Note 6 - Investments in Joint Ventures

3 Months Ended

Nov. 30, 2016

Equity Method Investments and Joint Ventures Disclosure [Text Block]

INVESTMENTS IN JOINT VENTURES

The 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 accounting principles generally accepted in the United States of America in all material respects. All material profits recorded on sales 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 ventures in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR), HARITA - NTI LTD (INDIA), ZERUST OY (FINLAND) and all of the Company’s other joint ventures, are summarized as follows:

	As of November 30, 2016

	TOTAL		EXCOR		INDIA		FINLAND		All Other
Current assets	$	49,972,755	$	23,405,119	$	4,278,839	$	2,038,343	$	20,250,454
Total assets		53,440,384		25,180,484		4,615,462		2,302,907		21,341,531
Current liabilities		13,028,054		3,220,529		1,242,944		583,354		7,981,227
Noncurrent liabilities		106,084		—		5,619		—		100,465
Joint ventures’ equity		40,306,246		21,959,955		3,366,900		1,719,553		13,259,838
Northern Technologies International Corporation’s share of joint ventures’ equity		20,052,432		10,979,979		1,683,450		859,775		6,529,228
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$	17,978,218	$	10,949,074	$	818,628	$	839,775	$	5,370,741
Northern Technologies International Corporation's dividends received from joint ventures	$	-	$	-	$	-	$	-	$	-

	Three Months Ended November 30, 2016

	Total		EXCOR		INDIA		FINLAND		All Other
Net sales	$	24,200,447	$	9,208,524	$	1,614,470	$	929,868	$	12,447,585
Gross profit		10,697,027		4,894,179		750,118		556,221		4,496,509
Net income		2,408,008		1,856,338		49,061		144,302		358,307
Northern Technologies International Corporation’s share of equity in income of joint ventures	$	1,274,004	$	928,169	$	99,163	$	72,151	$	174,521

	As of August 30, 2016

	TOTAL		EXCOR		INDIA		FINLAND		All Other
Current assets	$	48,922,924	$	22,928,810	$	4,027,016	$	1,928,861	$	20,038,237
Total assets		52,407,026		24,733,340		4,352,573		2,211,392		21,109,721
Current liabilities		12,433,700		3,485,213		1,097,231		546,506		7,304,730
Noncurrent liabilities		100,783		—		6,382		—		94,401
Joint ventures’ equity		39,872,543		21,248,109		3,248,960		1,664,886		13,710,588
Northern Technologies International Corporation’s share of joint ventures’ equity		19,854,064		10,624,056		1,624,480		832,442		6,773,086
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$	17,779,912	$	10,593,151	$	759,658	$	812,442	$	5,614,661
Northern Technologies International Corporation's dividends received from joint ventures	$	5,503,314	$	4,364,700	$	326,023	$	206,516	$	606,075

	Three Months Ended November 30, 2015

	Total		EXCOR		INDIA		FINLAND		All Other
Net sales	$	21,871,209	$	8,207,696	$	1,469,977	$	870,971	$	11,322,565
Gross profit		9,648,081		4,153,477		693,340		520,124		4,281,140
Net income		1,961,922		1,536,247		85,741		113,300		226,634
Northern Technologies International Corporation’s share of equity in income of joint ventures	$	983,753	$	768,123	$	42,870	$	56,650	$	116,110

The Company did

not

make any joint venture investments during the

three

months ended

November

30,

2016

and

2015.