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 accounting principles generally accepted in the United States of America in all material respects. All material profits recorded that remain on the balance sheet 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) and all the Company’s other joint ventures, are summarized as follows:

	As of August 31, 2018
	Total		EXCOR		All Other
Current assets	$	58,086,747	$	27,354,788	$	30,731,959
Total assets		62,803,261		30,033,750		32,769,511
Current liabilities		15,991,886		4,535,954		11,455,932
Noncurrent liabilities		403,653		—		403,653
Joint ventures’ equity		46,407,722		25,497,796		20,909,926
Northern Technologies International Corporation’s share of joint ventures’ equity		22,950,995		12,748,899		10,195,263
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$	20,921,783	$	12,717,994	$	8,203,789

	Fiscal Year Ended August 31, 2018
	Total		EXCOR		All Other
Net sales	$	120,060,897	$	47,537,949	$	72,522,948
Gross profit		53,348,459		25,584,666		27,763,793
Net income		15,300,276		11,095,523		4,204,753
Northern Technologies International Corporation’s share of equity in income of joint ventures		7,527,383		5,549,765		1,977,618
Northern Technologies International Corporation’s dividends received from joint ventures	$	3,697,503	$	2,357,544	$	1,339,959

	As of August 31, 2017
	Total		EXCOR		All Other
Current assets	$	51,518,210	$	22,142,514	$	29,375,696
Total assets		55,633,891		24,301,194		31,332,697
Current liabilities		15,118,074		4,469,567		10,648,507
Noncurrent liabilities		181,210		—		181,210
Joint ventures’ equity		40,334,607		19,831,627		20,502,980
Northern Technologies International Corporation’s share of joint ventures’ equity		20,035,074		9,915,816		10,119,258
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$	17,960,860	$	9,884,911	$	8,075,949

	Fiscal Year Ended August 31, 2017
	Total		EXCOR		All Other
Net sales	$	101,261,132	$	39,849,757	$	61,411,375
Gross profit		44,861,300		21,133,632		23,727,668
Net income		11,839,933		8,369,728		3,470,205
Northern Technologies International Corporation’s share of equity in income of joint ventures		5,898,908		4,185,988		1,712,920
Northern Technologies International Corporation’s dividends received from joint ventures	$	6,377,054	$	5,379,062	$	997,992

The Company did

not

make any joint venture investments during fiscal

2018

or fiscal

2017.