Note 6 - Investments in Joint Ventures

3 Months Ended

Feb. 29, 2024

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

6.         INVESTMENTS IN JOINT VENTURES

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

Financial information from the audited and unaudited financial statements of the Company’s joint venture in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR), and all the Company’s other joint ventures are summarized as follows:

	As of February 29, 2024
	Total		EXCOR		All Other
Current assets	$	56,241,025	$	26,949,248	$	29,291,777
Total assets		60,974,536		29,383,315		31,591,221
Current liabilities		13,269,055		2,933,713		10,335,342
Noncurrent liabilities		399,445		—		399,445
Joint ventures’ equity		47,306,036		26,449,601		20,856,435
NTIC’s share of joint ventures’ equity		23,460,869		13,224,802		10,236,067
NTIC’s share of joint ventures’ undistributed earnings		23,645,685		14,260,800		9,384,885

	Three Months Ended February 29, 2024
	Total		EXCOR		All Other
Net sales	$	23,479,980	$	9,163,636	$	14,316,344
Gross profit		10,139,080		4,829,931		5,309,149
Net income		2,353,152		1,378,844		974,308
NTIC’s share of equity in income from joint ventures		1,177,990		690,882		487,109
NTIC’s dividends received from joint ventures		2,020,147		1,624,950		395,197

	Six Months Ended February 29, 2024
	Total		EXCOR		All Other
Net sales	$	47,040,641	$	17,584,596	$	29,456,045
Gross profit		20,242,880		9,205,006		11,037,874
Net income		4,557,634		2,405,751		2,151,883
NTIC’s share of equity in income from joint ventures		2,280,231		1,204,335		1,075,896
NTIC’s dividends received from joint ventures		2,391,251		1,624,950		766,301

	As of August 31, 2023
	Total		EXCOR		All Other
Current assets	$	55,339,662	$	27,862,458	$	27,477,204
Total assets		59,729,348		30,054,277		29,675,071
Current liabilities		11,464,247		2,687,064		8777,183
Noncurrent liabilities		323,762		—		323,762
Joint ventures’ equity		47,941,339		27,367,213		20,574,126
NTIC’s share of joint ventures’ equity		23,705,714		13,683,608		10,022,106
NTIC’s share of joint ventures’ undistributed earnings		20,493,861		12,075,524		8,418,337

	Three Months Ended February 28, 2023
	Total		EXCOR		All Other
Net sales	$	25,482,590	$	9,708,482	$	15,774,108
Gross profit		10,035,811		4,733,435		5,302,376
Net income		1,969,046		1,365,170		603,876
NTIC’s share of equity in income from joint ventures		1,128,731		676,800		451,931
NTIC’s dividends received from joint ventures		422,048		—		422,048

	Six Months Ended February 28, 2023
	Total		EXCOR		All Other
Net sales	$	50,212,879	$	19,854,403	$	30,358,476
Gross profit		19,729,379		9,453,477		10,275,902
Net income		4,615,954		3,107,457		1,508,497
NTIC’s share of equity in income from joint ventures		2,318,135		1,547,944		770,191
NTIC’s dividends received from joint ventures		3,464,736		2,459,500		1,005,236