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Note 6 - Investments in Joint Ventures

3 Months Ended

Nov. 30, 2022

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 November 30, 2022
		Total				EXCOR				All Other
Current assets		$	50,644,203			$	23,082,855			$	27,561,348
Total assets			54,232,523				25,102,700				29,129,823
Current liabilities			12,684,139				2,848,920				9,835,219
Noncurrent liabilities			354,984				-				354,984
Joint ventures’ equity			41,193,400				22,253,780				18,939,620
Northern Technologies International Corporation’s share of joint ventures’ equity			20,331,746				11,126,892				9,204,854
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings			19,303,110				11,095,987				8,207,123

		Three Months Ended November 30, 2022
		Total				EXCOR				All Other
Net sales		$	24,730,289			$	10,145,921			$	14,584,368
Gross profit			9,693,568				4,720,042				4,973,526
Net income			2,646,908				1,742,287				904,621
Northern Technologies International Corporation’s share of equity in income from joint ventures			1,189,400				871,144				318,260
Northern Technologies International Corporation's dividends received from joint ventures			3,042,688				2,459,500				583,188

		As of August 31, 2022
		Total				EXCOR				All Other
Current assets		$	52,428,831			$	26,047,914			$	26,380,917
Total assets			55,854,457				27,932,532				27,921,925
Current liabilities			10,981,833				2,943,895				8,037,938
Noncurrent liabilities			1,138,980				—				1,138,980
Joint ventures’ equity			43,733,644				24,988,637				18,745,007
Northern Technologies International Corporation’s share of joint ventures’ equity			21,814,754				12,494,320				9,320,434
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings			21,256,923				12,463,415				8,793,508

		Three Months Ended November 30, 2021
		Total				EXCOR				All Other
Net sales		$	27,022,995			$	11,300,228			$	15,722,767
Gross profit			11,032,959				5,468,986				5,563,973
Net income			2,777,605				1,821,547				956,058
Northern Technologies International Corporation’s share of equity in income from joint ventures			1,374,749				910,773				463,976
Northern Technologies International Corporation's dividends received from joint ventures			5,042,271				4,255,200				787,071