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 May 31, 2020
	Total		EXCOR		All Other
Current assets	$	52,424,780	$	23,825,008	$	28,599,772
Total assets		56,403,406		26,143,537		30,259,869
Current liabilities		11,741,077		2,686,694		9,054,383
Noncurrent liabilities		32,412		-		32,412
Joint ventures’ equity		44,629,920		23,456,842		21,173,078
Northern Technologies International Corporation’s share of joint ventures’ equity		21,942,063		11,728,423		10,213,640
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		19,706,983		11,697,518		8,009,465

	Three Months Ended May 31, 2020
	Total		EXCOR		All Other
Net sales	$	18,782,233	$	7,753,631	$	11,028,602
Gross profit		8,647,784		4,478,739		4,169,045
Net income		1,610,524		1,071,899		538,625
Northern Technologies International Corporation’s share of equity in income from joint ventures		811,787		536,540		275,247
Northern Technologies International Corporation’s dividends received from joint ventures	$	89,227	$	-	$	89,227

	Nine Months Ended May 31, 2020
	Total		EXCOR		All Other
Net sales	$	68,531,897	$	26,102,046	$	42,429,851
Gross profit		31,107,491		15,066,309		16,041,182
Net income		6,920,047		4,492,254		2,427,793
Northern Technologies International Corporation’s share of equity in income from joint ventures		3,466,581		2,246,930		1,219,651
Northern Technologies International Corporation’s dividends received from joint ventures	$	5,648,153	$	4,675,850	$	972,303

	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 May 31, 2019
	Total		EXCOR		All Other
Net sales	$	27,774,112	$	10,933,386	$	16,840,726
Gross profit		12,557,580		6,129,046		6,428,534
Net income		3,797,785		2,707,342		1,090,443
Northern Technologies International Corporation’s share of equity in income from joint ventures		1,877,410		1,353,856		523,554
Northern Technologies International Corporation’s dividends received from joint ventures	$	1,795,542	$	1,673,700	$	121,842

	Nine Months Ended May 31, 2019
	Total		EXCOR		All Other
Net sales	$	86,003,918	$	34,895,042	$	51,108,876
Gross profit		38,547,018		19,118,704		19,428,314
Net income		11,412,552		8,187,467		3,225,085
Northern Technologies International Corporation’s share of equity in income from joint ventures		5,596,788		4,094,763		1,502,025
Northern Technologies International Corporation’s dividends received from joint ventures	$	3,822,785	$	2,517,450	$	1,305,335

The Company did

not

make any joint venture investments during the

three

and

nine

months ended

May 31, 2020

2019.