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Note 7 - Investments in Joint Ventures

3 Months Ended

Nov. 30, 2024

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

7. 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, 2024
		Total				EXCOR				All Other
Current assets		$	56,703,487			$	26,050,938			$	30,652,549
Total assets			64,773,897				31,700,918				33,072,979
Current liabilities			12,976,356				2,455,785				10,520,571
Non-current liabilities			300,116				—				300,116
Joint ventures’ equity			51,497,426				29,245,133				22,252,293
NTIC’s share of joint ventures’ equity			25,493,228				14,622,568				10,870,660
NTIC’s share of joint ventures’ undistributed earnings			24,548,560				14,591,663				9,956,897

		Three Months Ended November 30, 2024
		Total				EXCOR				All Other
Net sales		$	23,837,010			$	8,738,814			$	15,098,196
Gross profit			10,315,283				4,757,686				5,557,597
Net income			2,259,187				1,247,500				1,011,687
NTIC’s share of equity in income from joint ventures			1,129,593				623,750				505,843
NTIC’s dividends received from joint ventures			—				—				—

		As of August 31, 2024
		Total				EXCOR				All Other
Current assets		$	56,420,503			$	26,234,664			$	30,185,839
Total assets			64,183,071				31,513,288				32,669,783
Current liabilities			12,553,716				2,221,726				10,331,990
Non-current liabilities			323,199				—				323,199
Joint ventures’ equity			51,306,156				29,291,562				22,014,594
NTIC’s share of joint ventures’ equity			25,397,287				14,645,783				10,751,504
NTIC’s share of joint ventures’ undistributed earnings			23,645,685				14,614,878				9,030,807

		Three Months Ended November 30, 2023
		Total				EXCOR				All Other
Net sales		$	23,560,661			$	8,420,960			$	15,139,701
Gross profit			10,103,800				4,375,075				5,728,725
Net income			2,204,482				1,026,907				1,177,575
NTIC’s share of equity in income from joint ventures			1,102,241				513,453				588,788
NTIC’s dividends received from joint ventures			371,104				—				371,104

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- References

No definition available.

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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/recommendedDisclosureRef
-Topic 740
-SubTopic 323
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478156/740-323-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481687/323-10-50-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481687/323-10-50-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 323
-Publisher FASB
-URI https://asc.fasb.org/323/tableOfContent

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