Northern Technologies International (NTIC) 10-Q 13 Jul 23 2023 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	May 31, 2023	Jul. 13, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 31, 2023
Document Transition Report	false
Entity File Number	001-11038
Entity Registrant Name	NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	41-0857886
Entity Address, Address Line One	4201 Woodland Road
Entity Address, City or Town	Circle Pines
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55014
City Area Code	763
Local Phone Number	225-6600
Title of 12(b) Security	Common stock, par value $0.02 per share
Trading Symbol	NTIC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		9,369,923
Entity Central Index Key	0000875582
Current Fiscal Year End Date	--08-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	May 31, 2023	Aug. 31, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 6,195,194	$ 5,333,890
Available for sale securities	0	5,590
Receivables:
Trade, excluding joint ventures, less allowance for doubtful accounts of $439,000 as of May 31, 2023 and August 31, 2022	15,311,650	14,136,930
Trade, joint ventures	668,847	697,861
Fees for services provided to joint ventures	1,226,010	1,765,117
Income taxes	155,828	0
Inventories	13,900,812	16,341,729
Prepaid expenses	1,831,566	1,953,764
Total current assets	39,289,907	40,234,881
PROPERTY AND EQUIPMENT, NET	13,810,930	12,170,493
OTHER ASSETS:
Investments in joint ventures	22,855,448	21,814,754
Intangible asset, net	6,281,625	6,633,878
Goodwill	4,782,376	4,782,376
Operating lease right of use asset	293,137	557,571
Total other assets	34,212,586	33,788,579
Total assets	87,313,423	86,193,953
CURRENT LIABILITIES:
Accounts payable	4,687,675	7,796,494
Term loan	2,812,504	0
Line of Credit, Current	5,200,000	5,900,000
Income taxes payable	0	30,742
Accrued liabilities:
Payroll and related benefits	2,035,785	2,297,543
Other	734,414	667,292
Current portion of operating leases	80,183	373,330
Total current liabilities	15,550,561	17,065,401
LONG-TERM LIABILITIES:
Deferred income tax, net	1,618,960	1,700,015
Operating leases, less current portion	212,954	184,241
Total long-term liabilities	1,831,914	1,884,256
EQUITY:
Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding	0	0
Common stock, $0.02 par value per share; authorized 15,000,000 shares as of May 31, 2023 and August 31, 2022; issued and outstanding 9,369,925 and 9,232,483, respectively	187,398	184,650
Additional paid-in capital	21,426,721	19,939,131
Retained earnings	51,662,515	50,716,613
Accumulated other comprehensive loss	(6,879,447)	(7,245,132)
Stockholders’ equity	66,397,187	63,595,262
Non-controlling interests	3,533,761	3,649,034
Total equity	69,930,948	67,244,296
Total liabilities and equity	$ 87,313,423	$ 86,193,953

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	May 31, 2023	Aug. 31, 2022
Doubtful accounts and allowances	$ 439,000	$ 439,000
Preferred Stock, No 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
Preferred Stock, Shares Outstanding (in shares)	0	0
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.02	$ 0.02
Common Stock, Shares Authorized (in shares)	15,000,000	15,000,000
Common Stock, Shares, Outstanding (in shares)	9,369,923	9,232,483
Common Stock, Shares, Issued (in shares)	9,369,923	9,232,483

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
NET SALES:
Net sales	$ 20,969,726	$ 18,964,921	$ 59,193,317	$ 53,906,973
Cost of goods sold	13,280,584	12,722,833	38,747,865	36,977,620
Gross profit	7,689,142	6,242,088	20,445,452	16,929,353
JOINT VENTURE OPERATIONS:
Equity in income from joint ventures	1,346,658	1,364,597	3,664,793	3,662,178
Fees for services provided to joint ventures	1,361,311	1,329,988	3,795,862	3,835,755
Total joint venture operations	2,707,969	2,694,585	7,460,655	7,497,933
OPERATING EXPENSES:
Selling expenses	3,723,165	3,450,308	10,649,316	9,659,457
General and administrative expenses	3,150,643	2,560,487	9,365,431	7,675,622
Research and development expenses	1,150,711	1,102,942	3,401,885	3,557,437
Total operating expenses	8,024,519	7,113,737	23,416,632	20,892,516
OPERATING INCOME	2,372,592	1,822,936	4,489,475	3,534,770
REMEASUREMENT GAIN ON ACQUISITION OF EQUITY METHOD INVESTEE	0	0	0	3,951,550
INTEREST INCOME	8,876	15,925	18,495	36,777
INTEREST EXPENSE	(136,168)	(23,784)	(342,643)	(34,079)
INCOME BEFORE INCOME TAX EXPENSE	2,245,300	1,815,077	4,165,327	7,489,018
INCOME TAX EXPENSE	542,295	604,314	834,823	1,260,437
NET INCOME	1,703,005	1,210,763	3,330,504	6,228,581
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	177,409	210,596	417,418	551,808
NET INCOME ATTRIBUTABLE TO NTIC	$ 1,525,596	$ 1,000,167	$ 2,913,086	$ 5,676,773
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE:
Basic (in dollars per share)	$ 0.16	$ 0.11	$ 0.31	$ 0.62
Diluted (in dollars per share)	$ 0.16	$ 0.11	$ 0.30	$ 0.59
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING:
Basic (in shares)	9,369,923	9,227,912	9,355,776	9,216,216
Diluted (in shares)	9,628,069	9,578,797	9,702,610	9,682,646
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 0.07	$ 0.07	$ 0.21	$ 0.21

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
NET INCOME	$ 1,703,005	$ 1,210,763	$ 3,330,504	$ 6,228,581
OTHER COMPREHENSIVE LOSS – FOREIGN CURRENCY TRANSLATION ADJUSTMENT	(92,228)	(1,554,024)	388,568	(1,936,793)
COMPREHENSIVE INCOME	1,610,777	(343,261)	3,719,072	4,291,788
COMPREHENSIVE LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	(190,118)	(181,283)	(440,301)	(473,385)
COMPREHENSIVE INCOME ATTRIBUTABLE TO NTIC	$ 1,800,895	$ (161,978)	$ 4,159,373	$ 4,765,173

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, 2021	9,184,811
Balance at Aug. 31, 2021	$ 183,696	$ 18,736,268	$ 46,973,092	$ (3,525,030)	$ 3,382,553	$ 65,750,581
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	698,649	0	0	0	698,649
Dividends paid to stockholders	0	0	(1,934,906)	0	0	(1,934,906)
Dividend received by non-controlling interest	0	0	0	0	(402,729)	(402,729)
Net income	0	0	5,676,775	0	551,808	6,228,581
Other comprehensive income	0	0	0	(1,858,370)	(78,421)	(1,936,791)
Stock option expense	842	197,798	0	0	0	198,640
Other comprehensive gain	$ 0	0	0	(1,858,370)	(78,421)	(1,936,791)
Stock options exercised (in shares)	42,071
Balance (in shares) at May. 31, 2022	9,232,483
Balance at May. 31, 2022	$ 184,650	19,706,248	50,714,961	(5,383,400)	3,453,211	68,675,670
Balance (in shares) at Feb. 28, 2022	9,221,517
Balance at Feb. 28, 2022	$ 184,430	19,379,032	50,361,068	(3,858,689)	3,371,928	69,437,767
Stock issued for employee stock purchase plan (in shares)	2,966
Stock issued for employee stock purchase plan	$ 59	35,054	0	0	0	35,113
Stock option expense	0	232,883	0	0	0	232,883
Dividends paid to stockholders	0	0	(646,274)	0	0	(646,274)
Dividend received by non-controlling interest	0	0	0	0	(100,000)	(100,000)
Net income	0	0	1,000,167	0	210,594	1,210,763
Other comprehensive income	0	0	0	(1,524,711)	(29,311)	(1,554,022)
Stock option expense	161	59,279	0	0	0	59,440
Other comprehensive gain	$ 0	0	0	(1,524,711)	(29,311)	(1,554,022)
Balance (in shares) at May. 31, 2022	9,232,483
Balance at May. 31, 2022	$ 184,650	19,706,248	50,714,961	(5,383,400)	3,453,211	68,675,670
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
Stock issued for employee stock purchase plan (in shares)	7,186
Stock issued for employee stock purchase plan	$ 143	75,321	0	0	0	75,464
Stock option expense	0	998,311	0	0	0	998,311
Dividends paid to stockholders	0	0	(1,967,184)	0	0	(1,967,184)
Dividend received by non-controlling interest	0	0	0	0	(555,574)	(555,574)
Net income	0	0	2,913,086	0	417,418	3,330,504
Other comprehensive income	0	0	0	365,685	22,883	388,568
Stock option expense	2,605	413,958	0	0	0	416,563
Other comprehensive gain	$ 0	0	0	365,685	22,883	388,568
Stock options exercised (in shares)	130,254
Balance (in shares) at May. 31, 2023	9,369,923
Balance at May. 31, 2023	$ 187,398	21,426,721	51,662,515	(6,879,447)	3,533,761	69,930,948
Balance (in shares) at Feb. 28, 2023	9,366,357
Balance at Feb. 28, 2023	$ 187,327	21,058,721	50,792,813	(6,774,510)	3,443,643	68,707,994
Stock issued for employee stock purchase plan (in shares)	3,566
Stock issued for employee stock purchase plan	$ 71	36,697	0	0	0	36,768
Stock option expense	0	331,303	0	0	0	331,303
Dividends paid to stockholders	0	0	(655,894)	0	0	(655,894)
Dividend received by non-controlling interest	0	0	0	0	(100,000)	(100,000)
Net income	0	0	1,525,596	0	177,409	1,703,005
Other comprehensive income	0	0	0	(104,937)	12,709	(92,228)
Other comprehensive gain	$ 0	0	0	(104,937)	12,709	(92,228)
Balance (in shares) at May. 31, 2023	9,369,923
Balance at May. 31, 2023	$ 187,398	$ 21,426,721	$ 51,662,515	$ (6,879,447)	$ 3,533,761	$ 69,930,948

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	May 31, 2023	May 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME	$ 3,330,504	$ 6,228,581
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	998,311	698,649
Depreciation expense	766,091	722,443
Amortization expense	441,603	474,121
Loss on disposal of assets	(8,534)	0
Remeasurement gain on acquisition of equity method investee	0	(3,951,550)
Equity in income from joint ventures	(3,664,793)	(3,662,178)
Dividends received from joint ventures	3,510,716	5,723,176
Deferred income taxes	(76,114)	152,372
Changes in current assets and liabilities:
Trade, excluding joint ventures	(1,502,567)	(1,348,254)
Trade, joint ventures	29,014	(232,364)
Fees for services provided to joint ventures	539,107	261,913
Income taxes	(155,828)	(134,942)
Inventories	2,254,758	(2,093,668)
Prepaid expenses and other	184,516	(635,478)
Accounts payable	(2,902,121)	908,605
Income tax payable	(29,401)	(420,529)
Accrued liabilities	(209,459)	(912,803)
Net cash provided by operating activities	3,505,803	1,778,094
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of Zerust India business, net of cash acquired	0	(5,062,003)
Purchase of available for sale securities	0	(941)
Proceeds from the sale of available for sale securities	5,590	0
Investment in joint venture	0	(341,392)
Purchases of property and equipment	(2,607,988)	(961,704)
Proceeds from the sale of property and equipment	13,000	0
Investments in patents	(89,350)	(164,994)
Net cash used in investing activities	(2,678,748)	(6,531,034)
us-gaap_PaymentsToMinorityShareholders	555,574	402,729
Repayments on the line of credit	(700,000)	0
Proceeds from line of credit	0	4,700,000
Proceeds from term loan	2,812,504	0
Dividends paid on NTIC common stock	(1,967,184)	(1,934,906)
Proceeds from the exercise of stock options	416,563	198,640
Proceeds from employee stock purchase plan	75,464	73,645
Net cash provided by financing activities	81,773	2,634,650
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(47,524)	560,918
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	861,304	(1,557,372)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	5,333,890	7,680,641
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 6,195,194	$ 6,123,269

Note 1 - Interim Financial Info

Note 1 - Interim Financial Information	9 Months Ended
	May 31, 2023
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. INTERIM FINANCIAL INFORMATION In the opinion of management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, which are of a normal recurring nature, and present fairly the consolidated financial position of Northern Technologies International Corporation and its subsidiaries (the Company) as of May 31, 2023 and August 31, 2022, the results of the Company’s operations and other comprehensive income These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s annual report on Form 10-K for the fiscal year ended August 31, 2022. These consolidated financial statements also should be read in conjunction with the “ Management s Discussion and Analysis of Financial Condition and Results of Operations Operating results for the three and nine months ended May 31, 2023 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 31, 2023. The Company evaluates events occurring after the date of the consolidated financial statements requiring recording or disclosure in the consolidated financial statements.

Note 2 - Accounting Pronounceme

Note 2 - Accounting Pronouncements	9 Months Ended
	May 31, 2023
Notes to Financial Statements
Accounting Standards Update and Change in Accounting Principle [Text Block]	2. ACCOUNTING PRONOUNCEMENTS In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Measurement of Credit Losses on Financial Instruments

Note 3 - Inventories

Note 3 - Inventories	9 Months Ended
	May 31, 2023
Notes to Financial Statements
Inventory Disclosure [Text Block]	3. INVENTORIES Inventories consisted of the following: May 31, 2023 August 31, 2022 Production materials $ 4,723,520 $ 6,496,656 Finished goods 9,177,292 9,845,073 $ 13,900,812 $ 16,341,729

Note 4 - Property and Equipment

Note 4 - Property and Equipment, Net	9 Months Ended
	May 31, 2023
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	4. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: May 31, 2023 August 31, 2022 Land $ 496,965 $ 310,365 Buildings and improvements 16,733,247 14,778,759 Machinery and equipment 5,960,024 5,643,320 23,190,236 20,732,444 Less accumulated depreciation (9,379,306 ) (8,561,951 ) $ 13,810,930 $ 12,170,493 On February 28, 2023, the Company purchased the property immediately adjacent to NTIC’s headquarters in Circle Pines, Minnesota, which includes a 26,000 square foot industrial building, for $1,200,000. The building will be used primarily for warehousing space and light industrial production. Depreciation expense was $277,253 and $766,091 for the three and nine months ended May 31, 2023, respectively, compared to $291,452 and $722,443 for the three and nine months ended May 31, 2022, respectively.

Note 5 - Intangible Assets, Net

Note 5 - Intangible Assets, Net	9 Months Ended
	May 31, 2023
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	5. INTANGIBLE ASSETS, NET Intangible assets, net consisted of the following: As of May 31, 2023 Gross Carrying Accumulated Net Carrying Patents and trademarks $ 3,315,005 $ (2,639,897 ) $ 675,108 Customer relationships 6,347,000 (740,483 ) 5,606,517 Total intangible assets, net $ 9,662,005 $ (3,380,380 ) $ 6,281,625 As of August 31, 2022 Gross Carrying Accumulated Net Carrying Patents and trademarks $ 3,225,655 $ (2,515,644 ) $ 710,011 Customer relationships 6,347,000 (423,133 ) 5,923,867 Total intangible assets, net $ 9,572,655 $ (2,938,777 ) $ 6,633,878 Amortization expense related to intangible assets was $146,730 and $441,603 for the three and nine months ended May 31, 2023, respectively, compared to $158,490 and $474,121 for the three and nine months ended May 31, 2022, respectively. As of May 31, 2023, future amortization expense related to intangible assets for each of the next five fiscal years and thereafter is estimated as follows: Remainder of fiscal 2023 $ 167,471 Fiscal 2024 589,746 Fiscal 2025 589,746 Fiscal 2026 589,746 Fiscal 2027 589,746 Thereafter 3,755,170 Total $ 6,281,625

Note 6 - Investments in Joint V

Note 6 - Investments in Joint Ventures	9 Months Ended
	May 31, 2023
Notes to Financial Statements
Equity Method Investments and Joint Ventures Disclosure [Text Block]	6. INVESTMENTS IN JOINT VENTURES The consolidated financial statements of the Company’s foreign joint ventures are initially prepared using the accounting principles accepted in the respective joint ventures’ countries of domicile. Amounts related to foreign joint ventures reported in the below tables and the accompanying consolidated financial statements have subsequently been adjusted to conform with U.S. GAAP in all material respects. All material profits on sales recorded that remain on the consolidated balance sheet from the Company to its joint ventures and from joint ventures to other joint ventures have been eliminated for financial reporting purposes. Financial information from the audited and unaudited financial statements of the Company’s joint venture in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR), and all the Company’s other joint ventures are summarized as follows: As of May 31, 2023 Total EXCOR All Other Current assets $ 55,424,661 $ 26,845,344 $ 28,579,317 Total assets 59,769,982 28,974,034 30,795,948 Current liabilities 13,229,032 3,008,256 10,220,776 Noncurrent liabilities 300,142 - 300,142 Joint ventures’ equity 46,240,808 25,965,777 20,275,031 Northern Technologies International Corporation’s share of joint ventures’ equity 22,855,448 12,982,891 9,872,553 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 20,493,861 12,075,524 8,418,337 Three Months Ended May 31, 2023 Total EXCOR All Other Net sales $ 26,312,548 $ 10,735,862 $ 15,576,686 Gross profit 10,494,244 5,085,837 5,408,407 Net income 2,692,444 1,654,151 1,038,293 Northern Technologies International Corporation’s share of equity in income from joint ventures 1,346,658 828,631 518,027 Northern Technologies International Corporation’s dividends received from joint ventures 45,977 — 45,977 Nine Months Ended May 31, 2023 Total EXCOR All Other Net sales $ 76,525,427 $ 30,590,265 $ 45,935,162 Gross profit 30,223,623 14,539,314 15,684,309 Net income 7,308,398 4,761,608 2,546,790 Northern Technologies International Corporation’s share of equity in income from joint ventures 3,664,793 2,376,575 1,288,218 Northern Technologies International Corporation’s dividends received from joint ventures 3,510,716 2,459,500 1,051,216 As of August 31, 2022 Total EXCOR All 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 Three Months Ended May 31, 2022 Total EXCOR All Other Net sales $ 26,594,077 $ 10,397,916 $ 16,196,160 Gross profit 10,626,570 4,990,697 5,635,873 Net income 2,714,979 1,654,389 1,060,590 Northern Technologies International Corporation’s share of equity in income from joint ventures 1,364,597 824,784 539,813 Northern Technologies International Corporation’s dividends received from joint ventures 252,000 — 252,000 Nine Months Ended May 31, 2022 Total EXCOR All Other Net sales $ 78,218,839 $ 31,010,578 $ 47,208,261 Gross profit 31,504,531 15,118,133 16,386,398 Net income 7,344,175 4,646,123 2,698,052 Northern Technologies International Corporation’s share of equity in income from joint ventures 3,662,178 2,324,605 1,337,572 Northern Technologies International Corporation’s dividends received from joint ventures 5,723,176 4,255,200 1,467,976

Note 7 - Corporate Debt

Note 7 - Corporate Debt	9 Months Ended
	May 31, 2023
Notes to Financial Statements
Debt Disclosure [Text Block]	7. CORPORATE DEBT On January 6, 2023, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. (“JPM”), which provides the Company with a senior secured revolving line of credit (the “Credit Facility”) of up to $10.0 million, which includes a $5.0 million sublimit for standby letters of credit. Borrowings of $5,200,000 under the new Credit Agreement were outstanding May 31, 2023. Borrowings of $5,900,000 were outstanding as of August 31, 2022 under the previous credit agreement. Unless terminated earlier, the Credit Facility will mature on January 6, 2024, and the principal amount thereunder, together with all accrued unpaid interest and other amounts owing thereunder, if any, will be payable in full on such date. Borrowings under the Credit Agreement bear interest at a floating rate, at the option of the Company, equal to either the CB Floating Rate or the Adjusted SOFR Rate. The term “CB Floating Rate” means the greater of the Prime Rate in the United States or 2.50%. The term “Adjusted SOFR Rate” means the term secured overnight financing rate for either one, three or six months (depending on the interest period selected by the Company) plus 0.10% per annum. With respect to any borrowings using an Adjusted SOFR Rate, there is an applicable margin of 2.15% applied per annum. There is no applicable margin with respect to borrowings using a CB Floating Rate. To secure the Credit Agreement, the Company assigned to JPM a continuing security interest in all of its right, title and interested in collateral made up for the assets of the Company. The Credit Agreement contains customary affirmative and negative covenants, including, among other matters, limitations on the Company’s ability to incur additional debt, grant liens, engage in certain business operations and transactions, make certain investments, modify its organizational documents or form any new subsidiaries, subject to certain exceptions. Further, the Credit Agreement contains a negative covenant that restricts the ability of the Company to redeem or repurchase its common stock or pay dividends if the result of which would cause an event of default under the Credit Agreement. The Credit Agreement also requires the Company to maintain a Fixed Charge Coverage Ratio of at least 1.25 to 1.00. The term “Fixed Charge Coverage Ratio” means the ratio, computed for the Company on a consolidated basis, of net income plus income tax expense, plus amortization expense, plus depreciation expense, plus interest expense, and plus dividends received from joint ventures, minus unfinanced capital expenditures and equity in income from joint ventures, all computed for the twelve month period then ending, to scheduled principal payments made, plus scheduled finance lease payments made, plus interest expense paid, plus income tax expense paid, and plus cash distributions and dividends paid, all computed for the same twelve month period then ending. The Credit Agreement also contains customary events of default, including, without limitation, payment defaults, material inaccuracy of representations and warranties, covenant defaults, bankruptcy and insolvency proceedings, cross-defaults to certain other agreements, breach of any financial covenant and change of control. Upon the occurrence and during the continuance of any event of default, JPM may accelerate the payment of the obligations thereunder and exercise various other customary default remedies. In connection with the execution of the Credit Agreement described above, on January 6, 2023, the Amended and Restated Loan Agreement dated August 31, 2021 between Northern Technologies International Corporation and PNC Bank, National Association was terminated. In accordance with ASC Topic No. 470, “Debt – Modifications and Extinguishments” (Topic 470), the transactions noted above were determined to be a modification of the existing debt. On each of April 10, 2023 and May 30, 2023, the Company’s wholly-owned subsidiary in China, NTIC China, entered into a loan agreement with China Construction Bank Corporation. Each term loan provided NTIC China with a RMB 10,000,000 (USD $1.45 million). Each of the term loans matures after one year with the principal due at that time, after which an extension of the loan agreement is required. Both term loans have an annual interest rate of 3.25% with interest due monthly. Both term loans are secured by an office building owned by NTIC China and the loan agreements contain certain financial and other covenants. The Company was in compliance with the covenants as of May 31, 2023. The current outstanding balance as of May 31, 2023 for both term loans was USD $2,812,504.

Note 8 - Stockholders' Equity

Note 8 - Stockholders' Equity	9 Months Ended
	May 31, 2023
Notes to Financial Statements
Equity [Text Block]	8. STOCKHOLDERS EQUITY During the nine months ended May 31, 2023, the Company’s Board of Directors declared cash dividends on the following dates in the following amounts to holders of record of the Company’s common stock as of the following record dates: Declaration Date Amount Record Date Payable Date October 20, 2022 $0.07 November 3, 2022 November 16, 2022 January 20, 2023 $0.07 February 1, 2023 February 15, 2023 April 21, 2023 $0.07 May 3, 2023 May 17, 2023 During the nine months ended May 31, 2022, the Company’s Board of Directors declared cash dividends on the following dates in the following amounts to holders of record of the Company’s common stock as of the following record dates: 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 During the nine months ended May 31, 2023 and 2022, the Company repurchased no The Company issued 3,620 and 2,636 shares of common stock on September 1, 2022 and 2021, respectively, under the Northern Technologies International Corporation Employee Stock Purchase Plan (ESPP). The Company issued 3,566 and 2,966 shares of common stock on March 1, 2023 and 2022, respectively, under the ESPP. The ESPP is compensatory for financial reporting purposes. As of May 31, 2023,62,034 shares of common stock remained available for sale under the ESPP.

Note 9 - Net Income Per Common

Note 9 - Net Income Per Common Share	9 Months Ended
	May 31, 2023
Notes to Financial Statements
Earnings Per Share [Text Block]	9. NET INCOME PER COMMON SHARE Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per share assumes the exercise of stock options using the treasury stock method, if dilutive. The following is a reconciliation of the net income per share computation for the three and nine months ended May 31, 2023 and 2022: Three Months Ended May 31, Nine Months Ended May 31, Numerator 2023 2022 2023 2022 Net income attributable to NTIC $ 1,525,596 $ 1,000,167 $ 2,913,086 $ 5,676,773 Denominator Basic – weighted shares outstanding 9,369,923 9,227,912 9,355,776 9,216,216 Weighted shares assumed upon exercise of stock options 258,146 350,885 346,834 466,430 Diluted – weighted shares outstanding 9,628,069 9,578,797 9,702,610 9,682,646 Basic net income per share: $ 0.16 $ 0.11 $ 0.31 $ 0.62 Diluted net income per share: $ 0.16 $ 0.11 $ 0.30 $ 0.59 The dilutive impact summarized above relates to the periods when the average market price of the Company’s common stock exceeded the exercise price of the potentially dilutive option securities granted. Net income per common share was based on the weighted average number of common shares outstanding during the periods when computing basic net income per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted net income per share. Excluded from the computation of diluted net income per share for the three and nine months ended May 31, 2023 were options outstanding to purchase 322,246 shares of common stock. Excluded from the computation of diluted net income per share for the three and nine months ended May 31, 2022 were options outstanding to purchase 327,793 shares of common stock.

Note 10 - Stock-based Compensat

Note 10 - Stock-based Compensation	9 Months Ended
	May 31, 2023
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	10. STOCK-BASED COMPENSATION A summary of stock option activities under the Northern Technologies International Corporation Amended and Restated 2019 Stock Incentive Plan (the 2019 Plan) and the Northern Technologies International Corporation Amended and Restated 2007 Stock Incentive Plan (the 2007 Plan) is as follows: Number of Weighted Outstanding as of August 31, 2022 1,544,727 $ 10.23 Granted 277,613 $ 11.41 Exercised (178,331 ) $ 6.03 Outstanding as of May 31, 2023 1,644,009 $ 10.88 Exercisable as of May 31, 2023 1,166,772 $ 10.51 The weighted average per share fair value of options granted during the nine months ended May 31, 2023 and 2022 was $4.87 and $7.29, respectively. The weighted average remaining contractual life of the options outstanding as of May 31, 2023 and 2022 was 6.16 years and 6.02 years, respectively. The Company recognized compensation expense of $339,423 and $998,311 and $232,883 and $698,649 during the three and nine months ended May 31, 2023 and 2022, respectively. As of May 31, 2023, there was $1,366,860 of unrecognized compensation expense. The amount is expected to be recognized over a period of 2.5 years

Note 11 - Segment and Geographi

Note 11 - Segment and Geographic Information	9 Months Ended
	May 31, 2023
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	11. SEGMENT AND GEOGRAPHIC INFORMATION Segment Information The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s business is organized into two The following table sets forth the Company’s net sales for the three and nine months ended May 31, 2023 and 2022 by segment: Three Months Ended May 31, Nine Months Ended May 31, 2023 2022 2023 2022 ZERUST® net sales $ 16,100,674 $ 14,446,832 $ 45,929,422 $ 41,988,394 Natur-Tec® net sales 4,869,052 4,518,089 13,263,895 11,918,579 Total net sales $ 20,969,726 $ 18,964,921 $ 59,193,317 $ 53,906,973 The following table sets forth the Company’s cost of goods sold for the three and nine months ended May 31, 2023 and 2022 by segment: Three Months Ended May 31, Nine Months Ended May 31, 2023 % of 2022 % of 2023 % of 2022 % of Direct cost of goods sold ZERUST® $ 9,116,091 56.6 % $ 8,409,392 58.2 % $ 26,410,796 57.5 % $ 25,267,333 60.2 % Natur-Tec® 3,576,676 73.5 % 3,432,152 76.0 % 10,078,385 76.0 % 9,129,686 76.6 % Indirect cost of goods sold 587,817 — 881,289 — 2,258,684 — 2,580,601 — Total net cost of goods sold $ 13,280,584 $ 12,722,833 $ 38,747,865 $ 36,977,620 ______________________ * The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category. The Company utilizes product net sales and direct and indirect cost of goods sold for each product in reviewing the financial performance of a product type. Further allocation of Company expenses or assets, aside from amounts presented in the tables above, is not utilized in evaluating product performance, nor does such allocation occur for internal financial reporting. Geographic Information Net sales by geographic location for the three and nine months ended May 31, 2023 and 2022 were as follows: Three Months Ended May 31, Nine Months Ended May 31, 2023 2022 2023 2022 Inside the U.S.A. to unaffiliated customers $ 7,729,820 $ 6,884,726 $ 21,958,978 $ 18,157,010 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 732,437 528,665 2,895,665 2,252,618 Unaffiliated customers 12,507,469 11,551,530 34,338,674 33,497,345 $ 20,969,726 $ 18,964,921 $ 59,193,317 $ 53,906,973 Net sales by geographic location are based on the location of the customer. Fees for services provided to joint ventures by geographic location as a percentage of total fees for services provided to joint ventures during the three and nine months ended May 31, 2023 and 2022 were as follows: Three Months Ended May 31, 2023 % of Total 2022 % of Total Poland $ 224,288 16.5 % $ 171,181 12.9 % Germany 209,398 15.4 % 204,316 15.4 % Japan 152,593 11.2 % 168,075 12.6 % Sweden 144,981 10.7 % 130,681 9.8 % France 128,149 9.4 % 123,869 9.3 % Finland 103,879 7.6 % 92,036 6.9 % Czech Republic 99,090 7.3 % 84,797 6.4 % Thailand 82,725 6.1 % 95,574 7.2 % United Kingdom 83,586 6.1 % 89,363 6.7 % South Korea 61,669 4.5 % 78,542 5.9 % Other 70,953 5.2 % 91,554 6.9 % $ 1,361,311 100.0 % $ 1,329,988 100.0 % Nine Months Ended May 31, 2023 % of Total 2022 % of Total Poland $ 610,911 16.1 % $ 520,807 13.6 % Germany 606,189 16.0 % 639,738 16.7 % Japan 454,308 12.0 % 486,815 12.7 % Sweden 358,032 9.4 % 337,929 8.8 % France 356,444 9.4 % 355,827 9.3 % Finland 285,931 7.5 % 257,635 6.7 % Czech Republic 270,422 7.1 % 224,280 5.8 % Thailand 257,282 6.8 % 271,046 7.1 % United Kingdom 206,925 5.5 % 271,027 7.1 % South Korea 190,866 5.0 % 205,342 5.4 % Other 198,552 5.2 % 265,309 6.8 % $ 3,795,862 100.0 % $ 3,835,755 100.0 % The geographical distribution of total property and equipment and net sales is as follows: At May 31, 2023 At August 31, 2022 China $ 5,805,738 $ 5,826,898 Other 770,863 565,022 United States 7,234,329 5,778,573 Total property and equipment, net $ 13,810,930 $ 12,170,493 Three Months Ended May 31, Nine Months Ended May 31, 2023 2022 2023 2022 China $ 3,318,373 $ 3,624,396 $ 9,936,808 $ 11,845,989 Brazil 1,488,510 1,554,364 4,062,718 3,786,670 India 5,145,423 4,824,004 14,356,708 13,369,769 Other 3,287,600 2,077,431 8,878,105 6,747,535 United States 7,729,820 6,884,726 21,958,978 18,157,010 Total net sales $ 20,969,726 $ 18,964,921 $ 59,193,317 $ 53,906,973 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 included. The foregoing segment and geographic information represents only sales recognized directly by the Company and sold in that geographic territory. All joint venture operations, including equity in income, fees for services and related dividends, are primarily related to ZERUST® products and services.

Note 12 - Commitments and Conti

Note 12 - Commitments and Contingencies	9 Months Ended
	May 31, 2023
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	12. COMMITMENTS AND CONTINGENCIES Concentrations Two joint ventures (consisting of the Company’s joint ventures in South Korea and Thailand) accounted for 65.1% of the Company’s trade joint venture receivables as of May 31, 2023, and three joint ventures (consisting of the Company’s joint ventures in South Korea, Japan and Thailand) accounted for 62.3% of the Company’s trade joint venture receivables as of May 31, 2022 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 amount within the range is a better estimate than any other amount. The Company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that material loss may have been incurred. In the opinion of management, as of May 31, 2023, the amount of liability, if any, with respect to these matters, individually or in the aggregate, will not materially affect the Company’s consolidated results of operations, financial position or cash flows.

Note 13 - Fair Value Measuremen

Note 13 - Fair Value Measurements	9 Months Ended
	May 31, 2023
Notes to Financial Statements
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]	13. FAIR VALUE MEASUREMENTS Assets and liabilities that are measured at fair value on a recurring basis primarily relate to marketable equity securities. These items are marked-to-market at each reporting period, and the Company estimates that market value approximates costs. The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis: Fair Value Measurements Using Inputs Considered as Fair value as of May 31, 2023 Level 1 Level 2 Level 3 Available for sale securities $ — $ — $ — $ — 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 $ — $ — There were no transfers between Level 1, Level 2, or Level 3 during the three and nine months ended May 31, 2023 or 2022.

Note 14 - Supplemental Cash Flo

Note 14 - Supplemental Cash Flow Information	9 Months Ended
	May 31, 2023
Notes to Financial Statements
Cash Flow, Supplemental Disclosures [Text Block]	14. SUPPLEMENTAL CASH FLOW INFORMATION Supplemental disclosures of cash flow information consisted of: Three Months Ended May 31, Nine Months Ended May 31, 2023 2022 2023 2022 Cash paid for interest $ 136,168 $ 23,784 $ 342,643 $ 34,079

Note 15 - Income Taxes

Note 15 - Income Taxes	9 Months Ended
	May 31, 2023
Notes to Financial Statements
Income Tax Disclosure [Text Block]	15. INCOME TAXES Income tax expense for the three and nine months ended May 31, 2023 was $542,295 and $834,823, respectively, compared to $604,314 and $1,260,437, respectively, for the three and nine months ended May 31, 2022. The expense was largely due to foreign operations. The Company has federal and state tax credit carry forwards, net operating loss carry forwards and foreign tax carry forwards. The Company has recorded a full valuation allowance against the U.S. deferred tax assets as of May 31, 2023 and August 31, 2022.

Note 3 - Inventories (Tables)

Note 3 - Inventories (Tables)	9 Months Ended
	May 31, 2023
Notes Tables
Schedule of Inventory, Current [Table Text Block]	May 31, 2023 August 31, 2022 Production materials $ 4,723,520 $ 6,496,656 Finished goods 9,177,292 9,845,073 $ 13,900,812 $ 16,341,729

Note 4 - Property and Equipme_2

Note 4 - Property and Equipment, Net (Tables)	9 Months Ended
	May 31, 2023
Notes Tables
Property, Plant and Equipment [Table Text Block]	May 31, 2023 August 31, 2022 Land $ 496,965 $ 310,365 Buildings and improvements 16,733,247 14,778,759 Machinery and equipment 5,960,024 5,643,320 23,190,236 20,732,444 Less accumulated depreciation (9,379,306 ) (8,561,951 ) $ 13,810,930 $ 12,170,493

Note 5 - Intangible Assets, N_2

Note 5 - Intangible Assets, Net (Tables)	9 Months Ended
	May 31, 2023
Notes Tables
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Remainder of fiscal 2023 $ 167,471 Fiscal 2024 589,746 Fiscal 2025 589,746 Fiscal 2026 589,746 Fiscal 2027 589,746 Thereafter 3,755,170 Total $ 6,281,625
Customer Relationships and Assembled Workforce [Member]
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	As of May 31, 2023 Gross Carrying Accumulated Net Carrying Patents and trademarks $ 3,315,005 $ (2,639,897 ) $ 675,108 Customer relationships 6,347,000 (740,483 ) 5,606,517 Total intangible assets, net $ 9,662,005 $ (3,380,380 ) $ 6,281,625 As of August 31, 2022 Gross Carrying Accumulated Net Carrying Patents and trademarks $ 3,225,655 $ (2,515,644 ) $ 710,011 Customer relationships 6,347,000 (423,133 ) 5,923,867 Total intangible assets, net $ 9,572,655 $ (2,938,777 ) $ 6,633,878

Note 6 - Investments in Joint_2

Note 6 - Investments in Joint Ventures (Tables)	9 Months Ended
	May 31, 2023
Notes Tables
Condensed Balance Sheet [Table Text Block]	As of May 31, 2023 Total EXCOR All Other Current assets $ 55,424,661 $ 26,845,344 $ 28,579,317 Total assets 59,769,982 28,974,034 30,795,948 Current liabilities 13,229,032 3,008,256 10,220,776 Noncurrent liabilities 300,142 - 300,142 Joint ventures’ equity 46,240,808 25,965,777 20,275,031 Northern Technologies International Corporation’s share of joint ventures’ equity 22,855,448 12,982,891 9,872,553 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 20,493,861 12,075,524 8,418,337 As of August 31, 2022 Total EXCOR All 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
Condensed Income Statement [Table Text Block]	Three Months Ended May 31, 2023 Total EXCOR All Other Net sales $ 26,312,548 $ 10,735,862 $ 15,576,686 Gross profit 10,494,244 5,085,837 5,408,407 Net income 2,692,444 1,654,151 1,038,293 Northern Technologies International Corporation’s share of equity in income from joint ventures 1,346,658 828,631 518,027 Northern Technologies International Corporation’s dividends received from joint ventures 45,977 — 45,977 Nine Months Ended May 31, 2023 Total EXCOR All Other Net sales $ 76,525,427 $ 30,590,265 $ 45,935,162 Gross profit 30,223,623 14,539,314 15,684,309 Net income 7,308,398 4,761,608 2,546,790 Northern Technologies International Corporation’s share of equity in income from joint ventures 3,664,793 2,376,575 1,288,218 Northern Technologies International Corporation’s dividends received from joint ventures 3,510,716 2,459,500 1,051,216 Three Months Ended May 31, 2022 Total EXCOR All Other Net sales $ 26,594,077 $ 10,397,916 $ 16,196,160 Gross profit 10,626,570 4,990,697 5,635,873 Net income 2,714,979 1,654,389 1,060,590 Northern Technologies International Corporation’s share of equity in income from joint ventures 1,364,597 824,784 539,813 Northern Technologies International Corporation’s dividends received from joint ventures 252,000 — 252,000 Nine Months Ended May 31, 2022 Total EXCOR All Other Net sales $ 78,218,839 $ 31,010,578 $ 47,208,261 Gross profit 31,504,531 15,118,133 16,386,398 Net income 7,344,175 4,646,123 2,698,052 Northern Technologies International Corporation’s share of equity in income from joint ventures 3,662,178 2,324,605 1,337,572 Northern Technologies International Corporation’s dividends received from joint ventures 5,723,176 4,255,200 1,467,976

Note 8 - Stockholders' Equity (

Note 8 - Stockholders' Equity (Tables)	9 Months Ended
	May 31, 2023
Notes Tables
Dividends Declared [Table Text Block]	Declaration Date Amount Record Date Payable Date October 20, 2022 $0.07 November 3, 2022 November 16, 2022 January 20, 2023 $0.07 February 1, 2023 February 15, 2023 April 21, 2023 $0.07 May 3, 2023 May 17, 2023 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

Note 9 - Net Income Per Commo_2

Note 9 - Net Income Per Common Share (Tables)	9 Months Ended
	May 31, 2023
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended May 31, Nine Months Ended May 31, Numerator 2023 2022 2023 2022 Net income attributable to NTIC $ 1,525,596 $ 1,000,167 $ 2,913,086 $ 5,676,773 Denominator Basic – weighted shares outstanding 9,369,923 9,227,912 9,355,776 9,216,216 Weighted shares assumed upon exercise of stock options 258,146 350,885 346,834 466,430 Diluted – weighted shares outstanding 9,628,069 9,578,797 9,702,610 9,682,646 Basic net income per share: $ 0.16 $ 0.11 $ 0.31 $ 0.62 Diluted net income per share: $ 0.16 $ 0.11 $ 0.30 $ 0.59

Note 10 - Stock-based Compens_2

Note 10 - Stock-based Compensation (Tables)	9 Months Ended
	May 31, 2023
Notes Tables
Share-Based Payment Arrangement, Option, Activity [Table Text Block]	Number of Weighted Outstanding as of August 31, 2022 1,544,727 $ 10.23 Granted 277,613 $ 11.41 Exercised (178,331 ) $ 6.03 Outstanding as of May 31, 2023 1,644,009 $ 10.88 Exercisable as of May 31, 2023 1,166,772 $ 10.51

Note 11 - Segment and Geograp_2

Note 11 - Segment and Geographic Information (Tables)	9 Months Ended
	May 31, 2023
Notes Tables
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	Three Months Ended May 31, Nine Months Ended May 31, 2023 2022 2023 2022 ZERUST® net sales $ 16,100,674 $ 14,446,832 $ 45,929,422 $ 41,988,394 Natur-Tec® net sales 4,869,052 4,518,089 13,263,895 11,918,579 Total net sales $ 20,969,726 $ 18,964,921 $ 59,193,317 $ 53,906,973 Three Months Ended May 31, 2023 % of Total 2022 % of Total Poland $ 224,288 16.5 % $ 171,181 12.9 % Germany 209,398 15.4 % 204,316 15.4 % Japan 152,593 11.2 % 168,075 12.6 % Sweden 144,981 10.7 % 130,681 9.8 % France 128,149 9.4 % 123,869 9.3 % Finland 103,879 7.6 % 92,036 6.9 % Czech Republic 99,090 7.3 % 84,797 6.4 % Thailand 82,725 6.1 % 95,574 7.2 % United Kingdom 83,586 6.1 % 89,363 6.7 % South Korea 61,669 4.5 % 78,542 5.9 % Other 70,953 5.2 % 91,554 6.9 % $ 1,361,311 100.0 % $ 1,329,988 100.0 %
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block]	Three Months Ended May 31, Nine Months Ended May 31, 2023 % of 2022 % of 2023 % of 2022 % of Direct cost of goods sold ZERUST® $ 9,116,091 56.6 % $ 8,409,392 58.2 % $ 26,410,796 57.5 % $ 25,267,333 60.2 % Natur-Tec® 3,576,676 73.5 % 3,432,152 76.0 % 10,078,385 76.0 % 9,129,686 76.6 % Indirect cost of goods sold 587,817 — 881,289 — 2,258,684 — 2,580,601 — Total net cost of goods sold $ 13,280,584 $ 12,722,833 $ 38,747,865 $ 36,977,620
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	Three Months Ended May 31, Nine Months Ended May 31, 2023 2022 2023 2022 Inside the U.S.A. to unaffiliated customers $ 7,729,820 $ 6,884,726 $ 21,958,978 $ 18,157,010 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 732,437 528,665 2,895,665 2,252,618 Unaffiliated customers 12,507,469 11,551,530 34,338,674 33,497,345 $ 20,969,726 $ 18,964,921 $ 59,193,317 $ 53,906,973
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	Nine Months Ended May 31, 2023 % of Total 2022 % of Total Poland $ 610,911 16.1 % $ 520,807 13.6 % Germany 606,189 16.0 % 639,738 16.7 % Japan 454,308 12.0 % 486,815 12.7 % Sweden 358,032 9.4 % 337,929 8.8 % France 356,444 9.4 % 355,827 9.3 % Finland 285,931 7.5 % 257,635 6.7 % Czech Republic 270,422 7.1 % 224,280 5.8 % Thailand 257,282 6.8 % 271,046 7.1 % United Kingdom 206,925 5.5 % 271,027 7.1 % South Korea 190,866 5.0 % 205,342 5.4 % Other 198,552 5.2 % 265,309 6.8 % $ 3,795,862 100.0 % $ 3,835,755 100.0 %
Revenue from External Customers by Geographic Areas [Table Text Block]	At May 31, 2023 At August 31, 2022 China $ 5,805,738 $ 5,826,898 Other 770,863 565,022 United States 7,234,329 5,778,573 Total property and equipment, net $ 13,810,930 $ 12,170,493 Three Months Ended May 31, Nine Months Ended May 31, 2023 2022 2023 2022 China $ 3,318,373 $ 3,624,396 $ 9,936,808 $ 11,845,989 Brazil 1,488,510 1,554,364 4,062,718 3,786,670 India 5,145,423 4,824,004 14,356,708 13,369,769 Other 3,287,600 2,077,431 8,878,105 6,747,535 United States 7,729,820 6,884,726 21,958,978 18,157,010 Total net sales $ 20,969,726 $ 18,964,921 $ 59,193,317 $ 53,906,973

Note 13 - Fair Value Measurem_2

Note 13 - Fair Value Measurements (Tables)	9 Months Ended
	May 31, 2023
Notes Tables
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]	Fair Value Measurements Using Inputs Considered as Fair value as of May 31, 2023 Level 1 Level 2 Level 3 Available for sale securities $ — $ — $ — $ — 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 $ — $ —

Note 14 - Supplemental Cash F_2

Note 14 - Supplemental Cash Flow Information (Tables)	9 Months Ended
	May 31, 2023
Notes Tables
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	Three Months Ended May 31, Nine Months Ended May 31, 2023 2022 2023 2022 Cash paid for interest $ 136,168 $ 23,784 $ 342,643 $ 34,079

Note 3 - Inventories - Inventor

Note 3 - Inventories - Inventories (Details) - USD ($)	May 31, 2023	Aug. 31, 2022
Production materials	$ 4,723,520	$ 6,496,656
Finished goods	9,177,292	9,845,073
Inventory, Net	$ 13,900,812	$ 16,341,729

Note 4 - Property and Equipme_3

Note 4 - Property and Equipment, Net (Details Textual)		3 Months Ended		9 Months Ended
	Feb. 28, 2023 USD ($) ft²	May 31, 2023 USD ($)	May 31, 2022 USD ($)	May 31, 2023 USD ($)	May 31, 2022 USD ($)
Payments to Acquire Property, Plant, and Equipment				$ 2,607,988	$ 961,704
Depreciation expense		$ 277,253	$ 291,452	$ 766,091	$ 722,443
Property Immediately Adjacent to NTIC’s Headquarters in Circle Pines, Minnesota [Member]
Area of Real Estate Property | ft²	26,000
Payments to Acquire Property, Plant, and Equipment	$ 1,200,000

Note 4 - Property and Equipme_4

Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($)	May 31, 2023	Aug. 31, 2022
Land	$ 496,965	$ 310,365
Buildings and improvements	16,733,247	14,778,759
Machinery and equipment	5,960,024	5,643,320
Property, Plant and Equipment, Gross	23,190,236	20,732,444
Less accumulated depreciation	(9,379,306)	(8,561,951)
Property, Plant and Equipment, Net	$ 13,810,930	$ 12,170,493

Note 5 - Intangible Assets, N_3

Note 5 - Intangible Assets, Net (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Amortization of Intangible Assets	$ 146,730	$ 158,490	$ 441,603	$ 474,121

Note 5 - Intangible Assets, N_4

Note 5 - Intangible Assets, Net - Intangible Assets, Net (Details) - USD ($)	May 31, 2023	Aug. 31, 2022
Gross Carrying Amount	$ 9,662,005	$ 9,572,655
Accumulated amortization	(3,380,380)	(2,938,777)
Net Carrying Amount	6,281,625	6,633,878
Patents and Trademarks [Member]
Gross Carrying Amount	3,315,005	3,225,655
Accumulated amortization	(2,639,897)	(2,515,644)
Net Carrying Amount	675,108	710,011
Customer Relationships [Member]
Gross Carrying Amount	6,347,000	6,347,000
Accumulated amortization	(740,483)	(423,133)
Net Carrying Amount	$ 5,606,517	$ 5,923,867

Note 5 - Intangible Assets, N_5

Note 5 - Intangible Assets, Net - Future Amortization Expense (Details) - USD ($)	May 31, 2023	Aug. 31, 2022
Remainder of fiscal 2023	$ 167,471
Fiscal 2024	589,746
Fiscal 2025	589,746
Fiscal 2026	589,746
Fiscal 2027	589,746
Thereafter	3,755,170
Total	$ 6,281,625	$ 6,633,878

Note 6 - Investments in Joint_3

Note 6 - Investments in Joint Ventures - Condensed Balance Sheet of EXCOR and All Other Joint Ventures (Details) - USD ($)	May 31, 2023	Aug. 31, 2022	May 31, 2003
Current assets	$ 39,289,907	$ 40,234,881
Total assets	87,313,423	86,193,953
Current liabilities	15,550,561	17,065,401
Liabilities, Noncurrent	1,831,914	1,884,256
Joint ventures’ equity	66,397,187	63,595,262
Investments in joint ventures	22,855,448	21,814,754
EXCOR and All Other Joint Venturs [Member]
Investments in joint ventures	22,855,448	21,814,754
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	20,493,861	21,256,923
EXCOR [Member]
Investments in joint ventures	12,982,891	12,494,320
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	12,075,524	12,463,415
All Other [Member]
Investments in joint ventures		9,320,434	$ 9,872,553
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		8,793,508	8,418,337
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Current assets	55,424,661	52,428,831
Total assets	59,769,982	55,854,457
Current liabilities	13,229,032	10,981,833
Liabilities, Noncurrent	300,142	1,138,980
Joint ventures’ equity	46,240,808	43,733,644
EXCOR [Member]
Current assets	26,845,344	26,047,914
Total assets	28,974,034	27,932,532
Current liabilities	3,008,256	2,943,895
Liabilities, Noncurrent	0	0
Joint ventures’ equity	25,965,777	24,988,637
Joint Ventures in France [Member]
Current assets		26,380,917
Total assets		27,921,925
Current liabilities		8,037,938
Liabilities, Noncurrent		1,138,980
Joint ventures’ equity		$ 18,745,007
All Other [Member]
Current assets			28,579,317
Total assets			30,795,948
Current liabilities			10,220,776
Liabilities, Noncurrent	$ 300,142
Joint ventures’ equity			$ 20,275,031

Note 6 - Investments in Joint_4

Note 6 - Investments in Joint Ventures - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Net sales	$ 20,969,726	$ 18,964,921	$ 59,193,317	$ 53,906,973
Gross profit	7,689,142	6,242,088	20,445,452	16,929,353
Net income	1,525,596	1,000,167	2,913,086	5,676,773
Northern Technologies International Corporation’s share of equity in income from joint ventures	1,346,658	1,364,597	3,664,793	3,662,178
EXCOR and All Other Joint Venturs [Member]
Northern Technologies International Corporation’s share of equity in income from joint ventures	1,346,658	1,364,597	3,664,793	3,662,178
Northern Technologies International Corporation's dividends received from joint ventures	45,977	252,000	3,510,716	5,723,176
EXCOR [Member]
Northern Technologies International Corporation’s share of equity in income from joint ventures	828,631	824,784	2,376,575	2,324,605
Northern Technologies International Corporation's dividends received from joint ventures	0	0	2,459,500	4,255,200
All Other [Member]
Northern Technologies International Corporation’s share of equity in income from joint ventures	518,027	539,813	1,288,218	1,337,572
Northern Technologies International Corporation's dividends received from joint ventures	45,977	252,000	1,051,216	1,467,976
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Net sales	26,312,548	26,594,077	76,525,427	78,218,839
Gross profit	10,494,244	10,626,570	30,223,623	31,504,531
Net income	2,692,444	2,714,979	7,308,398	7,344,175
EXCOR [Member]
Net sales	10,735,862	10,397,916	30,590,265	31,010,578
Gross profit	5,085,837	4,990,697	14,539,314	15,118,133
Net income	1,654,151	1,654,389	4,761,608	4,646,123
All Other [Member]
Net sales	15,576,686		45,935,162	47,208,261
Gross profit	5,408,407		15,684,309	16,386,398
Net income	$ 1,038,293		$ 2,546,790	$ 2,698,052
Joint Ventures in France [Member]
Net sales		16,196,160
Gross profit		5,635,873
Net income		$ 1,060,590

Note 7 - Corporate Debt (Detail

Note 7 - Corporate Debt (Details Textual) - USD ($)	Jan. 06, 2023	May 31, 2023	Aug. 31, 2022
Revolving Credit Facility [Member] | JP Morgan Chase Bank [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 10,000,000
Long-Term Line of Credit		$ 5,200,000
CB Floating Rate Floor	2.50%
Debt Instrument, Covenants, Fixed Charge Coverage Ratio	1.25
Revolving Credit Facility [Member] | JP Morgan Chase Bank [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.10%
Revolving Credit Facility [Member] | JP Morgan Chase Bank [Member] | Adjusted SOFR Rate Applicable Margin [Member]
Debt Instrument, Basis Spread on Variable Rate	2.15%
Revolving Credit Facility [Member] | PNC Bank [Member]
Long-Term Line of Credit			$ 5,900,000
Standby Letters of Credit [Member] | JP Morgan Chase Bank [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 5,000,000

Note 8 - Stockholders' Equity_2

Note 8 - Stockholders' Equity (Details Textual) - shares					6 Months Ended
	Mar. 01, 2023	Sep. 01, 2022	Mar. 01, 2022	Sep. 01, 2021	May 31, 2023	May 31, 2022
Stock Repurchased and Retired During Period, Shares (in shares)					0	0
Stock Issued During Period, Shares, Employee Stock Purchase Plans	3,566	3,620	2,966	2,636
ESPP [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant					62,034

Note 10 - Stockholders' Equity

Note 10 - Stockholders' Equity - Cash Dividends Declared (Details) - $ / shares							3 Months Ended		9 Months Ended
	Apr. 21, 2023	Jan. 20, 2023	Oct. 20, 2022	Apr. 22, 2022	Jan. 21, 2022	Oct. 20, 2021	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 0.07	$ 0.07	$ 0.07	$ 0.07	$ 0.07	$ 0.07	$ 0.07	$ 0.07	$ 0.21	$ 0.21
Date of record	May 03, 2023	Feb. 01, 2023	Nov. 03, 2022	May 04, 2022	Feb. 02, 2022	Nov. 03, 2021
Payable date	May 17, 2023	Feb. 15, 2023	Nov. 16, 2022	May 18, 2022	Feb. 16, 2022	Nov. 17, 2021

Note 9 - Net Income Per Commo_3

Note 9 - Net Income Per Common Share (Details Textual) - shares	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	322,246	327,793	322,246	327,793

Note 9 - Net Income Per Commo_4

Note 9 - Net Income Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Net income	$ 1,525,596	$ 1,000,167	$ 2,913,086	$ 5,676,773
Basic – weighted shares outstanding (in shares)	9,369,923	9,227,912	9,355,776	9,216,216
Weighted shares assumed upon exercise of stock options (in shares)	258,146	350,885	346,834	466,430
Diluted – weighted shares outstanding (in shares)	9,628,069	9,578,797	9,702,610	9,682,646
Basic net income per share: (in dollars per share)	$ 0.16	$ 0.11	$ 0.31	$ 0.62
Diluted net income per share: (in dollars per share)	$ 0.16	$ 0.11	$ 0.30	$ 0.59

Note 10 - Stock-based Compens_3

Note 10 - Stock-based Compensation (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 4.87	$ 7.29
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year)			6 years 1 month 28 days	6 years 7 days
Share-Based Payment Arrangement, Expense	$ 339,423	$ 232,883	$ 998,311	$ 698,649
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 1,366,860		$ 1,366,860
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)			2 years 6 months

Note 10 - Stock-based Compens_4

Note 10 - Stock-based Compensation - Stock Option Activity (Details)	9 Months Ended
	May 31, 2023 $ / shares shares
Outstanding as of August 31, 2022 (in shares) | shares	1,544,727
Outstanding as of August 31, 2022 (in dollars per share) | $ / shares	$ 10.23
Granted (in shares) | shares	277,613
Granted (in dollars per share) | $ / shares	$ 11.41
Exercised (in shares) | shares	178,331
Exercised (in dollars per share) | $ / shares	$ 6.03
Outstanding as of February 28, 2023 (in shares) | shares	1,644,009
Outstanding as of May 31, 2023 (in dollars per share) | $ / shares	$ 10.88
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number (in shares) | shares	1,166,772
Number of shares, Exercisable (in dollars per share) | $ / shares	$ 10.51

Note 11 - Segment and Geograp_3

Note 11 - Segment and Geographic Information (Details Textual)	9 Months Ended
	May 31, 2023
Number of Reportable Segments	2

Note 11 - Segment and Geograp_4

Note 11 - Segment and Geographic Information - Net Sales by Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Net sales	$ 20,969,726	$ 18,964,921	$ 59,193,317	$ 53,906,973
Fees	$ 1,361,311	$ 1,329,988	$ 3,795,862	$ 3,835,755
Percentage of fee	100%	100%	100%	100%
POLAND
Fees	$ 224,288	$ 171,181	$ 610,911	$ 520,807
Percentage of fee	16.50%	12.90%	16.10%	13.60%
GERMANY
Fees	$ 209,398	$ 204,316	$ 606,189	$ 639,738
Percentage of fee	15.40%	15.40%	16%	16.70%
JAPAN
Fees	$ 152,593	$ 168,075	$ 454,308	$ 486,815
Percentage of fee	11.20%	12.60%	12%	12.70%
SWEDEN
Fees	$ 144,981	$ 130,681	$ 358,032	$ 337,929
Percentage of fee	10.70%	9.80%	9.40%	8.80%
FRANCE
Fees	$ 128,149	$ 123,869	$ 356,444	$ 355,827
Percentage of fee	9.40%	9.30%	9.40%	9.30%
FINLAND
Fees	$ 103,879	$ 92,036	$ 285,931	$ 257,635
Percentage of fee	7.60%	6.90%	7.50%	6.70%
CZECHIA
Fees	$ 99,090	$ 84,797	$ 270,422	$ 224,280
Percentage of fee	7.30%	6.40%	7.10%	5.80%
THAILAND
Fees	$ 82,725	$ 95,574	$ 257,282	$ 271,046
Percentage of fee	6.10%	7.20%	6.80%	7.10%
UNITED KINGDOM
Fees	$ 83,586	$ 89,363	$ 206,925	$ 271,027
Percentage of fee	6.10%	6.70%	5.50%	7.10%
KOREA, REPUBLIC OF
Fees	$ 61,669	$ 78,542	$ 190,866	$ 205,342
Percentage of fee	4.50%	5.90%	5%	5.40%
Other Countries [Member]
Net sales	$ 3,287,600	$ 2,077,431	$ 8,878,105	$ 6,747,535
Fees	$ 70,953	$ 91,554	$ 198,552	$ 265,309
Percentage of fee	5.20%	6.90%	5.20%	6.80%
ZERUST [Member]
Net sales	$ 16,100,674	$ 14,446,832	$ 45,929,422	$ 41,988,394
NaturTec [Member]
Net sales	$ 4,869,052	$ 4,518,089	$ 13,263,895	$ 11,918,579

Note 11 - Segment and Geograp_5

Note 11 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($)		3 Months Ended		9 Months Ended
		May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Cost of goods sold		$ 13,280,584	$ 12,722,833	$ 38,747,865	$ 36,977,620
Indirect Cost of Goods Sold [Member]
Cost of goods sold		587,817	881,289	2,258,684	2,580,601
ZERUST [Member] | Direct Cost of Goods Sold [Member]
Cost of goods sold		$ 9,116,091	$ 8,409,392	$ 26,410,796	$ 25,267,333
Percent of product sales	[1]	56.60%	58.20%	57.50%	60.20%
NaturTec [Member] | Direct Cost of Goods Sold [Member]
Cost of goods sold		$ 3,576,676	$ 3,432,152	$ 10,078,385	$ 9,129,686
Percent of product sales	[1]	73.50%	76%	76%	76.60%
[1]The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category.

Note 11 - Segment and Geograp_6

Note 11 - Segment and Geographic Information - Net Sales by Geographic Location (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Net sales	$ 20,969,726	$ 18,964,921	$ 59,193,317	$ 53,906,973
Inside the USA to Unaffiliated Customers [Member]
Net sales	7,729,820	6,884,726	21,958,978	18,157,010
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member]
Net sales	732,437	528,665	2,895,665	2,252,618
Unaffiliated Customers Outside the USA [Member]
Net sales	$ 12,507,469	$ 11,551,530	$ 34,338,674	$ 33,497,345

Note 11 - Segment and Geograp_7

Note 11 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Fees	$ 1,361,311	$ 1,329,988	$ 3,795,862	$ 3,835,755
Percentage of fee	100%	100%	100%	100%
POLAND
Fees	$ 224,288	$ 171,181	$ 610,911	$ 520,807
Percentage of fee	16.50%	12.90%	16.10%	13.60%
GERMANY
Fees	$ 209,398	$ 204,316	$ 606,189	$ 639,738
Percentage of fee	15.40%	15.40%	16%	16.70%
JAPAN
Fees	$ 152,593	$ 168,075	$ 454,308	$ 486,815
Percentage of fee	11.20%	12.60%	12%	12.70%
SWEDEN
Fees	$ 144,981	$ 130,681	$ 358,032	$ 337,929
Percentage of fee	10.70%	9.80%	9.40%	8.80%
FRANCE
Fees	$ 128,149	$ 123,869	$ 356,444	$ 355,827
Percentage of fee	9.40%	9.30%	9.40%	9.30%
FINLAND
Fees	$ 103,879	$ 92,036	$ 285,931	$ 257,635
Percentage of fee	7.60%	6.90%	7.50%	6.70%
CZECHIA
Fees	$ 99,090	$ 84,797	$ 270,422	$ 224,280
Percentage of fee	7.30%	6.40%	7.10%	5.80%
THAILAND
Fees	$ 82,725	$ 95,574	$ 257,282	$ 271,046
Percentage of fee	6.10%	7.20%	6.80%	7.10%
UNITED KINGDOM
Fees	$ 83,586	$ 89,363	$ 206,925	$ 271,027
Percentage of fee	6.10%	6.70%	5.50%	7.10%
KOREA, REPUBLIC OF
Fees	$ 61,669	$ 78,542	$ 190,866	$ 205,342
Percentage of fee	4.50%	5.90%	5%	5.40%
Other Countries [Member]
Fees	$ 70,953	$ 91,554	$ 198,552	$ 265,309
Percentage of fee	5.20%	6.90%	5.20%	6.80%

Note 11 - Segment and Geograp_8

Note 11 - Segment and Geographic Information - Total Net Sales by Geographic Distribution (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022	Aug. 31, 2022
Total property and equipment, net	$ 13,810,930		$ 13,810,930		$ 12,170,493
Net sales	20,969,726	$ 18,964,921	59,193,317	$ 53,906,973
CHINA
Total property and equipment, net	5,805,738		5,805,738		5,826,898
Net sales	3,318,373	3,624,396	9,936,808	11,845,989
Other Countries [Member]
Total property and equipment, net	770,863		770,863		565,022
Net sales	3,287,600	2,077,431	8,878,105	6,747,535
BRAZIL
Net sales	1,488,510	1,554,364	4,062,718	3,786,670
UNITED STATES
Total property and equipment, net	7,234,329		7,234,329		$ 5,778,573
Net sales	7,729,820	6,884,726	21,958,978	18,157,010
INDIA
Net sales	$ 5,145,423	$ 4,824,004	$ 14,356,708	$ 13,369,769

Note 12 - Commitments and Con_2

Note 12 - Commitments and Contingencies (Details Textual)	May 31, 2023	May 31, 2022
Entity Wide Trade Joint Venture Receivables, Two Joint Ventures, Percentage	65.10%
Entity Wide Trade, Joint Venture Receivables, One Joint Venture		62.30%

Note 13 - Fair Value Measurem_3

Note 13 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($)	May 31, 2023	Aug. 31, 2022
Available for sale securities	$ 0	$ 5,590
Fair Value, Inputs, Level 1 [Member]
Available for sale securities	0	5,590
Fair Value, Inputs, Level 2 [Member]
Available for sale securities	0	0
Fair Value, Inputs, Level 3 [Member]
Available for sale securities	$ 0	$ 0

Note 14 - Supplemental Cash F_3

Note 14 - Supplemental Cash Flow Information - Supplemental Disclosures of Cash Flow Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Cash paid for interest	$ 136,168	$ 23,784	$ 342,643	$ 34,079

Note 15 - Income Taxes (Details

Note 15 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2023	May 31, 2022	May 31, 2023	May 31, 2022
Income Tax Expense (Benefit)	$ 542,295	$ 604,314	$ 834,823	$ 1,260,437