Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Nov. 30, 2018 | Jan. 07, 2019 | |
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 Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 4,542,177 | |
Document Type | 10-Q | |
Document Period End Date | Nov. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Nov. 30, 2018 | Aug. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,518,951 | $ 4,163,023 |
Available for sale securities | 1,711,930 | 3,300,110 |
Receivables: | ||
Trade excluding joint ventures, less allowance for doubtful accounts of $65,000 at November 30, 2018 and $50,000 at August 31, 2018 | 10,255,975 | 9,920,108 |
Trade joint ventures | 579,836 | 761,506 |
Fees for services provided to joint ventures | 1,272,078 | 1,357,255 |
Income taxes | 379,883 | 273,333 |
Inventories | 10,217,043 | 9,130,861 |
Prepaid expenses | 1,423,081 | 1,661,577 |
Total current assets | 30,358,777 | 30,567,773 |
PROPERTY AND EQUIPMENT, NET | 7,059,236 | 7,168,826 |
OTHER ASSETS: | ||
Investments in joint ventures | 23,111,834 | 22,950,995 |
Deferred income taxes | 1,525,775 | 1,551,536 |
Patents and trademarks, net | 1,109,745 | 1,156,257 |
Other | 153,846 | 153,849 |
Total other assets | 25,901,200 | 25,812,637 |
Total assets | 63,319,213 | 63,549,236 |
CURRENT LIABILITIES: | ||
Accounts payable | 4,038,018 | 3,905,034 |
Income taxes payable | 139,802 | 70,892 |
Accrued liabilities: | ||
Payroll and related benefits | 965,648 | 2,747,303 |
Other | 1,048,688 | 1,006,953 |
Total current liabilities | 6,192,156 | 7,730,182 |
COMMITMENTS AND CONTINGENCIES (Note 12) | ||
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; issued and outstanding 4,542,177 and 4,541,303, respectively | 90,844 | 90,826 |
Additional paid-in capital | 14,995,420 | 14,619,777 |
Retained earnings | 42,915,335 | 41,963,341 |
Accumulated other comprehensive loss | (3,918,085) | (3,597,199) |
Stockholders’ equity | 54,083,514 | 53,076,745 |
Non-controlling interest | 3,043,543 | 2,742,309 |
Total equity | 57,127,057 | 55,819,054 |
Total liabilities and equity | $ 63,319,213 | $ 63,549,236 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Nov. 30, 2018 | Aug. 31, 2018 |
Trade allowance | $ 65,000 | $ 50,000 |
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 | 15,000,000 |
Common stock, shares issued (in shares) | 4,542,177 | 4,541,303 |
Common stock, shares outstanding (in shares) | 4,542,177 | 4,541,303 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
NET SALES: | ||
Net sales, excluding joint ventures | $ 13,610,865 | $ 11,035,407 |
Net sales, to joint ventures | 483,187 | 507,631 |
Total net sales | 14,094,052 | 11,543,038 |
Cost of goods sold | 9,461,137 | 7,888,470 |
Gross profit | 4,632,915 | 3,654,568 |
JOINT VENTURE OPERATIONS: | ||
Equity in income from joint ventures | 2,004,162 | 1,741,328 |
Fees for services provided to joint ventures | 1,428,435 | 1,507,142 |
Total joint venture operations | 3,432,597 | 3,248,470 |
OPERATING EXPENSES: | ||
Selling expenses | 2,811,094 | 2,599,949 |
General and administrative expenses | 2,495,797 | 2,219,745 |
Research and development expenses | 872,157 | 798,731 |
Total operating expenses | 6,179,048 | 5,618,425 |
OPERATING INCOME | 1,886,464 | 1,284,613 |
INTEREST INCOME | 12,787 | 24,056 |
INTEREST EXPENSE | (2,357) | (5,089) |
INCOME BEFORE INCOME TAX EXPENSE | 1,896,894 | 1,303,580 |
INCOME TAX EXPENSE | 255,703 | 104,991 |
NET INCOME | 1,641,191 | 1,198,589 |
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 144,132 | 114,963 |
NET INCOME ATTRIBUTABLE TO NTIC | $ 1,497,059 | $ 1,083,626 |
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE: | ||
Basic (in dollars per share) | $ 0.33 | $ 0.24 |
Diluted (in dollars per share) | $ 0.32 | $ 0.24 |
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING: | ||
Basic (in shares) | 4,542,175 | 4,537,368 |
Diluted (in shares) | 4,739,288 | 4,608,788 |
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.12 | $ 0.10 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
NET INCOME | $ 1,641,191 | $ 1,198,589 |
Other comprehensive LOSS – foreign currency translation adjustment | (297,822) | (25,231) |
COMPREHENSIVE INCOME | 1,343,369 | 1,173,358 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 167,200 | 136,915 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NTIC | $ 1,176,173 | $ 1,036,443 |
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, 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 |
Stock options exercised (in shares) | 1,500 | 1,500 | ||||
Stock options exercised | $ 30 | 15,345 | $ 15,375 | |||
Stock issued for employee stock purchase plan (in shares) | 890 | |||||
Stock issued for employee stock purchase plan | $ 18 | 12,463 | 12,481 | |||
Stock option expense | 103,267 | 103,267 | ||||
Dividends paid to shareholders | (454,738) | (454,738) | ||||
Dividend received by non-controlling interest | (200,000) | (200,000) | ||||
Comprehensive income (loss) | 1,083,622 | (47,179) | 136,915 | 1,173,358 | ||
Balance (in shares) at Nov. 30, 2017 | 4,537,408 | |||||
Balance at Nov. 30, 2017 | $ 90,748 | 14,294,584 | 37,706,367 | (2,518,243) | 2,794,363 | 52,367,819 |
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 |
Stock options exercised (in shares) | 0 | |||||
Stock issued for employee stock purchase plan (in shares) | 874 | |||||
Stock issued for employee stock purchase plan | $ 18 | 17,663 | $ 17,681 | |||
Stock option expense | 357,980 | 357,980 | ||||
Dividends paid to shareholders | (545,061) | (545,061) | ||||
Comprehensive income (loss) | 1,497,055 | (320,886) | 167,200 | 1,343,369 | ||
Investment by non-controlling interest | 134,034 | 134,034 | ||||
Balance (in shares) at Nov. 30, 2018 | 4,542,177 | |||||
Balance at Nov. 30, 2018 | $ 90,844 | $ 14,995,420 | $ 42,915,335 | $ (3,918,085) | $ 3,043,543 | $ 57,127,057 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,641,191 | $ 1,198,589 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Stock-based compensation | 357,980 | 103,267 |
Depreciation expense | 217,723 | 208,486 |
Amortization expense | 64,443 | 62,177 |
Equity in income from joint ventures | (2,004,162) | (1,741,328) |
Deferred income taxes | 19,010 | |
Dividends received from joint ventures | 1,486,705 | 63,937 |
Changes in current assets and liabilities: | ||
Trade, excluding joint ventures | (343,517) | (1,364,409) |
Trade, joint ventures | 181,670 | 171,099 |
Fees for services provided to joint ventures | 85,177 | (7,874) |
Income taxes | (93,513) | (101,908) |
Inventories | (1,075,014) | (530,401) |
Prepaid expenses and other | 238,268 | (250,280) |
Accounts payable | 165,553 | 1,278,940 |
Income tax payable | (6,949) | 102,618 |
Accrued liabilities | (1,673,171) | (622,696) |
Net cash used in operating activities | (738,606) | (1,429,783) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property and equipment | (106,300) | (87,250) |
Proceeds from the sale of available for sale securities | 1,588,180 | |
Purchase of available for sale securities | (3,257) | |
Additions to patents | (17,930) | (31,423) |
Net cash provided by (used in) investing activities | 1,463,950 | (121,930) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividend received by non-controlling interest | (200,000) | |
Investment by non-controlling interest | 134,034 | |
Dividends paid on NTIC common stock | (545,061) | |
Proceeds from option exercises | 15,375 | |
Proceeds from employee stock purchase plan | 17,681 | 12,481 |
Net cash used in financing activities | (393,346) | (172,144) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS: | 23,930 | (9,131) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 355,928 | (1,732,988) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 4,163,023 | 6,360,201 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 4,518,951 | $ 4,627,213 |
Note 1 - Interim Financial Info
Note 1 - Interim Financial Information | 3 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. In the opinion of management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, which are of a normal recurring nature, and present fairly the consolidated financial position of Northern Technologies International Corporation and its subsidiaries (the Company) as of November 30, 2018 August 31, 2018 three November 30, 2018 2017 three November 30, 2018 2017, These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s annual report on Form 10 August 31, 2018. Operating results for the three November 30, 2018 not may August 31, 2019. The Company evaluates events occurring after the date of the consolidated financial statements requiring recording or disclosure in the consolidated financial statements. |
Note 2 - Accounting Pronounceme
Note 2 - Accounting Pronouncements | 3 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 2. Accounting PronouncementS New Accounting Pronouncements Adopted The Company’s significant accounting policies are detailed in “Note 1: 10 August 31, 2018. May 2014, 606, Revenue from Contracts with Customers 606 On September 1, 2018, 606 606, five 1 2 3 4 5 five The adoption of ASC 606 not not not not not Changes to the Company’s significant accounting policies as a result of adopting ASC 606 Revenue Recognition one Individually promised goods and services in a contract are considered a distinct performance obligation and accounted for separately if the customer can benefit from the individual good or service on its own or with other resources that are readily available to the customer and the good or service is separately identifiable from other promises in the arrangement. When an arrangement includes multiple performance obligations, the consideration is allocated between the performance obligations in proportion to their estimated standalone selling price. Costs related to products delivered are recognized in the period incurred, unless criteria for capitalization of costs are met. Costs of revenues consist primarily of direct labor, manufacturing overhead, materials and components. The Company does not The Company excludes government assessed and imposed taxes on revenue generating transactions that are invoiced to customers from revenue. The Company includes freight billed to customers in revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold. The timing of revenue recognition, billings and cash collections results in accounts receivable on the balance sheet. Performance Obligations The Company sells its products to both distributors and end-users. Each unit of product delivered under a customer order represents a distinct and separate performance obligation as the customer can benefit from each unit on its own or with other resources that are readily available to the customer and each unit of product is separately identifiable from other products in the arrangement. The transaction price for the Company’s products is the invoiced amount. The Company does not not 606 10 50 14 not one no one Revenue is recognized when transfer of control occurs as defined by the terms in the customer agreement. The Company immediately recognizes incidental items that are immaterial in the context of the contract. The Company has applied the practical expedient in paragraph 606 10 25 16A not 606 10 32 18 one not thirty ninety The Company estimates returns based on an analysis of historical experience if the right to return products is granted to its customers. The Company does not not not no not Trade Receivables not not Sales Commissions not 340 40 25 4 one Product Warranty not not may International Revenue 11, Recently Issued Accounting Pronouncements In November 2016, 2016 18, Statement of Cash Flows (Topic 230 December 15, 2017, first 2019. 2016 18 not 2016 18 During February 2016, No. 2016 02, Leases No. 2016 02 12 No. 2016 02 December 15, 2018, first 2020. No. 2016 02 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 | 3 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 3. Inventories consisted of the following: November 30, 2018 August 31, 2018 Production materials $ 2,357,473 $ 1,824,489 Finished goods 7,859,570 7,306,372 $ 10,217,043 $ 9,130,861 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment, Net | 3 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 4. Property and equipment, net consisted of the following: November 30, 2018 August 31, 2018 Land $ 310,365 $ 310,365 Buildings and improvements 6,988,619 6,927,484 Machinery and equipment 4,724,490 4,680,072 12,023,474 11,917,921 Less accumulated depreciation (4,964,238 ) (4,749,095 ) $ 7,059,236 $ 7,168,826 |
Note 5 - Patents and Trademarks
Note 5 - Patents and Trademarks, Net | 3 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 5. Patents and trademarks, net consisted of the following: November 30, 2018 August 31, 2018 Patents and trademarks $ 2,842,370 $ 2,824,440 Less accumulated amortization (1,732,625 ) (1,668,183 ) $ 1,109,745 $ 1,156,257 Patent and trademark costs are amortized over seven $260,000 five |
Note 6 - Investments in Joint V
Note 6 - Investments in Joint Ventures | 3 Months Ended |
Nov. 30, 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 U.S. GAAP in all material respects. All material profits recorded that remain on the consolidated 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 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, 2018 Total EXCOR All Other Current assets $ 58,993,098 $ 28,075,384 $ 30,917,714 Total assets 63,792,622 30,821,905 32,970,717 Current liabilities 16,579,222 4,629,942 11,949,280 Noncurrent liabilities 409,444 — 409,444 Joint ventures’ equity 46,789,400 26,191,964 20,597,436 Northern Technologies International Corporation’s share of joint ventures’ equity 23,111,834 13,095,984 10,015,850 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 21,082,622 $ 13,065,079 $ 8,017,543 Northern Technologies International Corporation's dividends received from joint ventures $ 1,486,705 $ 843,750 $ 642,955 Three Months Ended November 30, 2018 Total EXCOR All Other Net sales $ 30,479,926 $ 12,869,523 $ 17,610,403 Gross profit 13,356,891 6,683,574 6,673,317 Net income 4,163,791 3,039,802 1,123,989 Northern Technologies International Corporation’s share of equity in income from joint ventures 2,004,162 1,519,901 484,261 Northern Technologies International Corporation's dividends received from joint ventures $ 1,486,705 $ 843,750 $ 642,955 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 Three Months Ended November 30, 2017 Total EXCOR All Other Net sales $ 28,498,711 $ 11,026,514 $ 17,472,197 Gross profit 12,788,122 5,933,526 6,854,596 Net income 3,499,815 2,483,800 1,016,015 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 1,741,328 $ 1,241,900 $ 499,428 Northern Technologies International Corporation's dividends received from joint ventures $ 63,937 — $ 63,937 The Company did not three November 30, 2018 2017. |
Note 7 - Corporate Debt
Note 7 - Corporate Debt | 3 Months Ended |
Nov. 30, 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 November 30, 2018 August 31, 2018. 2.15% 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. November 30, 2018, The revolving credit facility allows the Company to request that PNC Bank issue letters of credit up to $1,200,000. not November 30, 2018 August 31, 2018 not As of November 30, 2018 August 31, 2018, $88,831 2020 2022. On November 30, 2018, January 7, 2019 January 7, 2020. |
Note 8 - Stockholders' Equity
Note 8 - Stockholders' Equity | 3 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 8. On October 24, 2018, $0.12 November 21, 2018 November 7, 2018 November 20, 2017, $0.10 December 21, 2018 December 8, 2018 During the three November 30, 2018 2017, no The Company granted stock options under the Northern Technologies International Corporation Amended and Restated 2007 2007 70,884 three November 30, 2018. $36.45, three November 30, 2018, no The Company granted stock options under the 2007 47,252 three November 30, 2017. $18.35, three November 30, 2017, 1,500 $10.25 The Company issued 874 891 September 1, 2018 2017, 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 2019 January 18, 2019 not not 5,000,000 2019 |
Note 9 - Net Income Per Common
Note 9 - Net Income Per Common Share | 3 Months Ended |
Nov. 30, 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 net income per share computation for the three November 30, 2018 2017: Three Months Ended Numerator: November 30, 2018 November 30, 2017 Net income attributable to NTIC $ 1,497,059 $ 1,083,626 Denominator: Basic – weighted shares outstanding 4,542,175 4,537,368 Weighted shares assumed upon exercise of stock options 197,113 71,420 Diluted – weighted shares outstanding 4,739,288 4,608,788 Basic net income per share: $ 0.33 $ 0.24 Diluted net income per share: $ 0.32 $ 0.24 The dilutive impact summarized above relates to the periods when the average market price of the Company’s common stock exceeded the exercise price of the potentially dilutive option securities granted. Net income per common share was based on the weighted average number of common shares outstanding during the periods when computing basic net income per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted net income per share. Excluded from the computation of diluted net income per share for the three November 30, 2018 70,884 three November 30, 2017 92,319 |
Note 10 - Stock-based Compensat
Note 10 - Stock-based Compensation | 3 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10. The Company has two 2007 The 2007 2007 800,000 2007 2007 ten three four one November 30, 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, The Company granted options to purchase an aggregate of 70,884 47,252 three November 30, 2018 2017, $357,980 $103,267 three November 30, 2018 2017, November 30, 2018, not $1,139,175. $1,073,941 2019, $65,234 2020, November 30, 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: November 30, 2018 2017 Dividend yield 1.32% 2.18% Expected volatility 45.8% 45.9% Expected life of option (in years) 10 10 Average risk-free interest rate 2.75% 1.87% The weighted average per share fair value of options granted during the three November 30, 2018 2017 $18.03 $7.75, November 30, 2018 2017 6.65 6.95 On November 16, 2018, 2019 “2019 2019 January 18, 2019. 2019 2007 2007 2019 no 2007 2007 2007 Subject to adjustment, the maximum number of shares of common stock to be authorized for issuance under the 2019 400,000 2007 2019 not 2007 2019 may 2007 2019 |
Note 11 - Segment and Geographi
Note 11 - Segment and Geographic Information | 3 Months Ended |
Nov. 30, 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 table sets forth the Company’s net sales for the three November 30, 2018 2017 Three Months Ended November 30, 2018 November 30, 2017 ZERUST® net sales $ 10,065,174 $ 9,527,737 Natur-Tec® net sales 4,028,878 2,015,301 Total net sales $ 14,094,052 $ 11,543,038 The following table sets forth the Company’s cost of goods sold for the three November 30, 2018 2017 November 30, 2018 % of Product Sales* November 30, 2017 % of Product Sales* Direct cost of goods sold ZERUST® $ 5,621,700 55.9 % $ 5,803,980 60.9 % Natur-Tec® 3,156,076 78.3 % 1,479,199 73.4 % Indirect cost of goods sold 683,361 NA 605,291 NA Total net cost of goods sold $ 9,461,137 $ 7,888,470 * The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category. 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 Geographic Information Net sales by geographic location for the three November 30, 2018 2017 Three Months Ended November 30, 2018 November 30, 2017 Inside the U.S.A. to unaffiliated customers $ 6,923,934 $ 6,256,205 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 483,187 507,631 Unaffiliated customers 6,686,931 4,779,202 $ 14,094,052 $ 11,543,038 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 the three November 30, 2018 2017 Three Months Ended November 30, % of Total Fees for Services Provided to Joint Ventures November 30, % of Total Fees for Services Provided to Joint Ventures Germany $ 214,992 15.1 % $ 219,873 14.6 % Poland 181,844 12.7 % 206,076 13.7 % Japan 169,800 11.9 % 174,045 11.5 % Sweden 130,243 9.1 % 127,954 8.5 % France 110,062 7.7 % 139,641 9.3 % Thailand 98,348 6.9 % 102,531 6.8 % United Kingdom 94,781 6.6 % 111,775 7.4 % India 94,727 6.6 % 86,763 5.8 % Czech Republic 89,692 6.3 % 84,225 5.6 % South Korea 86,467 6.1 % 83,488 5.5 % Finland 81,816 5.7 % 89,627 5.9 % Other 75,663 5.3 % 81,144 5.4 % $ 1,428,435 100.0 % $ 1,507,142 100.0 % The geographical distribution of key financial statement data is as follows: At At China $ 188,695 $ 205,490 Brazil 76,977 71,677 Germany 6,142 7,058 India 31,101 22,220 United States 6,756,321 6,862,381 Total property and equipment $ 7,059,236 $ 7,168,826 Three Months Ended November 30, 2018 November 30, 2017 China $ 3,168,060 $ 2,911,643 Brazil 824,796 639,841 India 1,651,641 495,539 Germany 6,472 48,771 Other 1,519,149 1,191,039 United States 6,923,934 6,256,205 Total net sales $ 14,094,052 $ 11,543,038 Total property and equipment 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. Total assets located in the United States include the Company’s investments in joint ventures. 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 primarily related to ZERUST ® |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 3 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12. On August 31, 2018, August 31, 2019. 2019 75% 2019 2019 25% may 2019. $450,000 three November 30, 2018 $318,000 three November 30, 2017. Three joint ventures (consisting of the Company’s joint ventures in South Korea, Thailand, and India) accounted for 71.3% 74.1% November 30, 2018 August 31, 2018, 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 November 30, 2018, not |
Note 13 - Fair Value Measuremen
Note 13 - Fair Value Measurements | 3 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | 13. Fair Value Measurements 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 and the Company estimates that market value approximates costs. 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 $ 1,711,930 $ 1,711,930 $ — $ — Fair Value Measurements Fair value as of Level 1 Level 2 Level 3 Available for sale securities $ 3,300,110 $ 3,300,110 $ — $ — There were no 1, 2, 3 three November 30, 2018 2017. |
Note 14 - Supplemental Cash Flo
Note 14 - Supplemental Cash Flow Information | 3 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 14. SUPPLEMENTAL CASH FLOW INFORMATION Supplemental disclosures of cash flow information consisted of: Three Months Ended November 30, 2018 November 30, 2017 Cash paid for interest $ 2,357 $ 5,089 Cash paid for income taxes — — Non-cash financing activity consisted of: Three Months Ended November 30, 2018 November 30, 2017 Dividends declared, not paid $ — 454,741 |
Note 15 - Income Taxes
Note 15 - Income Taxes | 3 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15. On December 22, 2017, August 31 2018, not 35% 21% January 1, 2018, December 31, 2017, one The Company recorded income tax expense during the three November 30, 2018 $255,703, $104,991 three November 30, 2017. The Company continues to analyze the impact of other provisions of the Tax Reform Act on its financial statements and operations, including the impact of the global intangible low-taxed income (GILTI) rules, and the impact of the Tax Reform Act on the Company’s indefinite reinvestment assertion with respect to the undistributed earnings of certain foreign subsidiaries and joint ventures. Any additional impacts from the enactment of the Tax Reform Act will be recorded as they are identified during the measurement period. |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | November 30, 2018 August 31, 2018 Production materials $ 2,357,473 $ 1,824,489 Finished goods 7,859,570 7,306,372 $ 10,217,043 $ 9,130,861 |
Note 4 - Property and Equipme_2
Note 4 - Property and Equipment, Net (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | November 30, 2018 August 31, 2018 Land $ 310,365 $ 310,365 Buildings and improvements 6,988,619 6,927,484 Machinery and equipment 4,724,490 4,680,072 12,023,474 11,917,921 Less accumulated depreciation (4,964,238 ) (4,749,095 ) $ 7,059,236 $ 7,168,826 |
Note 5 - Patents and Trademar_2
Note 5 - Patents and Trademarks, Net (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | November 30, 2018 August 31, 2018 Patents and trademarks $ 2,842,370 $ 2,824,440 Less accumulated amortization (1,732,625 ) (1,668,183 ) $ 1,109,745 $ 1,156,257 |
Note 6 - Investments in Joint_2
Note 6 - Investments in Joint Ventures (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | As of November 30, 2018 Total EXCOR All Other Current assets $ 58,993,098 $ 28,075,384 $ 30,917,714 Total assets 63,792,622 30,821,905 32,970,717 Current liabilities 16,579,222 4,629,942 11,949,280 Noncurrent liabilities 409,444 — 409,444 Joint ventures’ equity 46,789,400 26,191,964 20,597,436 Northern Technologies International Corporation’s share of joint ventures’ equity 23,111,834 13,095,984 10,015,850 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 21,082,622 $ 13,065,079 $ 8,017,543 Northern Technologies International Corporation's dividends received from joint ventures $ 1,486,705 $ 843,750 $ 642,955 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 |
Condensed Income Statement [Table Text Block] | Three Months Ended November 30, 2018 Total EXCOR All Other Net sales $ 30,479,926 $ 12,869,523 $ 17,610,403 Gross profit 13,356,891 6,683,574 6,673,317 Net income 4,163,791 3,039,802 1,123,989 Northern Technologies International Corporation’s share of equity in income from joint ventures 2,004,162 1,519,901 484,261 Northern Technologies International Corporation's dividends received from joint ventures $ 1,486,705 $ 843,750 $ 642,955 Three Months Ended November 30, 2017 Total EXCOR All Other Net sales $ 28,498,711 $ 11,026,514 $ 17,472,197 Gross profit 12,788,122 5,933,526 6,854,596 Net income 3,499,815 2,483,800 1,016,015 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 1,741,328 $ 1,241,900 $ 499,428 Northern Technologies International Corporation's dividends received from joint ventures $ 63,937 — $ 63,937 |
Note 9 - Net Income Per Commo_2
Note 9 - Net Income Per Common Share (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Numerator: November 30, 2018 November 30, 2017 Net income attributable to NTIC $ 1,497,059 $ 1,083,626 Denominator: Basic – weighted shares outstanding 4,542,175 4,537,368 Weighted shares assumed upon exercise of stock options 197,113 71,420 Diluted – weighted shares outstanding 4,739,288 4,608,788 Basic net income per share: $ 0.33 $ 0.24 Diluted net income per share: $ 0.32 $ 0.24 |
Note 10 - Stock-based Compens_2
Note 10 - Stock-based Compensation (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | November 30, 2018 2017 Dividend yield 1.32% 2.18% Expected volatility 45.8% 45.9% Expected life of option (in years) 10 10 Average risk-free interest rate 2.75% 1.87% |
Note 11 - Segment and Geograp_2
Note 11 - Segment and Geographic Information (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended November 30, 2018 November 30, 2017 ZERUST® net sales $ 10,065,174 $ 9,527,737 Natur-Tec® net sales 4,028,878 2,015,301 Total net sales $ 14,094,052 $ 11,543,038 |
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block] | November 30, 2018 % of Product Sales* November 30, 2017 % of Product Sales* Direct cost of goods sold ZERUST® $ 5,621,700 55.9 % $ 5,803,980 60.9 % Natur-Tec® 3,156,076 78.3 % 1,479,199 73.4 % Indirect cost of goods sold 683,361 NA 605,291 NA Total net cost of goods sold $ 9,461,137 $ 7,888,470 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended November 30, 2018 November 30, 2017 Inside the U.S.A. to unaffiliated customers $ 6,923,934 $ 6,256,205 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 483,187 507,631 Unaffiliated customers 6,686,931 4,779,202 $ 14,094,052 $ 11,543,038 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | At At China $ 188,695 $ 205,490 Brazil 76,977 71,677 Germany 6,142 7,058 India 31,101 22,220 United States 6,756,321 6,862,381 Total property and equipment $ 7,059,236 $ 7,168,826 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Three Months Ended November 30, 2018 November 30, 2017 China $ 3,168,060 $ 2,911,643 Brazil 824,796 639,841 India 1,651,641 495,539 Germany 6,472 48,771 Other 1,519,149 1,191,039 United States 6,923,934 6,256,205 Total net sales $ 14,094,052 $ 11,543,038 |
Fees for Services Provided to Joint Ventures [Member] | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended November 30, % of Total Fees for Services Provided to Joint Ventures November 30, % of Total Fees for Services Provided to Joint Ventures Germany $ 214,992 15.1 % $ 219,873 14.6 % Poland 181,844 12.7 % 206,076 13.7 % Japan 169,800 11.9 % 174,045 11.5 % Sweden 130,243 9.1 % 127,954 8.5 % France 110,062 7.7 % 139,641 9.3 % Thailand 98,348 6.9 % 102,531 6.8 % United Kingdom 94,781 6.6 % 111,775 7.4 % India 94,727 6.6 % 86,763 5.8 % Czech Republic 89,692 6.3 % 84,225 5.6 % South Korea 86,467 6.1 % 83,488 5.5 % Finland 81,816 5.7 % 89,627 5.9 % Other 75,663 5.3 % 81,144 5.4 % $ 1,428,435 100.0 % $ 1,507,142 100.0 % |
Note 13 - Fair Value Measurem_2
Note 13 - Fair Value Measurements (Tables) | 3 Months Ended |
Nov. 30, 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 $ 1,711,930 $ 1,711,930 $ — $ — Fair Value Measurements Fair value as of Level 1 Level 2 Level 3 Available for sale securities $ 3,300,110 $ 3,300,110 $ — $ — |
Note 14 - Supplemental Cash F_2
Note 14 - Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Three Months Ended November 30, 2018 November 30, 2017 Cash paid for interest $ 2,357 $ 5,089 Cash paid for income taxes — — Three Months Ended November 30, 2018 November 30, 2017 Dividends declared, not paid $ — 454,741 |
Note 3 - Inventories - Inventor
Note 3 - Inventories - Inventories (Details) - USD ($) | Nov. 30, 2018 | Aug. 31, 2018 |
Production materials | $ 2,357,473 | $ 1,824,489 |
Finished goods | 7,859,570 | 7,306,372 |
Total inventory | $ 10,217,043 | $ 9,130,861 |
Note 4 - Property and Equipme_3
Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($) | Nov. 30, 2018 | Aug. 31, 2018 |
Land | $ 310,365 | $ 310,365 |
Buildings and improvements | 6,988,619 | 6,927,484 |
Machinery and equipment | 4,724,490 | 4,680,072 |
Gross | 12,023,474 | 11,917,921 |
Less accumulated depreciation | (4,964,238) | (4,749,095) |
Net | $ 7,059,236 | $ 7,168,826 |
Note 5 - Patents and Trademar_3
Note 5 - Patents and Trademarks, Net (Details Textual) - Patents and Trademarks [Member] | 3 Months Ended |
Nov. 30, 2018USD ($) | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
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 ($) | Nov. 30, 2018 | Aug. 31, 2018 |
Patents and trademarkes, net | $ 1,109,745 | $ 1,156,257 |
Patents and Trademarks [Member] | ||
Patents and trademarks | 2,842,370 | 2,824,440 |
Less accumulated amortization | (1,732,625) | (1,668,183) |
Patents and trademarkes, net | $ 1,109,745 | $ 1,156,257 |
Note 6 - Investments in Joint_3
Note 6 - Investments in Joint Ventures (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 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 ($) | 3 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Aug. 31, 2018 | |
Current assets | $ 58,993,098 | $ 58,086,747 | |
Total assets | 63,792,622 | 62,803,261 | |
Current liabilities | 16,579,222 | 15,991,886 | |
Noncurrent liabilities | 409,444 | 403,653 | |
Joint ventures’ equity | 46,789,400 | 46,407,722 | |
Northern Technologies International Corporation’s share of joint ventures’ equity | 23,111,834 | 22,950,995 | |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 21,082,622 | 20,921,783 | |
Northern Technologies International Corporation's dividends received from joint ventures | 1,486,705 | $ 63,937 | |
EXCOR [Member] | |||
Current assets | 28,075,384 | 27,354,788 | |
Total assets | 30,821,905 | 30,033,750 | |
Current liabilities | 4,629,942 | 4,535,954 | |
Noncurrent liabilities | |||
Joint ventures’ equity | 26,191,964 | 25,497,796 | |
Northern Technologies International Corporation’s share of joint ventures’ equity | 13,095,984 | 12,748,899 | |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 13,065,079 | 12,717,994 | |
Northern Technologies International Corporation's dividends received from joint ventures | 843,750 | ||
All Other [Member] | |||
Current assets | 30,917,714 | 30,731,959 | |
Total assets | 32,970,717 | 32,769,511 | |
Current liabilities | 11,949,280 | 11,455,932 | |
Noncurrent liabilities | 409,444 | 403,653 | |
Joint ventures’ equity | 20,597,436 | 20,909,926 | |
Northern Technologies International Corporation’s share of joint ventures’ equity | 10,015,850 | 10,195,263 | |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 8,017,543 | $ 8,203,789 | |
Northern Technologies International Corporation's dividends received from joint ventures | $ 642,955 | $ 63,937 |
Note 6 - Investments in Joint_5
Note 6 - Investments in Joint Ventures - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Net sales | $ 30,479,926 | $ 28,498,711 |
Gross profit | 13,356,891 | 12,788,122 |
Net income | 4,163,791 | 3,499,815 |
Northern Technologies International Corporation’s share of equity in income from joint ventures | 2,004,162 | 1,741,328 |
Northern Technologies International Corporation's dividends received from joint ventures | 1,486,705 | 63,937 |
EXCOR [Member] | ||
Net sales | 12,869,523 | 11,026,514 |
Gross profit | 6,683,574 | 5,933,526 |
Net income | 3,039,802 | 2,483,800 |
Northern Technologies International Corporation’s share of equity in income from joint ventures | 1,519,901 | 1,241,900 |
Northern Technologies International Corporation's dividends received from joint ventures | 843,750 | |
All Other [Member] | ||
Net sales | 17,610,403 | 17,472,197 |
Gross profit | 6,673,317 | 6,854,596 |
Net income | 1,123,989 | 1,016,015 |
Northern Technologies International Corporation’s share of equity in income from joint ventures | 484,261 | 499,428 |
Northern Technologies International Corporation's dividends received from joint ventures | $ 642,955 | $ 63,937 |
Note 7 - Corporate Debt (Detail
Note 7 - Corporate Debt (Details Textual) | 3 Months Ended | |
Nov. 30, 2018USD ($) | Aug. 31, 2018USD ($) | |
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 | $ 88,831 |
Note 8 - Stockholders' Equity (
Note 8 - Stockholders' Equity (Details Textual) - $ / shares | Oct. 24, 2018 | Sep. 01, 2018 | Nov. 20, 2017 | Sep. 01, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Aug. 31, 2018 | Jan. 16, 2018 | Jan. 12, 2018 |
Common Stock, Dividends, Per Share, Declared | $ 0.12 | $ 0.10 | $ 0.12 | $ 0.10 | |||||
Stock Repurchased and Retired During Period, Shares | 0 | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 70,884 | 47,252 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 1,500 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 10.25 | ||||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 874 | 891 | |||||||
Common Stock, Shares Authorized | 15,000,000 | 15,000,000 | 15,000,000 | 10,000,000 | |||||
Common Stock, Additional Shares Authorized | 5,000,000 | ||||||||
Dividends Payable, Date to be Paid | Nov. 21, 2018 | Dec. 21, 2018 | |||||||
Dividends Payable, Date of Record | Nov. 7, 2018 | Dec. 8, 2018 | |||||||
The 2007 Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 70,884 | 47,252 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 36.45 | $ 18.35 |
Note 9 - Net Income Per Commo_3
Note 9 - Net Income Per Common Share (Details Textual) - shares | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 70,884 | 92,319 |
Note 9 - Net Income Per Commo_4
Note 9 - Net Income Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Net income attributable to NTIC | $ 1,497,059 | $ 1,083,626 |
Basic – weighted shares outstanding (in shares) | 4,542,175 | 4,537,368 |
Weighted shares assumed upon exercise of stock options (in shares) | 197,113 | 71,420 |
Diluted – weighted shares outstanding (in shares) | 4,739,288 | 4,608,788 |
Basic net income per share: (in dollars per share) | $ 0.33 | $ 0.24 |
Diluted net income per share: (in dollars per share) | $ 0.32 | $ 0.24 |
Note 10 - Stock-based Compens_3
Note 10 - Stock-based Compensation (Details Textual) | 3 Months Ended | |
Nov. 30, 2018USD ($)$ / sharesshares | Nov. 30, 2017USD ($)$ / sharesshares | |
Number of Stock-based Compensation Plans | 2 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 70,884 | 47,252 |
Stock or Unit Option Plan Expense | $ | $ 357,980 | $ 103,267 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ | 1,139,175 | |
Allocated Share-based Compensation Expense, Estimate, Next Fiscal Year | $ | 1,073,941 | |
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 | $ 18.03 | $ 7.75 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 237 days | 6 years 346 days |
The 2007 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 800,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 70,884 | 47,252 |
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 | 100,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 90.00% | |
The 2019 Plan [member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 400,000 |
Note 10 - Stock-based Compens_4
Note 10 - Stock-based Compensation - Black-scholes Option-pricing Model Assumptions (Details) | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Dividend yield | 1.32% | 2.18% |
Expected volatility | 45.80% | 45.90% |
Expected life of option (Year) | 10 years | 10 years |
Average risk-free interest rate | 2.75% | 1.87% |
Note 11 - Segment and Geograp_3
Note 11 - Segment and Geographic Information (Details Textual) | 3 Months Ended |
Nov. 30, 2018 | |
Number of Reportable Segments | 2 |
Note 11 - Segment and Geograp_4
Note 11 - Segment and Geographic Information - Net Sales by Segment (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Net sales by segment | $ 14,094,052 | $ 11,543,038 |
ZERUST [Member] | ||
Net sales by segment | 10,065,174 | 9,527,737 |
NaturTec [Member] | ||
Net sales by segment | $ 4,028,878 | $ 2,015,301 |
Note 11 - Segment and Geograp_5
Note 11 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($) | 3 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | ||
Cost of goods sold | $ 9,461,137 | $ 7,888,470 | |
Direct Cost of Goods Sold [Member] | ZERUST [Member] | |||
Cost of goods sold | $ 5,621,700 | $ 5,803,980 | |
Percent of product sales | [1] | 55.90% | 60.90% |
Direct Cost of Goods Sold [Member] | NaturTec [Member] | |||
Cost of goods sold | $ 3,156,076 | $ 1,479,199 | |
Percent of product sales | [1] | 78.30% | 73.40% |
Indirect Cost of Goods Sold [Member] | |||
Cost of goods sold | $ 683,361 | $ 605,291 | |
[1] | The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category. |
Note 11 - Segment and Geograp_6
Note 11 - Segment and Geographic Information - Net Sales by Geographic Location (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Net sales by segment | $ 14,094,052 | $ 11,543,038 |
Inside the USA to Unaffiliated Customers [Member] | ||
Net sales by segment | 6,923,934 | 6,256,205 |
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member] | ||
Net sales by segment | 483,187 | 507,631 |
Unaffiliated Customers Outside the USA [Member] | ||
Net sales by segment | $ 6,686,931 | $ 4,779,202 |
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 ($) | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Fees | $ 1,428,435 | $ 1,507,142 |
Percentage of total fees | 100.00% | 100.00% |
GERMANY | ||
Fees | $ 214,992 | $ 219,873 |
Percentage of total fees | 15.10% | 14.60% |
POLAND | ||
Fees | $ 181,844 | $ 206,076 |
Percentage of total fees | 12.70% | 13.70% |
JAPAN | ||
Fees | $ 169,800 | $ 174,045 |
Percentage of total fees | 11.90% | 11.50% |
SWEDEN | ||
Fees | $ 130,243 | $ 127,954 |
Percentage of total fees | 9.10% | 8.50% |
FRANCE | ||
Fees | $ 110,062 | $ 139,641 |
Percentage of total fees | 7.70% | 9.30% |
THAILAND | ||
Fees | $ 98,348 | $ 102,531 |
Percentage of total fees | 6.90% | 6.80% |
UNITED KINGDOM | ||
Fees | $ 94,781 | $ 111,775 |
Percentage of total fees | 6.60% | 7.40% |
INDIA | ||
Fees | $ 94,727 | $ 86,763 |
Percentage of total fees | 6.60% | 5.80% |
CZECH REPUBLIC | ||
Fees | $ 89,692 | $ 84,225 |
Percentage of total fees | 6.30% | 5.60% |
KOREA, REPUBLIC OF | ||
Fees | $ 86,467 | $ 83,488 |
Percentage of total fees | 6.10% | 5.50% |
FINLAND | ||
Fees | $ 81,816 | $ 89,627 |
Percentage of total fees | 5.70% | 5.90% |
Other Countries [Member] | ||
Fees | $ 75,663 | $ 81,144 |
Percentage of total fees | 5.30% | 5.40% |
Note 11 - Segment and Geograp_8
Note 11 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($) | Nov. 30, 2018 | Aug. 31, 2018 |
Total long-lived assets | $ 7,059,236 | $ 7,168,826 |
CHINA | ||
Total long-lived assets | 188,695 | 205,490 |
BRAZIL | ||
Total long-lived assets | 76,977 | 71,677 |
GERMANY | ||
Total long-lived assets | 6,142 | 7,058 |
INDIA | ||
Total long-lived assets | 31,101 | 22,220 |
UNITED STATES | ||
Total long-lived assets | $ 6,756,321 | $ 6,862,381 |
Note 11 - Segment and Geograp_9
Note 11 - Segment and Geographical Information - Total Net Sales by Geographic Distribution (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Net sales by segment | $ 14,094,052 | $ 11,543,038 |
CHINA | ||
Net sales by segment | 3,168,060 | 2,911,643 |
BRAZIL | ||
Net sales by segment | 824,796 | 639,841 |
INDIA | ||
Net sales by segment | 1,651,641 | 495,539 |
GERMANY | ||
Net sales by segment | 6,472 | 48,771 |
Other Countries [Member] | ||
Net sales by segment | 1,519,149 | 1,191,039 |
UNITED STATES | ||
Net sales by segment | $ 6,923,934 | $ 6,256,205 |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | ||
Aug. 31, 2018 | Nov. 30, 2018 | Nov. 30, 2017 | |
Accrued Bonuses | $ 450,000 | $ 318,000 | |
Entity Wide Trade Joint Venture Receivables, Three Joint Ventures,Percentage | 74.10% | 71.30% | |
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 13 - Fair Value Measurem_3
Note 13 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - USD ($) | Nov. 30, 2018 | Aug. 31, 2018 |
Available for sale securities | $ 1,711,930 | $ 3,300,110 |
Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | 1,711,930 | 3,300,110 |
Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities |
Note 14 - Supplemental Cash F_3
Note 14 - Supplemental Cash Flow Information - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Cash paid for interest | $ 2,357 | $ 5,089 |
Cash paid for income taxes | ||
Dividends declared, not paid | $ 454,741 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Income Tax Expense (Benefit), Total | $ 255,703 | $ 104,991 |