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 of 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, 2019
	Total		EXCOR		All Other
Current assets	$	60,831,022	$	30,259,315	$	30,571,707
Total assets		65,423,178		32,737,188		32,685,990
Current liabilities		15,529,788		3,968,110		11,561,678
Noncurrent liabilities		430,678		—		430,678
Joint ventures’ equity		49,462,712		28,769,078		20,693,634
Northern Technologies International Corporation’s share of joint ventures’ equity		24,418,491		14,384,541		10,033,950
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$	22,389,278	$	14,353,636	$	8,035,642
Northern Technologies International Corporation’s dividends received from joint ventures	$	2,027,243	$	843,750	$	1,183,493

	Three Months Ended February 28, 2019
	Total		EXCOR		All Other
Net sales	$	27,749,880	$	11,092,133	$	16,657,747
Gross profit		12,632,547		6,306,084		6,326,463
Net income		3,450,976		2,440,323		1,010,653
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	1,715,216	$	1,221,006	$	494,210

	Six Months Ended February 28, 2019
	Total		EXCOR		All Other
Net sales	$	58,229,806	$	23,961,656	$	34,268,150
Gross profit		25,989,438		12,989,658		12,999,780
Net income		7,614,767		5,480,125		2,134,642
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	3,719,378	$	2,740,907	$	978,471

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

	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

The Company did

not

make any joint venture investments during the

six

months ended

February 28, 2019

2018.