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 the Company’s other joint ventures, are summarized as follows:

	As of May 31, 2017
	Total		EXCOR		India		Finland		All Other
Current assets	$	48,064,624	$	19,820,904	$	4,322,253	$	1,929,781	$	21,991,686
Total assets		52,062,465		21,882,519		4,658,050		2,216,723		23,305,173
Current liabilities		13,773,839		3,028,386		1,412,054		547,007		8,786,392
Noncurrent liabilities		247,572		-		14,201		-		233,371
Joint ventures’ equity		38,041,054		18,854,133		3,231,795		1,669,716		14,285,410
Northern Technologies International Corporation’s share of joint ventures’ equity		18,903,473		9,427,068		1,615,898		834,856		7,025,651
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		16,829,258		9,396,163		751,076		814,856		5,867,163

	Nine Months Ended May 31, 2017
	Total		EXCOR		India		Finland		All Other
Net sales	$	73,098,215	$	28,169,978	$	5,299,600	$	2,619,843	$	37,008,794
Gross profit		32,376,247		15,032,724		2,463,138		1,569,152		13,311,233
Net income		8,562,834		6,184,181		611,143		413,044		1,354,466
Northern Technologies International Corporation’s share of equity in income of joint ventures		4,343,159		3,089,935		384,712		206,874		661,638
Northern Technologies International Corporation's dividends received from joint ventures	$	5,179,786	$	4,240,400	$	446,939	$	200,768	$	291,679

	As of August 31, 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		19,840,774		10,624,056		1,624,480		832,442		6,759,796
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		17,779,912		10,593,151		759,658		812,442		5,614,661

	Nine Months Ended May 31, 2016
	Total		EXCOR		India		Finland		All Other
Net sales	$	66,223,514	$	25,314,260	$	5,027,226	$	2,435,861	$	33,446,167
Gross profit		29,745,795		13,512,404		2,427,574		1,438,756		12,367,061
Net income		7,188,274		5,409,407		697,977		342,544		738,346
Northern Technologies International Corporation’s share of equity in income of joint ventures		3,600,884		2,714,905		327,846		171,662		386,471
Northern Technologies International Corporation's dividends received from joint ventures	$	5,449,543	$	4,364,700	$	326,023	$	206,516		552,304

The Company did

not

make any joint venture investments during the

nine

months ended

May 31, 2017

and

2016.