6. 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 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 of the Company’s other joint ventures, are summarized as follows:

	February 29, 2016
	Total		EXCOR		All Other
Current assets	$	44,915,882	$	20,543,914	$	24,371,968
Total assets		48,456,556		22,412,469		26,044,087
Current liabilities		12,346,248		3,517,274		8,828,974
Noncurrent liabilities		89,039		—		89,039
Joint ventures’ equity		36,021,269		18,895,195		17,126,074
Northern Technologies International Corporation’s share of joint ventures’ equity		17,952,996		9,447,599		8,505,397
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$	15,892,135	$	9,416,694	$	6,475,441

	August 31, 2015
	Total		EXCOR		All Other
Current assets	$	49,295,116	$	22,620,323	$	26,674,793
Total assets		52,853,938		24,606,880		28,247,058
Current liabilities		12,288,383		3,360,142		8,928,241
Noncurrent liabilities		1,215,139		—		1,215,139
Joint ventures’ equity		39,350,417		21,246,738		18,103,679
Northern Technologies International Corporation’s share of joint ventures’ equity		20,544,238		11,571,361		8,972,877
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$	18,483,377	$	11,540,456	$	6,942,921

	Six Months Ended February 29, 2016
	Total		EXCOR		All Other
Net sales	$	42,000,424	$	15,618,735	$	26,381,689
Gross profit		18,523,102		8,059,186		10,463,916
Net income		3,872,728		2,960,951		911,777
Northern Technologies International Corporation’s share of equity in income of joint ventures	$	1,936,420	$	1,480,975	$	455,445

	Six Months Ended February 28, 2015
	Total		EXCOR		Tianjin Zerust		All Other
Net sales	$	52,178,238	$	18,383,653	$	3,735,457	$	30,059,128
Gross profit		25,540,546		9,766,973		1,783,673		13,989,900
Net income		6,152,182		3,924,547		265,648		1,961,987
Northern Technologies International Corporation’s share of equity in income of joint ventures	$	3,081,331	$	1,962,047	$	132,824	$	986,460

On January 2, 2015, the Company announced that, effective as of December 31, 2014, the Company terminated its joint venture arrangement in China, Tianjin-Zerust Anticorrosion Co., Ltd. (Tianjin Zerust), and began the process of liquidating the joint venture entity. Since December 31, 2014, the Company has conducted business in China through a wholly-owned subsidiary, NTIC (Shanghai) Co. Ltd. (NTIC China). As of December 31, 2014, the Company started recognizing Tianjin Zerust based on its carrying value instead of the equity method since the Company no longer expects to significantly affect the joint venture’s operations or decision making. See note 7.

The Company records expenses that are directly attributable to the joint ventures on its consolidated statements of operations in the line item “Expenses incurred in support of joint ventures.” The expenses include items such as employee compensation and benefit expenses, travel expense and consulting expense. See Note 13 regarding the lawsuits filed in relation to Tianjin Zerust.

The Company did not make any joint venture investments during the six months ended February 29, 2016 and February 28, 2015.