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Note 6 - Investments in Joint Ventures

9 Months Ended

May 31, 2024

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, 2024
		Total				EXCOR				All Other
Current assets		$	57,436,771			$	28,022,725			$	29,414,046
Total assets			62,421,770				30,641,557				31,780,213
Current liabilities			13,167,730				2,458,389				10,709,341
Non-current liabilities			303,758				—				303,758
Joint ventures’ equity			48,949,666				28,183,169				20,766,497
NTIC’s share of joint ventures’ equity			24,219,348				14,091,586				10,127,762
NTIC’s share of joint ventures’ undistributed earnings			23,645,685				14,260,800				9,384,885

		Three Months Ended May 31, 2024
		Total				EXCOR				All Other
Net sales		$	25,602,072			$	9,977,354			$	15,624,718
Gross profit			10,713,282				4,959,536				5,753,746
Net income			2,793,738				1,623,431				1,170,307
NTIC’s share of equity in income from joint ventures			1,396,730				811,399				585,331
NTIC’s dividends received from joint ventures			567,674				—				567,674

		Nine Months Ended May 31, 2024
		Total				EXCOR				All Other
Net sales		$	72,642,714			$	27,561,950			$	45,080,764
Gross profit			30,956,162				14,164,541				16,791,620
Net income			7,351,372				4,029,182				3,322,190
NTIC’s share of equity in income from joint ventures			3,676,961				2,015,734				1,661,228
NTIC’s dividends received from joint ventures			2,958,925				1,624,950				1,333,975

		As of August 31, 2023
		Total				EXCOR				All Other
Current assets		$	55,339,662			$	27,862,458			$	27,477,204
Total assets			59,729,348				30,054,277				29,675,071
Current liabilities			11,464,247				2,687,064				8,777,183
Non-current liabilities			323,762				—				323,762
Joint ventures’ equity			47,941,339				27,367,213				20,574,126
NTIC’s share of joint ventures’ equity			23,705,714				13,683,608				10,022,106
NTIC’s share of joint ventures’ undistributed earnings			20,493,861				12,075,524				8,418,337

		Three Months Ended May 31, 2023
		Total				EXCOR				All Other
Net sales		$	26,312,548			$	10,735,862			$	15,576,686
Gross profit			10,494,244				5,085,837				5,408,407
Net income			2,692,444				1,654,151				1,038,293
NTIC’s share of equity in income from joint ventures			1,346,658				828,631				518,027
NTIC’s dividends received from joint ventures			45,977				—				45,977

		Nine Months Ended May 31, 2023
		Total				EXCOR				All Other
Net sales		$	76,525,427			$	30,590,265			$	45,935,162
Gross profit			30,223,623				14,539,314				15,684,309
Net income			7,308,398				4,761,608				2,546,790
NTIC’s share of equity in income from joint ventures			3,664,793				2,376,575				1,288,218
NTIC’s dividends received from joint ventures			3,510,716				2,459,500				1,051,216