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Note 6 - Investments in Joint Ventures | 9 Months Ended
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May 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 U.S. GAAP 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. 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, 2021 |
|  | Total |  |  | EXCOR |  |  | All Other |
Current assets |  | $ | 68,123,606 |  |  | $ | 30,658,702 |  |  | $ | 37,464,904 |
Total assets |  |  | 72,216,965 |  |  |  | 33,027,046 |  |  |  | 39,189,919 |
Current liabilities |  |  | 16,369,403 |  |  |  | 3,570,261 |  |  |  | 12,799,142 |
Noncurrent liabilities |  |  | 1,225,790 |  |  |  | — |  |  |  | 1,225,790 |
Joint ventures’ equity |  |  | 54,621,772 |  |  |  | 29,456,785 |  |  |  | 25,164,987 |
Northern Technologies International Corporation’s share of joint ventures’ equity |  |  | 26,937,857 |  |  |  | 14,728,395 |  |  |  | 12,209,462 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings |  |  | 24,702,778 |  |  |  | 14,697,490 |  |  |  | 10,005,288 |
|  | Three Months Ended May 31, 2021 |
|  | Total |  |  | EXCOR |  |  | All Other |
Net sales |  | $ | 31,959,539 |  |  | $ | 12,103,263 |  |  | $ | 19,856,276 |
Gross profit |  |  | 14,280,775 |  |  |  | 6,863,786 |  |  |  | 7,416,989 |
Net income |  |  | 4,051,518 |  |  |  | 2,068,326 |  |  |  | 1,983,192 |
Northern Technologies International Corporation’s share of equity in income from joint ventures |  |  | 2,033,536 |  |  |  | 1,039,576 |  |  |  | 993,960 |
Northern Technologies International Corporation’s dividends received from joint ventures |  |  | 181,952 |  |  |  | — |  |  |  | 181,952 |
|  | Nine Months Ended May 31, 2021 |
|  | Total |  |  | EXCOR |  |  | All Other |
Net sales |  | $ | 87,795,284 |  |  | $ | 32,196,843 |  |  | $ | 55,598,441 |
Gross profit |  |  | 39,802,014 |  |  |  | 18,661,980 |  |  |  | 21,140,034 |
Net income |  |  | 11,540,949 |  |  |  | 6,351,721 |  |  |  | 5,189,228 |
Northern Technologies International Corporation’s share of equity in income from joint ventures |  |  | 5,779,260 |  |  |  | 3,182,691 |  |  |  | 2,596,569 |
Northern Technologies International Corporation’s dividends received from joint ventures |  |  | 3,505,455 |  |  |  | 1,809,900 |  |  |  | 1,695,555 |
|  | As of August 31, 2020 |
|  | Total |  |  | EXCOR |  |  | All Other |
Current assets |  | $ | 55,825,418 |  |  | $ | 25,742,619 |  |  | $ | 30,082,799 |
Total assets |  |  | 60,295,587 |  |  |  | 28,449,772 |  |  |  | 31,845,815 |
Current liabilities |  |  | 11,002,867 |  |  |  | 2,424,565 |  |  |  | 8,578,302 |
Noncurrent liabilities |  |  | 365,274 |  |  |  | — |  |  |  | 365,274 |
Joint ventures’ equity |  |  | 48,927,446 |  |  |  | 26,025,207 |  |  |  | 22,902,239 |
Northern Technologies International Corporation’s share of joint ventures’ equity |  |  | 24,090,826 |  |  |  | 13,012,606 |  |  |  | 11,078,220 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings |  |  | 21,855,747 |  |  |  | 12,981,701 |  |  |  | 8,874,046 |
|  | 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 |

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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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