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 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 venture in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR) and all the Company’s other joint ventures, are summarized as follows:

	As of February 28, 2018
	Total		EXCOR		All Other
Current assets	$	57,427,392	$	25,206,550	$	32,220,842
Total assets		61,497,315		27,326,727		34,170,588
Current liabilities		16,468,617		4,148,371		12,320,246
Noncurrent liabilities		120,481		—		120,481
Joint ventures’ equity		44,908,217		23,178,356		21,729,861
Northern Technologies International Corporation’s share of joint ventures’ equity		22,259,526		11,589,180		10,670,346
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$	20,230,286	$	11,558,275	$	8,672,011
Northern Technologies International Corporation’s dividends received from joint ventures	$	1,770,116	$	1,199,142	$	570,974

	Three Months Ended February 28, 2018
	Total		EXCOR		All Other
Net sales	$	30,220,550	$	12,204,736	$	18,015,814
Gross profit		13,531,276		6,557,964		6,973,312
Net income		3,712,684		2,674,777		1,037,907
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	1,805,997	$	1,338,671	$	467,326

	Six Months Ended February 28, 2018
	Total		EXCOR		All Other
Net sales	$	58,719,261	$	23,231,250	$	35,488,011
Gross profit		26,319,398		12,491,490		13,827,908
Net income		7,212,499		5,158,577		2,053,922
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	3,547,325	$	2,580,571	$	966,754

	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 February 28, 2017
	Total		EXCOR		All Other
Net sales	$	22,962,599	$	9,076,908	$	13,885,691
Gross profit		10,161,509		4,867,517		5,293,992
Net income		2,774,943		2,161,408		613,535
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	1,383,139	$	1,078,272	$	304,867

	Six Months Ended February 28, 2017
	Total		EXCOR		All Other
Net sales	$	47,163,046	$	18,285,432	$	28,877,614
Gross profit		20,858,536		9,761,696		11,096,840
Net income		5,182,951		4,017,746		1,165,205
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	2,657,143	$	2,006,441	$	650,702

The Company did

not

make any joint venture investments during the

six

months ended

February 28, 2018

2017.