Note 7 - Investments in Joint Ventures

9 Months Ended

May 31, 2025

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

7. 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 May 31, 2025
		Total		EXCOR		All Other
Current assets	$	57,530,046	$	27,868,655	$	29,661,391
Total assets		67,124,813		34,923,270		32,201,543
Current liabilities		12,049,553		2,039,968		10,009,585
Non-current liabilities		285,249		—		285,249
Joint ventures’ equity		54,790,011		32,883,302		21,906,709
NTIC’s share of joint ventures’ equity		27,139,197		16,441,653		10,697,544
NTIC’s share of joint ventures’ undistributed earnings		24,096,958		14,613,903		9,483,055

	Three Months Ended May 31, 2025
	Total		EXCOR		All Other
Net sales	$	23,211,613	$	8,271,661	$	14,939,952
Gross profit		9,768,978		4,339,777		5,429,201
Net income		1,937,620		897,104		1,040,516
NTIC’s share of equity in income from joint ventures		970,314		448,673		521,641
NTIC’s dividends received from joint ventures		886,209		—		886,209

	Nine Months Ended May 31, 2025
	Total		EXCOR		All Other
Net sales	$	66,848,498	$	23,914,520	$	42,933,978
Gross profit		28,325,377		12,695,626		15,629,751
Net income		5,416,777		2,665,391		2,751,386
NTIC’s share of equity in income from joint ventures		2,720,637		1,340,674		1,379,963
NTIC’s dividends received from joint ventures		1,566,946		—		1,566,946

	As of August 31, 2024
	Total		EXCOR		All Other
Current assets	$	56,420,503	$	26,234,664	$	30,185,839
Total assets		64,183,071		31,513,288		32,669,783
Current liabilities		12,553,716		2,221,726		10,331,990
Non-current liabilities		323,199		—		323,199
Joint ventures’ equity		51,306,156		29,291,562		22,014,594
NTIC’s share of joint ventures’ equity		25,397,287		14,645,783		10,751,504
NTIC’s share of joint ventures’ undistributed earnings		23,645,685		14,614,878		9,030,807

	Three Months Ended May 31, 2024
	Total		EXCOR		All Other
Net sales	$	25,602,072	$	9,977,354	$	15,624,718
Gross profit		10,713,282		4,959,536		5,753,746
Net income		2,793,738		1,623,431		1,170,307
NTIC’s share of equity in income from joint ventures		1,396,730		811,399		585,331
NTIC’s dividends received from joint ventures		567,674		—		567,674

	Nine Months Ended May 31, 2024
	Total		EXCOR		All Other
Net sales	$	72,642,714	$	27,561,950	$	45,080,764
Gross profit		30,956,162		14,164,541		16,791,621
Net income		7,351,372		4,029,182		3,322,190
NTIC’s share of equity in income from joint ventures		3,676,961		2,015,734		1,661,227
NTIC’s dividends received from joint ventures		2,958,925		1,624,950		1,333,975