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 consolidated 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 November 30, 2018
	Total		EXCOR		All Other
Current assets	$	58,993,098	$	28,075,384	$	30,917,714
Total assets		63,792,622		30,821,905		32,970,717
Current liabilities		16,579,222		4,629,942		11,949,280
Noncurrent liabilities		409,444		—		409,444
Joint ventures’ equity		46,789,400		26,191,964		20,597,436
Northern Technologies International Corporation’s share of joint ventures’ equity		23,111,834		13,095,984		10,015,850
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$	21,082,622	$	13,065,079	$	8,017,543
Northern Technologies International Corporation's dividends received from joint ventures	$	1,486,705	$	843,750	$	642,955

	Three Months Ended November 30, 2018
	Total		EXCOR		All Other
Net sales	$	30,479,926	$	12,869,523	$	17,610,403
Gross profit		13,356,891		6,683,574		6,673,317
Net income		4,163,791		3,039,802		1,123,989
Northern Technologies International Corporation’s share of equity in income from joint ventures		2,004,162		1,519,901		484,261
Northern Technologies International Corporation's dividends received from joint ventures	$	1,486,705	$	843,750	$	642,955

	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

	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
Northern Technologies International Corporation's dividends received from joint ventures	$	63,937		—	$	63,937

The Company did

not

make any joint venture investments during the

three

months ended

November 30, 2018

2017.