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 29, 2020
	Total		EXCOR		All Other
Current assets	$	52,843,263	$	23,302,245	$	29,541,018
Total assets		56,806,232		25,573,425		31,232,807
Current liabilities		13,446,110		3,357,346		10,088,764
Noncurrent liabilities		19,924		0		19,924
Joint ventures’ equity		43,340,198		22,216,079		21,124,119
Northern Technologies International Corporation’s share of joint ventures’ equity		21,297,202		11,108,042		10,189,160
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		19,267,931		11,077,137		8,190,794

	Three Months Ended February 29, 2020
	Total		EXCOR		All Other
Net sales	$	24,289,370	$	8,980,176	$	15,309,194
Gross profit		11,102,573		5,262,082		5,840,491
Net income		2,721,542		1,778,027		943,516
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	1,360,804	$	889,226	$	471,578
Northern Technologies International Corporation's dividends received from joint ventures	$	5,353,552	$	4,675,850	$	677,702

	Six Months Ended February 29, 2020
	Total		EXCOR		All Other
Net sales	$	49,749,664	$	18,348,415	$	31,401,249
Gross profit		22,459,707		10,587,570		11,872,137
Net income		5,309,523		3,420,354		1,889,169
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	2,654,794	$	1,710,390	$	944,404
Northern Technologies International Corporation's dividends received from joint ventures	$	5,558,926	$	4,675,850	$	883,133

	As of August 31, 2019
	Total		EXCOR		All Other
Current assets	$	59,162,834	$	29,139,787	$	30,023,047
Total assets		63,326,703		31,666,841		31,659,862
Current liabilities		14,145,499		3,573,160		10,572,339
Noncurrent liabilities		20,797		—		20,797
Joint ventures’ equity		49,160,407		28,093,681		21,066,726
Northern Technologies International Corporation’s share of joint ventures’ equity		24,207,339		14,046,842		10,160,497
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		22,178,126		14,015,937		8,162,189

	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
Northern Technologies International Corporation's dividends received from joint ventures	$	540,538	$	—	$	540,538

	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
Northern Technologies International Corporation's dividends received from joint ventures	$	2,027,243	$	843,750	$	183,493

The Company did

not

make any joint venture investments during the

six

months ended

February

29,

2020

February 28, 2019.