INVESTMENTS IN JOINT VENTURES

The 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, 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

	As of August 31, 2016
	Total		EXCOR		All Other
Current assets	$	48,922,924	$	22,928,810	$	25,994,114
Total assets		52,407,026		24,733,340		27,673,686
Current liabilities		12,433,700		3,485,231		8,948,469
Noncurrent liabilities		100,783		—		100,783
Joint ventures’ equity		39,872,543		21,248,109		18,624,434
Northern Technologies International Corporation’s share of joint ventures’ equity		19,840,774		10,624,056		9,216,728
Northern Technologies International Corporation's share of joint ventures’ undistributed earnings	$	17,779,912	$	10,593,151	$	7,186,761

	Fiscal Year Ended August 31, 2016
	Total		EXCOR		All Other
Net sales	$	90,646,833	$	35,138,214	$	55,508,619
Gross profit		40,440,726		18,635,421		21,805,305
Net income		9,534,771		7,049,462		2,485,309
Northern Technologies International Corporation’s share of equity in income from joint ventures		4,743,831		3,534,113		1,209,718
Northern Technologies International Corporation’s dividends received from joint ventures	$	5,503,314	$	4,364,700	$	1,165,614

The Company did

not

make any joint venture investments during fiscal

2017

or fiscal

2016.