Northern Technologies International (NTIC) 10-Q 11 Jan 24 2024 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Nov. 30, 2023	Jan. 11, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Nov. 30, 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)		9,427,598
Entity Central Index Key	0000875582
Current Fiscal Year End Date	--08-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Nov. 30, 2023	Aug. 31, 2023
CURRENT ASSETS:
Cash and cash equivalents	$ 6,094,032	$ 5,406,173
Receivables:
Trade excluding joint ventures, less allowance for doubtful accounts of $533,000 as of November 30, 2023 and August 31, 2023	14,239,360	15,645,130
Trade, joint ventures	778,625	187,912
Fees for services provided to joint ventures	1,220,680	1,296,594
Dividend receivable from joint venture	320,068	1,986,027
Income taxes	0	34,202
Inventories	12,592,515	13,096,489
Prepaid expenses	3,024,134	2,019,029
Total current assets	38,269,414	39,671,556
PROPERTY AND EQUIPMENT, NET	14,256,990	14,065,354
OTHER ASSETS:
Investments in joint ventures	24,599,520	23,705,714
Deferred income tax, net	521,329	530,944
Intangible asset, net	6,044,972	6,159,485
Goodwill	4,782,376	4,782,376
Operating lease right of use assets	327,463	428,874
Total other assets	36,275,660	35,607,393
Total assets	88,802,064	89,344,303
CURRENT LIABILITIES:
Line of credit	3,000,000	3,600,000
Term loan	2,810,686	2,757,176
Accounts payable	6,353,859	6,056,329
Income taxes payable	22,619	13,053
Accrued liabilities:
Payroll and related benefits	1,604,119	2,305,400
Other	1,831,105	1,648,615
Current portion of operating leases	231,881	340,799
Total current liabilities	15,854,269	16,721,372
LONG-TERM LIABILITIES:
Deferred income tax, net	1,836,059	1,836,059
Operating leases, less current portion	95,582	88,075
Total long-term liabilities	1,931,641	1,924,134
Commitments and Contingencies
EQUITY:
Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding	0	0
Common stock, $0.02 par value per share; authorized 15,000,000 shares as of November 30, 2023 and August 31, 2023; issued and outstanding 9,427,598 and 9,424,101, respectively	188,552	188,482
Additional paid-in capital	22,377,726	21,986,767
Retained earnings	51,240,016	51,004,427
Accumulated other comprehensive loss	(6,516,461)	(6,823,403)
Stockholders’ equity	67,289,833	66,356,273
Non-controlling interests	3,726,321	4,342,524
Total equity	71,016,154	70,698,797
Total liabilities and equity	88,802,064	89,344,303
Intangible Assets Excluding Patents and Trademarks [Member]
OTHER ASSETS:
Intangible asset, net	5,394,950	5,500,733
Patents and Trademarks [Member]
OTHER ASSETS:
Intangible asset, net	$ 650,022	$ 658,752

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Nov. 30, 2023	Aug. 31, 2023
Accounts Receivable, Allowance for Credit Loss, Current	$ 533,000	$ 533,000
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	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, Issued (in shares)	9,427,598	9,424,101
Common Stock, Shares, Outstanding (in shares)	9,427,598	9,424,101

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
NET SALES:
Net sales	$ 20,181,675	$ 19,952,766
Cost of goods sold	12,847,401	13,599,642
Gross profit	7,334,274	6,353,124
JOINT VENTURE OPERATIONS:
Equity in income from joint ventures	1,102,241	1,189,404
Fees for services provided to joint ventures	1,248,958	1,181,805
Total joint venture operations	2,351,199	2,371,209
OPERATING EXPENSES:
Selling expenses	3,686,058	3,507,434
General and administrative expenses	3,517,061	3,130,599
Research and development expenses	1,105,921	1,256,724
Total operating expenses	8,309,040	7,894,757
OPERATING INCOME	1,376,433	829,576
INTEREST INCOME	46,442	6,168
INTEREST EXPENSE	(111,138)	(91,331)
INCOME BEFORE INCOME TAX EXPENSE	1,311,737	744,413
INCOME TAX EXPENSE	226,796	110,733
NET INCOME	1,084,941	633,680
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	189,420	131,438
NET INCOME ATTRIBUTABLE TO NTIC	$ 895,521	$ 502,242
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE:
Basic (in dollars per share)	$ 0.09	$ 0.05
Diluted (in dollars per share)	$ 0.09	$ 0.05
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING:
Basic (in shares)	9,427,588	9,317,680
Diluted (in shares)	9,706,581	9,718,931
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 0.07	$ 0.07

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
NET INCOME	$ 1,084,941	$ 633,680
OTHER COMPREHENSIVE INCOME (LOSS) – FOREIGN CURRENCY TRANSLATION ADJUSTMENT	301,319	(53,917)
COMPREHENSIVE INCOME	1,386,260	579,763
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	(183,797)	138,225
COMPREHENSIVE INCOME ATTRIBUTABLE TO NTIC	$ 1,202,463	$ 717,988

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, 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 options exercised (in shares)	130,254
Stock options exercised	$ 2,605	413,958	0	0	0	416,563
Stock issued for employee stock purchase plan (in shares)	3,620
Stock issued for employee stock purchase plan	$ 72	38,624	0	0	0	38,696
Stock option expense	0	329,522	0	0	0	329,522
Dividend received by non-controlling interest	0	0	0	0	(80,000)	(80,000)
Dividends paid to shareholders	0	0	(655,645)	0	0	(655,645)
Net income	0	0	502,242	0	131,438	633,680
Other comprehensive income (loss)	$ 0	0	0	(60,704)	6,787	(53,917)
BALANCE (in shares) at Nov. 30, 2022	9,366,357
BALANCE at Nov. 30, 2022	$ 187,327	20,721,235	50,563,210	(7,305,836)	3,707,259	67,873,195
BALANCE (in shares) at Aug. 31, 2023	9,424,101
BALANCE at Aug. 31, 2023	$ 188,482	21,986,767	51,004,427	(6,823,403)	4,342,524	70,698,797
Stock options exercised (in shares)	0
Stock options exercised	$ 0	350,933	0	0	0	350,933
Stock issued for employee stock purchase plan (in shares)	3,496
Stock issued for employee stock purchase plan	$ 70	40,026	0	0	0	40,096
Dividend received by non-controlling interest	0	0	0	0	(800,000)	(800,000)
Dividends paid to shareholders	0	0	(659,932)	0	0	(659,932)
Net income	0	0	895,521	0	189,420	1,084,941
Other comprehensive income (loss)	$ 0	0	0	306,942	(5,623)	301,319
BALANCE (in shares) at Nov. 30, 2023	9,427,597
BALANCE at Nov. 30, 2023	$ 188,552	$ 22,377,726	$ 51,240,016	$ (6,516,461)	$ 3,726,321	$ 71,016,154

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME	$ 1,084,941	$ 633,680
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	350,933	329,522
Depreciation expense	307,010	262,876
Amortization expense	147,655	147,811
Equity in income from joint ventures	(1,102,241)	(1,189,404)
Dividends received from joint ventures	371,103	3,042,688
Deferred income taxes	15,335	(54,376)
Changes in current assets and liabilities:
Trade, excluding joint ventures	1,385,108	(539,925)
Trade, joint ventures	(590,713)	104,260
Fees for services provided to joint ventures	75,914	641,639
Dividends receivable from joint venture	1,986,027	0
Income taxes	(285,866)	(226,731)
Inventories	525,559	948,661
Prepaid expenses and other	(929,250)	(252,301)
Accounts payable	270,194	(1,573,008)
Income tax payable	9,594	(18,407)
Accrued liabilities	(544,411)	(254,442)
Net cash provided by operating activities	3,076,892	2,002,543
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(390,729)	(409,094)
Investments in patents	(33,142)	(44,445)
Net cash used in investing activities	(423,871)	(453,539)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net payments on line of credit	(600,000)	(450,000)
Dividends paid on NTIC common stock	(659,932)	(655,645)
Proceeds from exercise of stock options	0	416,563
Dividend received by non-controlling interest	(800,000)	(80,000)
Proceeds from employee stock purchase plan	40,096	38,696
Net cash (used in) provided by financing activities	(2,019,836)	(730,386)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	54,673	(86,187)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	687,858	732,431
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	5,406,174	5,333,890
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 6,094,032	$ 6,066,321

Note 1 - Interim Financial Info

Note 1 - Interim Financial Information	3 Months Ended
	Nov. 30, 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 November 30, 2023 and August 31, 2023 and the results of the Company’s operations for the three months ended November 30, 2023 and 2022, the changes in stockholders’ equity for the three months ended November 30, 2023 and 2022 and the Company’s cash flows for the three months ended November 30, 2023 and 2022, in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). 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, 2023. 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 months ended November 30, 2023 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 31, 2024. The Company evaluates events occurring after the date of the consolidated financial statements, through the date the consolidated financial statements were available to be issued, requiring recording or disclosure in the consolidated financial statements.

Note 2 - Accounting Pronounceme

Note 2 - Accounting Pronouncements	3 Months Ended
	Nov. 30, 2023
Notes to Financial Statements
Accounting Standards Update and Change in Accounting Principle [Text Block]	2. ACCOUNTING PRONOUNCEMENTS Recently Adopted 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	3 Months Ended
	Nov. 30, 2023
Notes to Financial Statements
Inventory Disclosure [Text Block]	3. INVENTORIES Inventories consisted of the following: November 30, 2023 August 31, 2023 Production materials $ 4,580,739 $ 4,960,355 Finished goods 8,011,776 8,136,134 $ 12,592,515 $ 13,096,489

Note 4 - Property and Equipment

Note 4 - Property and Equipment, Net	3 Months Ended
	Nov. 30, 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: November 30, 2023 August 31, 2023 Land $ 496,965 $ 496,965 Buildings and improvements 17,649,550 17,250,392 Machinery and equipment 6,050,458 5,984,364 24,196,973 23,731,721 Less accumulated depreciation (9,939,983 ) (9,666,367 ) $ 14,256,990 $ 14,065,354 Depreciation expense was $307,010 for the three months ended November 30, 2023, compared to $262,876 for the three months ended November 30, 2022.

Note 5 - Intangible Assets, Net

Note 5 - Intangible Assets, Net	3 Months Ended
	Nov. 30, 2023
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	5. INTANGIBLE ASSETS, NET Intangible assets, net consisted of the following: As of November 30, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and trademarks $ 3,372,859 $ (2,722,837 ) $ 650,022 Customer relationships 6,347,000 (952,050 ) 5,394,950 Total intangible assets, net $ 9,719,859 $ (3,674,887 ) $ 6,044,972 As of August 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and trademarks $ 3,339,717 $ (2,680,965 ) $ 658,752 Customer relationships 6,347,000 (846,267 ) 5,500,733 Total intangible assets, net $ 9,686,717 $ (3,527,232 ) $ 6,159,485 Amortization expense related to intangible assets was $147,655 and $147,811 for the three months ended November 30, 2023 and 2022, respectively. As of November 30, 2023, future amortization expense related to intangible assets for each of the next five fiscal years and thereafter is estimated as follows: Fiscal 2024 $ 528,439 Fiscal 2025 543,721 Fiscal 2026 517,990 Fiscal 2027 492,221 Fiscal 2028 479,012 Thereafter 3,483,589 Total $ 6,044,972

Note 6 - Investments in Joint V

Note 6 - Investments in Joint Ventures	3 Months Ended
	Nov. 30, 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 November 30, 2023 Total EXCOR All Other Current assets $ 58,856,062 $ 28,976,285 $ 29,879,777 Total assets 63,316,496 31,258,136 32,058,360 Current liabilities 13,323,941 2,674,730 10,649,211 Noncurrent liabilities 300,465 — 300,465 Joint ventures’ equity 49,692,091 28,583,406 21,108,685 NTIC’s share of joint ventures’ equity 24,599,516 14,291,705 10,307,811 NTIC’s share of joint ventures’ undistributed earnings 23,654,848 14,260,800 9,394,048 Three Months Ended November 30, 2023 Total EXCOR All Other Net sales $ 23,560,661 $ 8,420,960 $ 15,139,701 Gross profit 10,103,800 4,375,075 5,728,725 Net income 2,204,482 1,026,907 1,177,575 NTIC’s share of equity in income from joint ventures 1,102,241 513,453 588,788 NTIC’s dividends received from joint ventures 371,104 — 371,104 As of August 31, 2023 Total EXCOR All Other Current assets $ 55,339,662 $ 27,862,458 $ 27,477,204 Total assets 59,729,348 30,054,277 29,675,071 Current liabilities 11,464,247 2,687,064 8,777,183 Noncurrent liabilities 323,762 — 323,762 Joint ventures’ equity 47,941,339 27,367,213 20,574,126 NTIC’s share of joint ventures’ equity 23,705,714 13,683,608 10,022,106 NTIC’s share of joint ventures’ undistributed earnings 20,493,861 12,075,524 8,418,337 Three Months Ended November 30, 2022 Total EXCOR All Other Net sales $ 24,730,289 $ 10,145,921 $ 14,584,368 Gross profit 9,693,568 4,720,042 4,973,526 Net income 2,646,908 1,742,287 904,621 NTIC’s share of equity in income from joint ventures 1,189,400 871,144 318,260 NTIC’s dividends received from joint ventures 3,042,688 2,459,500 583,188

Note 7 - Corporate Debt

Note 7 - Corporate Debt	3 Months Ended
	Nov. 30, 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 $3,000,000 and $3,600,000 under this Credit Agreement were outstanding as of November 30, 2023 and August 31, 2023, respectively. Unless terminated earlier, the principal amount under the Credit Facility, together with all accrued unpaid interest and other amounts owing thereunder, if any, will be payable in full on the maturity date. On January 5, 2024, the Company and JPM renewed its Credit Agreement to extend the maturity date of the Credit Facility from January 6, 2024 to January 6, 2025. All other terms of the Credit Facility and the Credit Agreement remain the same. 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 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 Company was in compliance with all covenants as of November 30, 2023. 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. 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 November 30, 2023. The current outstanding balance for both term loans was USD $2,810,686 as of November 30, 2023 and USD $2,757,176 as of August 31, 2023.

Note 8 - Stockholders' Equity

Note 8 - Stockholders' Equity	3 Months Ended
	Nov. 30, 2023
Notes to Financial Statements
Equity [Text Block]	8. STOCKHOLDERS EQUITY On October 18, 2023, the Company’s Board of Directors declared a cash dividend of $0.07 per share of the Company’s common stock, payable on November 15, 2023 to stockholders of record on November 1, 2023. On October 20, 2022, the Company’s Board of Directors declared a cash dividend of $0.07 per share of the Company’s common stock, payable on November 16, 2022 to stockholders of record on November 3, 2022. During the three months ended November 30, 2023 and 2022, the Company repurchased no The Company issued 3,496 and 3,620 shares of common stock on September 1, 2023 and 2022, respectively, under the Northern Technologies International Corporation Employee Stock Purchase Plan (the ESPP). The ESPP is compensatory for financial reporting purposes. As of November 30, 2023, 58,538 shares of common stock remained available for sale under the ESPP.

Note 9 - Net Income Per Common

Note 9 - Net Income Per Common Share	3 Months Ended
	Nov. 30, 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 months ended November 30, 2023 and 2022: Three Months Ended November 30, 2023 November 30, 2022 Numerator: Net income attributable to NTIC $ 895,521 $ 502,242 Denominator: Basic – weighted shares outstanding 9,427,588 9,317,680 Weighted shares assumed upon exercise of stock options 278,993 401,251 Diluted – weighted shares outstanding 9,706,581 9,718,931 Basic net income per share: $ 0.09 $ 0.05 Diluted net income per share: $ 0.09 $ 0.05 The dilutive impact summarized above relates to the periods when the average market price of the Company’s common stock exceeded the exercise price of the potentially dilutive option securities granted. Net income per common share was based on the weighted average number of common shares outstanding during the periods when computing basic net income per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted net income per share. Excluded from the computation of diluted net income per share for the three months ended November 30, 2023 were options outstanding to purchase 580,869 shares of common stock. Excluded from the computation of diluted net income per share for the three months ended November 30, 2022 were options outstanding to purchase 305,514 shares of common stock.

Note 10 - Stock-based Compensat

Note 10 - Stock-based Compensation	3 Months Ended
	Nov. 30, 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 Options Outstanding Weighted Average Exercise Price Outstanding as of August 31, 2023 1,557,131 $ 11.08 Granted 269,845 $ 13.25 Exercised — — Cancelled/Forfeited — — Outstanding as of November 30, 2023 1,826,976 $ 11.40 The weighted average per share fair value of options granted during the three months ended November 30, 2023 and 2022 was $5.05 and $4.85, respectively. The weighted average remaining contractual life of the options outstanding as of November 30, 2023 and 2022 was 6.55 years and 6.66 years, respectively. The Company recognized compensation expense of $350,933 and $329,522 during the three months ended November 30, 2023 and 2022, respectively. As of November 30, 2023, there was $2,037,871 of unrecognized compensation expense. The amount is expected to be recognized over a period of 2.75 years.

Note 11 - Segment and Geographi

Note 11 - Segment and Geographic Information	3 Months Ended
	Nov. 30, 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 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 years and, more recently, has targeted and expanded into the oil and gas industry. The Company also sells a portfolio of bio-based and compostable (fully biodegradable) polymer resins and finished products under the Natur-Tec® brand. The following table sets forth the Company’s net sales for the three months ended November 30, 2023 and 2022 by segment: Three Months Ended November 30, 2023 November 30, 2022 ZERUST® net sales $ 15,405,745 $ 15,370,001 Natur-Tec® net sales 4,775,930 4,582,765 Total net sales $ 20,181,675 $ 19,952,766 The following table sets forth the Company’s cost of goods sold for the three months ended November 30, 2023 and 2022 by segment: November 30, 2023 % of Product Sales* November 30, 2022 % of Product Sales* Direct cost of goods sold ZERUST® $ 8,744,024 56.8 % $ 9,179,254 59.7 % Natur-Tec® 3,228,583 67.6 % 3,570,673 77.9 % Indirect cost of goods sold 874,794 NA 849,715 NA Total net cost of goods sold …. $ 12,847,401 $ 13,599,642 * 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 months ended November 30, 2023 and 2022 were as follows: Three Months Ended November 30, 2023 November 30, 2022 Inside the U.S.A. to unaffiliated customers $ 12,097,843 $ 7,478,161 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 851,452 633,465 Unaffiliated customers 7,232,380 11,841,140 $ 20,181,675 $ 19,952,766 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 months ended November 30, 2023 and 2022 were as follows: Three Months Ended November 30, % of Total Fees for Services Provided to Joint Ventures November 30, % of Total Fees for Services Provided to Joint Ventures Germany $ 205,643 16.5 % $ 193,828 16.4 % Poland 198,017 15.9 % 186,696 15.8 % Japan 136,081 10.9 % 147,920 12.5 % France 121,966 9.8 % 109,357 9.3 % Sweden 110,536 8.9 % 100,436 8.5 % Finland 103,744 8.3 % 90,432 7.7 % Thailand 79,438 6.4 % 82,956 7.0 % Czech Republic 77,812 6.2 % 80,332 6.8 % South Korea 74,957 6.0 % 63,395 5.4 % United Kingdom 63,149 5.1 % 57,691 4.9 % Other 77,615 6.2 % 68,762 5.7 % $ 1,248,958 100.0 % $ 1,181,805 100.0 % The geographical distribution of total property and equipment and net sales is as follows: At November 30, 2023 At August 31, 2023 China $ 5,801,146 $ 5,729,080 Other 817,898 745,469 United States 7,637,946 7,590,805 Total property and equipment, net $ 14,256,990 $ 14,065,354 Three Months Ended November 30, 2023 November 30, 2022 China $ 3,678,523 $ 3,746,640 Brazil 1,529,623 1,367,418 India 5,180,391 4,846,927 Other 2,560,757 2,513,620 United States 7,232,381 7,478,161 Total net sales $ 20,181,675 $ 19,952,766 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®

Note 12 - Commitments and Conti

Note 12 - Commitments and Contingencies	3 Months Ended
	Nov. 30, 2023
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	12. COMMITMENTS AND CONTINGENCIES Concentrations Three joint ventures (consisting of the Company’s joint ventures in Korea, Thailand and Japan) accounted for 68.2% of the Company’s trade joint venture receivables as of November 30, 2023, and two joint ventures (consisting of the Company’s joint ventures in United States and South Korea) accounted for 40.1% of the Company’s trade joint venture receivables as of August 31, 2023. 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 November 30, 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 - Supplemental Cash Flo

Note 13 - Supplemental Cash Flow Information	3 Months Ended
	Nov. 30, 2023
Notes to Financial Statements
Cash Flow, Supplemental Disclosures [Text Block]	13. SUPPLEMENTAL CASH FLOW INFORMATION Supplemental disclosures of cash flow information consisted of: Three Months Ended November 30, 2023 November 30, 2022 Cash paid for interest $ 111,138 $ 91,331

Note 14 - Income Taxes

Note 14 - Income Taxes	3 Months Ended
	Nov. 30, 2023
Notes to Financial Statements
Income Tax Disclosure [Text Block]	14. INCOME TAXES Income tax expense for the three months ended November 30, 2023 was $226,796 compared to $110,733 for the three months ended November 30, 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 November 30, 2023 and August 31, 2023.

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Nov. 30, 2023
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]	5 OTHER INFORMATION Extension of Credit Facility On January 5, 2024, the Company and JPM renewed its Credit Agreement to extend the maturity date of the Credit Facility from January 6, 2024 to January 6, 2025. All other terms of the Credit Facility and the Credit Agreement remain the same. The foregoing represents only a summary of the material terms of the line of credit note, does not purport to be complete and is qualified in its entirety by reference to the complete text of the line of credit note, which is filed as Exhibit 10.1 to this report, and is incorporated by reference herein.
Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false

Note 3 - Inventories (Tables)

Note 3 - Inventories (Tables)	3 Months Ended
	Nov. 30, 2023
Notes Tables
Schedule of Inventory, Current [Table Text Block]	November 30, 2023 August 31, 2023 Production materials $ 4,580,739 $ 4,960,355 Finished goods 8,011,776 8,136,134 $ 12,592,515 $ 13,096,489

Note 4 - Property and Equipme_2

Note 4 - Property and Equipment, Net (Tables)	3 Months Ended
	Nov. 30, 2023
Notes Tables
Property, Plant and Equipment [Table Text Block]	November 30, 2023 August 31, 2023 Land $ 496,965 $ 496,965 Buildings and improvements 17,649,550 17,250,392 Machinery and equipment 6,050,458 5,984,364 24,196,973 23,731,721 Less accumulated depreciation (9,939,983 ) (9,666,367 ) $ 14,256,990 $ 14,065,354

Note 5 - Intangible Assets, N_2

Note 5 - Intangible Assets, Net (Tables)	3 Months Ended
	Nov. 30, 2023
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	As of November 30, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and trademarks $ 3,372,859 $ (2,722,837 ) $ 650,022 Customer relationships 6,347,000 (952,050 ) 5,394,950 Total intangible assets, net $ 9,719,859 $ (3,674,887 ) $ 6,044,972 As of August 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and trademarks $ 3,339,717 $ (2,680,965 ) $ 658,752 Customer relationships 6,347,000 (846,267 ) 5,500,733 Total intangible assets, net $ 9,686,717 $ (3,527,232 ) $ 6,159,485
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Fiscal 2024 $ 528,439 Fiscal 2025 543,721 Fiscal 2026 517,990 Fiscal 2027 492,221 Fiscal 2028 479,012 Thereafter 3,483,589 Total $ 6,044,972

Note 6 - Investments in Joint_2

Note 6 - Investments in Joint Ventures (Tables)	3 Months Ended
	Nov. 30, 2023
Notes Tables
Condensed Balance Sheet [Table Text Block]	As of November 30, 2023 Total EXCOR All Other Current assets $ 58,856,062 $ 28,976,285 $ 29,879,777 Total assets 63,316,496 31,258,136 32,058,360 Current liabilities 13,323,941 2,674,730 10,649,211 Noncurrent liabilities 300,465 — 300,465 Joint ventures’ equity 49,692,091 28,583,406 21,108,685 NTIC’s share of joint ventures’ equity 24,599,516 14,291,705 10,307,811 NTIC’s share of joint ventures’ undistributed earnings 23,654,848 14,260,800 9,394,048 As of August 31, 2023 Total EXCOR All Other Current assets $ 55,339,662 $ 27,862,458 $ 27,477,204 Total assets 59,729,348 30,054,277 29,675,071 Current liabilities 11,464,247 2,687,064 8,777,183 Noncurrent liabilities 323,762 — 323,762 Joint ventures’ equity 47,941,339 27,367,213 20,574,126 NTIC’s share of joint ventures’ equity 23,705,714 13,683,608 10,022,106 NTIC’s share of joint ventures’ undistributed earnings 20,493,861 12,075,524 8,418,337
Condensed Income Statement [Table Text Block]	Three Months Ended November 30, 2023 Total EXCOR All Other Net sales $ 23,560,661 $ 8,420,960 $ 15,139,701 Gross profit 10,103,800 4,375,075 5,728,725 Net income 2,204,482 1,026,907 1,177,575 NTIC’s share of equity in income from joint ventures 1,102,241 513,453 588,788 NTIC’s dividends received from joint ventures 371,104 — 371,104 Three Months Ended November 30, 2022 Total EXCOR All Other Net sales $ 24,730,289 $ 10,145,921 $ 14,584,368 Gross profit 9,693,568 4,720,042 4,973,526 Net income 2,646,908 1,742,287 904,621 NTIC’s share of equity in income from joint ventures 1,189,400 871,144 318,260 NTIC’s dividends received from joint ventures 3,042,688 2,459,500 583,188

Note 9 - Net Income Per Commo_2

Note 9 - Net Income Per Common Share (Tables)	3 Months Ended
	Nov. 30, 2023
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended November 30, 2023 November 30, 2022 Numerator: Net income attributable to NTIC $ 895,521 $ 502,242 Denominator: Basic – weighted shares outstanding 9,427,588 9,317,680 Weighted shares assumed upon exercise of stock options 278,993 401,251 Diluted – weighted shares outstanding 9,706,581 9,718,931 Basic net income per share: $ 0.09 $ 0.05 Diluted net income per share: $ 0.09 $ 0.05

Note 10 - Stock-based Compens_2

Note 10 - Stock-based Compensation (Tables)	3 Months Ended
	Nov. 30, 2023
Notes Tables
Share-Based Payment Arrangement, Option, Activity [Table Text Block]	Number of Options Outstanding Weighted Average Exercise Price Outstanding as of August 31, 2023 1,557,131 $ 11.08 Granted 269,845 $ 13.25 Exercised — — Cancelled/Forfeited — — Outstanding as of November 30, 2023 1,826,976 $ 11.40

Note 11 - Segment and Geograp_2

Note 11 - Segment and Geographic Information (Tables)	3 Months Ended
	Nov. 30, 2023
Notes Tables
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	Three Months Ended November 30, 2023 November 30, 2022 ZERUST® net sales $ 15,405,745 $ 15,370,001 Natur-Tec® net sales 4,775,930 4,582,765 Total net sales $ 20,181,675 $ 19,952,766 Three Months Ended November 30, % of Total Fees for Services Provided to Joint Ventures November 30, % of Total Fees for Services Provided to Joint Ventures Germany $ 205,643 16.5 % $ 193,828 16.4 % Poland 198,017 15.9 % 186,696 15.8 % Japan 136,081 10.9 % 147,920 12.5 % France 121,966 9.8 % 109,357 9.3 % Sweden 110,536 8.9 % 100,436 8.5 % Finland 103,744 8.3 % 90,432 7.7 % Thailand 79,438 6.4 % 82,956 7.0 % Czech Republic 77,812 6.2 % 80,332 6.8 % South Korea 74,957 6.0 % 63,395 5.4 % United Kingdom 63,149 5.1 % 57,691 4.9 % Other 77,615 6.2 % 68,762 5.7 % $ 1,248,958 100.0 % $ 1,181,805 100.0 %
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block]	November 30, 2023 % of Product Sales* November 30, 2022 % of Product Sales* Direct cost of goods sold ZERUST® $ 8,744,024 56.8 % $ 9,179,254 59.7 % Natur-Tec® 3,228,583 67.6 % 3,570,673 77.9 % Indirect cost of goods sold 874,794 NA 849,715 NA Total net cost of goods sold …. $ 12,847,401 $ 13,599,642
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	Three Months Ended November 30, 2023 November 30, 2022 Inside the U.S.A. to unaffiliated customers $ 12,097,843 $ 7,478,161 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 851,452 633,465 Unaffiliated customers 7,232,380 11,841,140 $ 20,181,675 $ 19,952,766
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	At November 30, 2023 At August 31, 2023 China $ 5,801,146 $ 5,729,080 Other 817,898 745,469 United States 7,637,946 7,590,805 Total property and equipment, net $ 14,256,990 $ 14,065,354
Revenue from External Customers by Geographic Areas [Table Text Block]	Three Months Ended November 30, 2023 November 30, 2022 China $ 3,678,523 $ 3,746,640 Brazil 1,529,623 1,367,418 India 5,180,391 4,846,927 Other 2,560,757 2,513,620 United States 7,232,381 7,478,161 Total net sales $ 20,181,675 $ 19,952,766

Note 13 - Supplemental Cash F_2

Note 13 - Supplemental Cash Flow Information (Tables)	3 Months Ended
	Nov. 30, 2023
Notes Tables
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	Three Months Ended November 30, 2023 November 30, 2022 Cash paid for interest $ 111,138 $ 91,331

Note 3 - Inventories - Inventor

Note 3 - Inventories - Inventories (Details) - USD ($)	Nov. 30, 2023	Aug. 31, 2023
Production materials	$ 4,580,739	$ 4,960,355
Finished goods	8,011,776	8,136,134
Inventory, Net	$ 12,592,515	$ 13,096,489

Note 4 - Property and Equipme_3

Note 4 - Property and Equipment, Net (Details Textual) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Depreciation expense	$ 307,010	$ 262,876

Note 4 - Property and Equipme_4

Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($)	Nov. 30, 2023	Aug. 31, 2023
Land	$ 496,965	$ 496,965
Buildings and improvements	17,649,550	17,250,392
Machinery and equipment	6,050,458	5,984,364
Property, Plant and Equipment, Gross	24,196,973	23,731,721
Less accumulated depreciation	(9,939,983)	(9,666,367)
Property, Plant and Equipment, Net	$ 14,256,990	$ 14,065,354

Note 5 - Intangible Assets, N_3

Note 5 - Intangible Assets, Net (Details Textual) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Amortization of Intangible Assets	$ 147,655	$ 147,811

Note 5 - Intangible Assets, N_4

Note 5 - Intangible Assets, Net - Intangible Assets, Net (Details) - USD ($)	Nov. 30, 2023	Aug. 31, 2023
Gross Carrying Amount	$ 9,719,859	$ 9,686,717
Accumulated Amortization	(3,674,887)	(3,527,232)
Net Carrying Amount	6,044,972	6,159,485
Intangible asset, net	6,044,972	6,159,485
Patents and Trademarks [Member]
Gross Carrying Amount	3,372,859	3,339,717
Accumulated Amortization	(2,722,837)	(2,680,965)
Net Carrying Amount	650,022	658,752
Intangible asset, net	650,022	658,752
Customer Relationships [Member]
Gross Carrying Amount	6,347,000	6,347,000
Accumulated Amortization	(952,050)	(846,267)
Net Carrying Amount	5,394,950	5,500,733
Intangible asset, net	$ 5,394,950	$ 5,500,733

Note 5 - Intangible Assets, N_5

Note 5 - Intangible Assets, Net - Future Amortization Expense (Details) - USD ($)	Nov. 30, 2023	Aug. 31, 2023
Fiscal 2024	$ 528,439
Fiscal 2025	543,721
Fiscal 2026	517,990
Fiscal 2027	492,221
Fiscal 2028	479,012
Thereafter	3,483,589
Total	$ 6,044,972	$ 6,159,485

Note 6 - Investments in Joint_3

Note 6 - Investments in Joint Ventures - Condensed Balance Sheet of EXCOR and All Other Joint Ventures (Details) - USD ($)	Nov. 30, 2023	Aug. 31, 2023
Current assets	$ 38,269,414	$ 39,671,556
Total assets	88,802,064	89,344,303
Current liabilities	15,854,269	16,721,372
Noncurrent liabilities	1,931,641	1,924,134
Joint ventures’ equity	67,289,833	66,356,273
Investments in joint ventures	24,599,520	23,705,714
EXCOR and All Other Joint Venturs [Member]
Investments in joint ventures	24,599,516	23,705,714
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	23,654,848	20,493,861
EXCOR [Member]
Investments in joint ventures	14,291,705	13,683,608
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	14,260,800	12,075,524
All Other [Member]
Investments in joint ventures	10,307,811	10,022,106
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	9,394,048	8,418,337
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Current assets	58,856,062	55,339,662
Total assets	63,316,496	59,729,348
Current liabilities	13,323,941	11,464,247
Noncurrent liabilities	300,465	323,762
Joint ventures’ equity	49,692,091	47,941,339
EXCOR [Member]
Current assets	28,976,285	27,862,458
Total assets	31,258,136	30,054,277
Current liabilities	2,674,730	2,687,064
Noncurrent liabilities	0	0
Joint ventures’ equity	28,583,406	27,367,213
Joint Ventures in France [Member]
Current assets		27,477,204
Total assets		29,675,071
Current liabilities		8,777,183
Noncurrent liabilities		323,762
Joint ventures’ equity		$ 20,574,126
All Other [Member]
Current assets	29,879,777
Total assets	32,058,360
Current liabilities	10,649,211
Noncurrent liabilities	300,465
Joint ventures’ equity	$ 21,108,685

Note 6 - Investments in Joint_4

Note 6 - Investments in Joint Ventures - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Net sales	$ 20,181,675	$ 19,952,766
Gross profit	7,334,274	6,353,124
Net income	895,521	502,242
Northern Technologies International Corporation’s share of equity in income of joint ventures	1,102,241	1,189,404
EXCOR and All Other Joint Venturs [Member]
Net income	2,204,482	2,646,908
Northern Technologies International Corporation’s share of equity in income of joint ventures	1,102,241	1,189,400
Northern Technologies International Corporation’s dividends received from joint ventures	371,104	3,042,688
EXCOR [Member]
Net income	1,026,907	1,742,287
Northern Technologies International Corporation’s share of equity in income of joint ventures	513,453	871,144
Northern Technologies International Corporation’s dividends received from joint ventures	0	2,459,500
All Other [Member]
Net income	1,177,575	904,621
Northern Technologies International Corporation’s share of equity in income of joint ventures	588,788	318,260
Northern Technologies International Corporation’s dividends received from joint ventures	371,104	583,188
EXCOR and All Other Joint Venturs [Member]
Net sales	23,560,661	24,730,289
Gross profit	10,103,800	9,693,568
EXCOR [Member]
Net sales	8,420,960	10,145,921
Gross profit	4,375,075	4,720,042
All Other [Member]
Net sales	15,139,701	14,584,368
Gross profit	$ 5,728,725	$ 4,973,526

Note 7 - Corporate Debt (Detail

Note 7 - Corporate Debt (Details Textual)	Jan. 06, 2023 USD ($)	Nov. 30, 2023 USD ($)	Aug. 31, 2023 USD ($)	May 30, 2023 USD ($)	May 30, 2023 CNY (¥)	Apr. 10, 2023 USD ($)	Apr. 10, 2023 CNY (¥)
Term Loan in April [Member] | NTIC China [Member]
Debt Instrument, Face Amount						$ 1,450,000	¥ 10,000,000
Debt Instrument, Interest Rate, Stated Percentage						3.25%	3.25%
Long-Term Debt		$ 2,810,686	$ 2,757,176
Term Loan in May [Member] | NTIC China [Member]
Debt Instrument, Face Amount				$ 1,450,000	¥ 10,000,000
Debt Instrument, Interest Rate, Stated Percentage				3.25%	3.25%
Long-Term Debt		2,810,686	2,757,176
Revolving Credit Facility [Member] | JP Morgan Chase Bank [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 10,000,000
Long-Term Line of Credit		$ 3,000,000	$ 3,600,000
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%
Standby Letters of Credit [Member] | JP Morgan Chase Bank [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 5,000,000

Note 8 - Stockholders' Equity (

Note 8 - Stockholders' Equity (Details Textual) - $ / shares					3 Months Ended
	Oct. 18, 2023	Sep. 01, 2023	Oct. 20, 2022	Sep. 01, 2022	Nov. 30, 2023	Nov. 30, 2022
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 0.07		$ 0.07		$ 0.07	$ 0.07
Dividends Payable, Date Declared	Nov. 15, 2023		Nov. 16, 2022
Stock Repurchased and Retired During Period, Shares (in shares)					0	0
Stock Issued During Period, Shares, Employee Stock Purchase Plans		3,496		3,620
ESPP [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant					58,538

Note 9 - Net Income Per Commo_3

Note 9 - Net Income Per Common Share (Details Textual) - shares	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	580,869	305,514

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
	Nov. 30, 2023	Nov. 30, 2022
Net income	$ 895,521	$ 502,242
Basic-weighted shares outstanding (in shares)	9,427,588	9,317,680
Weighted shares assumed upon exercise of stock options (in shares)	278,993	401,251
Diluted – weighted shares outstanding (in shares)	9,706,581	9,718,931
Basic net income per share: (in dollars per share)	$ 0.09	$ 0.05
Diluted net income per share: (in dollars per share)	$ 0.09	$ 0.05

Note 10 - Stock-based Compens_3

Note 10 - Stock-based Compensation (Details Textual) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 5.05	$ 4.85
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year)	6 years 6 months 18 days	6 years 7 months 28 days
Share-Based Payment Arrangement, Expense	$ 350,933	$ 329,522
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 2,037,871
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition	2 years 9 months

Note 10 - Stock-based Compens_4

Note 10 - Stock-based Compensation - Stock Option Activity (Details)	3 Months Ended
	Nov. 30, 2023 $ / shares shares
Outstanding, shares (in shares) | shares	1,557,131
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 11.08
Options granted, shares (in shares) | shares	269,845
Options granted, weighted average exercise price (in dollars per share) | $ / shares	$ 13.25
Options exercised, shares (in shares) | shares	0
Options exercised, weighted average exercise price (in dollars per share) | $ / shares	$ 0
Cancelled/Forfeited, shares (in shares) | shares	0
Cancelled/Forfeited, weighted average exercise price (in dollars per share) | $ / shares	$ 0
Outstanding, shares (in shares) | shares	1,826,976
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 11.4

Note 11 - Segment and Geograp_3

Note 11 - Segment and Geographic Information - Net Sales by Segment (Details) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Net sales	$ 20,181,675	$ 19,952,766
Total Fees	$ 1,248,958	$ 1,181,805
Total Fees percentage	100%	100%
GERMANY
Total Fees	$ 205,643	$ 193,828
Total Fees percentage	16.50%	16.40%
POLAND
Total Fees	$ 198,017	$ 186,696
Total Fees percentage	15.90%	15.80%
JAPAN
Total Fees	$ 136,081	$ 147,920
Total Fees percentage	10.90%	12.50%
FRANCE
Total Fees	$ 121,966	$ 109,357
Total Fees percentage	9.80%	9.30%
SWEDEN
Total Fees	$ 110,536	$ 100,436
Total Fees percentage	8.90%	8.50%
FINLAND
Total Fees	$ 103,744	$ 90,432
Total Fees percentage	8.30%	7.70%
THAILAND
Total Fees	$ 79,438	$ 82,956
Total Fees percentage	6.40%	7%
CZECHIA
Total Fees	$ 77,812	$ 80,332
Total Fees percentage	6.20%	6.80%
KOREA, REPUBLIC OF
Total Fees	$ 74,957	$ 63,395
Total Fees percentage	6%	5.40%
UNITED KINGDOM
Total Fees	$ 63,149	$ 57,691
Total Fees percentage	5.10%	4.90%
Other Countries [Member]
Net sales	$ 2,560,757	$ 2,513,620
Total Fees	$ 77,615	$ 68,762
Total Fees percentage	6.20%	5.70%
ZERUST [Member]
Net sales	$ 15,405,745	$ 15,370,001
NaturTec [Member]
Net sales	$ 4,775,930	$ 4,582,765

Note 11 - Segment and Geograp_4

Note 11 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Cost of goods sold	$ 12,847,401	$ 13,599,642
Direct Cost of Goods Sold [Member] | ZERUST [Member]
Cost of goods sold	$ 8,744,024	$ 9,179,254
Cost of goods sold, percentage	56.80%	59.70%
Direct Cost of Goods Sold [Member] | NaturTec [Member]
Cost of goods sold	$ 3,228,583	$ 3,570,673
Cost of goods sold, percentage	67.60%	77.90%
Indirect Cost of Goods Sold [Member]
Cost of goods sold	$ 874,794	$ 849,715

Note 11 - Segment and Geograp_5

Note 11 - Segment and Geographic Information - Net Sales by Geographic Location (Details) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Net sales	$ 20,181,675	$ 19,952,766
Inside the USA to Unaffiliated Customers [Member]
Net sales	12,097,843	7,478,161
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member]
Net sales	851,452	633,465
Unaffiliated Customers Outside the USA [Member]
Net sales	$ 7,232,380	$ 11,841,140

Note 11 - Segment and Geograp_6

Note 11 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($)	Nov. 30, 2023	Aug. 31, 2023
Property, plant, and equipment	$ 14,256,990	$ 14,065,354
CHINA
Property, plant, and equipment	5,801,146	5,729,080
Other Countries [Member]
Property, plant, and equipment	817,898	745,469
UNITED STATES
Property, plant, and equipment	$ 7,637,946	$ 7,590,805

Note 11 - Segment and Geograp_7

Note 11 - Segment and Geographic Information - Total Net Sales by Geographic Distribution (Details) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Net sales	$ 20,181,675	$ 19,952,766
CHINA
Net sales	3,678,523	3,746,640
BRAZIL
Net sales	1,529,623	1,367,418
INDIA
Net sales	5,180,391	4,846,927
Other Countries [Member]
Net sales	2,560,757	2,513,620
UNITED STATES
Net sales	$ 7,232,381	$ 7,478,161

Note 12 - Commitments and Con_2

Note 12 - Commitments and Contingencies (Details Textual)	Nov. 30, 2023	Aug. 31, 2023
Entity Wide Trade Joint Venture Receivables, Three Joint Ventures, Percentage	68.20%
Entity Wide Trade Joint Venture Receivables, Two Joint Ventures, Percentage		40.10%

Note 13 - Supplemental Cash F_3

Note 13 - Supplemental Cash Flow Information - Supplemental Disclosures of Cash Flow Information (Details) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Cash paid for interest	$ 111,138	$ 91,331

Note 14 - Income Taxes (Details

Note 14 - Income Taxes (Details Textual) - USD ($)	3 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Foreign Withholding Tax	$ 226,796	$ 110,733