INVESTMENTS IN JOINT VENTURES

The consolidated financial statements of the Company’s foreign joint ventures are initially prepared using the accounting principles accepted in the respective joint ventures’ countries of domicile. Amounts related to foreign joint ventures reported in the below tables and the accompanying consolidated financial statements have subsequently been adjusted to conform with accounting principles generally accepted in the United States of America in all material respects. All material profits on sales recorded that remain on the balance sheet from the Company to its joint ventures and from joint ventures to other joint ventures have been eliminated for financial reporting purposes.

Financial information from the audited and unaudited financial statements of the Company’s joint 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, 2019
	Total		EXCOR		All Other
Current assets	$	59,162,834	$	29,139,787	$	30,023,047
Total assets		63,326,703		31,666,841		31,659,862
Current liabilities		14,145,499		3,573,160		10,572,339
Noncurrent liabilities		20,797		—		20,797
Joint ventures’ equity		49,160,407		28,093,681		21,066,726
Northern Technologies International Corporation’s share of joint ventures’ equity		24,207,339		14,046,842		10,160,497
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		22,178,126		14,015,937		8,162,189

	Fiscal Year Ended August 31, 2019
	Total		EXCOR		All Other
Net sales	$	114,635,435	$	47,015,841	$	67,619,594
Gross profit		51,312,013		25,622,261		25,689,752
Net income		14,688,999		10,827,448		3,861,551
Northern Technologies International Corporation’s share of equity in income of joint ventures		7,225,518		5,415,362		1,810,156
Northern Technologies International Corporation’s dividends received from joint ventures		5,039,041		3,345,600		1,693,441

	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

The Company did

not

make any joint venture investments during fiscal

2019

or fiscal

2018,

except for the creation during fiscal

2019

of a new joint venture in Vietnam which the Company indirectly owns through its ownership interest in NTI Asean.