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Note 6 - Investments in Joint Ventures | 12 Months Ended
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Aug. 31, 2021
Notes to Financial Statements |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 6. 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 accounting principles generally accepted in the United States of America in all material respects. All material profits on sales recorded that remain on the consolidated balance sheet from the Company to its joint ventures and from joint ventures to other joint ventures have been eliminated for financial reporting purposes. The Company considers the Company’s joint venture in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR) to be individually significant to the Company’s consolidated assets and income as of August 31, 2021. The Company considers the Company’s joint venture EXCOR and the following other joint ventures in France, Finland, India and Thailand, respectively, to be individually significant to the Company’s consolidated assets and income as of August 31, 2020: ACOBAL SAS, ZERUST OY, HARITA-NTI LIMITED and ZERUST SPECIALTY TECH CO. LTD. Harita-NTI Limited became a wholly owned subsidiary of the Company effective as of September 1, 2021. Financial information from the audited and unaudited financial statements of EXCOR and the Company’s joint ventures in France, Finland, India and Thailand, as well as all the Company’s other joint ventures, are summarized as follows:
|  | As of August 31, 2021 |
|  | Total |  |  | EXCOR |  |  | OTHER |
Current assets |  | $ | 69,394,796 |  |  | $ | 33,886,655 |  |  | $ | 35,508,141 |
Total assets |  |  | 73,814,402 |  |  |  | 36,211,520 |  |  |  | 37,602,882 |
Current liabilities |  |  | 16,366,398 |  |  |  | 5,386,377 |  |  |  | 10,980,021 |
Noncurrent liabilities |  |  | 1,455,524 |  |  |  | - |  |  |  | 1,455,524 |
Joint ventures’ equity |  |  | 55,992,480 |  |  |  | 30,825,144 |  |  |  | 25,167,336 |
Northern Technologies International Corporation’s share of joint ventures’ equity |  |  | 27,623,768 |  |  |  | 15,412,574 |  |  |  | 12,211,194 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings |  |  | 24,702,778 |  |  |  | 14,697,490 |  |  |  | 10,005,288 |
|  | Fiscal Year Ended August 31, 2021 |
|  | Total |  |  | EXCOR |  |  | OTHER |
Net sales |  | $ | 120,954,550 |  |  | $ | 46,522,688 |  |  | $ | 74,431,862 |
Gross profit |  |  | 53,371,610 |  |  |  | 25,389,981 |  |  |  | 27,981,629 |
Net income |  |  | 14,921,531 |  |  |  | 8,798,995 |  |  |  | 6,122,536 |
Northern Technologies International Corporation’s share of equity in income of joint ventures |  |  | 7,465,214 |  |  |  | 4,400,403 |  |  |  | 3,064,811 |
Northern Technologies International Corporation’s dividends received from joint ventures |  |  | 3,665,365 |  |  |  | 1,809,900 |  |  |  | 1,855,465 |
|  | As of August 31, 2020 |
|  | Total |  |  | EXCOR |  |  | FRANCE |  |  | FINLAND |  |  | INDIA |  |  | THAILAND |  |  | OTHER |
Current assets |  | $ | 55,825,418 |  |  | $ | 25,742,619 |  |  | $ | 4,099,160 |  |  | $ | 1,955,879 |  |  | $ | 4,010,855 |  |  | $ | 4,022,399 |  |  | $ | 15,994,506 |
Total assets |  |  | 60,295,587 |  |  |  | 28,449,772 |  |  |  | 4,873,484 |  |  |  | 2,261,147 |  |  |  | 4,242,660 |  |  |  | 4,055,451 |  |  |  | 16,413,073 |
Current liabilities |  |  | 11,002,867 |  |  |  | 2,424,565 |  |  |  | 2,073,710 |  |  |  | 415,496 |  |  |  | 1,007,529 |  |  |  | 993,332 |  |  |  | 4,088,235 |
Noncurrent liabilities |  |  | 365,274 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 32,999 |  |  |  | — |  |  |  | 332,275 |
Joint ventures’ equity |  |  | 48,927,446 |  |  |  | 26,025,207 |  |  |  | 2,799,774 |  |  |  | 1,845,651 |  |  |  | 3,202,132 |  |  |  | 3,062,119 |  |  |  | 11,992,563 |
Northern Technologies International Corporation’s share of joint ventures’ equity |  |  | 24,090,826 |  |  |  | 13,012,606 |  |  |  | 1,399,887 |  |  |  | 922,814 |  |  |  | 1,603,013 |  |  |  | 1,531,060 |  |  |  | 5,621,446 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings |  |  | 21,855,747 |  |  |  | 12,981,701 |  |  |  | 1,399,887 |  |  |  | 902,814 |  |  |  | 738,191 |  |  |  | 1,429,060 |  |  |  | 4,404,094 |
|  | Fiscal Year Ended August 31, 2020 |
|  | Total |  |  | EXCOR |  |  | FRANCE |  |  | FINLAND |  |  | INDIA |  |  | THAILAND |  |  | OTHER |
Net sales |  | $ | 87,030,062 |  |  | $ | 32,546,402 |  |  | $ | 8,133,294 |  |  | $ | 3,088,865 |  |  | $ | 5,481,303 |  |  | $ | 6,471,831 |  |  | $ | 31,308,367 |
Gross profit |  |  | 39,532,750 |  |  |  | 18,739,471 |  |  |  | 3,061,433 |  |  |  | 1,916,001 |  |  |  | 2,498,196 |  |  |  | 2,046,478 |  |  |  | 11,271,171 |
Net income |  |  | 8,545,473 |  |  |  | 5,266,541 |  |  |  | 473,137 |  |  |  | 419,728 |  |  |  | 697,349 |  |  |  | 503,884 |  |  |  | 1,184,834 |
Northern Technologies International Corporation’s share of equity in income of joint ventures |  |  | 4,270,327 |  |  |  | 2,622,423 |  |  |  | 237,490 |  |  |  | 209,972 |  |  |  | 349,218 |  |  |  | 253,192 |  |  |  | 598,032 |
Northern Technologies International Corporation’s dividends received from joint ventures |  |  | 5,672,099 |  |  |  | 4,675,850 |  |  |  | — |  |  |  | 325,635 |  |  |  | 261,220 |  |  |  | 160,074 |  |  |  | 249,320 |
The Company did not make any joint venture investments during fiscal 2021 or fiscal 2020.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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