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 U.S. GAAP 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 November 30, 2017
	Total		EXCOR		All Other
Current assets	$	57,249,505	$	25,234,973	$	32,014,532
Total assets		61,290,726		27,337,417		33,953,309
Current liabilities		17,410,457		4,987,804		12,422,653
Noncurrent liabilities		184,251		—		184,251
Joint ventures’ equity		43,696,018		22,349,613		21,346,405
Northern Technologies International Corporation’s share of joint ventures’ equity		21,701,913		11,174,808		10,527,105
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$	19,590,029	$	11,143,903	$	8,446,126
Northern Technologies International Corporation's dividends received from joint ventures	$	63,937	$	—	$	63,937


	Three Months Ended November 30, 2017
	Total		EXCOR		All Other
Net sales	$	28,498,711	$	11,026,514	$	17,472,197
Gross profit		12,788,122		5,933,526		6,854,596
Net income		3,499,815		2,483,800		1,016,015
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	1,741,328	$	1,241,900	$	499,428

	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
Northern Technologies International Corporation's dividends received from joint ventures	$	6,377,054	$	5,379,062	$	997,992

	Three Months Ended November 30, 2016
	Total		EXCOR		All Other
Net sales	$	24,200,447	$	9,208,524	$	14,991,923
Gross profit		10,697,027		4,894,179		5,802,848
Net income		2,408,008		1,856,338		551,670
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	1,274,004	$	928,169	$	345,835

The Company did

not

make any joint venture investments during the

three

months ended

November 30, 2017

2016.