Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2018 | Nov. 09, 2018 | Feb. 28, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | Northern Technologies International Corporation | ||
Entity Central Index Key | 875,582 | ||
Trading Symbol | ntic | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Common Stock, Shares Outstanding (in shares) | 4,542,177 | ||
Entity Public Float | $ 84.1 | ||
Document Type | 10-K | ||
Document Period End Date | Aug. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Aug. 31, 2018 | Aug. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,163,023 | $ 6,360,201 |
Available for sale securities | 3,300,110 | 3,766,984 |
Receivables: | ||
Trade excluding joint ventures, less allowance for doubtful accounts of $50,000 as of August 31, 2018 and $40,000 at August 31, 2017 | 9,920,108 | 5,912,631 |
Trade joint ventures | 761,506 | 691,752 |
Fees for services provided to joint ventures | 1,357,255 | 1,302,944 |
Income taxes | 273,333 | 137,256 |
Inventories | 9,130,861 | 7,456,552 |
Prepaid expenses | 1,661,577 | 439,298 |
Total current assets | 30,567,773 | 26,067,618 |
PROPERTY AND EQUIPMENT, NET | 7,168,826 | 7,359,662 |
OTHER ASSETS: | ||
Investments in joint ventures | 22,950,995 | 20,035,074 |
Deferred income taxes | 1,551,536 | 1,756,565 |
Patents and trademarks, net | 1,156,257 | 1,322,089 |
Other | 153,849 | 71,685 |
Total other assets | 25,812,637 | 23,185,413 |
Total assets | 63,549,236 | 56,612,693 |
CURRENT LIABILITIES: | ||
Accounts payable | 3,905,034 | 2,676,610 |
Income taxes payable | 70,892 | |
Accrued liabilities: | ||
Payroll and related benefits | 2,747,303 | 1,540,386 |
Other | 1,006,953 | 677,621 |
Total current liabilities | 7,730,182 | 4,894,617 |
COMMITMENTS AND CONTINGENCIES (Note 15) | ||
EQUITY: | ||
Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding | ||
Common stock, $0.02 par value per share; authorized 15,000,000 shares as of August 31, 2018 and 10,000,000 shares as of August 31, 2017; issued and outstanding 4,541,303 and 4,535,018, respectively | 90,826 | 90,700 |
Additional paid-in capital | 14,619,777 | 14,163,509 |
Retained earnings | 41,963,341 | 37,077,483 |
Accumulated other comprehensive loss | (3,597,199) | (2,471,064) |
Stockholders’ equity | 53,076,745 | 48,860,628 |
Non-controlling interests | 2,742,309 | 2,857,448 |
Total equity | 55,819,054 | 51,718,076 |
Total liabilities and equity | $ 63,549,236 | $ 56,612,693 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Aug. 31, 2018 | Aug. 31, 2017 |
Trade allowance | $ 50,000 | $ 40,000 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.02 | $ 0.02 |
Common stock, shares authorized (in shares) | 15,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 4,541,303 | 4,535,018 |
Common stock, shares outstanding (in shares) | 4,541,303 | 4,535,018 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
NET SALES: | ||
Net sales, excluding joint ventures | $ 48,516,749 | $ 36,346,645 |
Net sales, to joint ventures | 2,908,072 | 3,222,478 |
Total net sales | 51,424,821 | 39,569,123 |
Cost of goods sold | 34,165,440 | 26,316,511 |
Gross profit | 17,259,381 | 13,252,612 |
JOINT VENTURE OPERATIONS: | ||
Equity in income from joint ventures | 7,527,383 | 5,898,908 |
Fees for services provided to joint ventures | 6,142,139 | 5,452,687 |
Total joint venture operations | 13,669,522 | 11,351,595 |
OPERATING EXPENSES: | ||
Selling expenses | 10,886,011 | 9,283,310 |
General and administrative expenses | 8,500,490 | 7,807,563 |
Research and development expenses | 3,524,953 | 2,912,393 |
Total operating expenses | 22,911,454 | 20,003,266 |
OPERATING INCOME | 8,017,449 | 4,600,941 |
INTEREST INCOME | 99,463 | 43,539 |
INTEREST EXPENSE | (17,962) | (20,382) |
INCOME BEFORE INCOME TAX EXPENSE | 8,098,950 | 4,624,098 |
INCOME TAX EXPENSE | 876,103 | 699,519 |
NET INCOME | 7,222,847 | 3,924,579 |
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 521,481 | 502,453 |
NET INCOME ATTRIBUTABLE TO NTIC | $ 6,701,366 | $ 3,422,126 |
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE: | ||
Basic (in dollars per share) | $ 1.48 | $ 0.76 |
Diluted (in dollars per share) | $ 1.43 | $ 0.75 |
WEIGHTED AVERAGE COMMON SHARES | ||
Basic (in shares) | 4,538,838 | 4,528,611 |
Diluted (in shares) | 4,685,202 | 4,577,359 |
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.40 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
NET INCOME | $ 7,222,847 | $ 3,924,579 |
OTHER COMPREHENSIVE INCOME (LOSS) – FOREIGN CURRENCY TRANSLATION ADJUSTMENT | (1,162,755) | 552,575 |
COMPREHENSIVE INCOME | 6,060,092 | 4,477,154 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 484,861 | 516,475 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NTIC | $ 5,575,231 | $ 3,960,679 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Aug. 31, 2016 | 4,533,416 | |||||
Balance at Aug. 31, 2016 | $ 90,668 | $ 13,798,567 | $ 33,655,357 | $ (3,009,617) | $ 2,540,973 | $ 47,075,948 |
Repurchase of common stock (in shares) | (14,525) | (14,525) | ||||
Repurchase of common stock | $ (291) | (195,934) | $ (196,225) | |||
Stock options exercised (in shares) | 12,000 | 12,000 | ||||
Stock options exercised | $ 240 | 122,759 | $ 122,999 | |||
Stock issued for employee stock purchase plan (in shares) | 4,127 | |||||
Stock issued for employee stock purchase plan | $ 83 | 46,453 | 46,536 | |||
Stock option expense | 391,664 | 391,664 | ||||
Dividend received by non-controlling interest | (200,000) | (200,000) | ||||
Comprehensive income | 3,422,126 | 538,553 | 516,475 | 4,477,154 | ||
Balance (in shares) at Aug. 31, 2017 | 4,535,018 | |||||
Balance at Aug. 31, 2017 | $ 90,700 | 14,163,509 | 37,077,483 | (2,471,064) | 2,857,448 | $ 51,718,076 |
Repurchase of common stock (in shares) | 0 | |||||
Stock options exercised (in shares) | 4,410 | 4,410 | ||||
Stock options exercised | $ 88 | 15,345 | $ 15,433 | |||
Stock issued for employee stock purchase plan (in shares) | 1,875 | |||||
Stock issued for employee stock purchase plan | $ 38 | 27,913 | 27,951 | |||
Stock option expense | 413,010 | 413,010 | ||||
Dividend received by non-controlling interest | (600,000) | (600,000) | ||||
Comprehensive income | 6,701,366 | (1,126,135) | 484,861 | 6,060,092 | ||
Dividends paid to shareholders | (1,815,508) | (1,815,508) | ||||
Balance (in shares) at Aug. 31, 2018 | 4,541,303 | |||||
Balance at Aug. 31, 2018 | $ 90,826 | $ 14,619,777 | $ 41,963,341 | $ (3,597,199) | $ 2,742,309 | $ 55,819,054 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 7,222,847 | $ 3,924,579 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 413,010 | 391,664 |
Depreciation expense | 853,555 | 787,111 |
Amortization expense | 252,312 | 119,033 |
Equity in income from joint ventures | (7,527,383) | (5,898,908) |
Dividends received from joint ventures | 3,697,503 | 6,377,054 |
Gain (loss) on disposal of property and equipment | (10,723) | 50,000 |
Deferred income taxes | 186,808 | (117,298) |
Changes in current assets and liabilities: | ||
Trade, excluding joint ventures | (4,372,619) | (1,092,187) |
Trade, joint ventures | (69,754) | 100,151 |
Fees for services provided to joint ventures | (54,311) | 103,643 |
Income taxes | (191,090) | 90,926 |
Inventories | (1,909,253) | 305,268 |
Prepaid expenses and other | (1,317,269) | 8,454 |
Accounts payable | 1,641,132 | (129,371) |
Income tax payable | 73,546 | (27,297) |
Accrued liabilities | 1,720,376 | 742,869 |
Net cash provided by operating activities | 608,687 | 5,735,691 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property and equipment | (680,502) | (922,270) |
Purchase of available for sale securities | (1,518,596) | (3,000,000) |
Proceeds from the sale of available for sale securities | 1,985,470 | 1,476,880 |
Additions to patents | (86,481) | (162,525) |
Net cash used in investing activities | (300,109) | (2,607,915) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividend received by non-controlling interest | (600,000) | (200,000) |
Repurchase of common stock | (196,225) | |
Dividends paid on NTIC common stock | (1,815,508) | |
Proceeds from employee stock purchase plan | 27,951 | 46,536 |
Proceeds from exercise of stock options | 15,433 | 122,999 |
Net cash used in financing activities | (2,372,124) | (226,690) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (133,632) | 63,841 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | (2,197,178) | 2,964,927 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 6,360,201 | 3,395,274 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 4,163,023 | $ 6,360,201 |
Note 1 - Nature of Business and
Note 1 - Nature of Business and Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Nature of Business 60 ® ® 40 ® two The Company participates, either directly or indirectly, in 20 ® 50% not The Company has evaluated events occurring after the date of the consolidated financial statements for events requiring recording or disclosure in the financial statements. Principles of Consolidation not Non-Controlling Interests 90% 85% 60% Net Sales no Revenue Recognition Trade Receivable 30 not not $50,000 August 31, 2018 $40,000 August 31, 2017. Trade Receivables from Joint Ventures 90 not not August 31, 2018 2017. Fees for Services Provided to Joint Ventures – Cash and Cash Equivalents three may Available for Sale Securities Inventories first first Property and Depreciation Buildings and improvements (years) 5 - 30 Machinery and equipment (years) 3 - 10 Patents and Trademarks Investments in Joint Ventures zero August 31 not may August 31, 2018 2017. 20% The Company classifies distributions received from its joint ventures based on the nature of the distributions, generally, as a return on its investment in operating activities on the consolidated statements of cash flows. If the Company is no no Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. Fair value is calculated based on publicly available market information or other estimates determined by management. The Company employs a systematic methodology on a quarterly basis that considers available quantitative and qualitative evidence in evaluating potential impairment of our investments. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, credit quality, the duration and extent to which the fair value is less than cost, and for equity securities, the Company’s intent and ability to hold, or plans to sell, the investment. The Company also considers specific adverse conditions related to the financial health of and business outlook for the investee, including industry and sector performance, changes in technology, and operational and financing cash flow factors. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to other income (expense) and a new cost basis in the investment is established. Recoverability of Long-Lived Assets may not Income Taxes The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not The Company records uncertain tax positions on the basis of a two not not 50 Foreign Currency Translation (Accumulated Other Comprehensive Income (Loss)) The Company (excluding NTIC China, Zerust Brazil, Natur-Tec India, NTI Asean, Zerust Mexico, NTI Europe and its joint ventures) conducts all foreign transactions based on the U.S. dollar. Since investments in joint ventures are accounted for using the equity method, any changes in foreign currency exchange rates are reflected as a foreign currency translation adjustment and does not Fair Value of Financial Instruments Shipping and Handling Research and Development Common Stock Stock-Based Compensation Subsequent Events Use of Estimates |
Note 2 - Accounting Pronounceme
Note 2 - Accounting Pronouncements | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 2. New Accounting Pronouncements Adopted In July 2015, No. 2015 11, Inventory first first first 2018 not In March 2016, No. 2016 07, Investments - Equity Method and Joint Ventures (Topic 323 2016 07 no first 2018 not In March 2016, 2016 09, Stock Compensation, (Topic 718 first 2018. not Recently Issued Accounting Pronouncements In May 2014, 606, Revenue from Contracts with Customers 606. five September 1, 2018. 606, not During February 2016, No. 2016 02, Leases No. 2016 02 12 No. 2016 02 December 15, 2018, first 2020. No. 2016 02 In August 2016, No. 2016 15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments No. 2016 15 zero No. 2016 15 December 15, 2017. No. 2016 15 In February 2018, No. 2018 02, Income Statement – Reporting Comprehensive Income 220 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income No. 2018 02, not No. 2018 02 2020, In December 2017, No. 118 No. 2018 05, Income Taxes 740 No. 118” may not December 22, 2017. No. 118 one No. 118 not no No. 118 14 Although there are several other new accounting pronouncements issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does not |
Note 3 - Inventories
Note 3 - Inventories | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 3. Inventories consisted of the following: August 31, 2018 August 31, 2017 Production materials $ 1,824,489 $ 1,746,916 Finished goods 7,306,372 5,709,636 $ 9,130,861 $ 7,456,552 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment, Net | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 4. Property and equipment, net consisted of the following: August 31, 2018 August 31, 2017 Land $ 310,365 $ 310,365 Buildings and improvements 6,927,484 6,847,177 Machinery and equipment 4,680,072 4,171,387 11,917,921 11,328,929 Less accumulated depreciation (4,749,095 ) (3,969,267 ) $ 7,168,826 $ 7,359,662 |
Note 5 - Patents and Trademarks
Note 5 - Patents and Trademarks, Net | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 5. Patents and trademarks, net consisted of the following: August 31, 2018 August 31, 2017 Patents and trademarks $ 2,824,440 $ 2,737,959 Less accumulated amortization (1,668,183 ) (1,415,870 ) $ 1,156,257 $ 1,322,089 Patent and trademark costs are amortized over seven $252,313 $119,033 August 31, 2018 2017, $260,000 five |
Note 6 - Investments in Joint V
Note 6 - Investments in Joint Ventures | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 6. 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 recorded that remain on the balance sheet on sales 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 ventures in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR) and all the Company’s other joint ventures, are summarized as follows: As of August 31, 2018 Total EXCOR All Other Current assets $ 58,086,747 $ 27,354,788 $ 30,731,959 Total assets 62,803,261 30,033,750 32,769,511 Current liabilities 15,991,886 4,535,954 11,455,932 Noncurrent liabilities 403,653 — 403,653 Joint ventures’ equity 46,407,722 25,497,796 20,909,926 Northern Technologies International Corporation’s share of joint ventures’ equity 22,950,995 12,748,899 10,195,263 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 20,921,783 $ 12,717,994 $ 8,203,789 Fiscal Year Ended August 31, 2018 Total EXCOR All Other Net sales $ 120,060,897 $ 47,537,949 $ 72,522,948 Gross profit 53,348,459 25,584,666 27,763,793 Net income 15,300,276 11,095,523 4,204,753 Northern Technologies International Corporation’s share of equity in income of joint ventures 7,527,383 5,549,765 1,977,618 Northern Technologies International Corporation’s dividends received from joint ventures $ 3,697,503 $ 2,357,544 $ 1,339,959 As of August 31, 2017 Total EXCOR All Other Current assets $ 51,518,210 $ 22,142,514 $ 29,375,696 Total assets 55,633,891 24,301,194 31,332,697 Current liabilities 15,118,074 4,469,567 10,648,507 Noncurrent liabilities 181,210 — 181,210 Joint ventures’ equity 40,334,607 19,831,627 20,502,980 Northern Technologies International Corporation’s share of joint ventures’ equity 20,035,074 9,915,816 10,119,258 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 17,960,860 $ 9,884,911 $ 8,075,949 Fiscal Year Ended August 31, 2017 Total EXCOR All Other Net sales $ 101,261,132 $ 39,849,757 $ 61,411,375 Gross profit 44,861,300 21,133,632 23,727,668 Net income 11,839,933 8,369,728 3,470,205 Northern Technologies International Corporation’s share of equity in income of joint ventures 5,898,908 4,185,988 1,712,920 Northern Technologies International Corporation’s dividends received from joint ventures $ 6,377,054 $ 5,379,062 $ 997,992 The Company did not 2018 2017. |
Note 7 - Corporate Debt
Note 7 - Corporate Debt | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 7. The Company has a revolving line of credit with PNC Bank, National Association (PNC Bank) of $3,000,000. No August 31, 2018 2017. 2.15% January 7, 2019. The line of credit is governed under a loan agreement. The loan agreement contains standard covenants, including affirmative financial covenants, such as the maintenance of a minimum fixed charge coverage ratio, and negative covenants, which, among other things, limit the incurrence of additional indebtedness, loans and equity investments, disposition of assets, mergers and consolidations and other matters customarily restricted in such agreements. Under the loan agreement, the Company is subject to a minimum fixed charge coverage ratio of 1.10:1.00. August 31, 2018, The revolving credit facility allows the Company to request that PNC Bank issue letters of credit up to $1,200,000. not August 31, 2018 2017 not As of August 31, 2018, $88,831 2020 2022. |
Note 8 - Stockholders' Equity
Note 8 - Stockholders' Equity | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 8. During fiscal 2018, Declaration Date Amount Record Date Payable Date November 20, 2017 $0.10 December 8, 2017 December 21, 2017 January 24, 2018 $0.10 February 8, 2018 February 21, 2018 April 25, 2018 $0.10 May 9, 2018 May 23, 2018 July 25, 2018 $0.10 August 8, 2018 August 22, 2018 On January 15, 2015, $3,000,000 no may August 31, 2018, $2,640,548 During fiscal 2018, not During fiscal 2018, 6,407 $11.59 4,410. During fiscal 2017, 14,525 $13.51 2017, 12,000 $10.25 The Company granted stock options under the 2007 56,677 2017. $13.40, The Company held its 2018 2018 January 12, 2018. 2018 10,000,000 15,000,000 January 16, 2018 may 2018 14A November 27, 2017 ( 2018 not 2018 may 2018 not not 5,000,000 |
Note 9 - Net Income Per Common
Note 9 - Net Income Per Common Share | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 9. Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per share assumes the exercise of stock options using the treasury stock method, if dilutive. The following is a reconciliation of the earnings per share computation: Numerator: August 31, 2018 August 31, 2017 Net income attributable to NTIC $ 6,701,366 $ 3,422,126 Denominator: Basic-weighted shares outstanding 4,538,838 4,528,611 Weighted shares assumed upon exercise of stock options 146,364 48,748 Diluted – weighted shares outstanding 4,685,202 4,577,359 Basic earnings per share: $ 1.48 $ 0.76 Diluted earnings per share: $ 1.43 $ 0.75 The dilutive impact summarized above relates to the periods when the average market price of Company stock exceeded the exercise price of the potentially dilutive option securities granted. Earnings per common share were based on the weighted average number of common shares outstanding during the periods when computing the basic earnings per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted earnings per share. There were no August 31, 2018. August 31, 2017 48,067 |
Note 10 - Stock-based Compensat
Note 10 - Stock-based Compensation | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10. The Company has two 2007 2007 The 2007 2007 800,000 2007 2007 ten three four one August 31, 2018, 2007 The maximum number of shares of common stock of the Company available for issuance under the ESPP is 100,000 six September 1 March 1 90% may not 423 1986, 985 1,098 March 1, 2018 2017, 890 3,029 September 1, 2017 2016, The fair value of option grants is determined at date of grant, using the Black-Scholes option pricing model with the assumptions listed below. The volatility factor used in the Black-Scholes option pricing model is based on historical stock price fluctuations and the risk-free interest rate is based on U.S. treasury rates appropriate for the expected term. Dividend yield and expected volatility are estimated using historical amounts that are anticipated to be consistent with current values. Expected life of the option is based on the life of the option agreements. Based on these valuations, the Company recognized compensation expense of $413,010 $391,664 2018 2017, August 31, 2018, not $219,135. $153,901 $65,234 2019 2020, August 31, 2018. The fair value of each option grant is estimated on the grant date using the Black-Scholes option pricing model with the following assumptions and results for the grants: August 31, 2018 August 31, 2017 Dividend yield 2.18% 0.00% Expected volatility 45.9% 46.0% Expected life of option (years) 10 10 Weighted average risk-free interest rate 1.87% 1.63% Stock option activity during the periods indicated is as follows: Number of Shares (#) Weighted Average Exercise Price Aggregate Outstanding at August 31, 2016 283,181 $ 13.95 Options granted 56,677 13.40 Options exercised (12,000 ) 10.25 Options terminated (20,000 ) 15.21 Outstanding at August 31, 2017 307,858 13.93 Options granted 47,252 18.35 Options exercised (6,407 ) 11.59 Options terminated — — Outstanding at August 31, 2018 348,703 $ 14.57 $ 7,737,763 Exercisable at August 31, 2018 267,850 $ 13.97 $ 6,007,547 The weighted average per share fair value of options granted during fiscal 2018 2017 $7.75 $7.69, August 31, 2018 2017 6.27 5.60 |
Note 11 - Segment and Geographi
Note 11 - Segment and Geographic Information | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 11. Segment Information The Company’s chief operating decision maker (CODM) is its Chief Executive Officer. The Company’s business is organized into two ® ® ® 40 ® The following tables present the Company’s business segment information in fiscal 2018 2017: Fiscal 2018 Fiscal 2017 ZERUST ® $ 41,374,305 $ 32,789,283 Natur-Tec ® 10,050,516 6,779,840 Total net sales $ 51,424,821 $ 39,569,123 The following table sets forth the Company’s cost of goods sold for fiscal 2018 2017 Fiscal 2018 Fiscal 2017 Direct cost of goods sold ZERUST® $ 24,326,493 $ 18,996,264 Natur-Tec® 7,303,439 4,925,061 Indirect cost of goods sold 2,535,508 2,395,186 Total net cost of goods sold $ 34,165,440 $ 26,316,511 The Company utilizes product net sales and direct and indirect cost of goods sold for each product in reviewing the financial performance of a product type. Further allocation of Company expenses or assets, aside from amounts presented in the tables above, is not Sales to the Company’s joint ventures are included in the foregoing geographic and segment information, however, sales by the Company’s joint ventures to other parties are not All joint venture operations including equity in income, fees for services and related dividends are related to ZERUST ® Geographic Information Net sales by geographic location were as follows: Fiscal Year Ended August 31, 2018 2017 Inside the U.S.A. to unaffiliated customers $ 25,301,243 $ 21,787,694 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 2,908,072 3,222,478 Unaffiliated customers 23,215,506 14,558,951 $ 51,424,821 $ 39,569,123 Net sales by geographic location are based on the location of the customer. Fees for services provided to joint ventures by geographic location as a percentage of total fees for services provided to joint ventures during fiscal 2018 2017, Fiscal 2018 Fiscal 2017 Germany $ 900,316 $ 838,628 Poland 775,319 661,226 Japan 759,418 641,699 Sweden 600,336 472,819 France 532,565 410,842 Thailand 429,319 448,013 Czech 377,844 314,834 South Korea 370,171 376,002 India 365,018 322,677 United Kingdom 352,585 295,761 Finland 320,501 292,225 Other 358,747 377,961 $ 6,142,139 $ 5,452,687 Sales to the Company’s joint ventures are included in the foregoing segment and geographic information; however, sales by the Company’s joint ventures to other parties are not See Note 6 The geographical distribution of total long-lived assets and net sales is as follows: At August 31, 2018 At August 31, 2017 China $ 205,490 $ 228,458 Brazil 71,677 54,646 Germany 7,058 14,171 India 22,220 14,712 United States 6,862,381 7,047,675 Total long-lived assets $ 7,168,826 $ 7,359,662 Fiscal Year Ended August 31, 2018 Fiscal Year Ended August 31, 2017 China $ 12,507,039 $ 7,225,659 Brazil 3,093,697 2,394,730 India 3,052,741 1,816,929 Other 7,470,101 6,344,111 United States 25,301,243 21,787,694 Total net sales $ 51,424,821 $ 39,569,123 Long-lived assets located in China, Brazil, Germany and India consist of property and equipment. These assets are periodically reviewed to assure the net realizable value from the estimated future production based on forecasted sales exceeds the carrying value of the assets. Sales to the Company’s joint ventures are included in the foregoing segment and geographic information; however, sales by the Company’s joint ventures to other parties are not All joint venture operations including equity in income, fees for services and related dividends are related to ZERUST ® |
Note 12 - Retirement Plan
Note 12 - Retirement Plan | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 12. The Company has a 401 may 15% 50% 3.5% $219,379 $202,559 2018 2017, |
Note 13 - Related Party Transac
Note 13 - Related Party Transactions | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 13. During fiscal 2018 2017, $144,000 $137,666, $0 $10,136, |
Note 14 - Income Taxes
Note 14 - Income Taxes | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 14. On December 22, 2017, August 31 2018, not 35% 21% January 1, 2018, December 31, 2017, one 25.7% August 31, 2018 35% 21% January 1, 2018. The Company recognized provisional amounts for certain income tax effects of the Tax Reform Act in its 2018 February 28, 2018 No. 118, 740, Income Taxes No. 118 one 35% 21% January 1, 2018 $700,000, $700,000 August 31, 2018. In addition, the Company calculated a provisional deemed repatriation tax of $489,000, not no August 31, 2018. The Company completed its accounting for the income tax effects of the Tax Reform Act during the three August 31, 2018. 2018, $632,523 $700,000 February 28, 2018, $67,477 three August 31, 2018. 2018 7.8%. In addition, the Company completed its accounting for the deemed repatriation tax during the year ended August 31, 2018. $604,000 2018, not no 2018 The provision for income taxes for the fiscal years ended August 31, 2018 2017 Fiscal Year Ended August 31, 2018 2017 Current: Federal $ — $ — State 1,000 62,000 Foreign 671,000 754,000 672,000 816,000 Deferred: Federal 477,000 (135,000 ) State 24,000 (9,000 ) Foreign (297,000 ) 28,000 204,000 (116,000 ) $ 876,000 $ 700,000 Reconciliations of the expected federal income tax at the statutory rate ( 25.7% 2018 35% 2017 August 31, 2018 2017 Fiscal Year Ended August 31, 2018 2017 Tax computed at statutory rates $ 2,081,000 $ 1,591,000 State income tax, net of federal benefit 25,000 53,000 Tax effect on equity in income of international joint ventures (1,903,000 ) (1,998,000 ) Tax effect on dividends received from joint ventures and investment at carrying value — 3,159,000 Tax effect of foreign operations 101,000 841,000 Deemed repatriation 4,011,000 — Foreign tax credit (3,783,000 ) (3,680,000 ) Research and development credit (10,000 ) (212,000 ) Valuation allowance (173,000 ) 989,000 Stock based compensation 57,000 81,000 Non-controlling interest (103,000 ) (143,000 ) Deferred rate change 633,000 — Other (60,000 ) 19,000 $ 876,000 $ 700,000 The Company has not December 31, 2017. not $79,000 $3,000 2018 2017, not The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. The tax effect of the temporary differences and tax carryforwards comprising the net deferred taxes shown on the consolidated balance sheets as of August 31, 2018 2017 August 31, 2018 2017 Accrued compensation $ 430,600 $ 310,300 Inventory costs 58,900 87,000 Accrued joint venture expenses — 15,200 Other accrued expenses 63,700 74,000 Goodwill and other intangible assets 695,800 1,317,700 Stock-based compensation 197,500 241,600 Foreign tax credit carryforward 5,789,600 6,105,700 Other credit and loss carryforwards 3,241,200 3,473,100 Total deferred tax assets 10,477,300 11,624,600 Valuation allowance (8,654,500 ) (9,578,700 ) Total deferred tax assets after valuation allowance 1,822,800 2,045,900 Property and equipment (124,600 ) (206,000 ) Other (146,200 ) (83,300 ) Total deferred tax liabilities (270,800 ) (289,300 ) Net deferred tax assets $ 1,552,000 $ 1,756,600 As of August 31, 2018, $5,789,600 not August 31, 2021. $2,865,000 August 31, 2018 2019. $376,100 August 31, 2018, 2021. As of August 31, 2018, $5,789,600 $2,864,900 As of August 31, 2017, $6,105,700 $2,855,100 $618,000 The Company records a tax valuation allowance to reduce deferred tax assets to the amount expected to be realized when it is more likely than not not not not not not not The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: Fiscal Year Ended August 31, 2018 2017 Gross unrecognized tax benefits – beginning balance $ 250,000 $ 238,000 Gross decreases - prior period tax positions (12,000 ) (4,000 ) Gross increases – current period tax positions 4,000 16,000 Gross unrecognized tax benefits – ending balance $ 242,000 $ 250,000 The entire amount of unrecognized tax benefits would affect the effective tax rate if recognized. It is not 12 The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the Company’s income tax provision. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet. There was no August 31, 2018 August 31, 2017. The Company is subject to taxation in the United States and various states and foreign jurisdictions. With few exceptions, as of August 31, 2018, no August 31, 2015. |
Note 15 - Commitments and Conti
Note 15 - Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 15. On August 31, 2018, August 31, 2019. 2019 75% 2019 2019 25% may 2019. On August 26, 2017, August 31, 2018. Accrued bonuses as of August 31, 2018 2017 $2,153,000 $1,015,000, Three joint ventures (consisting of the Company’s joint ventures in South Korea, Thailand and India) accounted for 74.1% August 31, 2018, three 60.7% August 31, 2017. On March 23, 2015, No 1 two From time to time, the Company is subject to various other claims and legal actions in the ordinary course of its business. The Company records a liability in its consolidated financial statements for costs related to claims, including future legal costs, settlements and judgments, where the Company has assessed that a loss is probable and an amount could be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when no not not may August 31, 2018, not The Company has leases for office and warehouse space in the United States of America, China, India, Germany and Brazil with monthly rents ranging from $576 $9,729, August 31, 2022. five August 31: Fiscal 2019 $ 131,840 Fiscal 2020 66,762 Fiscal 2021 12,404 Fiscal 2022 3,454 $ 214,460 |
Note 16 - Statements of Cash Fl
Note 16 - Statements of Cash Flows | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 16. Supplemental disclosures of cash flow information consist of: Fiscal Year Ended 2018 2017 Cash paid during the year for income tax $ 876,103 $ 699,519 Cash paid during the year for interest 17,962 20,382 |
Note 17 - Fair Value Measuremen
Note 17 - Fair Value Measurements | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | 17. Fair Value Measurements The Company follows the authoritative guidance on fair value measurements and disclosures with respect to assets and liabilities that are measured at fair value on both a recurring and non-recurring basis. Under this guidance, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability, developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and financial liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three Level 1 Level 2 not Level 3 See the section below titled Valuation Techniques for further discussion of how the Company determines fair value for investments. Assets and Liabilities That Are Measured at Fair Value on a Recurring Basis Assets and liabilities that are measured at fair value on a recurring basis primarily relate to marketable equity securities. These items are marked-to-market at each reporting period. The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis: Fair Value Measurements Fair value as of Level 1 Level 2 Level 3 Available for sale securities $ 3,300,110 $ 3,300,110 $ — $ — Fair Value Measurements Fair value as of Level 1 Level 2 Level 3 Available for sale securities $ 3,766,984 $ 3,766,984 $ — $ — Valuation Techniques Financial assets that are classified as Level 1 The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may no 1, 2, 3 August 31, 2018 August 31, 2017. 3, |
Note 18 - Subsequent Events
Note 18 - Subsequent Events | 12 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 18. SUBSEQUENT EVENT On October 24, 2018, $0.12 November 21, 2018 November 7, 2018. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2018 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation not |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | Non-Controlling Interests 90% 85% 60% |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Net Sales no Revenue Recognition |
Receivables, Policy [Policy Text Block] | Trade Receivable 30 not not $50,000 August 31, 2018 $40,000 August 31, 2017. |
Receivables from Joint Ventures Policy [Policy Text Block ] | Trade Receivables from Joint Ventures 90 not not August 31, 2018 2017. Fees for Services Provided to Joint Ventures – |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents three may |
Marketable Securities, Policy [Policy Text Block] | Available for Sale Securities |
Inventory, Policy [Policy Text Block] | Inventories first first |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Depreciation Buildings and improvements (years) 5 - 30 Machinery and equipment (years) 3 - 10 |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Patents and Trademarks |
Equity Method Investments [Policy Text Block] | Investments in Joint Ventures zero August 31 not may August 31, 2018 2017. 20% The Company classifies distributions received from its joint ventures based on the nature of the distributions, generally, as a return on its investment in operating activities on the consolidated statements of cash flows. If the Company is no no Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. Fair value is calculated based on publicly available market information or other estimates determined by management. The Company employs a systematic methodology on a quarterly basis that considers available quantitative and qualitative evidence in evaluating potential impairment of our investments. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, credit quality, the duration and extent to which the fair value is less than cost, and for equity securities, the Company’s intent and ability to hold, or plans to sell, the investment. The Company also considers specific adverse conditions related to the financial health of and business outlook for the investee, including industry and sector performance, changes in technology, and operational and financing cash flow factors. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to other income (expense) and a new cost basis in the investment is established. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Recoverability of Long-Lived Assets may not |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not The Company records uncertain tax positions on the basis of a two not not 50 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation (Accumulated Other Comprehensive Income (Loss)) The Company (excluding NTIC China, Zerust Brazil, Natur-Tec India, NTI Asean, Zerust Mexico, NTI Europe and its joint ventures) conducts all foreign transactions based on the U.S. dollar. Since investments in joint ventures are accounted for using the equity method, any changes in foreign currency exchange rates are reflected as a foreign currency translation adjustment and does not |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling |
Research, Development, and Computer Software, Policy [Policy Text Block] | Research and Development |
Stockholders' Equity, Policy [Policy Text Block] | Common Stock |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
Note 1 - Nature of Business a_2
Note 1 - Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Property and Equipment Useful Life [Table Text Block] | <table cellspacing="0" cellpadding="0" style="; border-collapse: collapse; text-indent: 0px; min-; min-width: 700px;"> <tr style="VERTICAL-ALIGN: bottom"> <td style="white-space: nowrap; font-size: 10pt; text-align: left; padding-left: 1.7in; width: 50%">Buildings and improvements (years)</td> <td style="font-size: 10pt; width: 1%"> </td> <td style="font-size: 10pt; text-align: center; width: 4%"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div></td> <td style="font-size: 10pt; text-align: center; width: 4%"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: center; width: 4%"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div></td> <td style="font-size: 10pt; text-align: left; width: 37%"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="font-size: 10pt; text-align: left; padding-left: 1.7in">Machinery and equipment (years)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> </table></div>" id="sjs-B4"><div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellspacing="0" cellpadding="0" style="; border-collapse: collapse; text-indent: 0px; min-; min-width: 700px;"> <tr style="VERTICAL-ALIGN: bottom"> <td style="white-space: nowrap; font-size: 10pt; text-align: left; padding-left: 1.7in; width: 50%">Buildings and improvements (years)</td> <td style="font-size: 10pt; width: 1%"> </td> <td style="font-size: 10pt; text-align: center; width: 4%"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div></td> <td style="font-size: 10pt; text-align: center; width: 4%"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: center; width: 4%"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div></td> <td style="font-size: 10pt; text-align: left; width: 37%"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="font-size: 10pt; text-align: left; padding-left: 1.7in">Machinery and equipment (years)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td style="font-size: 10pt; text-align: left"> </td> </tr> </table></div> |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | August 31, 2018 August 31, 2017 Production materials $ 1,824,489 $ 1,746,916 Finished goods 7,306,372 5,709,636 $ 9,130,861 $ 7,456,552 |
Note 4 - Property and Equipme_2
Note 4 - Property and Equipment, Net (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | August 31, 2018 August 31, 2017 Land $ 310,365 $ 310,365 Buildings and improvements 6,927,484 6,847,177 Machinery and equipment 4,680,072 4,171,387 11,917,921 11,328,929 Less accumulated depreciation (4,749,095 ) (3,969,267 ) $ 7,168,826 $ 7,359,662 |
Note 5 - Patents and Trademar_2
Note 5 - Patents and Trademarks, Net (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | August 31, 2018 August 31, 2017 Patents and trademarks $ 2,824,440 $ 2,737,959 Less accumulated amortization (1,668,183 ) (1,415,870 ) $ 1,156,257 $ 1,322,089 |
Note 6 - Investments in Joint_2
Note 6 - Investments in Joint Ventures (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | As of August 31, 2018 Total EXCOR All Other Current assets $ 58,086,747 $ 27,354,788 $ 30,731,959 Total assets 62,803,261 30,033,750 32,769,511 Current liabilities 15,991,886 4,535,954 11,455,932 Noncurrent liabilities 403,653 — 403,653 Joint ventures’ equity 46,407,722 25,497,796 20,909,926 Northern Technologies International Corporation’s share of joint ventures’ equity 22,950,995 12,748,899 10,195,263 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 20,921,783 $ 12,717,994 $ 8,203,789 As of August 31, 2017 Total EXCOR All Other Current assets $ 51,518,210 $ 22,142,514 $ 29,375,696 Total assets 55,633,891 24,301,194 31,332,697 Current liabilities 15,118,074 4,469,567 10,648,507 Noncurrent liabilities 181,210 — 181,210 Joint ventures’ equity 40,334,607 19,831,627 20,502,980 Northern Technologies International Corporation’s share of joint ventures’ equity 20,035,074 9,915,816 10,119,258 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 17,960,860 $ 9,884,911 $ 8,075,949 |
Condensed Income Statement [Table Text Block] | Fiscal Year Ended August 31, 2018 Total EXCOR All Other Net sales $ 120,060,897 $ 47,537,949 $ 72,522,948 Gross profit 53,348,459 25,584,666 27,763,793 Net income 15,300,276 11,095,523 4,204,753 Northern Technologies International Corporation’s share of equity in income of joint ventures 7,527,383 5,549,765 1,977,618 Northern Technologies International Corporation’s dividends received from joint ventures $ 3,697,503 $ 2,357,544 $ 1,339,959 Fiscal Year Ended August 31, 2017 Total EXCOR All Other Net sales $ 101,261,132 $ 39,849,757 $ 61,411,375 Gross profit 44,861,300 21,133,632 23,727,668 Net income 11,839,933 8,369,728 3,470,205 Northern Technologies International Corporation’s share of equity in income of joint ventures 5,898,908 4,185,988 1,712,920 Northern Technologies International Corporation’s dividends received from joint ventures $ 6,377,054 $ 5,379,062 $ 997,992 |
Note 8 - Stockholders' Equity (
Note 8 - Stockholders' Equity (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Dividends Declared [Table Text Block] | Declaration Date Amount Record Date Payable Date November 20, 2017 $0.10 December 8, 2017 December 21, 2017 January 24, 2018 $0.10 February 8, 2018 February 21, 2018 April 25, 2018 $0.10 May 9, 2018 May 23, 2018 July 25, 2018 $0.10 August 8, 2018 August 22, 2018 |
Note 9 - Net Income Per Commo_2
Note 9 - Net Income Per Common Share (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Numerator: August 31, 2018 August 31, 2017 Net income attributable to NTIC $ 6,701,366 $ 3,422,126 Denominator: Basic-weighted shares outstanding 4,538,838 4,528,611 Weighted shares assumed upon exercise of stock options 146,364 48,748 Diluted – weighted shares outstanding 4,685,202 4,577,359 Basic earnings per share: $ 1.48 $ 0.76 Diluted earnings per share: $ 1.43 $ 0.75 |
Note 10 - Stock-based Compens_2
Note 10 - Stock-based Compensation (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | August 31, 2018 August 31, 2017 Dividend yield 2.18% 0.00% Expected volatility 45.9% 46.0% Expected life of option (years) 10 10 Weighted average risk-free interest rate 1.87% 1.63% |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Shares (#) Weighted Average Exercise Price Aggregate Outstanding at August 31, 2016 283,181 $ 13.95 Options granted 56,677 13.40 Options exercised (12,000 ) 10.25 Options terminated (20,000 ) 15.21 Outstanding at August 31, 2017 307,858 13.93 Options granted 47,252 18.35 Options exercised (6,407 ) 11.59 Options terminated — — Outstanding at August 31, 2018 348,703 $ 14.57 $ 7,737,763 Exercisable at August 31, 2018 267,850 $ 13.97 $ 6,007,547 |
Note 11 - Segment and Geograp_2
Note 11 - Segment and Geographic Information (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Fiscal 2018 Fiscal 2017 ZERUST ® $ 41,374,305 $ 32,789,283 Natur-Tec ® 10,050,516 6,779,840 Total net sales $ 51,424,821 $ 39,569,123 |
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block] | Fiscal 2018 Fiscal 2017 Direct cost of goods sold ZERUST® $ 24,326,493 $ 18,996,264 Natur-Tec® 7,303,439 4,925,061 Indirect cost of goods sold 2,535,508 2,395,186 Total net cost of goods sold $ 34,165,440 $ 26,316,511 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Fiscal Year Ended August 31, 2018 2017 Inside the U.S.A. to unaffiliated customers $ 25,301,243 $ 21,787,694 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 2,908,072 3,222,478 Unaffiliated customers 23,215,506 14,558,951 $ 51,424,821 $ 39,569,123 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | At August 31, 2018 At August 31, 2017 China $ 205,490 $ 228,458 Brazil 71,677 54,646 Germany 7,058 14,171 India 22,220 14,712 United States 6,862,381 7,047,675 Total long-lived assets $ 7,168,826 $ 7,359,662 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Fiscal Year Ended August 31, 2018 Fiscal Year Ended August 31, 2017 China $ 12,507,039 $ 7,225,659 Brazil 3,093,697 2,394,730 India 3,052,741 1,816,929 Other 7,470,101 6,344,111 United States 25,301,243 21,787,694 Total net sales $ 51,424,821 $ 39,569,123 |
Fees for Services Provided to Joint Ventures [Member] | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Fiscal 2018 Fiscal 2017 Germany $ 900,316 $ 838,628 Poland 775,319 661,226 Japan 759,418 641,699 Sweden 600,336 472,819 France 532,565 410,842 Thailand 429,319 448,013 Czech 377,844 314,834 South Korea 370,171 376,002 India 365,018 322,677 United Kingdom 352,585 295,761 Finland 320,501 292,225 Other 358,747 377,961 $ 6,142,139 $ 5,452,687 |
Note 14 - Income Taxes (Tables)
Note 14 - Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Fiscal Year Ended August 31, 2018 2017 Current: Federal $ — $ — State 1,000 62,000 Foreign 671,000 754,000 672,000 816,000 Deferred: Federal 477,000 (135,000 ) State 24,000 (9,000 ) Foreign (297,000 ) 28,000 204,000 (116,000 ) $ 876,000 $ 700,000 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Fiscal Year Ended August 31, 2018 2017 Tax computed at statutory rates $ 2,081,000 $ 1,591,000 State income tax, net of federal benefit 25,000 53,000 Tax effect on equity in income of international joint ventures (1,903,000 ) (1,998,000 ) Tax effect on dividends received from joint ventures and investment at carrying value — 3,159,000 Tax effect of foreign operations 101,000 841,000 Deemed repatriation 4,011,000 — Foreign tax credit (3,783,000 ) (3,680,000 ) Research and development credit (10,000 ) (212,000 ) Valuation allowance (173,000 ) 989,000 Stock based compensation 57,000 81,000 Non-controlling interest (103,000 ) (143,000 ) Deferred rate change 633,000 — Other (60,000 ) 19,000 $ 876,000 $ 700,000 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | August 31, 2018 2017 Accrued compensation $ 430,600 $ 310,300 Inventory costs 58,900 87,000 Accrued joint venture expenses — 15,200 Other accrued expenses 63,700 74,000 Goodwill and other intangible assets 695,800 1,317,700 Stock-based compensation 197,500 241,600 Foreign tax credit carryforward 5,789,600 6,105,700 Other credit and loss carryforwards 3,241,200 3,473,100 Total deferred tax assets 10,477,300 11,624,600 Valuation allowance (8,654,500 ) (9,578,700 ) Total deferred tax assets after valuation allowance 1,822,800 2,045,900 Property and equipment (124,600 ) (206,000 ) Other (146,200 ) (83,300 ) Total deferred tax liabilities (270,800 ) (289,300 ) Net deferred tax assets $ 1,552,000 $ 1,756,600 |
Summary of Income Tax Contingencies [Table Text Block] | Fiscal Year Ended August 31, 2018 2017 Gross unrecognized tax benefits – beginning balance $ 250,000 $ 238,000 Gross decreases - prior period tax positions (12,000 ) (4,000 ) Gross increases – current period tax positions 4,000 16,000 Gross unrecognized tax benefits – ending balance $ 242,000 $ 250,000 |
Note 15 - Commitments and Con_2
Note 15 - Commitments and Contingencies (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Fiscal 2019 $ 131,840 Fiscal 2020 66,762 Fiscal 2021 12,404 Fiscal 2022 3,454 $ 214,460 |
Note 16 - Statements of Cash _2
Note 16 - Statements of Cash Flows (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Fiscal Year Ended 2018 2017 Cash paid during the year for income tax $ 876,103 $ 699,519 Cash paid during the year for interest 17,962 20,382 |
Note 17 - Fair Value Measurem_2
Note 17 - Fair Value Measurements (Tables) | 12 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | Fair Value Measurements Fair value as of Level 1 Level 2 Level 3 Available for sale securities $ 3,300,110 $ 3,300,110 $ — $ — Fair Value Measurements Fair value as of Level 1 Level 2 Level 3 Available for sale securities $ 3,766,984 $ 3,766,984 $ — $ — |
Note 1 - Nature of Business a_3
Note 1 - Nature of Business and Significant Accounting Policies (Details Textual) | 12 Months Ended | |
Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | |
Number of Countries in which Entity Operates | 60 | |
Number of Operating Segments | 2 | |
Number of Joint Venture Arrangements | 20 | |
Allowance for Doubtful Accounts Receivable, Ending Balance | $ 50,000 | $ 40,000 |
NaturTec [Member] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 90.00% | |
Zerust Brazil [Member] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 85.00% | |
NTI Asean LLC [Member] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 60.00% | |
Maximum [Member] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% |
Note 1 - Nature of Business a_4
Note 1 - Nature of Business and Significant Accounting Policies - Property and Equipment, Useful Life (Details) | 12 Months Ended |
Aug. 31, 2018 | |
Building and Building Improvements [Member] | Minimum [Member] | |
Property and equipment (Year) | 5 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property and equipment (Year) | 30 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property and equipment (Year) | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property and equipment (Year) | 10 years |
Note 3 - Inventories - Inventor
Note 3 - Inventories - Inventories (Details) - USD ($) | Aug. 31, 2018 | Aug. 31, 2017 |
Production materials | $ 1,824,489 | $ 1,746,916 |
Finished goods | 7,306,372 | 5,709,636 |
Total inventory | $ 9,130,861 | $ 7,456,552 |
Note 4 - Property and Equipme_3
Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($) | Aug. 31, 2018 | Aug. 31, 2017 |
Land | $ 310,365 | $ 310,365 |
Buildings and improvements | 6,927,484 | 6,847,177 |
Machinery and equipment | 4,680,072 | 4,171,387 |
Gross | 11,917,921 | 11,328,929 |
Less accumulated depreciation | (4,749,095) | (3,969,267) |
Net | $ 7,168,826 | $ 7,359,662 |
Note 5 - Patents and Trademar_3
Note 5 - Patents and Trademarks, Net (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Amortization, Total | $ 252,312 | $ 119,033 |
Patents and Trademarks [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 7 years | |
Amortization, Total | $ 252,313 | $ 119,033 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 260,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 260,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 260,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 260,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 260,000 |
Note 5 - Patents and Trademar_4
Note 5 - Patents and Trademarks, Net - Patents and Trademarks, Net (Details) - USD ($) | Aug. 31, 2018 | Aug. 31, 2017 |
Patents and trademarkes, net | $ 1,156,257 | $ 1,322,089 |
Patents and Trademarks [Member] | ||
Patents and trademarks | 2,824,440 | 2,737,959 |
Less accumulated amortization | (1,668,183) | (1,415,870) |
Patents and trademarkes, net | $ 1,156,257 | $ 1,322,089 |
Note 6 - Investments in Joint_3
Note 6 - Investments in Joint Ventures (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Payments to Acquire Interest in Joint Venture | $ 0 | $ 0 |
Note 6 - Investments in Joint_4
Note 6 - Investments in Joint Ventures - Condensed Balance Sheet of EXCOR and All Other Joint Ventures (Details) - USD ($) | Aug. 31, 2018 | Aug. 31, 2017 |
Current assets | $ 58,086,747 | $ 51,518,210 |
Total assets | 62,803,261 | 55,633,891 |
Current liabilities | 15,991,886 | 15,118,074 |
Noncurrent liabilities | 403,653 | 181,210 |
Joint ventures’ equity | 46,407,722 | 40,334,607 |
Northern Technologies International Corporation’s share of joint ventures’ equity | 22,950,995 | 20,035,074 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 20,921,783 | 17,960,860 |
EXCOR [Member] | ||
Current assets | 27,354,788 | 22,142,514 |
Total assets | 30,033,750 | 24,301,194 |
Current liabilities | 4,535,954 | 4,469,567 |
Noncurrent liabilities | ||
Joint ventures’ equity | 25,497,796 | 19,831,627 |
Northern Technologies International Corporation’s share of joint ventures’ equity | 12,748,899 | 9,915,816 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 12,717,994 | 9,884,911 |
All Other [Member] | ||
Current assets | 30,731,959 | 29,375,696 |
Total assets | 32,769,511 | 31,332,697 |
Current liabilities | 11,455,932 | 10,648,507 |
Noncurrent liabilities | 403,653 | 181,210 |
Joint ventures’ equity | 20,909,926 | 20,502,980 |
Northern Technologies International Corporation’s share of joint ventures’ equity | 10,195,263 | 10,119,258 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | $ 8,203,789 | $ 8,075,949 |
Note 6 - Investments in Joint_5
Note 6 - Investments in Joint Ventures - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Net sales | $ 120,060,897 | $ 101,261,132 |
Gross profit | 53,348,459 | 44,861,300 |
Net income | 15,300,276 | 11,839,933 |
Equity in income from joint ventures | 7,527,383 | 5,898,908 |
Northern Technologies International Corporation’s dividends received from joint ventures | 3,697,503 | 6,377,054 |
EXCOR [Member] | ||
Net sales | 47,537,949 | 39,849,757 |
Gross profit | 25,584,666 | 21,133,632 |
Net income | 11,095,523 | 8,369,728 |
Equity in income from joint ventures | 5,549,765 | 4,185,988 |
Northern Technologies International Corporation’s dividends received from joint ventures | 2,357,544 | 5,379,062 |
All Other [Member] | ||
Net sales | 72,522,948 | 61,411,375 |
Gross profit | 27,763,793 | 23,727,668 |
Net income | 4,204,753 | 3,470,205 |
Equity in income from joint ventures | 1,977,618 | 1,712,920 |
Northern Technologies International Corporation’s dividends received from joint ventures | $ 1,339,959 | $ 997,992 |
Note 7 - Corporate Debt (Detail
Note 7 - Corporate Debt (Details Textual) | 12 Months Ended | |
Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | |
Term Loan and Line of Credit, Agreements, Loan Agreements [Member] | ||
Debt Instrument, Covenants, Fixed Charge Coverage Ratio | 1.1 | |
PNC Bank [Member] | ||
Letters of Credit Outstanding, Amount | $ 0 | $ 0 |
PNC Bank [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 3,000,000 | |
Long-term Line of Credit, Total | $ 0 | $ 0 |
PNC Bank [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.15% | |
PNC Bank [Member] | Letter of Credit [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | |
JP Morgan Chase Bank [Member] | ||
Letters of Credit Outstanding, Amount | $ 88,831 |
Note 8 - Stockholders' Equity_2
Note 8 - Stockholders' Equity (Details Textual) - USD ($) | 8 Months Ended | 12 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2018 | Aug. 31, 2017 | Jan. 15, 2018 | |
Stock Repurchase Program, Authorized Amount | $ 3,000,000 | $ 3,000,000 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 2,640,548 | $ 2,640,548 | ||
Stock Repurchased and Retired During Period, Shares | 0 | 14,525 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Including Cashless Exercises | 6,407 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 4,410 | 12,000 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 13.51 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 11.59 | $ 10.25 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 47,252 | 56,677 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 18.35 | $ 13.40 | ||
Common Stock, Shares Authorized | 15,000,000 | 15,000,000 | 10,000,000 | 10,000,000 |
Common Stock, Additional Shares Authorized | 5,000,000 | |||
The 2007 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 56,677 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 13.40 |
Note 8 - Stockholders' Equity -
Note 8 - Stockholders' Equity - Schedule of Dividends Payable (Details) - $ / shares | Jul. 25, 2018 | Apr. 25, 2018 | Jan. 24, 2018 | Nov. 20, 2017 | Aug. 31, 2018 | Aug. 31, 2017 |
Declaration date | Jul. 25, 2018 | Apr. 25, 2018 | Jan. 24, 2018 | Nov. 20, 2017 | ||
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.40 | $ 0 |
Record date | Aug. 8, 2018 | May 9, 2018 | Feb. 8, 2018 | Dec. 8, 2017 | ||
Payable date | Aug. 22, 2018 | May 23, 2018 | Feb. 21, 2018 | Dec. 21, 2017 |
Note 9 - Net Income Per Commo_3
Note 9 - Net Income Per Common Share (Details Textual) - shares | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 48,067 |
Note 9 - Net Income Per Commo_4
Note 9 - Net Income Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Net income attributable to NTIC | $ 6,701,366 | $ 3,422,126 |
Basic-weighted shares outstanding (in shares) | 4,538,838 | 4,528,611 |
Weighted shares assumed upon exercise of stock options (in shares) | 146,364 | 48,748 |
Diluted – weighted shares outstanding (in shares) | 4,685,202 | 4,577,359 |
Basic (in dollars per share) | $ 1.48 | $ 0.76 |
Diluted (in dollars per share) | $ 1.43 | $ 0.75 |
Note 10 - Stock-based Compens_3
Note 10 - Stock-based Compensation (Details Textual) | Mar. 01, 2018shares | Sep. 01, 2017shares | Mar. 01, 2017shares | Sep. 01, 2016shares | Aug. 31, 2018USD ($)$ / sharesshares | Aug. 31, 2017USD ($)$ / shares |
Number of Stock-based Compensation Plans | 2 | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | shares | 985 | 890 | 1,098 | 3,029 | ||
Stock or Unit Option Plan Expense | $ 413,010 | $ 391,664 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 219,135 | |||||
Allocated Share-based Compensation Expense, Estimate, Next Fiscal Year | 153,901 | |||||
Allocated Share-based Compensation Expense, Estimate, Fiscal Year Two | $ 65,234 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 7.75 | $ 7.69 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 98 days | 5 years 219 days | ||||
The 2007 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 800,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||
The 2007 Plan [Member] | One Year after Date of Grant [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
The 2007 Plan [Member] | One Year after Date of Grant [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||
ESPP [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 100,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 90.00% |
Note 10 - Stock-based Compens_4
Note 10 - Stock-based Compensation - Black-scholes Option-pricing Model Assumptions (Details) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Dividend yield | 2.18% | 0.00% |
Expected volatility | 45.90% | 46.00% |
Expected life of option (years) (Year) | 10 years | 10 years |
Weighted average risk-free interest rate | 1.87% | 1.63% |
Note 10 - Stock-based Compens_5
Note 10 - Stock-based Compensation - Stock Option Activity (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Number of shares, Outstanding (in shares) | 307,858 | 283,181 |
Weighted average exercise price, Outstanding (in dollars per share) | $ 13.93 | $ 13.95 |
Number of shares, Options granted (in shares) | 47,252 | 56,677 |
Weighted average exercise price, Options granted (in dollars per share) | $ 18.35 | $ 13.40 |
Number of shares, Options exercised (in shares) | (4,410) | (12,000) |
Weighted average exercise price, Options exercised (in dollars per share) | $ 11.59 | $ 10.25 |
Number of shares, Options terminated (in shares) | (20,000) | |
Weighted average exercise price, Options terminated (in dollars per share) | $ 15.21 | |
Number of shares, Options exercised (in shares) | (6,407) | |
Number of shares, Outstanding (in shares) | 348,703 | 307,858 |
Weighted average exercise price, Outstanding (in dollars per share) | $ 14.57 | $ 13.93 |
Aggregate intrinsic value, Outstanding | $ 7,737,763 | |
Number of shares, Exercisable (in shares) | 267,850 | |
Weighted average exercise price, Exercisable (in dollars per share) | $ 13.97 | |
Aggregate intrinsic value, Exercisable | $ 6,007,547 |
Note 11 - Segment and Geograp_3
Note 11 - Segment and Geographic Information (Details Textual) | 12 Months Ended |
Aug. 31, 2018 | |
Number of Reportable Segments | 2 |
Note 11 - Segment and Geograp_4
Note 11 - Segment and Geographic Information - Net Sales by Segment (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Net sales by segment | $ 51,424,821 | $ 39,569,123 |
ZERUST [Member] | ||
Net sales by segment | 41,374,305 | 32,789,283 |
NaturTec [Member] | ||
Net sales by segment | $ 10,050,516 | $ 6,779,840 |
Note 11 - Segment and Geograp_5
Note 11 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Cost of goods sold | $ 34,165,440 | $ 26,316,511 |
Direct Cost of Goods Sold [Member] | ZERUST [Member] | ||
Cost of goods sold | 24,326,493 | 18,996,264 |
Direct Cost of Goods Sold [Member] | NaturTec [Member] | ||
Cost of goods sold | 7,303,439 | 4,925,061 |
Indirect Cost of Goods Sold [Member] | ||
Cost of goods sold | $ 2,535,508 | $ 2,395,186 |
Note 11 - Segment and Geograp_6
Note 11 - Segment and Geographic Information - Net Sales by Geographic Location (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Net sales by segment | $ 51,424,821 | $ 39,569,123 |
Inside the USA to Unaffiliated Customers [Member] | ||
Net sales by segment | 25,301,243 | 21,787,694 |
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member] | ||
Net sales by segment | 2,908,072 | 3,222,478 |
Unaffiliated Customers Outside the USA [Member] | ||
Net sales by segment | $ 23,215,506 | $ 14,558,951 |
Note 11 - Segment and Geograp_7
Note 11 - Segment and Geographic Information - Fees for Services Provided to Joint Ventures by Geographic Location as a Percentage of Total Fees (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Fees | $ 6,142,139 | $ 5,452,687 |
GERMANY | ||
Fees | 900,316 | 838,628 |
POLAND | ||
Fees | 775,319 | 661,226 |
JAPAN | ||
Fees | 759,418 | 641,699 |
SWEDEN | ||
Fees | 600,336 | 472,819 |
FRANCE | ||
Fees | 532,565 | 410,842 |
THAILAND | ||
Fees | 429,319 | 448,013 |
CZECH REPUBLIC | ||
Fees | 377,844 | 314,834 |
KOREA, REPUBLIC OF | ||
Fees | 370,171 | 376,002 |
INDIA | ||
Fees | 365,018 | 322,677 |
UNITED KINGDOM | ||
Fees | 352,585 | 295,761 |
FINLAND | ||
Fees | 320,501 | 292,225 |
Other Countries [Member] | ||
Fees | $ 358,747 | $ 377,961 |
Note 11 - Segment and Geograp_8
Note 11 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($) | Aug. 31, 2018 | Aug. 31, 2017 |
Total long-lived assets | $ 7,168,826 | $ 7,359,662 |
CHINA | ||
Total long-lived assets | 205,490 | 228,458 |
BRAZIL | ||
Total long-lived assets | 71,677 | 54,646 |
GERMANY | ||
Total long-lived assets | 7,058 | 14,171 |
INDIA | ||
Total long-lived assets | 22,220 | 14,712 |
UNITED STATES | ||
Total long-lived assets | $ 6,862,381 | $ 7,047,675 |
Note 11 - Segment and Geograp_9
Note 11 - Segment and Geographical Information - Total Net Sales by Geographic Distribution (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Net sales by segment | $ 51,424,821 | $ 39,569,123 |
CHINA | ||
Net sales by segment | 12,507,039 | 7,225,659 |
BRAZIL | ||
Net sales by segment | 3,093,697 | 2,394,730 |
INDIA | ||
Net sales by segment | 3,052,741 | 1,816,929 |
Other Countries [Member] | ||
Net sales by segment | 7,470,101 | 6,344,111 |
UNITED STATES | ||
Net sales by segment | $ 25,301,243 | $ 21,787,694 |
Note 12 - Retirement Plan (Deta
Note 12 - Retirement Plan (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 15.00% | |
Defined Contribution Plan Maximum Amount of Employees Contributions Percent | 50.00% | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.50% | |
Defined Contribution Plan, Cost | $ 219,379 | $ 202,559 |
Note 13 - Related Party Trans_2
Note 13 - Related Party Transactions (Details Textual) - Bioplastic Polymers LLC [Member] - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Consulting Payment Expense [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 144,000 | $ 137,666 |
Royalty Payment Expense [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 0 | $ 10,136 |
Note 14 - Income Taxes (Details
Note 14 - Income Taxes (Details Textual) - USD ($) | 2 Months Ended | 3 Months Ended | 12 Months Ended | |
Feb. 28, 2018 | Aug. 31, 2018 | Aug. 31, 2018 | Aug. 31, 2017 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.70% | |||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 700,000 | $ 632,523 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (700,000) | |||
Provisional Adjustments Related to Transition of Tax on Deemed Repatriation of Accumulated Foreign Income | 489,000 | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ (67,477) | $ 633,000 | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 7.80% | |||
Repatriation of Foreign Earnings, Tax | $ 604,000 | |||
Income Tax Expense Increase (Decrease) Deemed Repatriation, Net | 0 | |||
Foreign Withholding Tax | 79,000 | 3,000 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | 0 | 0 | 0 | |
Foreign Tax Authority [Member] | ||||
Tax Credit Carryforward, Valuation Allowance | 5,789,600 | 5,789,600 | 6,105,700 | |
Operating Loss Carryforwards, Valuation Allowance, Total | 376,100 | 376,100 | 618,000 | |
Federal and State Tax [Member] | ||||
Tax Credit Carryforward, Valuation Allowance | 2,865,000 | 2,865,000 | $ 2,855,100 | |
Operating Loss Carryforwards, Total | $ 2,864,900 | $ 2,864,900 |
Note 14 - Income Taxes - Provis
Note 14 - Income Taxes - Provision for Income Taxes (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Current: | ||
Federal | ||
State | 1,000 | 62,000 |
Foreign | 671,000 | 754,000 |
Total current | 672,000 | 816,000 |
Deferred: | ||
Federal | 477,000 | (135,000) |
State | 24,000 | (9,000) |
Foreign | (297,000) | 28,000 |
Total deferred | 204,000 | (116,000) |
Total income tax expense | $ 876,103 | $ 699,519 |
Note 14 - Income Taxes - Reconc
Note 14 - Income Taxes - Reconciliations of the Expected Federal Income Tax at the Statutory Rate with the Provisions for Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2018 | Aug. 31, 2017 | |
Tax computed at statutory rates | $ 2,081,000 | $ 1,591,000 | |
State income tax, net of federal benefit | 25,000 | 53,000 | |
Tax effect on equity in income of international joint ventures | (1,903,000) | (1,998,000) | |
Tax effect on dividends received from joint ventures and investment at carrying value | 3,159,000 | ||
Tax effect of foreign operations | 101,000 | 841,000 | |
Deemed repatriation | 4,011,000 | ||
Foreign tax credit | (3,783,000) | (3,680,000) | |
Research and development credit | (10,000) | (212,000) | |
Valuation allowance | (173,000) | 989,000 | |
Stock based compensation | 57,000 | 81,000 | |
Non-controlling interest | (103,000) | (143,000) | |
Deferred rate change | $ (67,477) | 633,000 | |
Other | (60,000) | 19,000 | |
Total income tax expense | $ 876,103 | $ 699,519 |
Note 14 - Income Taxes - Tax Ef
Note 14 - Income Taxes - Tax Effect of the Temporary Differences and Tax Carry Forwards Comprising Net Deferred Taxes (Details) - USD ($) | Aug. 31, 2018 | Aug. 31, 2017 |
Accrued compensation | $ 430,600 | $ 310,300 |
Inventory costs | 58,900 | 87,000 |
Accrued joint venture expenses | 15,200 | |
Other accrued expenses | 63,700 | 74,000 |
Goodwill and other intangible assets | 695,800 | 1,317,700 |
Stock-based compensation | 197,500 | 241,600 |
Foreign tax credit carryforward | 5,789,600 | 6,105,700 |
Other credit and loss carryforwards | 3,241,200 | 3,473,100 |
Total deferred tax assets | 10,477,300 | 11,624,600 |
Valuation allowance | (8,654,500) | (9,578,700) |
Total deferred tax assets after valuation allowance | 1,822,800 | 2,045,900 |
Property and equipment | (124,600) | (206,000) |
Other | (146,200) | (83,300) |
Total deferred tax liabilities | (270,800) | (289,300) |
Net deferred tax assets | $ 1,552,000 | $ 1,756,600 |
Note 14 - Income Taxes - Reco_2
Note 14 - Income Taxes - Reconciliation of the Total Amounts of Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Gross unrecognized tax benefits – beginning balance | $ 250,000 | $ 238,000 |
Gross decreases - prior period tax positions | (12,000) | (4,000) |
Gross increases – current period tax positions | 4,000 | 16,000 |
Gross unrecognized tax benefits – ending balance | $ 242,000 | $ 250,000 |
Note 15 - Commitments and Con_3
Note 15 - Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Accrued Bonuses | $ 2,153,000 | $ 1,015,000 |
Entity Wide Trade Joint Venture Receivables, Three Joint Ventures,Percentage | 74.10% | 60.70% |
Office and Warehouse Space [Member] | United States, China, India, Germany, and Brazil [Member] | Minimum [Member] | ||
Operating Leases, Monthly Rent Expense | $ 576 | |
Office and Warehouse Space [Member] | United States, China, India, Germany, and Brazil [Member] | Maximum [Member] | ||
Operating Leases, Monthly Rent Expense | $ 9,729 | |
Fiscal 2018 Bonus Plan [Member] | Executive Officer [Member] | ||
Percentage of Individual Bonus Payout Determined by Actual Versus Targeted EBITOI Results | 75.00% | |
Percentage of Individuals Payout Determined Upon Achievement of Certain Pre-Established Individual Performance Objectives | 25.00% |
Note 15 - Commitments and Con_4
Note 15 - Commitments and Contingencies - Future Minimum Rents Due (Details) | Aug. 31, 2018USD ($) |
Fiscal 2,019 | $ 131,840 |
Fiscal 2,020 | 66,762 |
Fiscal 2,021 | 12,404 |
Fiscal 2,022 | 3,454 |
$ 214,460 |
Note 16 - Statements of Cash _3
Note 16 - Statements of Cash Flows - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Cash paid during the year for income tax | $ 876,103 | $ 699,519 |
Cash paid during the year for interest | $ 17,962 | $ 20,382 |
Note 17 - Fair Value Measurem_3
Note 17 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - USD ($) | Aug. 31, 2018 | Aug. 31, 2017 |
Available for sale securities | $ 3,300,110 | $ 3,766,984 |
Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | 3,300,110 | 3,766,984 |
Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities |
Note 18 - Subsequent Events (De
Note 18 - Subsequent Events (Details Textual) - $ / shares | Oct. 24, 2018 | Jul. 25, 2018 | Apr. 25, 2018 | Jan. 24, 2018 | Nov. 20, 2017 | Aug. 31, 2018 | Aug. 31, 2017 |
Common Stock, Dividends, Per Share, Declared | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.40 | $ 0 | |
Subsequent Event [Member] | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.12 |