Northern Technologies International (NTIC) 10-Q 11 Jul 24 2024 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	May 31, 2024	Jul. 10, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 31, 2024
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)		9,441,127
Entity Central Index Key	0000875582
Current Fiscal Year End Date	--08-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	May 31, 2024	Aug. 31, 2023
CURRENT ASSETS:
Cash and cash equivalents	$ 5,794,824	$ 5,406,173
Receivables:
Trade, excluding joint ventures, less allowance for doubtful accounts of $533,000 as of May 31, 2024 and August 31, 2023	14,374,856	15,645,130
Trade, joint ventures	594,331	187,912
Fees for services provided to joint ventures	1,262,153	1,296,594
Dividend receivable from joint venture	0	1,986,027
Income taxes	463,828	34,202
Inventories	13,242,381	13,096,489
Prepaid expenses	2,170,896	2,019,029
Total current assets	37,903,269	39,671,556
PROPERTY AND EQUIPMENT, NET	15,678,572	14,065,354
OTHER ASSETS:
Investments in joint ventures	24,219,348	23,705,714
Deferred income tax, net	570,673	530,944
Intangible asset, net	5,802,438	6,159,485
Goodwill	4,782,376	4,782,376
Operating lease right of use assets	308,868	428,874
Total other assets	35,683,703	35,607,393
Total assets	89,265,544	89,344,303
CURRENT LIABILITIES:
Line of credit	1,988,380	3,600,000
Term loan	2,762,049	2,757,176
Accounts payable	6,273,261	6,056,329
Income taxes payable	17,579	13,053
Accrued liabilities:
Payroll and related benefits	2,216,767	2,305,400
Other	1,289,106	1,648,615
Current portion of operating leases	247,291	340,799
Total current liabilities	14,794,433	16,721,372
LONG-TERM LIABILITIES:
Deferred income tax, net	1,836,059	1,836,059
Operating leases, less current portion	61,577	88,075
Total long-term liabilities	1,897,636	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 May 31, 2024 and August 31, 2023; issued and outstanding 9,441,124 and 9,424,101, respectively	188,823	188,482
Additional paid-in capital	23,104,415	21,986,767
Retained earnings	52,596,976	51,004,427
Accumulated other comprehensive loss	(7,038,745)	(6,823,403)
Stockholders’ equity	68,851,469	66,356,273
Non-controlling interests	3,722,006	4,342,524
Total equity	72,573,475	70,698,797
Total liabilities and equity	89,265,544	89,344,303
Intangible Assets Excluding Patents and Trademarks [Member]
OTHER ASSETS:
Intangible asset, net	$ 5,802,438	$ 6,159,485

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	May 31, 2024	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, Outstanding (in shares)	9,441,124	9,424,102
Common Stock, Shares, Issued (in shares)		9,424,102

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
NET SALES:
Net sales	$ 20,686,197	$ 20,969,726	$ 61,710,410	$ 59,193,317
Cost of goods sold	12,793,103	13,389,873	38,143,878	38,957,272
Gross profit	7,893,094	7,579,853	23,566,532	20,236,045
JOINT VENTURE OPERATIONS:
Equity in income from joint ventures	1,396,731	1,346,658	3,676,962	3,664,793
Fees for services provided to joint ventures	1,212,497	1,361,311	3,764,514	3,795,862
Total joint venture operations	2,609,228	2,707,969	7,441,476	7,460,655
OPERATING EXPENSES:
Selling expenses	4,232,887	3,893,152	12,053,839	10,996,303
General and administrative expenses	3,500,113	3,205,645	10,253,966	9,470,433
Research and development expenses	1,245,405	1,282,439	3,593,582	3,680,246
Total operating expenses	8,978,405	8,381,236	25,901,387	24,146,982
OPERATING INCOME	1,523,917	1,906,586	5,106,621	3,549,718
INTEREST INCOME	23,744	8,876	99,396	18,495
INTEREST EXPENSE	(59,939)	(136,168)	(248,835)	(342,643)
INCOME BEFORE INCOME TAX EXPENSE	1,478,722	1,779,294	4,957,182	3,225,570
INCOME TAX EXPENSE	332,400	542,295	848,391	834,823
NET INCOME	1,155,322	1,236,999	4,108,791	2,390,747
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	178,718	177,409	535,497	417,418
NET INCOME ATTRIBUTABLE TO NTIC	$ 976,604	$ 1,059,590	$ 3,573,294	$ 1,973,329
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE:
Basic (in dollars per share)	$ 0.1	$ 0.11	$ 0.38	$ 0.21
Diluted (in dollars per share)	$ 0.1	$ 0.11	$ 0.36	$ 0.2
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING:
Basic (in shares)	9,431,134	9,369,923	9,432,684	9,355,776
Diluted (in shares)	10,015,674	9,628,069	9,819,220	9,702,610
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, 2024	May 31, 2023	May 31, 2024	May 31, 2023
NET INCOME	$ 1,155,322	$ 1,236,999	$ 4,108,791	$ 2,390,747
OTHER COMPREHENSIVE INCOME (LOSS) – FOREIGN CURRENCY TRANSLATION ADJUSTMENT	(251,995)	(92,228)	(296,281)	388,568
COMPREHENSIVE INCOME	903,327	1,144,771	3,812,510	2,779,315
COMPREHENSIVE LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	(126,578)	(190,118)	(454,558)	(440,301)
COMPREHENSIVE INCOME ATTRIBUTABLE TO NTIC	$ 1,029,905	$ 1,334,889	$ 4,267,068	$ 3,219,616

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 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 options exercised (in shares)	130,254
Stock options exercised	$ 2,605	413,958	0	0	0	416,563
Dividends paid to shareholders	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	1,973,329	0	417,418	2,390,747
Other comprehensive income (loss)	0	0	0	365,685	22,883	388,568
Stock option expense	$ 0	998,311	0	0	0	998,311
BALANCE (in shares) at May. 31, 2023	9,369,923
BALANCE at May. 31, 2023	$ 187,398	21,426,721	50,722,758	(6,879,447)	3,533,761	68,991,191
BALANCE (in shares) at Feb. 28, 2023	9,366,357
BALANCE at Feb. 28, 2023	$ 187,327	21,058,721	50,319,062	(6,774,510)	3,443,643	68,234,243
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 options exercised (in shares)	0
Stock options exercised	$ 0	331,303	0	0	0	331,303
Dividends paid to shareholders	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	1,059,590	0	177,409	1,236,999
Other comprehensive income (loss)	$ 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	50,722,758	(6,879,447)	3,533,761	68,991,191
BALANCE (in shares) at Aug. 31, 2023	9,424,102
BALANCE at Aug. 31, 2023	$ 188,482	21,986,767	51,004,427	(6,823,403)	4,342,524	70,698,797
Stock issued for employee stock purchase plan (in shares)	6,780
Stock issued for employee stock purchase plan	$ 136	79,831	0	0	0	79,967
Stock options exercised (in shares)	205
Stock options exercised		(205)	0	0	0	0
Dividends paid to shareholders	$ 0	0	(1,980,745)	0	0	(1,980,745)
Dividend received by non-controlling interest	0	0	0	0	(1,075,076)	(1,075,076)
Net income	0	0	3,573,294	0	535,497	4,108,791
Other comprehensive income (loss)	0	0	0	(215,342)	(80,939)	(296,281)
Stock option expense	$ 0	1,038,022	0	0	0	1,038,022
BALANCE (in shares) at May. 31, 2024	9,441,124
BALANCE at May. 31, 2024	$ 188,823	23,104,415	52,596,976	(7,038,745)	3,722,006	72,573,475
BALANCE (in shares) at Feb. 29, 2024	9,427,598
BALANCE at Feb. 29, 2024	$ 188,552	22,721,667	52,821,250	(6,838,890)	3,595,428	71,948,007
Stock issued for employee stock purchase plan (in shares)	3,284
Stock issued for employee stock purchase plan	$ 66	39,805	0	0	0	39,871
Stock options exercised (in shares)	10,242
Stock options exercised	$ 205	(205)	0	0	0	0
Dividends paid to shareholders	0	0	(660,879)	0	0	(660,879)
Net income	0	0	976,604	0	178,718	1,155,322
Other comprehensive income (loss)	0	0	0	(199,855)	(52,140)	(251,995)
Stock option expense	$ 0	343,148	0	0	0	343,148
BALANCE (in shares) at May. 31, 2024	9,441,124
BALANCE at May. 31, 2024	$ 188,823	$ 23,104,415	$ 52,596,976	$ (7,038,745)	$ 3,722,006	$ 72,573,475

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	May 31, 2024	May 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME	$ 4,108,791	$ 2,390,747
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	1,038,022	998,311
Depreciation expense	884,421	766,091
Amortization expense	442,975	441,603
Loss on disposable of assets	0	(8,534)
Equity in income from joint ventures	(3,676,962)	(3,664,793)
Dividends received from joint ventures	2,958,925	3,510,716
Deferred income taxes	(40,091)	(76,114)
Changes in current assets and liabilities:
Trade, excluding joint ventures	1,184,735	(362,810)
Trade, joint ventures	(406,419)	29,014
Fees for services provided to joint ventures	34,441	539,107
Dividends receivable from joint venture	1,986,027	0
Income taxes	(429,626)	(155,828)
Inventories	(197,240)	2,254,758
Prepaid expenses and other	(184,366)	184,516
Accounts payable	300,181	(2,902,121)
Income tax payable	4,504	(29,401)
Accrued liabilities	(424,413)	(409,459)
Net cash provided by operating activities	7,583,905	3,505,803
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of available for sale securities	0	5,590
Proceeds from sale of property and equipment	0	13,000
Purchases of property and equipment	(2,515,248)	(2,607,988)
Investments in patents	(85,928)	(89,350)
Net cash used in investing activities	(2,601,176)	(2,678,748)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend received by non-controlling interest	(1,075,076)	(555,574)
Net payments from line of credit	(1,611,620)	(700,000)
Proceeds from term loan	0	2,812,504
Dividends paid on NTIC common stock	(1,980,745)	(1,967,184)
Proceeds from the exercise of stock options	0	416,563
Proceeds from employee stock purchase plan	79,967	75,464
Net cash (used in) provided by financing activities	(4,587,474)	81,773
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(6,604)	(47,524)
NET INCREASE IN CASH AND CASH EQUIVALENTS	388,651	861,304
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	5,406,173	5,333,890
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 5,794,824	$ 6,195,194

Note 1 - Interim Financial Info

Note 1 - Interim Financial Information	9 Months Ended
	May 31, 2024
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, 2024 and August 31, 2023, the results of the Company’s operations for the three and nine months ended May 31, 2024 and 2023, the changes in stockholders’ equity for the three and nine months ended May 31, 2024 and 2023, and the Company’s cash flows for the nine months ended May 31, 2024 and 2023, 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 and nine months ended May 31, 2024 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	9 Months Ended
	May 31, 2024
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	9 Months Ended
	May 31, 2024
Notes to Financial Statements
Inventory Disclosure [Text Block]	3. INVENTORIES Inventories consisted of the following: May 31, 2024 August 31, 2023 Production materials $ 4,887,783 $ 4,960,355 Finished goods 8,354,598 8,136,134 $ 13,242,381 $ 13,096,489

Note 4 - Property and Equipment

Note 4 - Property and Equipment, Net	9 Months Ended
	May 31, 2024
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, 2024 August 31, 2023 Land $ 776,965 $ 496,965 Buildings and improvements 19,492,861 17,250,392 Machinery and equipment 6,173,904 5,984,364 26,443,730 23,731,721 Less accumulated depreciation (10,765,158 ) (9,666,367 ) $ 15,678,572 $ 14,065,354 Depreciation expense was $287,018 and $884,421 for the three and nine months ended May 31, 2024, respectively, compared to $277,253 and $766,091 for the three and nine months ended May 31, 2023, respectively.

Note 5 - Intangible Assets, Net

Note 5 - Intangible Assets, Net	9 Months Ended
	May 31, 2024
Notes to Financial Statements
Intangible Assets Disclosure [Text Block]	5. INTANGIBLE ASSETS, NET Intangible assets, net consisted of the following: As of May 31, 2024 Gross Carrying Accumulated Net Carrying Patents and trademarks $ 3,425,645 $ (2,806,590 ) $ 619,055 Customer relationships 6,347,000 (1,163,617 ) 5,183,383 Total intangible assets, net $ 9,772,645 $ (3,970,207 ) $ 5,802,438 As of August 31, 2023 Gross Carrying Accumulated Net Carrying 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 $147,749 and $442,975 for the three and nine months ended May 31, 2024, respectively, compared $146,730 and $441,603 for the three and nine months ended May 31, 2023, respectively. As of May 31, 2024, future amortization expense related to intangible assets for each of the next five fiscal years and thereafter is estimated as follows: Remainder of fiscal 2024 $ 285,905 Fiscal 2025 543,721 Fiscal 2026 517,990 Fiscal 2027 492,221 Fiscal 2028 479,012 Thereafter 3,483,589 Total $ 5,802,438

Note 6 - Investments in Joint V

Note 6 - Investments in Joint Ventures	9 Months Ended
	May 31, 2024
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, 2024 Total EXCOR All Other Current assets $ 57,436,771 $ 28,022,725 $ 29,414,046 Total assets 62,421,770 30,641,557 31,780,213 Current liabilities 13,167,730 2,458,389 10,709,341 Non-current liabilities 303,758 — 303,758 Joint ventures’ equity 48,949,666 28,183,169 20,766,497 NTIC’s share of joint ventures’ equity 24,219,348 14,091,586 10,127,762 NTIC’s share of joint ventures’ undistributed earnings 23,645,685 14,260,800 9,384,885 Three Months Ended May 31, 2024 Total EXCOR All Other Net sales $ 25,602,072 $ 9,977,354 $ 15,624,718 Gross profit 10,713,282 4,959,536 5,753,746 Net income 2,793,738 1,623,431 1,170,307 NTIC’s share of equity in income from joint ventures 1,396,730 811,399 585,331 NTIC’s dividends received from joint ventures 567,674 — 567,674 Nine Months Ended May 31, 2024 Total EXCOR All Other Net sales $ 72,642,714 $ 27,561,950 $ 45,080,764 Gross profit 30,956,162 14,164,541 16,791,620 Net income 7,351,372 4,029,182 3,322,190 NTIC’s share of equity in income from joint ventures 3,676,961 2,015,734 1,661,228 NTIC’s dividends received from joint ventures 2,958,925 1,624,950 1,333,975 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 Non-current 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 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 NTIC’s share of equity in income from joint ventures 1,346,658 828,631 518,027 NTIC’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 NTIC’s share of equity in income from joint ventures 3,664,793 2,376,575 1,288,218 NTIC’s dividends received from joint ventures 3,510,716 2,459,500 1,051,216

Note 7 - Corporate Debt

Note 7 - Corporate Debt	9 Months Ended
	May 31, 2024
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 $1,988,380 and $3,600,000 were outstanding under the Credit Facility as of May 31, 2024 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 interest 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 May 31, 2024. 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 May 31, 2024. The current outstanding balance for both term loans was USD $2,762,049 as of May 31, 2024 and USD $2,757,176 as of August 31, 2023.

Note 8 - Stockholders' Equity

Note 8 - Stockholders' Equity	9 Months Ended
	May 31, 2024
Notes to Financial Statements
Equity [Text Block]	8. STOCKHOLDERS EQUITY During the nine months ended May 31, 2024, the Company’s Board of Directors declared cash dividends on the following dates in the following amounts to the following holders of the Company’s common stock: Declaration Date Amount Record Date Payable Date October 18, 2023 $ 0.07 November 1, 2023 November 15, 2023 January 17, 2024 $ 0.07 January 31, 2024 February 14, 2024 April 17, 2024 $ 0.07 May 1, 2024 May 15, 2024 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 the following holders of the Company’s common stock: 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, 2024 and 2023, 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 (ESPP). The Company issued 3,284 and 3,566 shares of common stock on March 1, 2024 and 2023, respectively, under the ESPP. The ESPP is compensatory for financial reporting purposes. As of May 31, 2024, 55,284 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, 2024
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, 2024 and 2023: Three Months Ended Nine Months Ended Numerator May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023 Net income attributable to NTIC $ 976,604 $ 1,059,590 $ 3,573,294 $ 1,973,329 Denominator Basic – weighted shares outstanding 9,431,134 9,369,923 9,432,684 9,355,776 Weighted shares assumed upon exercise of stock options 584,541 258,146 386,536 346,834 Diluted – weighted shares outstanding 10,015,674 9,628,069 9,819,220 9,702,610 Basic net income per share: $ 0.10 $ 0.11 $ 0.38 $ 0.21 Diluted net income per share: $ 0.10 $ 0.11 $ 0.36 $ 0.20 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, 2024 were options outstanding to purchase 305,514 shares of common stock. 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.

Note 10 - Stock-based Compensat

Note 10 - Stock-based Compensation	9 Months Ended
	May 31, 2024
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 2024 Stock Incentive Plan (the 2024 Plan), 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, 2023 1,557,131 $ 11.08 Granted 269,845 13.25 Exercised (21,301 ) 9.04 Cancelled — — Outstanding as of May 31, 2024 1,805,675 11,43 Exercisable as of May 31, 2024 1,350,643 $ 10.88 The weighted average per share fair value of options granted during the nine months ended May 31, 2024 and 2023 was $4.88 and $4.87, respectively. The weighted average remaining contractual life of the options outstanding as of May 31, 2024 and 2023 was 6.11 years and 6.16 years, respectively. The Company recognized compensation expense of $343,148 and $1,038,022 and $331,303 and $998,311 during the three and nine months ended May 31, 2024 and 2023, respectively. As of May 31, 2024, there was $1,345,262 of unrecognized compensation expense. The amount is expected to be recognized over a period of 2.25 years.

Note 11 - Segment and Geographi

Note 11 - Segment and Geographic Information	9 Months Ended
	May 31, 2024
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, 2024 and 2023 by segment: Three Months Ended Nine Months Ended May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023 ZERUST® net sales $ 14,837,235 $ 16,100,674 $ 45,461,075 $ 45,929,422 Natur-Tec® net sales 5,848,962 4,869,052 16,249,335 13,263,895 Total net sales $ 20,686,197 $ 20,969,726 $ 61,710,410 $ 59,193,317 The following table sets forth the Company’s cost of goods sold for the three and nine months ended May 31, 2024 and 2023 by segment: Three Months Ended Nine Months Ended May 31, % of May 31, % of May 31, % of May 31, % of Direct cost of goods sold ZERUST® 8,168,215 55.1 % $ 9,116,091 56.6 % $ 24,994,401 55.0 % $ 26,410,796 57.5 % Natur-Tec® 3,768,921 64.4 % 3,576,676 73.5 % 10,566,223 65.0 % 10,078,385 76.0 % Indirect cost of goods sold 855,967 — 697,106 — 2,583,254 — 2,468,091 — Total net cost of goods sold $ 12,793,103 $ 13,389,873 $ 38,143,878 $ 38,957,272 ______________________________ * The percent of product 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, 2024 and 2023 were as follows: Three Months Ended May 31, Nine Months Ended May 31, 2024 2023 2024 2023 Inside the U.S.A. to unaffiliated customers $ 7,086,859 $ 7,729,820 $ 21,160,095 $ 21,958,978 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 441,067 732,437 1,904,444 2,895,665 Unaffiliated customers 13,158,272 12,507,469 38,645,871 34,338,674 $ 20,686,197 $ 20,969,726 $ 61,710,410 $ 59,193,317 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, 2024 and 2023 were as follows: Three Months Ended May 31, 2024 % of Total Fees May 31, 2023 % of Total Fees Poland $ 213,102 17.6 % $ 224,288 16.5 % Germany 205,853 17.0 % 209,398 15.4 % Japan 118,606 9.8 % 152,593 11.2 % Sweden 110,542 9.1 % 144,981 10.7 % Czech Republic 101,111 8.3 % 99,089 7.3 % Finland 97,437 8.0 % 103,879 7.6 % United Kingdom 96,872 8.0 % 83,586 6.1 % Thailand 77,206 6.4 % 82,725 6.1 % South Korea 58,732 4.8 % 61,668 4.5 % France 47,206 3.9 % 128,149 9.4 % Other 85,830 7.1 % 70,953 5.2 % $ 1,212,497 100.0 % $ 1,361,311 100.0 % Nine Months Ended May 31, 2024 % of Total Fees May 31, 2023 % of Total Fees Poland $ 628,905 16.7 % $ 610,911 16.1 % Germany 618,236 16.4 % 606,189 16.0 % Japan 366,682 9.7 % 454,308 12.0 % France 364,348 9.7 % 356,444 9.4 % Sweden 324,062 8.6 % 358,032 9.4 % Finland 296,929 7.9 % 285,931 7.5 % Czech Republic 263,712 7.0 % 270,422 7.1 % Thailand 246,908 6.6 % 257,282 6.8 % United Kingdom 215,123 5.7 % 206,925 5.5 % South Korea 197,070 5.2 % 190,866 5.0 % Other 242,540 6.4 % 198,552 5.2 % $ 3,764,514 100.0 % $ 3,795,862 100.0 % The geographical distribution of total property and equipment and net sales is as follows: At May 31, 2024 At August 31, 2023 China $ 5,575,097 $ 5,729,080 Other 1,061,309 745,469 United States 9,042,166 7,590,805 Total property and equipment, net $ 15,678,572 $ 14,065,354 Three Months Ended Nine Months Ended May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023 China $ 3,540,570 $ 3,318,373 $ 10,674,939 $ 9,936,808 Brazil 1,508,680 1,488,510 4,365,170 4,062,718 India 5,814,829 5,145,423 16,401,624 14,356,708 Other 2,735,259 3,287,600 9,108,583 8,878,105 United States 7,086,859 7,729,820 21,160,095 21,958,978 Total net sales $ 20,686,197 $ 20,969,726 $ 61,710,410 $ 59,193,317 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, 2024
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 Korea and Thailand) accounted for 54.8% of the Company’s trade joint venture receivables as of May 31, 2024, and 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. 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, 2024, 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	9 Months Ended
	May 31, 2024
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 Nine Months Ended May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023 Cash paid for interest $ 59,939 $ 136,168 $ 248,835 $ 342,643

Note 14 - Income Taxes

Note 14 - Income Taxes	9 Months Ended
	May 31, 2024
Notes to Financial Statements
Income Tax Disclosure [Text Block]	14. INCOME TAXES Income tax expense for the three and nine months ended May 31, 2024 was $332,400 and $848,391, respectively, compared to $542,295 and $834,823, respectively, for the three and nine months ended May 31, 2023. 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, 2024 and August 31, 2023.

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	9 Months Ended
	May 31, 2024	May 31, 2024
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]		5 OTHER INFORMATION During the three months ended May 31, 2024, none of our directors or “officers” (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of SEC Regulation S-K.
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)	9 Months Ended
	May 31, 2024
Notes Tables
Schedule of Inventory, Current [Table Text Block]	May 31, 2024 August 31, 2023 Production materials $ 4,887,783 $ 4,960,355 Finished goods 8,354,598 8,136,134 $ 13,242,381 $ 13,096,489

Note 4 - Property and Equipme_2

Note 4 - Property and Equipment, Net (Tables)	9 Months Ended
	May 31, 2024
Notes Tables
Property, Plant and Equipment [Table Text Block]	May 31, 2024 August 31, 2023 Land $ 776,965 $ 496,965 Buildings and improvements 19,492,861 17,250,392 Machinery and equipment 6,173,904 5,984,364 26,443,730 23,731,721 Less accumulated depreciation (10,765,158 ) (9,666,367 ) $ 15,678,572 $ 14,065,354

Note 5 - Intangible Assets, N_2

Note 5 - Intangible Assets, Net (Tables)	9 Months Ended
	May 31, 2024
Notes Tables
Schedule of Finite-Lived Intangible Assets [Table Text Block]	As of May 31, 2024 Gross Carrying Accumulated Net Carrying Patents and trademarks $ 3,425,645 $ (2,806,590 ) $ 619,055 Customer relationships 6,347,000 (1,163,617 ) 5,183,383 Total intangible assets, net $ 9,772,645 $ (3,970,207 ) $ 5,802,438 As of August 31, 2023 Gross Carrying Accumulated Net Carrying 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]	Remainder of fiscal 2024 $ 285,905 Fiscal 2025 543,721 Fiscal 2026 517,990 Fiscal 2027 492,221 Fiscal 2028 479,012 Thereafter 3,483,589 Total $ 5,802,438

Note 6 - Investments in Joint_2

Note 6 - Investments in Joint Ventures (Tables)	9 Months Ended
	May 31, 2024
Notes Tables
Condensed Balance Sheet [Table Text Block]	As of May 31, 2024 Total EXCOR All Other Current assets $ 57,436,771 $ 28,022,725 $ 29,414,046 Total assets 62,421,770 30,641,557 31,780,213 Current liabilities 13,167,730 2,458,389 10,709,341 Non-current liabilities 303,758 — 303,758 Joint ventures’ equity 48,949,666 28,183,169 20,766,497 NTIC’s share of joint ventures’ equity 24,219,348 14,091,586 10,127,762 NTIC’s share of joint ventures’ undistributed earnings 23,645,685 14,260,800 9,384,885 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 Non-current 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 May 31, 2024 Total EXCOR All Other Net sales $ 25,602,072 $ 9,977,354 $ 15,624,718 Gross profit 10,713,282 4,959,536 5,753,746 Net income 2,793,738 1,623,431 1,170,307 NTIC’s share of equity in income from joint ventures 1,396,730 811,399 585,331 NTIC’s dividends received from joint ventures 567,674 — 567,674 Nine Months Ended May 31, 2024 Total EXCOR All Other Net sales $ 72,642,714 $ 27,561,950 $ 45,080,764 Gross profit 30,956,162 14,164,541 16,791,620 Net income 7,351,372 4,029,182 3,322,190 NTIC’s share of equity in income from joint ventures 3,676,961 2,015,734 1,661,228 NTIC’s dividends received from joint ventures 2,958,925 1,624,950 1,333,975 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 NTIC’s share of equity in income from joint ventures 1,346,658 828,631 518,027 NTIC’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 NTIC’s share of equity in income from joint ventures 3,664,793 2,376,575 1,288,218 NTIC’s dividends received from joint ventures 3,510,716 2,459,500 1,051,216

Note 8 - Stockholders' Equity (

Note 8 - Stockholders' Equity (Tables)	9 Months Ended
	May 31, 2024
Notes Tables
Dividends Declared [Table Text Block]	Declaration Date Amount Record Date Payable Date October 18, 2023 $ 0.07 November 1, 2023 November 15, 2023 January 17, 2024 $ 0.07 January 31, 2024 February 14, 2024 April 17, 2024 $ 0.07 May 1, 2024 May 15, 2024 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

Note 9 - Net Income Per Commo_2

Note 9 - Net Income Per Common Share (Tables)	9 Months Ended
	May 31, 2024
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended Nine Months Ended Numerator May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023 Net income attributable to NTIC $ 976,604 $ 1,059,590 $ 3,573,294 $ 1,973,329 Denominator Basic – weighted shares outstanding 9,431,134 9,369,923 9,432,684 9,355,776 Weighted shares assumed upon exercise of stock options 584,541 258,146 386,536 346,834 Diluted – weighted shares outstanding 10,015,674 9,628,069 9,819,220 9,702,610 Basic net income per share: $ 0.10 $ 0.11 $ 0.38 $ 0.21 Diluted net income per share: $ 0.10 $ 0.11 $ 0.36 $ 0.20

Note 10 - Stock-based Compens_2

Note 10 - Stock-based Compensation (Tables)	9 Months Ended
	May 31, 2024
Notes Tables
Share-Based Payment Arrangement, Option, Activity [Table Text Block]	Number of Weighted Outstanding as of August 31, 2023 1,557,131 $ 11.08 Granted 269,845 13.25 Exercised (21,301 ) 9.04 Cancelled — — Outstanding as of May 31, 2024 1,805,675 11,43 Exercisable as of May 31, 2024 1,350,643 $ 10.88

Note 11 - Segment and Geograp_2

Note 11 - Segment and Geographic Information (Tables)	9 Months Ended
	May 31, 2024
Notes Tables
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	Three Months Ended Nine Months Ended May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023 ZERUST® net sales $ 14,837,235 $ 16,100,674 $ 45,461,075 $ 45,929,422 Natur-Tec® net sales 5,848,962 4,869,052 16,249,335 13,263,895 Total net sales $ 20,686,197 $ 20,969,726 $ 61,710,410 $ 59,193,317
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block]	Three Months Ended Nine Months Ended May 31, % of May 31, % of May 31, % of May 31, % of Direct cost of goods sold ZERUST® 8,168,215 55.1 % $ 9,116,091 56.6 % $ 24,994,401 55.0 % $ 26,410,796 57.5 % Natur-Tec® 3,768,921 64.4 % 3,576,676 73.5 % 10,566,223 65.0 % 10,078,385 76.0 % Indirect cost of goods sold 855,967 — 697,106 — 2,583,254 — 2,468,091 — Total net cost of goods sold $ 12,793,103 $ 13,389,873 $ 38,143,878 $ 38,957,272
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, 2024 2023 2024 2023 Inside the U.S.A. to unaffiliated customers $ 7,086,859 $ 7,729,820 $ 21,160,095 $ 21,958,978 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 441,067 732,437 1,904,444 2,895,665 Unaffiliated customers 13,158,272 12,507,469 38,645,871 34,338,674 $ 20,686,197 $ 20,969,726 $ 61,710,410 $ 59,193,317 Three Months Ended May 31, 2024 % of Total Fees May 31, 2023 % of Total Fees Poland $ 213,102 17.6 % $ 224,288 16.5 % Germany 205,853 17.0 % 209,398 15.4 % Japan 118,606 9.8 % 152,593 11.2 % Sweden 110,542 9.1 % 144,981 10.7 % Czech Republic 101,111 8.3 % 99,089 7.3 % Finland 97,437 8.0 % 103,879 7.6 % United Kingdom 96,872 8.0 % 83,586 6.1 % Thailand 77,206 6.4 % 82,725 6.1 % South Korea 58,732 4.8 % 61,668 4.5 % France 47,206 3.9 % 128,149 9.4 % Other 85,830 7.1 % 70,953 5.2 % $ 1,212,497 100.0 % $ 1,361,311 100.0 % Nine Months Ended May 31, 2024 % of Total Fees May 31, 2023 % of Total Fees Poland $ 628,905 16.7 % $ 610,911 16.1 % Germany 618,236 16.4 % 606,189 16.0 % Japan 366,682 9.7 % 454,308 12.0 % France 364,348 9.7 % 356,444 9.4 % Sweden 324,062 8.6 % 358,032 9.4 % Finland 296,929 7.9 % 285,931 7.5 % Czech Republic 263,712 7.0 % 270,422 7.1 % Thailand 246,908 6.6 % 257,282 6.8 % United Kingdom 215,123 5.7 % 206,925 5.5 % South Korea 197,070 5.2 % 190,866 5.0 % Other 242,540 6.4 % 198,552 5.2 % $ 3,764,514 100.0 % $ 3,795,862 100.0 %
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	At May 31, 2024 At August 31, 2023 China $ 5,575,097 $ 5,729,080 Other 1,061,309 745,469 United States 9,042,166 7,590,805 Total property and equipment, net $ 15,678,572 $ 14,065,354
Revenue from External Customers by Geographic Areas [Table Text Block]	Three Months Ended Nine Months Ended May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023 China $ 3,540,570 $ 3,318,373 $ 10,674,939 $ 9,936,808 Brazil 1,508,680 1,488,510 4,365,170 4,062,718 India 5,814,829 5,145,423 16,401,624 14,356,708 Other 2,735,259 3,287,600 9,108,583 8,878,105 United States 7,086,859 7,729,820 21,160,095 21,958,978 Total net sales $ 20,686,197 $ 20,969,726 $ 61,710,410 $ 59,193,317

Note 13 - Supplemental Cash F_2

Note 13 - Supplemental Cash Flow Information (Tables)	9 Months Ended
	May 31, 2024
Notes Tables
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	Three Months Ended Nine Months Ended May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023 Cash paid for interest $ 59,939 $ 136,168 $ 248,835 $ 342,643

Note 3 - Inventories - Inventor

Note 3 - Inventories - Inventories (Details) - USD ($)	May 31, 2024	Aug. 31, 2023
Production materials	$ 4,887,783	$ 4,960,355
Finished goods	8,354,598	8,136,134
Inventory, Net	$ 13,242,381	$ 13,096,489

Note 4 - Property and Equipme_3

Note 4 - Property and Equipment, Net (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Depreciation expense	$ 287,018	$ 277,253	$ 884,421	$ 766,091

Note 4 - Property and Equipme_4

Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($)	May 31, 2024	Aug. 31, 2023
Land	$ 776,965	$ 496,965
Buildings and improvements	19,492,861	17,250,392
Machinery and equipment	6,173,904	5,984,364
Property, Plant and Equipment, Gross	26,443,730	23,731,721
Less accumulated depreciation	(10,765,158)	(9,666,367)
Property, Plant and Equipment, Net	$ 15,678,572	$ 14,065,354

Note 5 - Intangible Assets, N_3

Note 5 - Intangible Assets, Net (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Amortization of Intangible Assets	$ 147,749	$ 146,730	$ 442,975	$ 441,603

Note 5 - Intangible Assets, N_4

Note 5 - Intangible Assets, Net - Intangible Assets, Net (Details) - USD ($)	May 31, 2024	Aug. 31, 2023
Gross Carrying Amount	$ 9,772,645	$ 9,686,717
Accumulated Amortization	(3,970,207)	(3,527,232)
Net Carrying Amount	5,802,438	6,159,485
Patents and Trademarks [Member]
Gross Carrying Amount	3,425,645	3,339,717
Accumulated Amortization	(2,806,590)	(2,680,965)
Net Carrying Amount	619,055	658,752
Customer Relationships [Member]
Gross Carrying Amount	6,347,000	6,347,000
Accumulated Amortization	(1,163,617)	(846,267)
Net Carrying Amount	$ 5,183,383	$ 5,500,733

Note 5 - Intangible Assets, N_5

Note 5 - Intangible Assets, Net - Future Amortization Expense (Details) - USD ($)	May 31, 2024	Aug. 31, 2023
Fiscal 2024	$ 285,905
Fiscal 2025	543,721
Fiscal 2026	517,990
Fiscal 2027	492,221
Fiscal 2028	479,012
Thereafter	3,483,589
Total	$ 5,802,438	$ 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 ($)	May 31, 2024	Aug. 31, 2023
Current assets	$ 37,903,269	$ 39,671,556
Total assets	89,265,544	89,344,303
Current liabilities	14,794,433	16,721,372
Noncurrent liabilities	1,897,636	1,924,134
Joint ventures’ equity	68,851,469	66,356,273
Investments in joint ventures	24,219,348	23,705,714
EXCOR and All Other Joint Venturs [Member]
Investments in joint ventures	24,219,348	23,705,714
NTIC’s share of joint ventures’ undistributed earnings	23,645,685	20,493,861
EXCOR [Member]
Investments in joint ventures	14,091,586	13,683,608
NTIC’s share of joint ventures’ undistributed earnings	14,260,800	12,075,524
All Other [Member]
Investments in joint ventures	10,127,762	10,022,106
NTIC’s share of joint ventures’ undistributed earnings	9,384,885	8,418,337
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Current assets	57,436,771	55,339,662
Total assets	62,421,770	59,729,348
Current liabilities	13,167,730	11,464,247
Noncurrent liabilities	303,758	323,762
Joint ventures’ equity	48,949,666	47,941,339
EXCOR [Member]
Current assets	28,022,725	27,862,458
Total assets	30,641,557	30,054,277
Current liabilities	2,458,389	2,687,064
Noncurrent liabilities	0	0
Joint ventures’ equity	28,183,169	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	29,414,046
Total assets	31,780,213
Current liabilities	10,709,341
Noncurrent liabilities	303,758
Joint ventures’ equity	$ 20,766,497

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, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Net sales	$ 20,686,197	$ 20,969,726	$ 61,710,410	$ 59,193,317
Gross profit	7,893,094	7,579,853	23,566,532	20,236,045
Net income	976,604	1,059,590	3,573,294	1,973,329
NTIC’s share of equity in income from joint ventures	1,396,731	1,346,658	3,676,962	3,664,793
EXCOR and All Other Joint Venturs [Member]
Net income	2,793,738	2,692,444	7,351,372	7,308,398
NTIC’s share of equity in income from joint ventures	1,396,730	1,346,658	3,676,961	3,664,793
NTIC’s dividends received from joint ventures	567,674	45,977	2,958,925	3,510,716
EXCOR [Member]
Net income	1,623,431	1,654,151	4,029,182	4,761,608
NTIC’s share of equity in income from joint ventures	811,399	828,631	2,015,734	2,376,575
NTIC’s dividends received from joint ventures	0	0	1,624,950	2,459,500
All Other [Member]
Net income	1,170,307	1,038,293	3,322,190	2,546,790
NTIC’s share of equity in income from joint ventures	585,331	518,027	1,661,228	1,288,218
NTIC’s dividends received from joint ventures	567,674	45,977	1,333,975	1,051,216
EXCOR and All Other Joint Venturs [Member]
Net sales	25,602,072	26,312,548	72,642,714	76,525,427
Gross profit	10,713,282	10,494,244	30,956,162	30,223,623
EXCOR [Member]
Net sales	9,977,354	10,735,862	27,561,950	30,590,265
Gross profit	4,959,536	5,085,837	14,164,541	14,539,314
All Other [Member]
Net sales	15,624,718	15,576,686	45,080,764	45,935,162
Gross profit	$ 5,753,746	$ 5,408,407	$ 16,791,620	$ 15,684,309

Note 7 - Corporate Debt (Detail

Note 7 - Corporate Debt (Details Textual)	Jan. 06, 2023 USD ($)	May 31, 2024 USD ($)	Aug. 31, 2023 USD ($)	May 30, 2023 USD ($)	May 30, 2023 CNY (¥)
NTIC China [Member] | Term Loan in May [Member]
Debt Instrument, Face Amount				$ 1,450,000	¥ 10,000,000
Debt Instrument, Interest Rate, Stated Percentage				3.25%	3.25%
Long-Term Debt		$ 2,762,049	$ 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		$ 1,988,380	$ 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_2

Note 8 - Stockholders' Equity (Details Textual) - shares					9 Months Ended
	Mar. 01, 2024	Sep. 01, 2023	Mar. 01, 2023	Sep. 01, 2022	May 31, 2024
Stock Repurchased and Retired During Period, Shares (in shares)					0
Stock Issued During Period, Shares, Employee Stock Purchase Plans	3,284	3,496	3,566	3,620
ESPP [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant					55,284

Note 8 - Stockholders' Equity -

Note 8 - Stockholders' Equity - Dividends Declared (Details) - $ / shares							3 Months Ended		9 Months Ended
	Apr. 17, 2024	Jan. 17, 2024	Oct. 18, 2023	Apr. 21, 2023	Jan. 20, 2023	Oct. 20, 2022	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
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
Record Date	May 01, 2024	Jan. 31, 2024	Nov. 01, 2023	May 03, 2023	Feb. 01, 2023	Nov. 03, 2022
Payable Date	May 15, 2024	Feb. 14, 2024	Nov. 15, 2023	May 17, 2023	Feb. 15, 2023	Nov. 16, 2022

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, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	305,514	322,246	305,514	322,246

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, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Net income	$ 976,604	$ 1,059,590	$ 3,573,294	$ 1,973,329
Basic-weighted shares outstanding (in shares)	9,431,134	9,369,923	9,432,684	9,355,776
Weighted shares assumed upon exercise of stock options (in shares)	584,541	258,146	386,536	346,834
Diluted – weighted shares outstanding (in shares)	10,015,674	9,628,069	9,819,220	9,702,610
Basic net income per share: (in dollars per share)	$ 0.1	$ 0.11	$ 0.38	$ 0.21
Diluted net income per share: (in dollars per share)	$ 0.1	$ 0.11	$ 0.36	$ 0.2

Note 10 - Stock-based Compens_3

Note 10 - Stock-based Compensation (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 4.88	$ 4.87
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year)	6 years 1 month 9 days	6 years 1 month 28 days
Share-Based Payment Arrangement, Expense	$ 343,148	$ 331,303	$ 1,038,022	$ 998,311
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 1,345,262		$ 1,345,262
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition			2 years 3 months

Note 10 - Stock-based Compens_4

Note 10 - Stock-based Compensation - Stock Option Activity (Details)	9 Months Ended
	May 31, 2024 $ / 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	(21,301)
Options exercised, weighted average exercise price (in dollars per share) | $ / shares	$ 9.04
Cancelled, shares (in shares) | shares	0
Cancelled, weighted average exercise price (in dollars per share) | $ / shares	$ 0
Outstanding, shares (in shares) | shares	1,805,675
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 1,143
Exercisable as of May 31, 2024 (in shares) | shares	1,350,643
Exercisable as of May 31, 2024 (in dollars per share) | $ / shares	$ 10.88

Note 11 - Segment and Geograp_3

Note 11 - Segment and Geographic Information (Details Textual)	9 Months Ended
	May 31, 2024
2	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, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Net sales	$ 20,686,197	$ 20,969,726	$ 61,710,410	$ 59,193,317
ZERUST [Member]
Net sales	14,837,235	16,100,674	45,461,075	45,929,422
NaturTec [Member]
Net sales	$ 5,848,962	$ 4,869,052	$ 16,249,335	$ 13,263,895

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, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Cost of goods sold	$ 12,793,103	$ 13,389,873	$ 38,143,878	$ 38,957,272
Direct Cost of Goods Sold [Member] | ZERUST [Member]
Cost of goods sold	$ 8,168,215	$ 9,116,091	$ 24,994,401	$ 26,410,796
Cost of goods sold, percentage	55.10%	56.60%	55%	57.50%
Direct Cost of Goods Sold [Member] | NaturTec [Member]
Cost of goods sold	$ 3,768,921	$ 3,576,676	$ 10,566,223	$ 10,078,385
Cost of goods sold, percentage	64.40%	73.50%	65%	76%
Indirect Cost of Goods Sold [Member]
Cost of goods sold	$ 855,967	$ 697,106	$ 2,583,254	$ 2,468,091

Note 11 - Segment and Geograp_6

Note 11 - Segment and Geographic Information - Information by Geographic Location (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Net sales	$ 20,686,197	$ 20,969,726	$ 61,710,410	$ 59,193,317
Total Fees	$ 1,212,497	$ 1,361,311	$ 3,764,514	$ 3,795,862
Total Fees percentage	100%	100%	100%	100%
Inside the USA to Unaffiliated Customers [Member]
Net sales	$ 7,086,859	$ 7,729,820	$ 21,160,095	$ 21,958,978
POLAND
Total Fees	$ 213,102	$ 224,288	$ 628,905	$ 610,911
Total Fees percentage	17.60%	16.50%	16.70%	16.10%
GERMANY
Total Fees	$ 205,853	$ 209,398	$ 618,236	$ 606,189
Total Fees percentage	17%	15.40%	16.40%	16%
JAPAN
Total Fees	$ 118,606	$ 152,593	$ 366,682	$ 454,308
Total Fees percentage	9.80%	11.20%	9.70%	12%
SWEDEN
Total Fees	$ 110,542	$ 144,981	$ 324,062	$ 358,032
Total Fees percentage	9.10%	10.70%	8.60%	9.40%
FRANCE
Total Fees	$ 47,206	$ 128,149	$ 364,348	$ 356,444
Total Fees percentage	3.90%	9.40%	9.70%	9.40%
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member]
Net sales	$ 441,067	$ 732,437	$ 1,904,444	$ 2,895,665
CZECHIA
Total Fees	$ 101,111	$ 99,089	$ 263,712	$ 270,422
Total Fees percentage	8.30%	7.30%	7%	7.10%
FINLAND
Total Fees	$ 97,437	$ 103,879	$ 296,929	$ 285,931
Total Fees percentage	8%	7.60%	7.90%	7.50%
UNITED KINGDOM
Total Fees	$ 96,872	$ 83,586	$ 215,123	$ 206,925
Total Fees percentage	8%	6.10%	5.70%	5.50%
Unaffiliated Customers Outside the USA [Member]
Net sales	$ 13,158,272	$ 12,507,469	$ 38,645,871	$ 34,338,674
THAILAND
Total Fees	$ 77,206	$ 82,725	$ 246,908	$ 257,282
Total Fees percentage	6.40%	6.10%	6.60%	6.80%
KOREA, REPUBLIC OF
Total Fees	$ 58,732	$ 61,668	$ 197,070	$ 190,866
Total Fees percentage	4.80%	4.50%	5.20%	5%
Other Countries [Member]
Net sales	$ 2,735,259	$ 3,287,600	$ 9,108,583	$ 8,878,105
Total Fees	$ 85,830	$ 70,953	$ 242,540	$ 198,552
Total Fees percentage	7.10%	5.20%	6.40%	5.20%

Note 11 - Segment and Geograp_7

Note 11 - Segment and Geographic Information - Schedule of Geographic Distribution (Details) - USD ($)	May 31, 2024	Aug. 31, 2023
Total property and equipment, net	$ 15,678,572	$ 14,065,354
CHINA
Total property and equipment, net	5,575,097	5,729,080
Other Countries [Member]
Total property and equipment, net	1,061,309	745,469
UNITED STATES
Total property and equipment, net	$ 9,042,166	$ 7,590,805

Note 11 - Segment and Geograp_8

Note 11 - Segment and Geographic Information - Schedule of Geographic Distribution of Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Total net sales	$ 20,686,197	$ 20,969,726	$ 61,710,410	$ 59,193,317
CHINA
Total net sales	3,540,570	3,318,373	10,674,939	9,936,808
BRAZIL
Total net sales	1,508,680	1,488,510	4,365,170	4,062,718
INDIA
Total net sales	5,814,829	5,145,423	16,401,624	14,356,708
Other Countries [Member]
Total net sales	2,735,259	3,287,600	9,108,583	8,878,105
UNITED STATES
Total net sales	$ 7,086,859	$ 7,729,820	$ 21,160,095	$ 21,958,978

Note 12 - Commitments and Con_2

Note 12 - Commitments and Contingencies (Details Textual)	May 31, 2024	May 31, 2023
Entity Wide Trade Joint Venture Receivables, Three Joint Ventures, Percentage	54.80%
Entity Wide Trade Joint Venture Receivables, Two Joint Ventures, Percentage		65.10%

Note 13 - Supplemental Cash F_3

Note 13 - Supplemental Cash Flow Information - Supplemental Disclosures of Cash Flow Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Cash paid for interest	$ 59,939	$ 136,168	$ 248,835	$ 342,643

Note 14 - Income Taxes (Details

Note 14 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	May 31, 2024	May 31, 2023	May 31, 2024	May 31, 2023
Foreign Withholding Tax	$ 332,400	$ 542,295	$ 848,391	$ 834,823