 5. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: August 31, 2022 August 31, 2021 Land $ 310,365 $ 310,365 Buildings and improvements 14,778,759 13,149,258 Machinery and equipment 5,643,320 5,453,679 20,732,444 18,913,302 Less accumulated depreciation (8,561,951 ) (7,091,844 ) $ 12,170,493 $ 11,821,458 |
Note 6 - Patents and Trademarks
Note 6 - Patents and Trademarks, Net | 12 Months Ended |
Aug. 31, 2022 | |
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: August 31, 2022 August 31, 2021 Patents and trademarks $ 3,225,655 $ 3,018,507 Less accumulated amortization (2,515,644 ) (2,308,935 ) $ 710,011 $ 709,572 Patent and trademark costs are amortized over seven August 31, 2022 2021, four |
Note 7 - Investments in Joint V
Note 7 - Investments in Joint Ventures | 12 Months Ended |
Aug. 31, 2022 | |
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. The Company considers the Company’s joint venture in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR) to be individually significant to the Company’s consolidated assets and income as of August 31, 2022 2021. September 1, 2021. As of August 31, 2022 Total EXCOR OTHER Current assets $ 52,428,831 $ 26,047,914 $ 26,380,917 Total assets 55,854,457 27,932,532 27,921,925 Current liabilities 10,981,833 2,943,895 8,037,938 Noncurrent liabilities 1,138,980 - 1,138,980 Joint ventures’ equity 43,733,644 24,988,637 18,745,007 Northern Technologies International Corporation’s share of joint ventures’ equity 21,814,754 12,494,320 9,320,434 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 21,256,923 12,463,415 8,793,508 Fiscal Year Ended August 31, 2022 Total EXCOR OTHER Net sales $ 104,077,748 $ 42,853,162 $ 61,224,586 Gross profit 41,030,647 20,312,400 20,718,247 Net income 9,302,237 6,487,855 2,814,382 Northern Technologies International Corporation’s share of equity in income of joint ventures 4,725,918 3,236,989 1,488,929 Northern Technologies International Corporation’s dividends received from joint ventures 5,723,176 4,255,200 1,467,976 As of August 31, 2021 Total EXCOR 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 Fiscal Year Ended August 31, 2021 Total EXCOR OTHER (1) Net sales $ 120,954,550 $ 46,522,688 $ 74,431,862 Gross profit 53,371,610 25,389,981 27,981,629 Net income 14,921,531 8,798,995 6,122,536 Northern Technologies International Corporation’s share of equity in income of joint ventures 7,465,214 4,400,403 3,064,811 Northern Technologies International Corporation’s dividends received from joint ventures 3,665,365 1,809,900 1,855,465 ____________________ ( 1 Includes Zerust India since Zerust India was not August 31, 2021. 3 |
Note 8 - Intangible Asset, Net
Note 8 - Intangible Asset, Net | 12 Months Ended |
Aug. 31, 2022 | |
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: August 31, 2022 August 31, 2021 Customer relationships $ 6,347,000 $ — Less accumulated amortization (423,133 ) — Net Carrying Amount $ 5,923,867 $ — The customer relationships were established as a part of purchase accounting related to our Zerust India acquisition. See Note 3 August 31, 2022. five |
Note 9 - Corporate Debt
Note 9 - Corporate Debt | 12 Months Ended |
Aug. 31, 2022 | |
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 $7,000,000 as of August 31, 2022. January 7, 2023 August 31, 2021. On January 4, 2022, January 7, 2023 not August 31, 2021. On May 20, 2022, August 16, 2022, January 7, 2023. August 8, 2022, Borrowings of $5,900,000 were outstanding under the line of credit as of August 31, 2022 August 31, 2021. twelve August 31, 2022 The obligations of the Company under the loan agreement are secured by a lien on all of the Company’s personal property, excepting certain liens consented to in writing by PNC. The loan agreement contains covenants, including affirmative financial covenants, such as the maintenance of a minimum fixed charge coverage ratio of 1.10:1.00, August 31, 2022, As of August 31, 2022 August 31, 2021, not August 31, 2022 August 31, 2021, 2022 2023. |
Note 10 - Stockholders' Equity
Note 10 - Stockholders' Equity | 12 Months Ended |
Aug. 31, 2022 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 10. STOCKHOLDERS EQUITY During fiscal 2022, Declaration Date Amount Record Date Payable Date October 20, 2021 $ 0.07 November 3, 2021 November 17, 2021 January 21, 2022 $ 0.07 February 2, 2022 February 16, 2022 April 22, 2022 $ 0.07 May 4, 2022 May 18, 2022 July 20, 2022 $ 0.07 August 3, 2022 August 17, 2022 On April 23, 2020, 19 January 15, 2021, 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 July 21, 2021 $ 0.065 August 4, 2021 August 18, 2021 During fiscal 2022 2021, no During fiscal 2022, 2019 2019 2022, During fiscal 2021, 2019 2021, The Company issued 2,635 and 4,646 shares of common stock on September 1, 2021 2020, March 1, 2022 2021, August 31, 2022, |
Note 11 - Net Income Per Common
Note 11 - Net Income Per Common Share | 12 Months Ended |
Aug. 31, 2022 | |
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 fiscal 2022 2021: Numerator: August 31, 2022 August 31, 2021 Net income attributable to NTIC $ 6,324,700 $ 6,281,238 Denominator: Basic-weighted shares outstanding 9,216,216 9,116,472 Weighted shares assumed upon exercise of stock options 418,812 757,667 Diluted – weighted shares outstanding 9,635,028 9,874,139 Basic net income per share: $ 0.69 $ 0.69 Diluted net income per share: $ 0.66 $ 0.64 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 the 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 as of August 31, 2022 August 31, 2021 |
Note 12 - Stock-based Compensat
Note 12 - Stock-based Compensation | 12 Months Ended |
Aug. 31, 2022 | |
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 August 31, 2022, 2019 2019 August 31, 2022, 2007 The Company granted options to purchase an aggregate of 174,840 and 419,874 shares of its common stock during fiscal 2022 2021, 2022 2021 August 31, 2022, not 2023 2024, August 31, 2022. 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: Fiscal Year 2022 Fiscal Year 2021 Dividend yield 2.46 % 1.65 % Expected volatility 45.2 % 45.4 % Expected life of option (years) 10 10 Weighted average risk-free interest rate 3.30 % 0.77 % Stock option activity during the periods indicated was as follows: Number of Shares (#) Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding at August 31, 2020 1,127,968 $ 9.63 Options granted 419,874 8.24 Options exercised (77,645 ) 8.18 Options terminated (43,546 ) 9.63 Outstanding at August 31, 2021 1,426,651 $ 9.30 Options granted 174,840 16.97 Options exercised (51,218 ) 6.60 Options terminated (5,546 ) 18.23 Outstanding at August 31, 2022 1,544,727 $ 10.23 $ 4,151,365 Exercisable at August 31, 2022 1,156,211 $ 9.58 $ 3,394,957 The weighted average per share fair value of options granted during fiscal 2022 2021 August 31, 2022 2021 |
Note 13 - Segment and Geographi
Note 13 - Segment and Geographic Information | 12 Months Ended |
Aug. 31, 2022 | |
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 almost 50 The following tables present the Company’s business segment information: Fiscal 2022 Fiscal 2021 ZERUST® net sales $ 57,459,382 $ 45,554,434 Natur-Tec® net sales 16,699,508 10,939,385 Total net sales $ 74,158,890 $ 56,493,819 The following table sets forth the Company’s cost of goods sold by segment: Fiscal 2022 Fiscal 2021 Direct cost of goods sold ZERUST® $ 34,673,146 $ 26,028,555 Natur-Tec® 12,859,343 7,717,429 Indirect cost of goods sold 3,557,809 3,174,830 Total net cost of goods sold $ 51,090,298 $ 36,920,814 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 Sales to the Company’s joint ventures are included in the foregoing geographic and segment 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 related to ZERUST® Geographic Information Net sales by geographic location for fiscal 2022 2021 Fiscal Year Ended August 31, 2022 2021 Inside the U.S.A. to unaffiliated customers $ 25,301,067 $ 22,039,456 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 2,968,089 3,023,196 Unaffiliated customers 45,889,734 31,431,167 $ 74,158,890 $ 56,493,819 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 fiscal 2022 2021, Fiscal 2022 % of Total Fees for Services Provided to Joint Ventures Fiscal 2021 % of Total Fees for Services Provided to Joint Ventures Germany $ 834,725 14.5 % $ 920,902 15.4 % Poland 730,523 12.7 % 798,570 13.4 % Japan 669,371 11.6 % 826,403 13.9 % France 448,579 7.8 % 435,032 7.3 % Sweden 447,441 7.8 % 528,755 8.9 % Thailand 344,649 6.0 % 399,563 6.7 % United Kingdom 342,488 5.9 % 316,786 5.3 % Finland 340,783 5.9 % 298,663 5.0 % Czech Republic 300,257 5.2 % 377,395 6.3 % South Korea 270,309 4.7 % 317,042 5.3 % Indonesia 156,476 2.7 % 122,513 2.1 % India - - 392,074 6.6 % Other * 882,081 15.2 % 230,562 3.8 % $ 5,767,682 100.0 % $ 5,964,260 100.0 % * NTI Asean recovered $681,859 in previously written-off fees for services related to the termination of its joint venture in China in fiscal 2015. 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 See Note 7 The geographical distribution of total property and equipment and net sales is as follows: At August 31, 2022 At August 31, 2021 China $ 5,826,898 $ 5,110,071 Other 565,022 453,199 United States 5,778,573 6,258,188 Total property and equipment $ 12,170,493 $ 11,821,458 Fiscal Year Ended August 31, 2022 Fiscal Year Ended August 31, 2021 China $ 15,754,051 $ 17,343,623 Brazil 5,160,572 4,122,781 India 18,555,603 5,482,989 Other 9,387,597 7,504,970 United States 25,301,067 22,039,456 Total net sales $ 74,158,890 $ 56,493,819 Long-lived assets consist of property and equipment. These assets are periodically reviewed to assure the net realizable value from the estimated future production based on forecasted sales exceeds the carrying value of the assets. Sales to the Company’s joint ventures are included in the foregoing segment and geographic information; however, sales by the Company’s joint ventures to other parties are not All joint venture operations, including equity in income, fees for services and related dividends, are primarily related to ZERUST® |
Note 14 - Retirement Plan
Note 14 - Retirement Plan | 12 Months Ended |
Aug. 31, 2022 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | 14. RETIREMENT PLAN The Company has a 401 may 2022 2021, |
Note 15 - Related Party Transac
Note 15 - Related Party Transactions | 12 Months Ended |
Aug. 31, 2022 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 15. RELATED PARTY TRANSACTIONS During both fiscal 2022 2021, |
Note 16 - Income Taxes
Note 16 - Income Taxes | 12 Months Ended |
Aug. 31, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 16. INCOME TAXES The provision for income taxes for the fiscal years ended August 31, 2022 2021 Fiscal Year Ended August 31, 2022 2021 Current: Federal $ — $ — State 98,000 39,000 Foreign 1,894,000 1,307,000 1,992,000 1,346,000 Deferred: Federal — — State — — Foreign (118,164 ) 115,905 (118,164 ) 115,905 $ 1,873,836 $ 1,461,905 Reconciliations of the expected federal income tax at the statutory rate of 21.0% with the provisions for income taxes for the fiscal years ended August 31, 2022 2021 Fiscal Year Ended August 31, 2022 2021 Tax computed at statutory rates $ 1,780,000 $ 1,794,000 State income tax, net of federal benefit 34,000 37,000 Tax effect on equity in income of international joint ventures (988,000 ) (1,560,000 ) Tax effect of foreign operations 1,004,000 839,000 Deemed repatriation 10,000 — Expired foreign tax credit — 897,000 Research and development credit (244,000 ) (277,000 ) Valuation allowance 133,000 (492,000 ) Stock based compensation 67,000 75,000 Non-controlling interest (72,000 ) (83,000 ) Other 149,836 231,905 $ 1,873,836 $ 1,461,905 The Company has not 2017 December 31, 2017 not 2022 2021, not The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. The tax effect of the temporary differences and tax carryforwards comprising the net deferred taxes shown on the consolidated balance sheets as of August 31, 2022 2021 August 31, 2022 2021 Accrued compensation $ 329,100 $ 539,300 Inventory costs 93,900 55,100 Other accrued expenses 84,800 103,100 Lease liability 98,300 84,300 Goodwill and other intangible assets 398,600 453,000 Stock-based compensation 547,200 466,300 Property and equipment 9,100 — Foreign tax credit carryforward 4,892,100 4,893,300 Other credit and loss carryforward 5,455,500 5,243,100 Other 23,000 — Total deferred tax assets 11,931,600 11,837,500 Valuation allowance (11,592,900 ) (11,447,500 ) Total deferred tax assets after valuation allowance 338,700 390,000 Property and equipment — (7,300 ) Right-of-use asset (98,300 ) (84,300 ) Intangible assets (1,777,200 ) — Unremitted foreign earnings (163,200 ) (154,900 ) Other — (50,900 ) Total deferred tax liabilities (2,038,700 ) (297,400 ) Net deferred tax assets $ (1,700,000 ) $ 92,600 As of August 31, 2022, not August 31, 2023. August 31, 2022, 2023. August 31, 2022. not August 31, 2023. The Company records a tax valuation allowance to reduce deferred tax assets to the amount expected to be realized when it is more likely than not not The Company determined based on all available evidence, including historical data and projections of future results, that it is more likely than not not August 31, 2022 2021, not August 31, 2022 2021 not August 31, 2022 2021, The following is a tabular reconciliation of the total amounts of approximated unrecognized tax benefits: Fiscal Year Ended August 31, 2022 2021 Gross unrecognized tax benefits – beginning balance $ 297,600 $ 278,200 Gross increases – prior period tax positions 3,400 4,400 Gross increases – current period tax positions 18,000 15,000 Gross unrecognized tax benefits – ending balance $ 319,000 $ 297,600 The entire amount of unrecognized tax benefits would affect the effective tax rate if recognized. It is not 12 The Company recognizes interest related to unrecognized tax benefits and penalties as income tax expense. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet. There was no liability for the payment of interest and penalties as of both August 31, 2022 August 31, 2021. On August 16, 2022, 15% 1% December 31, 2022. not The Company is subject to taxation in the United States and various states and foreign jurisdictions. With few exceptions, as of August 31, 2022, no August 31, 2019. |
Note 17 - Commitments and Conti
Note 17 - Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 17. COMMITMENTS AND CONTINGENCIES Operating Leases The Company currently has operating leases for various buildings, equipment and vehicles. These leases are under non-cancelable operating lease agreements with expiration dates between September 30, 2022 July 31, 2024. five ten first The Company records lease liabilities within current liabilities or long-term liabilities based upon the length of time associated with the lease payments. The Company records its long-term operating leases as right-of-use assets. Upon initial adoption, using the modified retrospective transition approach, no 12 842. None The Company has made certain assumptions and judgments when applying ASC 842, not 842. not no Present Value of Leases August 31, 2022 August 31, 2021 Right-of-use assets, net $ 557,571 $ 376,438 Current portion of lease liability 373,330 272,336 Lease liability, less current portion 184,241 104,102 Total lease liability $ 557,571 $ 376,438 As of August 31, 2022, not August 31, 2022, Future minimum payments as of August 31, 2022 Fiscal 2023 $ 373,330 Fiscal 2024 209,802 Total future minimum lease payments 583,132 Less amount representing interest (25,561 ) Present value of obligations under operating leases 557,571 Less current portion (373,330 ) Long-term operating lease obligations $ 184,241 Rent expense under these leases was approximately $272,336 and $386,345 as of August 31, 2022 2021, Annual Bonus Plan On August 26, 2022, August 31, 2023. 2023, 2023 2023, may 2023. On August 26, 2021, August 31, 2022. August 31, 2022, September 1, 2021 three August 31, 2021, September 1, 2020 Concentrations Two joint ventures (consisting of the Company’s joint ventures in South Korea and Thailand) accounted for 46.6% of the Company’s trade joint venture receivables as of August 31, 2022, two August 31, 2021. 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 August 31, 2022, not |
Note 18 - Supplemental Cash Flo
Note 18 - Supplemental Cash Flow Information | 12 Months Ended |
Aug. 31, 2022 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 18. SUPPLEMENTAL CASH FLOW INFORMATION Supplemental disclosures of cash flow information consist of: Fiscal Year Ended August 31, 2022 2021 Cash paid for income tax $ 1,218,467 $ 895,646 Cash paid for interest 89,096 16,086 |
Note 19 - Fair Value Measuremen
Note 19 - Fair Value Measurements | 12 Months Ended |
Aug. 31, 2022 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | 19. FAIR VALUE MEASUREMENTS The Company follows the authoritative guidance on fair value measurements and disclosures with respect to assets and liabilities that are measured at fair value on both a recurring and non-recurring basis. Under this guidance, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability, developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and financial liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three Level 1 Inputs are quoted prices in active markets for identical assets or liabilities. Level 2 Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not Level 3 Inputs are unobservable for the asset or liability. See the section below titled Valuation Techniques for further discussion of how the Company determines fair value for investments. Assets and Liabilities That Are Measured at Fair Value on a Recurring Basis 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 August 31, 2022 Level 1 Level 2 Level 3 Available for sale securities $ 5,590 $ 5,590 $ — $ — 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 $ — $ — Valuation Techniques Financial assets that are classified as Level 1 The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may no 1, 2, 3 August 31, 2022 August 31, 2021. 3, |
Note 20 - Subsequent Events
Note 20 - Subsequent Events | 12 Months Ended |
Aug. 31, 2022 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 20. SUBSEQUENT EVENTS On October 20, 2022, November 16, 2022 November 3, 2022 19 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2022 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation not September 1, 2021, September 1, 2021. |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | Non-Controlling Interests |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Net Sales no When determining recognition of revenue arrangements the Company performs the following five 1 2 3 4 5 five Generally, the Company’s performance obligations are satisfied when the customers take possession of the products, which normally occurs at the shipping point or destination depending on the terms of the contracts. The Company’s services are generally sold based upon quotes or contracts with customers that include a fixed or determinable price, and sales arrangements do not not not Revenue Recognition Individually promised goods and services in a contract are considered a distinct performance obligation and accounted for separately if the customer can benefit from the individual good or service on its own or with other resources that are readily available to the customer and the good or service is separately identifiable from other promises in the arrangement. When an arrangement includes multiple performance obligations, the consideration is allocated between the performance obligations in proportion to their estimated standalone selling price. Costs related to products delivered are recognized in the period incurred, unless criteria for capitalization of costs are met. Costs of revenues consist primarily of direct labor, manufacturing overhead, materials, and components. The Company does not The Company excludes government assessed and imposed taxes on revenue generating transactions that are invoiced to customers from revenue. The Company includes freight billed to customers in revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold. The timing of revenue recognition, billing, and cash collections results in accounts receivable on the consolidated balance sheet. Performance Obligations service consultants work directly with the end users of NTIC’s ZERUST® rust and corrosion inhibiting products to analyze their specific needs and develop systems to meet their performance requirements. The Company sells its products to both distributors and end-users. Each unit of product delivered under a customer order represents a distinct and separate performance obligation, as the customer can benefit from each unit on its own or with other resources that are readily available to the customer, and each unit of product is separately identifiable from other products in the arrangement. The transaction price for the Company’s products is the invoiced amount. The Company does not not 606 10 50 14 not one no one Revenue is recognized when transfer of control occurs, as defined by the terms in the customer agreement. The Company immediately recognizes incidental items that are immaterial in the context of the contract. The Company has applied the practical expedient in paragraph 606 10 25 16A not 606 10 32 18 one not thirty ninety The Company estimates returns based on an analysis of historical experience if the right to return products is granted to its customers. The Company does not not not no not Sales Commissions not 340 40 25 4 one Product Warranty not not may International Revenue 13, |
Receivables from Joint Ventures Policy [Policy Text Block ] | Trade Receivables from Joint Ventures 90 not not August 31, 2022 2021. Fees for Services Provided to Joint Ventures |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents three may |
Marketable Securities, Policy [Policy Text Block] | Available for Sale Securities not |
Inventory, Policy [Policy Text Block] | Inventories first first |
Receivable [Policy Text Block] | Trade Receivables 30 not not August 31, 2022 August 31, 2021, |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Depreciation Buildings and improvements 5-30 years Machinery and equipment 3-10 years |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Patents and Trademarks |
Equity Method Investments [Policy Text Block] | Investments in Joint Ventures zero August 31 not may August 31, 2022 2021. 20% The Company classifies distributions received from its joint ventures based on the nature of the distributions, generally, in operating activities on the consolidated statements of cash flows. If the Company is no no Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. Fair value is calculated based on publicly available market information or other estimates determined by management. The Company employs a systematic methodology on a quarterly basis that considers available quantitative and qualitative evidence in evaluating potential impairment of our investments. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, credit quality, the duration and extent to which the fair value is less than cost, and for equity securities, the Company’s intent and ability to hold, or plans to sell, the investment. The Company also considers specific adverse conditions related to the financial health of and business outlook for the investee, including industry and sector performance, changes in technology, and operational and financing cash flow factors. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to other income (expense), and a new cost basis in the investment is established. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Recoverability of Long-Lived Assets may not |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets August 31), not The Company assesses qualitative factors to determine whether the existence of events or circumstances would indicate that it is more likely than not not no August 31, 2022. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not The Company records uncertain tax positions on the basis of a two not not 50 |
Business Combinations Policy [Policy Text Block] | Acquisitions of Businesses |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation (Accumulated Other Comprehensive Income (Loss)) The Company (excluding NTIC China, Zerust Brazil, Natur-Tec India, Natur Tec Lanka, Zerust India, Zerust Singapore, Zerust Vietnam, NTI Asean, Zerust Mexico, NTI Europe, and NTIC’s joint ventures) conducts all foreign transactions based on the U.S. dollar. Since investments in joint ventures are accounted for using the equity method, any changes in foreign currency exchange rates are reflected as a foreign currency translation adjustment and do not |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling |
Research, Development, and Computer Software, Policy [Policy Text Block] | Research and Development |
Stockholders' Equity, Policy [Policy Text Block] | Common Stock |
Share-Based Payment Arrangement [Policy Text Block] | Stock-Based Compensation |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
Note 1 - Nature of Business a_2
Note 1 - Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Notes Tables | |
Property and Equipment Useful Life [Table Text Block] | Buildings and improvements 5-30 years Machinery and equipment 3-10 years |
Note 3 - Business Combination (
Note 3 - Business Combination (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
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 liability (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) | 12 Months Ended |
Aug. 31, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | August 31, 2022 August 31, 2021 Production materials $ 6,496,656 $ 4,453,688 Finished goods 9,845,073 6,660,519 $ 16,341,729 $ 11,114,207 |
Note 5 - Property and Equipme_2
Note 5 - Property and Equipment, Net (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | August 31, 2022 August 31, 2021 Land $ 310,365 $ 310,365 Buildings and improvements 14,778,759 13,149,258 Machinery and equipment 5,643,320 5,453,679 20,732,444 18,913,302 Less accumulated depreciation (8,561,951 ) (7,091,844 ) $ 12,170,493 $ 11,821,458 |
Note 6 - Patents and Trademar_2
Note 6 - Patents and Trademarks, Net (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Patents and Trademarks [Member] | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | August 31, 2022 August 31, 2021 Patents and trademarks $ 3,225,655 $ 3,018,507 Less accumulated amortization (2,515,644 ) (2,308,935 ) $ 710,011 $ 709,572 |
Note 7 - Investments in Joint_2
Note 7 - Investments in Joint Ventures (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | As of August 31, 2022 Total EXCOR OTHER Current assets $ 52,428,831 $ 26,047,914 $ 26,380,917 Total assets 55,854,457 27,932,532 27,921,925 Current liabilities 10,981,833 2,943,895 8,037,938 Noncurrent liabilities 1,138,980 - 1,138,980 Joint ventures’ equity 43,733,644 24,988,637 18,745,007 Northern Technologies International Corporation’s share of joint ventures’ equity 21,814,754 12,494,320 9,320,434 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 21,256,923 12,463,415 8,793,508 As of August 31, 2021 Total EXCOR 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] | Fiscal Year Ended August 31, 2022 Total EXCOR OTHER Net sales $ 104,077,748 $ 42,853,162 $ 61,224,586 Gross profit 41,030,647 20,312,400 20,718,247 Net income 9,302,237 6,487,855 2,814,382 Northern Technologies International Corporation’s share of equity in income of joint ventures 4,725,918 3,236,989 1,488,929 Northern Technologies International Corporation’s dividends received from joint ventures 5,723,176 4,255,200 1,467,976 Fiscal Year Ended August 31, 2021 Total EXCOR OTHER (1) Net sales $ 120,954,550 $ 46,522,688 $ 74,431,862 Gross profit 53,371,610 25,389,981 27,981,629 Net income 14,921,531 8,798,995 6,122,536 Northern Technologies International Corporation’s share of equity in income of joint ventures 7,465,214 4,400,403 3,064,811 Northern Technologies International Corporation’s dividends received from joint ventures 3,665,365 1,809,900 1,855,465 |
Note 8 - Intangible Asset, Net
Note 8 - Intangible Asset, Net (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Customer Relationships and Assembled Workforce [Member] | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | August 31, 2022 August 31, 2021 Customer relationships $ 6,347,000 $ — Less accumulated amortization (423,133 ) — Net Carrying Amount $ 5,923,867 $ — |
Note 10 - Stockholders' Equity
Note 10 - Stockholders' Equity (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Notes Tables | |
Dividends Declared [Table Text Block] | Declaration Date Amount Record Date Payable Date October 20, 2021 $ 0.07 November 3, 2021 November 17, 2021 January 21, 2022 $ 0.07 February 2, 2022 February 16, 2022 April 22, 2022 $ 0.07 May 4, 2022 May 18, 2022 July 20, 2022 $ 0.07 August 3, 2022 August 17, 2022 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 July 21, 2021 $ 0.065 August 4, 2021 August 18, 2021 |
Note 11 - Net Income Per Comm_2
Note 11 - Net Income Per Common Share (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Numerator: August 31, 2022 August 31, 2021 Net income attributable to NTIC $ 6,324,700 $ 6,281,238 Denominator: Basic-weighted shares outstanding 9,216,216 9,116,472 Weighted shares assumed upon exercise of stock options 418,812 757,667 Diluted – weighted shares outstanding 9,635,028 9,874,139 Basic net income per share: $ 0.69 $ 0.69 Diluted net income per share: $ 0.66 $ 0.64 |
Note 12 - Stock-based Compens_2
Note 12 - Stock-based Compensation (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Notes Tables | |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Fiscal Year 2022 Fiscal Year 2021 Dividend yield 2.46 % 1.65 % Expected volatility 45.2 % 45.4 % Expected life of option (years) 10 10 Weighted average risk-free interest rate 3.30 % 0.77 % |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Number of Shares (#) Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding at August 31, 2020 1,127,968 $ 9.63 Options granted 419,874 8.24 Options exercised (77,645 ) 8.18 Options terminated (43,546 ) 9.63 Outstanding at August 31, 2021 1,426,651 $ 9.30 Options granted 174,840 16.97 Options exercised (51,218 ) 6.60 Options terminated (5,546 ) 18.23 Outstanding at August 31, 2022 1,544,727 $ 10.23 $ 4,151,365 Exercisable at August 31, 2022 1,156,211 $ 9.58 $ 3,394,957 |
Note 13 - Segment and Geograp_2
Note 13 - Segment and Geographic Information (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Fiscal 2022 Fiscal 2021 ZERUST® net sales $ 57,459,382 $ 45,554,434 Natur-Tec® net sales 16,699,508 10,939,385 Total net sales $ 74,158,890 $ 56,493,819 |
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block] | Fiscal 2022 Fiscal 2021 Direct cost of goods sold ZERUST® $ 34,673,146 $ 26,028,555 Natur-Tec® 12,859,343 7,717,429 Indirect cost of goods sold 3,557,809 3,174,830 Total net cost of goods sold $ 51,090,298 $ 36,920,814 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Fiscal Year Ended August 31, 2022 2021 Inside the U.S.A. to unaffiliated customers $ 25,301,067 $ 22,039,456 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 2,968,089 3,023,196 Unaffiliated customers 45,889,734 31,431,167 $ 74,158,890 $ 56,493,819 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | At August 31, 2022 At August 31, 2021 China $ 5,826,898 $ 5,110,071 Other 565,022 453,199 United States 5,778,573 6,258,188 Total property and equipment $ 12,170,493 $ 11,821,458 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Fiscal Year Ended August 31, 2022 Fiscal Year Ended August 31, 2021 China $ 15,754,051 $ 17,343,623 Brazil 5,160,572 4,122,781 India 18,555,603 5,482,989 Other 9,387,597 7,504,970 United States 25,301,067 22,039,456 Total net sales $ 74,158,890 $ 56,493,819 |
Fees for Services Provided to Joint Ventures [Member] | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Fiscal 2022 % of Total Fees for Services Provided to Joint Ventures Fiscal 2021 % of Total Fees for Services Provided to Joint Ventures Germany $ 834,725 14.5 % $ 920,902 15.4 % Poland 730,523 12.7 % 798,570 13.4 % Japan 669,371 11.6 % 826,403 13.9 % France 448,579 7.8 % 435,032 7.3 % Sweden 447,441 7.8 % 528,755 8.9 % Thailand 344,649 6.0 % 399,563 6.7 % United Kingdom 342,488 5.9 % 316,786 5.3 % Finland 340,783 5.9 % 298,663 5.0 % Czech Republic 300,257 5.2 % 377,395 6.3 % South Korea 270,309 4.7 % 317,042 5.3 % Indonesia 156,476 2.7 % 122,513 2.1 % India - - 392,074 6.6 % Other * 882,081 15.2 % 230,562 3.8 % $ 5,767,682 100.0 % $ 5,964,260 100.0 % |
Note 16 - Income Taxes (Tables)
Note 16 - Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Fiscal Year Ended August 31, 2022 2021 Current: Federal $ — $ — State 98,000 39,000 Foreign 1,894,000 1,307,000 1,992,000 1,346,000 Deferred: Federal — — State — — Foreign (118,164 ) 115,905 (118,164 ) 115,905 $ 1,873,836 $ 1,461,905 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Fiscal Year Ended August 31, 2022 2021 Tax computed at statutory rates $ 1,780,000 $ 1,794,000 State income tax, net of federal benefit 34,000 37,000 Tax effect on equity in income of international joint ventures (988,000 ) (1,560,000 ) Tax effect of foreign operations 1,004,000 839,000 Deemed repatriation 10,000 — Expired foreign tax credit — 897,000 Research and development credit (244,000 ) (277,000 ) Valuation allowance 133,000 (492,000 ) Stock based compensation 67,000 75,000 Non-controlling interest (72,000 ) (83,000 ) Other 149,836 231,905 $ 1,873,836 $ 1,461,905 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | August 31, 2022 2021 Accrued compensation $ 329,100 $ 539,300 Inventory costs 93,900 55,100 Other accrued expenses 84,800 103,100 Lease liability 98,300 84,300 Goodwill and other intangible assets 398,600 453,000 Stock-based compensation 547,200 466,300 Property and equipment 9,100 — Foreign tax credit carryforward 4,892,100 4,893,300 Other credit and loss carryforward 5,455,500 5,243,100 Other 23,000 — Total deferred tax assets 11,931,600 11,837,500 Valuation allowance (11,592,900 ) (11,447,500 ) Total deferred tax assets after valuation allowance 338,700 390,000 Property and equipment — (7,300 ) Right-of-use asset (98,300 ) (84,300 ) Intangible assets (1,777,200 ) — Unremitted foreign earnings (163,200 ) (154,900 ) Other — (50,900 ) Total deferred tax liabilities (2,038,700 ) (297,400 ) Net deferred tax assets $ (1,700,000 ) $ 92,600 |
Summary of Income Tax Contingencies [Table Text Block] | Fiscal Year Ended August 31, 2022 2021 Gross unrecognized tax benefits – beginning balance $ 297,600 $ 278,200 Gross increases – prior period tax positions 3,400 4,400 Gross increases – current period tax positions 18,000 15,000 Gross unrecognized tax benefits – ending balance $ 319,000 $ 297,600 |
Note 17 - Commitments and Con_2
Note 17 - Commitments and Contingencies (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Notes Tables | |
Schedule of Components of Operating Lease Assets and Liabilities [Table Text Block] | August 31, 2022 August 31, 2021 Right-of-use assets, net $ 557,571 $ 376,438 Current portion of lease liability 373,330 272,336 Lease liability, less current portion 184,241 104,102 Total lease liability $ 557,571 $ 376,438 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Fiscal 2023 $ 373,330 Fiscal 2024 209,802 Total future minimum lease payments 583,132 Less amount representing interest (25,561 ) Present value of obligations under operating leases 557,571 Less current portion (373,330 ) Long-term operating lease obligations $ 184,241 |
Note 18 - Supplemental Cash F_2
Note 18 - Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Fiscal Year Ended August 31, 2022 2021 Cash paid for income tax $ 1,218,467 $ 895,646 Cash paid for interest 89,096 16,086 |
Note 19 - Fair Value Measurem_2
Note 19 - Fair Value Measurements (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Notes Tables | |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | Fair Value Measurements Using Inputs Considered as Fair value as of August 31, 2022 Level 1 Level 2 Level 3 Available for sale securities $ 5,590 $ 5,590 $ — $ — 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 1 - Nature of Business a_3
Note 1 - Nature of Business and Significant Accounting Policies (Details Textual) | 12 Months Ended | ||
Aug. 31, 2022 USD ($) | Sep. 01, 2021 | Aug. 31, 2021 USD ($) | |
Number of Countries in which Entity Operates | 65 | ||
Number of Operating Segments | 2 | ||
Number of Joint Venture Arrangements | 16 | ||
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ 439,000 | $ 382,000 | |
Acquisition of Remaining Ownership Interest in Harita-NTI Limited [Member] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 50% | ||
Natur-Tech India [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 75% | ||
Natur Tec Lanka [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 75% | ||
Zerust Brazil [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 85% | ||
NTI Asean LLC [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 60% | ||
Maximum [Member] | Various Joint Ventures [Member] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 50% |
Note 1 - Nature of Business a_4
Note 1 - Nature of Business and Significant Accounting Policies - Property and Equipment, Useful Life (Details) | 12 Months Ended |
Aug. 31, 2022 | |
Building and Building Improvements [Member] | Minimum [Member] | |
Buildings and improvements (Year) | 5 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Buildings and improvements (Year) | 30 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Buildings and improvements (Year) | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Buildings and improvements (Year) | 10 years |
Note 3 - Business Combination_2
Note 3 - Business Combination (Details Textual) - USD ($) | 12 Months Ended | ||||
Sep. 01, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 16, 2022 | May 20, 2022 | |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net, Total | $ 3,951,550 | $ 0 | |||
Revolving Credit Facility [Member] | PNC Bank [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | 7,000,000 | $ 7,000,000 | $ 5,000,000 | |
Harita-NTI Limited [Member] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 50% | ||||
Business Combination, Consideration Transferred, Total | $ 6,250,000 | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 50% | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, including Subsequent Acquisition, Percentage, Total | 100% | ||||
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 | 9,961,464 | ||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 659,794 | ||||
Business Combination, Acquisition Related Costs | $ 115,000 | ||||
Business Acquisition, Pro Forma Revenue | 9,074,240 | ||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 1,529,615 | ||||
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 ($) | 12 Months Ended | ||
Sep. 01, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Goodwill | $ 4,782,376 | $ 0 | |
Gain recognized on acquisition | (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 liability | (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 ($) | Aug. 31, 2022 | Aug. 31, 2021 |
Production materials | $ 6,496,656 | $ 4,453,688 |
Finished goods | 9,845,073 | 6,660,519 |
Total inventory | $ 16,341,729 | $ 11,114,207 |
Note 5 - Property and Equipme_3
Note 5 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($) | Aug. 31, 2022 | Aug. 31, 2021 |
Land | $ 310,365 | $ 310,365 |
Buildings and improvements | 14,778,759 | 13,149,258 |
Machinery and equipment | 5,643,320 | 5,453,679 |
Gross | 20,732,444 | 18,913,302 |
Less accumulated depreciation | (8,561,951) | (7,091,844) |
Net | $ 12,170,493 | $ 11,821,458 |
Note 6 - Patents and Trademar_3
Note 6 - Patents and Trademarks, Net (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Amortization, Total | $ 629,843 | $ 203,088 |
Patents and Trademarks [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 7 years | |
Amortization, Total | $ 206,710 | $ 203,088 |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 178,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 178,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 178,000 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | $ 178,000 |
Note 6 - Patents and Trademar_4
Note 6 - Patents and Trademarks, Net - Patents and Trademarks, Net (Details) - Patents and Trademarks [Member] - USD ($) | Aug. 31, 2022 | Aug. 31, 2021 |
Patents and trademarks | $ 3,225,655 | $ 3,018,507 |
Less accumulated amortization | (2,515,644) | (2,308,935) |
Patents and trademarkes, net | $ 710,011 | $ 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 ($) | Aug. 31, 2022 | Aug. 31, 2021 | |
Current assets | $ 40,234,881 | $ 33,747,089 | |
Total assets | 86,193,953 | 74,370,879 | |
Current liabilities | 17,065,401 | 8,516,196 | |
Noncurrent liabilities | 1,884,256 | 104,102 | |
Joint ventures’ equity | 63,595,262 | 62,368,026 | |
Investments in joint ventures | 21,814,754 | 27,623,768 | |
EXCOR and All Other Joint Venturs [Member] | |||
Investments in joint ventures | 21,814,754 | 27,623,768 | |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 21,256,923 | 24,702,778 | |
EXCOR [Member] | |||
Investments in joint ventures | 12,494,320 | 15,412,574 | |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 12,463,415 | 14,697,490 | |
All Other [Member] | |||
Investments in joint ventures | 9,320,434 | 12,211,194 | [1] |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 8,793,508 | 10,005,288 | [1] |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | |||
Current assets | 52,428,831 | 69,394,796 | |
Total assets | 55,854,457 | 73,814,402 | |
Current liabilities | 10,981,833 | 16,366,398 | |
Noncurrent liabilities | 1,138,980 | 1,455,524 | |
Joint ventures’ equity | 43,733,644 | 55,992,480 | |
EXCOR [Member] | |||
Current assets | 26,047,914 | 33,886,655 | |
Total assets | 27,932,532 | 36,211,520 | |
Current liabilities | 2,943,895 | 5,386,377 | |
Noncurrent liabilities | 0 | 0 | |
Joint ventures’ equity | 24,988,637 | 30,825,144 | |
All Other [Member] | |||
Current assets | 26,380,917 | 35,508,141 | [1] |
Total assets | 27,921,925 | 37,602,882 | [1] |
Current liabilities | 8,037,938 | 10,980,021 | [1] |
Noncurrent liabilities | 1,138,980 | 1,455,524 | [1] |
Joint ventures’ equity | $ 18,745,007 | $ 25,167,336 | [1] |
[1]Includes Zerust India since Zerust India was not a consolidated subsidiary of the Company as of August 31, 2021 or May 31, 2021. See Note 3 entitled “Business Combination.” |
Note 7 - Investments in Joint_4
Note 7 - Investments in Joint Ventures - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | ||
Net sales by segment | $ 74,158,890 | $ 56,493,819 | |
Gross profit | 23,068,592 | 19,573,005 | |
Net income attributable to NTIC | 6,324,700 | 6,281,238 | |
Northern Technologies International Corporation’s share of equity in income of joint ventures | 4,725,918 | 7,465,214 | |
EXCOR and All Other Joint Venturs [Member] | |||
Northern Technologies International Corporation’s share of equity in income of joint ventures | 4,725,918 | 7,465,214 | |
Northern Technologies International Corporation’s dividends received from joint ventures | 5,723,176 | 3,665,365 | |
EXCOR [Member] | |||
Northern Technologies International Corporation’s share of equity in income of joint ventures | 3,236,989 | 4,400,403 | |
Northern Technologies International Corporation’s dividends received from joint ventures | 4,255,200 | 1,809,900 | |
All Other [Member] | |||
Northern Technologies International Corporation’s share of equity in income of joint ventures | 1,488,929 | ||
Northern Technologies International Corporation’s dividends received from joint ventures | 1,467,976 | ||
Joint Ventures in France [Member] | |||
Northern Technologies International Corporation’s share of equity in income of joint ventures | 3,064,811 | ||
Northern Technologies International Corporation’s dividends received from joint ventures | [1] | 1,855,465 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | |||
Net sales by segment | 104,077,748 | 120,954,550 | |
Gross profit | 41,030,647 | 53,371,610 | |
Net income attributable to NTIC | 9,302,237 | 14,921,531 | |
EXCOR [Member] | |||
Net sales by segment | 42,853,162 | 46,522,688 | |
Gross profit | 20,312,400 | 25,389,981 | |
Net income attributable to NTIC | 6,487,855 | 8,798,995 | |
All Other [Member] | |||
Net sales by segment | 61,224,586 | ||
Gross profit | 20,718,247 | ||
Net income attributable to NTIC | $ 2,814,382 | ||
Joint Ventures in France [Member] | |||
Net sales by segment | [1] | 74,431,862 | |
Gross profit | [1] | 27,981,629 | |
Net income attributable to NTIC | [1] | $ 6,122,536 | |
[1]Includes Zerust India since Zerust India was not a consolidated subsidiary of the Company as of August 31, 2021 or May 31, 2021. See Note 3 entitled “Business Combination.” |
Note 8 - Intangible Asset, Ne_2
Note 8 - Intangible Asset, Net (Details Textual) - Customer Relationships and Assembled Workforce [Member] | 9 Months Ended | 12 Months Ended |
Aug. 31, 2022 USD ($) | Aug. 31, 2022 USD ($) | |
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | |
Amortization of Intangible Assets | $ 423,133 | |
Finite-Lived Intangible Asset, Expected Amortization, Year One | $ 423,000 | 423,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 423,000 | 423,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 423,000 | 423,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 423,000 | 423,000 |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 423,000 | $ 423,000 |
Note 8 - Intangible Asset, Ne_3
Note 8 - Intangible Asset, Net (Details) - Customer Relationships [Member] - USD ($) | Aug. 31, 2022 | Aug. 31, 2021 |
Patents and trademarks | $ 6,347,000 | $ 0 |
Less accumulated amortization | (423,133) | 0 |
Patents and trademarkes, net | $ 5,923,867 | $ 0 |
Note 9 - Corporate Debt (Detail
Note 9 - Corporate Debt (Details Textual) | 12 Months Ended | |||||
Jan. 04, 2022 | Aug. 31, 2022 USD ($) | Aug. 16, 2022 USD ($) | May 20, 2022 USD ($) | Sep. 01, 2021 USD ($) | Aug. 31, 2021 USD ($) | |
PNC Bank [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,000,000 | $ 7,000,000 | $ 5,000,000 | $ 5,000,000 | ||
Long-Term Line of Credit, Total | $ 5,900,000 | $ 0 | ||||
Line of Credit Facility, Interest Rate During Period | 3.07% | |||||
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% | 2.50% | ||||
JP Morgan Chase Bank [Member] | ||||||
Letters of Credit Outstanding, Amount | $ 72,418 | $ 104,363 |
Note 10 - Stockholders' Equit_2
Note 10 - Stockholders' Equity (Details Textual) - $ / shares | 12 Months Ended | |||||
Mar. 01, 2022 | Sep. 01, 2021 | Mar. 01, 2021 | Sep. 01, 2020 | Aug. 31, 2022 | Aug. 31, 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 | ||||
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, Including Cashless Exercises (in shares) | 51,218 | 77,645 | ||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in dollars per share) | $ 6.60 | $ 8.18 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares) | 74,950 | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares) | 2,966 | 2,635 | 5,225 | 4,646 | ||
The 2019 Plan [member] | ||||||
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, Including Cashless Exercises (in shares) | 51,218 | |||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in dollars per share) | $ 6.60 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares) | 42,071 | |||||
ESPP [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) | 69,221 |
Note 10 - Stockholders' Equit_3
Note 10 - Stockholders' Equity - Cash Dividends Declared (Details) - $ / shares | 12 Months Ended | ||||||||
Jul. 20, 2022 | Apr. 22, 2022 | Jan. 21, 2022 | Oct. 20, 2021 | Jul. 21, 2021 | Apr. 23, 2021 | Jan. 15, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Amount (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.065 | $ 0.065 | $ 0.065 | $ 0.28 | $ 0.195 |
Record date | Aug. 03, 2022 | May 04, 2022 | Feb. 02, 2022 | Nov. 03, 2021 | Aug. 04, 2021 | May 05, 2021 | Feb. 03, 2021 | ||
Payable date | Aug. 17, 2022 | May 18, 2022 | Feb. 16, 2022 | Nov. 17, 2021 | Aug. 18, 2021 | May 19, 2021 | Feb. 17, 2021 |
Note 11 - Net Income Per Comm_3
Note 11 - Net Income Per Common Share (Details Textual) - shares | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 600,094 | 136,221 |
Note 11 - Net Income Per Comm_4
Note 11 - Net Income Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Net income attributable to NTIC | $ 6,324,700 | $ 6,281,238 |
Basic-weighted shares outstanding (in shares) | 9,216,216 | 9,116,472 |
Weighted shares assumed upon exercise of stock options (in shares) | 418,812 | 757,667 |
Diluted – weighted shares outstanding (in shares) | 9,635,028 | 9,874,139 |
Basic net income per share: (in dollars per share) | $ 0.69 | $ 0.69 |
Diluted net income per share: (in dollars per share) | $ 0.66 | $ 0.64 |
Note 12 - Stock-based Compens_3
Note 12 - Stock-based Compensation (Details Textual) - USD ($) | 12 Months Ended | |||
Jan. 15, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 1,544,727 | 1,426,651 | 1,127,968 | |
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 | $ 931,532 | $ 664,174 | ||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | 1,009,719 | |||
Allocated Share-based Compensation Expense, Estimate Next Twelve Months | 671,526 | |||
Allocated Share-based Compensation Expense, Estimate, Fiscal Year Two | $ 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) | $ 16.97 | $ 8.24 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 5 years 9 months 3 days | 6 years 2 months 12 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) | 867,721 | |||
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) | 649,243 |
Note 12 - Stock-based Compens_4
Note 12 - Stock-based Compensation - Black-Scholes Option-pricing Model Assumptions (Details) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Dividend yield | 2.46% | 1.65% |
Expected volatility | 45.20% | 45.40% |
Expected life of option (years) (Year) | 10 years | 10 years |
Weighted average risk-free interest rate | 3.30% | 0.77% |
Note 12 - Stock-based Compens_5
Note 12 - Stock-based Compensation - Stock Option Activity (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Number of shares, Outstanding (in shares) | 1,426,651 | 1,127,968 |
Weighted average exercise price, Outstanding (in dollars per share) | $ 9.30 | $ 9.63 |
Number of shares, Options granted (in shares) | 174,840 | 419,874 |
Weighted average exercise price, Options granted (in dollars per share) | $ 16.97 | $ 8.24 |
Number of shares, Options exercised (in shares) | (51,218) | (77,645) |
Weighted average exercise price, Options exercised (in dollars per share) | $ 6.60 | $ 8.18 |
Number of shares, Options terminated (in shares) | (5,546) | (43,546) |
Weighted average exercise price, Options terminated (in dollars per share) | $ 18.23 | $ 9.63 |
Number of shares, Outstanding (in shares) | 1,544,727 | 1,426,651 |
Weighted average exercise price, Outstanding (in dollars per share) | $ 10.23 | $ 9.30 |
Aggregate intrinsic value, Outstanding | $ 4,151,365 | |
Number of shares, Exercisable (in shares) | 1,156,211 | |
Weighted average exercise price, Exercisable (in dollars per share) | $ 9.58 | |
Aggregate intrinsic value, Exercisable | $ 3,394,957 |
Note 13 - Segment and Geograp_3
Note 13 - Segment and Geographic Information (Details Textual) | 12 Months Ended |
Aug. 31, 2022 USD ($) | |
Number of Reportable Segments | 2 |
NTI Asean LLC [Member] | |
Recovery of Fees Previously Written Off | $ 681,859 |
Note 13 - Segment and Geograp_4
Note 13 - Segment and Geographic Information - Net Sales by Segment (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Net sales by segment | $ 74,158,890 | $ 56,493,819 |
ZERUST [Member] | ||
Net sales by segment | 57,459,382 | 45,554,434 |
NaturTec [Member] | ||
Net sales by segment | $ 16,699,508 | $ 10,939,385 |
Note 13 - Segment and Geograp_5
Note 13 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | [1] | |
Cost of goods sold | $ 51,090,298 | $ 36,920,814 | |
Direct Cost of Goods Sold [Member] | ZERUST [Member] | |||
Cost of goods sold | 34,673,146 | 26,028,555 | |
Direct Cost of Goods Sold [Member] | NaturTec [Member] | |||
Cost of goods sold | 12,859,343 | 7,717,429 | |
Indirect Cost of Goods Sold [Member] | |||
Cost of goods sold | $ 3,557,809 | $ 3,174,830 | |
[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 ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Net sales by segment | $ 74,158,890 | $ 56,493,819 |
Inside the USA to Unaffiliated Customers [Member] | ||
Net sales by segment | 25,301,067 | 22,039,456 |
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member] | ||
Net sales by segment | 2,968,089 | 3,023,196 |
Unaffiliated Customers Outside the USA [Member] | ||
Net sales by segment | $ 45,889,734 | $ 31,431,167 |
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 ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Fees | $ 5,767,682 | $ 5,964,260 |
Percentage of Total Fees | 100% | 100% |
GERMANY | ||
Fees | $ 834,725 | $ 920,902 |
Percentage of Total Fees | 14.50% | 15.40% |
POLAND | ||
Fees | $ 730,523 | $ 798,570 |
Percentage of Total Fees | 12.70% | 13.40% |
JAPAN | ||
Fees | $ 669,371 | $ 826,403 |
Percentage of Total Fees | 11.60% | 13.90% |
FRANCE | ||
Fees | $ 448,579 | $ 435,032 |
Percentage of Total Fees | 7.80% | 7.30% |
SWEDEN | ||
Fees | $ 447,441 | $ 528,755 |
Percentage of Total Fees | 7.80% | 8.90% |
THAILAND | ||
Fees | $ 344,649 | $ 399,563 |
Percentage of Total Fees | 6% | 6.70% |
UNITED KINGDOM | ||
Fees | $ 342,488 | $ 316,786 |
Percentage of Total Fees | 5.90% | 5.30% |
FINLAND | ||
Fees | $ 340,783 | $ 298,663 |
Percentage of Total Fees | 5.90% | 5% |
CZECHIA | ||
Fees | $ 300,257 | $ 377,395 |
Percentage of Total Fees | 5.20% | 6.30% |
KOREA, REPUBLIC OF | ||
Fees | $ 270,309 | $ 317,042 |
Percentage of Total Fees | 4.70% | 5.30% |
INDONESIA | ||
Fees | $ 156,476 | $ 122,513 |
Percentage of Total Fees | 2.70% | 2.10% |
INDIA | ||
Fees | $ 0 | $ 392,074 |
Percentage of Total Fees | 0% | 6.60% |
Other Countries [Member] | ||
Fees | $ 882,081 | $ 230,562 |
Percentage of Total Fees | 15.20% | 3.80% |
Note 13 - Segment and Geograp_8
Note 13 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($) | Aug. 31, 2022 | Aug. 31, 2021 |
Total property and equipment | $ 12,170,493 | $ 11,821,458 |
CHINA | ||
Total property and equipment | 5,826,898 | 5,110,071 |
Other Countries [Member] | ||
Total property and equipment | 565,022 | 453,199 |
UNITED STATES | ||
Total property and equipment | $ 5,778,573 | $ 6,258,188 |
Note 13 - Segment and Geograp_9
Note 13 - Segment and Geographic Information - Total Net Sales by Geographic Distribution (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Net sales by segment | $ 74,158,890 | $ 56,493,819 |
CHINA | ||
Net sales by segment | 15,754,051 | 17,343,623 |
BRAZIL | ||
Net sales by segment | 5,160,572 | 4,122,781 |
INDIA | ||
Net sales by segment | 18,555,603 | 5,482,989 |
Other Countries [Member] | ||
Net sales by segment | 9,387,597 | 7,504,970 |
UNITED STATES | ||
Net sales by segment | $ 25,301,067 | $ 22,039,456 |
Note 14 - Retirement Plan (Deta
Note 14 - Retirement Plan (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 15% | |
Defined Contribution Plan Maximum Amount of Employees Contributions Percent | 50% | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.50% | |
Defined Contribution Plan, Cost | $ 272,257 | $ 237,499 |
Note 15 - Related Party Trans_2
Note 15 - Related Party Transactions (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Bioplastic Polymers LLC [Member] | Consulting Payment Expense [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 144,000 | $ 144,000 |
Note 16 - Income Taxes (Details
Note 16 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% |
Foreign Withholding Tax | $ 8,000 | $ 113,000 |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 1,170,100 | |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 329,800 | |
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 159,000 | |
Tax Credit Carryforward, Valuation Allowance | 11,592,900 | 11,447,500 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 145,400 | 114,000 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | 0 | $ 0 |
Foreign Tax Authority [Member] | ||
Tax Credit Carryforward, Amount | 4,892,100 | |
Federal and State Tax [Member] | ||
Tax Credit Carryforward, Amount | $ 3,796,500 |
Note 16 - Income Taxes - Provis
Note 16 - Income Taxes - Provision for Income Taxes (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Federal | $ 0 | $ 0 |
State | 98,000 | 39,000 |
Foreign | 1,894,000 | 1,307,000 |
Total current | 1,992,000 | 1,346,000 |
Federal | 0 | 0 |
State | 0 | 0 |
Foreign | (118,164) | 115,905 |
Total deferred | (118,164) | 115,905 |
Total income tax expense | $ 1,873,836 | $ 1,461,905 |
Note 16 - Income Taxes - Reconc
Note 16 - Income Taxes - Reconciliations of the Expected Federal Income Tax at the Statutory Rate with the Provisions for Income Taxes (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Tax computed at statutory rates | $ 1,780,000 | $ 1,794,000 |
State income tax, net of federal benefit | 34,000 | 37,000 |
Tax effect on equity in income of international joint ventures | (988,000) | (1,560,000) |
Tax effect of foreign operations | 1,004,000 | 839,000 |
Deemed repatriation | 10,000 | 0 |
Expired foreign tax credit | 0 | 897,000 |
Research and development credit | (244,000) | (277,000) |
Valuation allowance | 133,000 | (492,000) |
Stock based compensation | 67,000 | 75,000 |
Non-controlling interest | (72,000) | (83,000) |
Other | 149,836 | 231,905 |
Total income tax expense | $ 1,873,836 | $ 1,461,905 |
Note 16 - Income Taxes - Tax Ef
Note 16 - Income Taxes - Tax Effect of the Temporary Differences and Tax Carry Forwards Comprising Net Deferred Taxes (Details) - USD ($) | Aug. 31, 2022 | Aug. 31, 2021 |
Accrued compensation | $ 329,100 | $ 539,300 |
Inventory costs | 93,900 | 55,100 |
Other accrued expenses | 84,800 | 103,100 |
Lease liability | 98,300 | 84,300 |
Goodwill and other intangible assets | 398,600 | 453,000 |
Stock-based compensation | 547,200 | 466,300 |
Property and equipment | 9,100 | 0 |
Foreign tax credit carryforward | 4,892,100 | 4,893,300 |
Other credit and loss carryforward | 5,455,500 | 5,243,100 |
Other | 23,000 | 0 |
Total deferred tax assets | 11,931,600 | 11,837,500 |
Valuation allowance | (11,592,900) | (11,447,500) |
Total deferred tax assets after valuation allowance | 338,700 | 390,000 |
Property and equipment | 0 | (7,300) |
Right-of-use asset | (98,300) | (84,300) |
Intangible assets | (1,777,200) | 0 |
Unremitted foreign earnings | (163,200) | (154,900) |
Other | 0 | (50,900) |
Total deferred tax liabilities | (2,038,700) | (297,400) |
Net deferred tax liabilities | $ (1,700,000) | |
Net deferred tax assets | $ 92,600 |
Note 16 - Income Taxes - Reco_2
Note 16 - Income Taxes - Reconciliation of the Total Amounts of Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Gross unrecognized tax benefits – beginning balance | $ 297,600 | $ 278,200 |
Gross increases – prior period tax positions | 3,400 | 4,400 |
Gross increases – current period tax positions | 18,000 | 15,000 |
Gross unrecognized tax benefits – ending balance | $ 319,000 | $ 297,600 |
Note 17 - Commitments and Con_3
Note 17 - Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Lessee, Operating Lease, Option to Extend Term One (Year) | 5 years | |
Lessee, Operating Lease, Option to Extend Term Two (Year) | 10 years | |
Finance and Operating Lease, Weighted Average Remaining Lease Term (Year) | 1 year 6 months 25 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 5.45% | |
Operating Lease, Expense | $ 272,336 | $ 386,345 |
Accrued Bonuses | $ 1,733,336 | $ 2,366,668 |
Entity Wide Trade Joint Venture Receivables, Three Joint Ventures, Percentage | 46.60% | 37.40% |
Stock Options Granted to Management [Member] | ||
Accrued Bonuses | $ 533,336 | $ 266,667 |
Paid Out in Cash and Profit Sharing [Member] | ||
Accrued Bonuses | $ 1,200,000 | $ 2,100,000 |
Fiscal 2018 Bonus Plan [Member] | Executive Officer [Member] | ||
Percentage of Individual Bonus Payout Determined by Actual Versus Targeted EBITOI Results | 75% | |
Percentage of Individuals Payout Determined Upon Achievement of Certain Pre-Established Individual Performance Objectives | 25% |
Note 17 - Commitments and Con_4
Note 17 - Commitments and Contingencies - Present Value of Long-term Leases (Details) - USD ($) | Aug. 31, 2022 | Aug. 31, 2021 |
Right-of-use assets, net | $ 557,571 | $ 376,438 |
Current portion of lease liability | 373,330 | 272,336 |
Lease liability, less current portion | 184,241 | 104,102 |
Total lease liability | $ 557,571 | $ 376,438 |
Note 17 - Commitments and Con_5
Note 17 - Commitments and Contingencies - Future Minimum Rents Due (Details) - USD ($) | Aug. 31, 2022 | Aug. 31, 2021 |
Fiscal 2023 | $ 373,330 | |
Fiscal 2024 | 209,802 | |
Total future minimum lease payments | 583,132 | |
Less amount representing interest | (25,561) | |
Present value of obligations under operating leases | 557,571 | $ 376,438 |
Less current portion | (373,330) | (272,336) |
Long-term operating lease obligations | $ 184,241 | $ 104,102 |
Note 18 - Supplemental Cash F_3
Note 18 - Supplemental Cash Flow Information - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Cash paid for income tax | $ 1,218,467 | $ 895,646 |
Cash paid for interest | $ 89,096 | $ 16,086 |
Note 19 - Fair Value Measurem_3
Note 19 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) | Aug. 31, 2022 | Aug. 31, 2021 |
Available for sale securities | $ 5,590 | $ 4,634 |
Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | 5,590 | 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 20 - Subsequent Events (De
Note 20 - Subsequent Events (Details Textual) - $ / shares | 12 Months Ended | |||||||||
Oct. 20, 2022 | Jul. 20, 2022 | Apr. 22, 2022 | Jan. 21, 2022 | Oct. 20, 2021 | Jul. 21, 2021 | Apr. 23, 2021 | Jan. 15, 2021 | Aug. 31, 2022 | Aug. 31, 2021 | |
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.065 | $ 0.065 | $ 0.065 | $ 0.28 | $ 0.195 | |
Dividends Payable, Date to be Paid | Aug. 17, 2022 | May 18, 2022 | Feb. 16, 2022 | Nov. 17, 2021 | Aug. 18, 2021 | May 19, 2021 | Feb. 17, 2021 | |||
Dividends Payable, Date of Record | Aug. 03, 2022 | May 04, 2022 | Feb. 02, 2022 | Nov. 03, 2021 | Aug. 04, 2021 | May 05, 2021 | Feb. 03, 2021 | |||
Subsequent Event [Member] | ||||||||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.07 | |||||||||
Dividends Payable, Date to be Paid | Nov. 16, 2022 | |||||||||
Dividends Payable, Date of Record | Nov. 03, 2022 |