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Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Feb. 29, 2020	Apr. 08, 2020
Document Information [Line Items]
Entity Registrant Name	Northern Technologies International Corporation
Entity Central Index Key	0000875582
Trading Symbol	ntic
Current Fiscal Year End Date	--08-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding (in shares)		9,097,236
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Feb. 29, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false
Title of 12(b) Security	Common stock, par value $0.02 per share

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 5,626,410	$ 5,856,758
Available for sale securities	6,512,166	3,565,258
Receivables:
Trade excluding joint ventures, less allowance for doubtful accounts of $65,000 at February 29, 2020 and August 31, 2019	9,810,545	9,779,518
Trade joint ventures	539,175	824,473
Fees for services provided to joint ventures	1,195,219	1,268,000
Income taxes	56,819	457,018
Inventories	11,424,384	10,488,728
Prepaid expenses	949,893	1,062,609
Total current assets	36,114,611	33,302,362
PROPERTY AND EQUIPMENT, NET	7,227,524	7,358,159
OTHER ASSETS:
Investments in joint ventures	21,297,202	24,207,339
Deferred income taxes	1,694,499	1,634,258
Patents and trademarks, net	930,132	1,008,969
Operating lease right of use asset	520,601
Total other assets	24,442,434	26,850,566
Total assets	67,784,569	67,511,087
CURRENT LIABILITIES:
Accounts payable	4,373,988	4,505,531
Income taxes payable	3,169	6,759
Accrued liabilities:
Payroll and related benefits	1,259,122	1,857,971
Other	835,823	1,471,532
Current portion of operating lease	211,495
Total current liabilities	6,683,597	7,841,793
LONG-TERM LIABILITIES:
Operating lease, less current portion	309,106
Total long-term liabilities	309,106
COMMITMENTS AND CONTINGENCIES (Note 12)
EQUITY:
Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding
Common stock, $0.02 par value per share; authorized 15,000,000 shares as of February 29, 2020 and August 31, 2019; issued and outstanding 9,097,236 and 9,086,816, respectively	181,945	181,736
Additional paid-in capital	16,707,207	16,013,338
Retained earnings	45,202,903	44,992,719
Accumulated other comprehensive loss	(4,602,349)	(4,593,178)
Stockholders’ equity	57,489,706	56,594,615
Non-controlling interests	3,302,160	3,074,679
Total equity	60,791,866	59,669,294
Total liabilities and equity	$ 67,784,569	$ 67,511,087

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Trade receivable excluding joint ventures, allowance for doubtful accounts	$ 65,000	$ 65,000
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	10,000	10,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.02	$ 0.02
Common stock, shares authorized (in shares)	15,000,000	15,000,000
Common stock, shares issued (in shares)	9,097,236	9,086,816
Common stock, shares outstanding (in shares)	9,097,236	9,086,816

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
NET SALES:
Net sales, excluding joint ventures	$ 12,988,153	$ 12,606,449	$ 27,033,937	$ 26,217,314
Net sales, to joint ventures	245,630	708,955	831,246	1,192,142
Total net sales	13,233,783	13,315,404	27,865,183	27,409,456
Cost of goods sold	8,687,301	9,284,099	18,492,385	18,745,236
Gross profit	4,546,482	4,031,305	9,372,798	8,664,220
JOINT VENTURE OPERATIONS:
Equity in income from joint ventures	1,360,804	1,715,216	2,654,794	3,719,378
Fees for services provided to joint ventures	1,256,213	1,436,774	2,614,538	2,865,209
Total joint venture operations	2,617,017	3,151,990	5,269,332	6,584,587
OPERATING EXPENSES:
Selling expenses	3,110,240	2,505,081	5,997,532	5,316,175
General and administrative expenses	2,345,113	1,963,537	4,394,800	4,459,334
Research and development expenses	1,006,395	927,537	1,968,036	1,799,694
Total operating expenses	6,461,748	5,396,155	12,360,368	11,575,203
OPERATING INCOME	701,751	1,787,140	2,281,762	3,673,604
INTEREST INCOME	55,042	15,122	104,080	27,909
INTEREST EXPENSE	(9,377)	(3,835)	(14,821)	(6,192)
INCOME BEFORE INCOME TAX EXPENSE	747,416	1,798,427	2,371,021	3,695,321
INCOME TAX EXPENSE	463,594	246,371	727,660	502,074
NET INCOME	283,822	1,552,056	1,643,361	3,193,247
NET INCOME ATTRIBUTABLE TO NON- CONTROLLING INTERESTS	103,988	150,488	250,977	294,620
NET INCOME ATTRIBUTABLE TO NTIC	$ 179,834	$ 1,401,568	$ 1,392,384	$ 2,898,627
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE:
Basic (in dollars per share)	$ 0.02	$ 0.16	$ 0.15	$ 0.32
Diluted (in dollars per share)	$ 0.02	$ 0.15	$ 0.15	$ 0.31
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING:
Basic (in shares)	9,097,236	9,084,354	9,095,604	9,084,350
Diluted (in shares)	9,461,727	9,447,860	9,383,867	9,463,216
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 0.065	$ 0.06	$ 0.13	$ 0.12

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Net income	$ 283,822	$ 1,552,056	$ 1,643,361	$ 3,193,247
Other comprehensive income (LOSS) – foreign currency translation adjustment	(158,343)	194,838	(32,667)	(102,980)
COMPREHENSIVE INCOME	125,479	1,746,894	1,610,694	3,090,267
COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	57,630	169,499	227,481	336,699
COMPREHENSIVE INCOME ATTRIBUTABLE TO NTIC	$ 67,849	$ 1,577,395	$ 1,383,213	$ 2,753,568

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

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+ Details

Consolidated Statements of Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]	Total
BALANCE (in shares) at Aug. 31, 2018	9,082,606
BALANCE at Aug. 31, 2018	$ 181,652	$ 14,528,951	$ 41,963,341	$ (3,597,199)	$ 2,742,309	$ 55,819,054
Stock issued for employee stock purchase plan	36	17,645				17,681
Stock option expense		715,960				715,960
Dividends paid to stockholders			(1,090,125)			(1,090,125)
Dividend received by non-controlling interest					(200,000)	(200,000)
Net income (loss)			2,898,627		294,620	3,193,247
Other comprehensive income (loss)				(145,059)	42,079	$ (102,980)
Stock options exercised (in shares)						0
Stock issued for employee stock purchase plan (in shares)	1,748
Investment by non-controlling interest					134,034	$ 134,034
BALANCE (in shares) at Feb. 28, 2019	9,084,354
BALANCE at Feb. 28, 2019	$ 181,688	15,262,556	43,771,843	(3,742,258)	3,013,042	58,486,871
BALANCE (in shares) at Nov. 30, 2018	9,084,354
BALANCE at Nov. 30, 2018	$ 181,688	14,904,576	42,915,335	(3,918,085)	3,043,543	57,127,057
Stock issued for employee stock purchase plan
Stock option expense		357,980				357,980
Dividends paid to stockholders			(545,060)			(545,064)
Dividend received by non-controlling interest					(200,000)	(200,000)
Net income (loss)			1,401,568		150,544	1,552,056
Other comprehensive income (loss)				175,827	19,011	194,838
BALANCE (in shares) at Feb. 28, 2019	9,084,354
BALANCE at Feb. 28, 2019	$ 181,688	15,262,556	43,771,843	(3,742,258)	3,013,042	58,486,871
BALANCE (in shares) at Aug. 31, 2019	9,086,816
BALANCE at Aug. 31, 2019	$ 181,736	16,013,338	44,992,718	(4,593,178)	3,074,679	59,669,294
Stock issued for employee stock purchase plan	72	35,536				35,608
Stock option expense		658,470				658,470
Dividends paid to stockholders			(1,182,199)			(1,182,199)
Dividend received by non-controlling interest
Net income (loss)			1,392,384		250,977	1,643,361
Other comprehensive income (loss)				(9,171)	(23,496)	$ (32,667)
Stock options exercised (in shares)	6,823					0
Stock options exercised	$ 137	(137)
Stock issued for employee stock purchase plan (in shares)	3,597
BALANCE (in shares) at Feb. 29, 2020	9,097,236
BALANCE at Feb. 29, 2020	$ 181,945	16,707,207	45,202,903	(4,602,349)	3,302,160	60,791,866
BALANCE (in shares) at Nov. 30, 2019	9,097,236
BALANCE at Nov. 30, 2019	$ 181,945	16,367,555	45,614,389	(4,490,364)	3,244,530	60,918,055
Stock issued for employee stock purchase plan
Stock option expense		339,652				339,652
Dividends paid to stockholders			(591,320)			(591,320)
Dividend received by non-controlling interest
Net income (loss)			179,834		103,988	283,822
Other comprehensive income (loss)				(111,985)	(46,358)	(158,343)
BALANCE (in shares) at Feb. 29, 2020	9,097,236
BALANCE at Feb. 29, 2020	$ 181,945	$ 16,707,207	$ 45,202,903	$ (4,602,349)	$ 3,302,160	$ 60,791,866

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,643,361	$ 3,193,247
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	658,470	715,960
Depreciation expense	428,711	429,377
Amortization expense	118,171	129,346
Equity in income from joint ventures	(2,654,794)	(3,719,378)
Deferred income taxes	111,768	135,167
Dividends received from joint ventures	5,558,926	2,027,243
Gain on sale of property and equipment		(36,285)
Changes in current assets and liabilities:
Trade, excluding joint ventures	(10,778)	730,647
Trade, joint ventures	285,298	82,157
Fees for services provided to joint ventures	72,781	18,762
Income taxes	221,211	(222,609)
Inventories	(908,423)	(2,048,648)
Prepaid expenses and other	122,676	215,178
Accounts payable	850,534	113,849
Income tax payable	(10,833)	15,607
Accrued liabilities	(2,284,150)	(1,517,466)
Net cash provided by operating activities	4,207,710	262,153
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of available for sale securities	4,000,000	2,072,842
Purchase of available for sale securities	(6,946,908)
Purchases of property and equipment	(296,786)	(439,899)
Investments in patents	(45,414)	(57,401)
Net cash (used in) provided by investing activities	(3,289,108)	1,575,542
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividend received by non-controlling interest		(200,000)
Investment by non-controlling interest		134,035
Dividends paid on NTIC common stock	(1,182,199)	(1,090,125)
Proceeds from employee stock purchase plan	35,608	17,681
Principal payments on finance lease obligations
Net cash used in financing activities	(1,146,591)	(1,138,409)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(2,359)	74,068
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(230,348)	773,354
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	5,856,758	4,163,023
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 5,626,410	$ 4,936,377

Note 1 - Interim Financial Information

6 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

INTERIM FINANCIAL INFORMATION

In the opinion of management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, which are of a normal recurring nature, and present fairly the consolidated financial position of Northern Technologies International Corporation and its subsidiaries (the Company) as of

February

29,

2020

and

August 31, 2019,

the results of their operations for the

three

and

six

months ended

February

29,

2020

and

February 28, 2019,

the changes in equity for the

three

and

six

months ended

February

29,

2020

and

February 28, 2019,

and the Company’s cash flows for the

six

months ended

February

29,

2020

and

February 28, 2019,

in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP).

These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s annual report on Form

-K for the fiscal year ended

August 31, 2019.

These consolidated financial statements also should be read in conjunction with the “

Management’s Discussion and Analysis of Financial Condition and Results of Operations

” section appearing in this report.

June 3, 2019,

the Company’s Board of Directors declared a

two

-for-

one

stock split of the Company’s common stock effected in the form of a

100%

share dividend distributed on

June 28, 2019

to record holders as of

June 17, 2019.

All share and per share values in this report have been adjusted to retroactively reflect the effect of the

two

-for-

one

stock split.

Operating results for the

three

and

six

months ended

February

29,

2020

are

not

necessarily indicative of the results that

may

be expected for the full fiscal year ending

August 31, 2020.

The Company evaluates events occurring after the date of the consolidated financial statements requiring recording or disclosure in the consolidated financial statements.

Note 2 - Accounting Pronouncements

6 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

Accounting PronouncementS

New Accounting Pronouncements Adopted

February 2016,

the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)

No.

2016

02,

Leases

. The guidance in ASU

2016

supersedes the lease recognition requirements in the Accounting Standards Codification (ASC) Topic

840,

Leases

. ASU

2016

requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. This standard became effective for the Company on

September 1, 2019.

The FASB has subsequently issued the following amendments to ASU

2016

02,

which have the same effective date and transition date of

September 1, 2019,

and which are collectively referred to as the new leasing standards:

ASU

No.

2018

01,

Leases (Topic

842

): Land Easement Practical Expedient for Transition to Topic

842

, which permits an entity to elect an optional transition practical expedient to

not

evaluate under Topic

842

land easements that existed or expired prior to adoption of Topic

842

and that were

not

previously accounted for as leases under the prior standard, ASC

840,

Leases

ASU

No.

2018

10,

Codification Improvements to Topic

842,

Leases

, which amends certain narrow aspects of the guidance issued in ASU

2016

02.

ASU

No.

2018

11,

Leases (Topic

842

): Targeted Improvements,

which allows for a transition approach to initially apply ASU

2016

at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption as well as an additional practical expedient for lessors to

not

separate non-lease components from the associated lease component.

ASU

No.

2018

20,

Narrow-Scope Improvements for Lessors

, which contains certain narrow scope improvements to the guidance issued in ASU

2016

02.

Additional information and disclosures required by this new standard are contained in Note

12,

titled “Commitments and Contingencies.”

The Company adopted the new leasing standards on

September 1, 2019,

using a modified retrospective transition approach to be applied to leases existing as of, or entered into after,

September 1, 2019;

and, consequently, financial information will

not

be updated and the disclosures required under Topic

842

will

not

be provided for dates and periods prior to

September 1, 2019.

The Company has reviewed its existing lease contracts and the impact of the new leasing standards on its consolidated results of operations, financial position and disclosures. Upon adoption of the new leasing standards, the Company recognized a lease liability and related right-of-use asset on its consolidated balance sheet of approximately

$600,000

Recently Issued Accounting Pronouncements

February 2018,

the FASB issued ASU

No.

2018

02,

Income Statement – Reporting Comprehensive Income (Topic

220

) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

, which will allow a reclassification from accumulated other comprehensive income to retained earnings for the tax effects resulting from the Tax Cuts and Jobs Act (Tax Reform Act) that are stranded in accumulated other comprehensive income. This standard also requires certain disclosures about stranded tax effects. ASU

No.

2018

02,

however, does

not

change the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations. ASU

No.

2018

was adopted by the Company commencing with

first

quarter of the Company’s fiscal year

2020,

and it did

not

have any impact on its consolidated financial statements.

Although there are several other new accounting pronouncements issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does

not

believe any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial position or operating results.

Note 3 - Inventories

6 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Inventory Disclosure [Text Block]

INVENTORIES

Inventories consisted of the following:

	February 29, 2020		August 31, 2019
Production materials	$	3,908,268	$	1,980,816
Finished goods		7,516,116		8,507,912
	$	11,424,384	$	10,488,728

Note 4 - Property and Equipment, Net

6 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

PROPERTY AND EQUIPMENT, NET

Property and equipment, net, consisted of the following:

	February 29, 2020			August 31, 2019
Land	$	310,365		$	310,365
Buildings and improvements		7,942,162			7,749,980
Machinery and equipment		4,991,681			4,903,664
		13,244,208			12,964,009
Less accumulated depreciation		(6,016,684	)		(5,605,850	)
	$	7,227,524		$	7,358,159

Note 5 - Patents and Trademarks, Net

6 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

PATENTS AND TRADEMARKS, NET

Patents and trademarks, net, consisted of the following:

	February 29, 2020			August 31, 2019
Patents and trademarks	$	2,978,210		$	2,938,876
Less accumulated amortization		(2,048,078	)		(1,929,907	)
	$	930,132		$	1,008,969

Patent and trademark costs are amortized over

seven

years. Costs incurred related to patents and trademarks are capitalized until filed and approved, at which time the amounts capitalized to date are amortized, and any further costs, including maintenance costs, are expensed as incurred. Amortization expense is estimated to be

$200,000

in each of the next

five

fiscal years.

Note 6 - Investments in Joint Ventures

6 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

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 recorded that remain on the consolidated balance sheet of 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 the Company’s other joint ventures are summarized as follows:

	As of February 29, 2020
	Total		EXCOR		All Other
Current assets	$	52,843,263	$	23,302,245	$	29,541,018
Total assets		56,806,232		25,573,425		31,232,807
Current liabilities		13,446,110		3,357,346		10,088,764
Noncurrent liabilities		19,924		0		19,924
Joint ventures’ equity		43,340,198		22,216,079		21,124,119
Northern Technologies International Corporation’s share of joint ventures’ equity		21,297,202		11,108,042		10,189,160
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		19,267,931		11,077,137		8,190,794

	Three Months Ended February 29, 2020
	Total		EXCOR		All Other
Net sales	$	24,289,370	$	8,980,176	$	15,309,194
Gross profit		11,102,573		5,262,082		5,840,491
Net income		2,721,542		1,778,027		943,516
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	1,360,804	$	889,226	$	471,578
Northern Technologies International Corporation's dividends received from joint ventures	$	5,353,552	$	4,675,850	$	677,702

	Six Months Ended February 29, 2020
	Total		EXCOR		All Other
Net sales	$	49,749,664	$	18,348,415	$	31,401,249
Gross profit		22,459,707		10,587,570		11,872,137
Net income		5,309,523		3,420,354		1,889,169
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	2,654,794	$	1,710,390	$	944,404
Northern Technologies International Corporation's dividends received from joint ventures	$	5,558,926	$	4,675,850	$	883,133

	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

	Three Months Ended February 28, 2019
	Total		EXCOR		All Other
Net sales	$	27,749,880	$	11,092,133	$	16,657,747
Gross profit		12,632,547		6,306,084		6,326,463
Net income		3,450,976		2,440,323		1,010,653
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	1,715,216	$	1,221,006	$	494,210
Northern Technologies International Corporation's dividends received from joint ventures	$	540,538	$	—	$	540,538

	Six Months Ended February 28, 2019
	Total		EXCOR		All Other
Net sales	$	58,229,806	$	23,961,656	$	34,268,150
Gross profit		25,989,438		12,989,658		12,999,780
Net income		7,614,767		5,480,125		2,134,642
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	3,719,378	$	2,740,907	$	978,471
Northern Technologies International Corporation's dividends received from joint ventures	$	2,027,243	$	843,750	$	183,493

The Company did

not

make any joint venture investments during the

six

months ended

February

29,

2020

February 28, 2019.

Note 7 - Corporate Debt

6 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Debt Disclosure [Text Block]

CORPORATE DEBT

The Company has a revolving line of credit with PNC Bank, National Association (PNC Bank) of

$3,000,000.

amounts were outstanding under the line of credit as of either

February

29,

2020

August 31, 2019.

At the option of the Company, outstanding advances under the line of credit bear interest at either (a) an annual rate based on LIBOR plus

2.15%

for the applicable LIBOR interest period selected by the Company or (b) at the rate publicly announced by PNC Bank from time to time as its prime rate.

The line of credit is governed under a loan agreement. The loan agreement contains standard covenants, including affirmative financial covenants, such as the maintenance of a minimum fixed charge coverage ratio, and negative covenants, which, among other things, limit the incurrence of additional indebtedness, loans and equity investments, disposition of assets, mergers and consolidations, and other matters customarily restricted in such agreements. Under the loan agreement, the Company is subject to a minimum fixed charge coverage ratio of

1.10:1.00.

As of

February

29,

2020,

the Company was in compliance with all debt covenants.

The revolving credit facility allows the Company to request that PNC Bank issue letters of credit up to

$1,200,000.

The Company did

not

have any letters of credit reserved against the available letters of credit balance as of

February

29,

2020

and

August 31, 2019

with PNC Bank. The availability of advances under the line of credit will be reduced by the face amount of any letter of credit issued and outstanding (whether or

not

drawn) under the revolving credit facility.

December 16, 2019,

the Company and PNC Bank extended the maturity date of the line of credit from

January 7, 2020

January 7, 2021.

All other terms of the line of credit and the loan agreement and other documents evidencing the line of credit remain the same.

As of

February

29,

2020

and

August 31, 2019,

the Company had

$88,831

of letters of credit with JP Morgan Chase Bank that are performance based and set to expire between

May 2020

and

May 2022.

Note 8 - Stockholders' Equity

6 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

STOCKHOLDERS’ EQUITY

June 3, 2019,

the Company’s Board of Directors declared a

two

-for-

one

stock split of the Company’s common stock effected in the form of a

100%

share dividend distributed on

June 28, 2019

to record holders as of

June 17, 2019.

All share and per share values have been adjusted to retroactively reflect the effect of the

two

-for-

one

stock split.

During the

six

months ended

February

29,

2020,

the Company’s Board of Directors declared cash dividends on the following dates in the following amounts to the following holders of the Company’s common stock:

Declaration Date	Amount	Record Date	Payable Date
October 22, 2019	$0.065	November 6, 2019	November 20, 2019
January 22, 2020	$0.065	February 5, 2020	February 19, 2020

During the

six

months ended

February 28, 2019,

the Company’s Board of Directors declared cash dividends on the following dates in the following amounts to the following holders of the Company’s common stock:

Declaration Date	Amount	Record Date	Payable Date
October 24, 2018	$0.06	November 7, 2018	November 21, 2018
January 23, 2019	$0.06	February 6, 2019	February 22, 2019

During the

six

months ended

February

29,

2020

and

February 28, 2019,

the Company repurchased

shares of its common stock.

During the

six

months ended

February

29,

2020,

the Company granted stock options under the Northern Technologies International Corporation

2019

Stock Incentive Plan (the

2019

Plan) to purchase an aggregate of

300,770

shares of its common stock to various employees and directors. The weighted average per share exercise price of the stock options is

$10.87,

which was equal to the fair market value of the Company’s common stock on the date of grant. During the

six

months ended

February

29,

2020,

stock options to purchase common stock were exercised.

During the

six

months ended

February 28, 2019,

the Company granted stock options under the Northern Technologies International Corporation Amended and Restated

2007

Stock Incentive Plan (the

2007

Plan) to purchase an aggregate of

141,767

shares of its common stock to various employees and directors. The weighted average per share exercise price of the stock options is

$18.23,

which was equal to the fair market value of the Company’s common stock on the date of grant. During the

six

months ended

February 28, 2019,

stock options to purchase common stock were exercised.

The Company issued

3,597

and

1,748

shares of common stock on

September 1, 2019

and

2018,

respectively, under the Northern Technologies International Corporation Employee Stock Purchase Plan (the ESPP).

Note 9 - Net Income Per Common Share

6 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

NET INCOME PER COMMON SHARE

Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per share assumes the exercise of stock options using the treasury stock method, if dilutive.

The following is a reconciliation of the net income per share computation for the

three

and

six

months ended

February

29,

2020

and

February 28, 2019:

	Three Months Ended				Six Months Ended
Numerator:	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Net income attributable to NTIC	$	179,834	$	1,401,568	$	1,392,384	$	2,898,627

Denominator:
Basic – weighted shares outstanding		9,097,236		9,084,354		9,095,604		9,084,350
Weighted shares assumed upon exercise of stock options		364,491		363,506		288,263		378,866
Diluted – weighted shares outstanding		9,461,727		9,447,860		9,383,867		9,463,216
Basic net income per share:	$	0.02	$	0.16	$	0.15	$	0.32
Diluted net income per share:	$	0.02	$	0.15	$	0.15	$	0.31

*Share and per share data have been adjusted for all periods presented to reflect the

two

-for-

one

stock split effective

June 28, 2019.

The dilutive impact summarized above relates to the periods when the average market price of the Company’s common stock exceeded the exercise price of the potentially dilutive option securities granted. Net income per common share was based on the weighted average number of common shares outstanding during the periods when computing basic net income per share. When dilutive, stock options are included as equivalents using the treasury stock method when computing the diluted net income per share. Excluded from the computation of diluted income per share for the

three

and

six

months ended

February

29,

2020

were options outstanding to purchase

141,768

shares of common stock. Excluded from the computation of diluted income per share for the

three

and

six

months ended

February 28, 2019,

were options outstanding to purchase

141,768

shares of common stock.

Note 10 - Stock-based Compensation

6 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

10.

STOCK-BASED COMPENSATION

The Company has

three

stock-based compensation plans under which stock options or other stock-based awards have been granted: the Northern Technologies International Corporation

2019

Stock Incentive Plan, which was approved by stockholders at the

2019

annual meeting of stockholders, the Northern Technologies International Corporation Amended and Restated

2007

Stock Incentive Plan and the Northern Technologies International Corporation Employee Stock Purchase Plan. The

2019

Plan replaced the

2007

Plan with respect to future grants; and, therefore,

further awards

may

be made under the

2007

Plan. The Compensation Committee of the Board of Directors and the Board of Directors administer these plans.

The

2019

Plan provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, stock unit awards, performance awards, and stock bonuses to eligible recipients to enable the Company and its subsidiaries to attract and retain qualified individuals through opportunities for equity participation in the Company and to reward those individuals who contribute to the achievement of the Company’s economic objectives. Subject to adjustment as provided in the

2019

Plan, up to a maximum of

800,000

shares of the Company’s common stock are issuable under the

2019

Plan. Options granted generally have a term of

ten

years and become exercisable over a

one

- or

three

- year period beginning on the

one

-year anniversary of the date of grant. Options are granted at per share exercise prices equal to the market value of the Company’s common stock on the date of grant. The Company issues new shares upon the exercise of options. As of

February

29,

2020,

options to purchase an aggregate of

300,770

shares of the Company’s common stock had been granted under the

2019

Plan.

The maximum number of shares of common stock of the Company available for issuance under the ESPP is

200,000

shares, subject to adjustment as provided in the ESPP. The ESPP provides for

six

-month offering periods beginning on

September 1

and

March 1

of each year. The purchase price of the shares is

90%

of the lower of the fair market value of common stock at the beginning or end of the offering period. This discount

may

not

exceed the maximum discount rate permitted for plans of this type under Section

423

of the Internal Revenue Code of

1986,

as amended. The ESPP is compensatory for financial reporting purposes. As of

February

29,

2020,

87,447

shares of common stock remained available for sale under the ESPP.

The Company granted options to purchase an aggregate of

300,770

and

141,768

shares of its common stock during the

six

months ended

February

29,

2020

and

February 28, 2019,

respectively. The fair value of option grants is determined at the date of grant using the Black-Scholes option pricing model with the assumptions listed below. The Company recognized compensation expense of

$658,470

and

$715,960

during the

six

months ended

February

29,

2020

and

February 28, 2019,

respectively, related to the options that vested during such time period. As of

February

29,

2020,

the total compensation cost for non-vested options

not

yet recognized in the Company’s consolidated statements of operations was

$700,138.

Stock-based compensation expense of

$679,304

is expected through the remainder of fiscal year

2020

and

$20,834

is expected to be recognized during fiscal

2021,

based on outstanding options as of

February

29,

2020.

Future option grants will impact the compensation expense recognized. Stock-based compensation expense is included in general and administrative expense on the consolidated statements of operations.

The fair value of each option grant is estimated on the grant date using the Black-Scholes option pricing model with the following assumptions and results for the grants:

	Three and Six Months Ended
	February 29, 2020	February 28, 2019
Dividend yield	2.15%	1.32%
Expected volatility	45.2%	45.8%
Expected life of option (years)	10	10
Average risk-free interest rate	1.57%	2.75%

The weighted average per share fair value of options granted during the

six

months ended

February

29,

2020

and

February 28, 2019

was

$4.30

and

$9.02,

respectively. The weighted average remaining contractual life of the options outstanding as of

February

29,

2020

and

February 28, 2019

was

6.53

years and

6.40

years, respectively.

Note 11 - Segment and Geographic Information

6 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

11.

SEGMENT AND GEOGRAPHIC INFORMATION

Segment Information

The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s business is organized into

two

reportable segments: ZERUST

and Natur-Tec

. The Company has been selling its proprietary ZERUST

rust and corrosion inhibiting products and services to the automotive, electronics, electrical, mechanical, military, and retail consumer markets for over

years and, more recently, has targeted and expanded into the oil and gas industry. The Company also sells a portfolio of bio-based and compostable (fully biodegradable) polymer resins and finished products under the Natur-Tec

brand.

The following table sets forth the Company’s net sales for the

three

and

six

months ended

February

29,

2020

and

February 28, 2019

by segment:

	Three Months Ended				Six Months Ended
	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
ZERUST ® net sales	$	9,016,222	$	9,108,395	$	18,965,734	$	19,173,569
Natur-Tec ® net sales		4,217,561		4,207,009		8,899,449		8,235,887
Total net sales	$	13,233,783	$	13,315,404	$	27,865,183	$	27,409,456

The following table sets forth the Company’s cost of goods sold for the

three

and

six

months ended

February

29,

2020

and

February 28, 2019

by segment:

	Three Months Ended										Six Months Ended
	February 29, 2020		% of Segment Sales*			February 28, 2019		% of Segment Sales*			February 29, 2020		% of Segment Sales*			February 28, 2019		% of Segment Sales*
Direct cost of goods sold
ZERUST ®	$	4,638,514		51.4	%	$	5,249,617		57.6	%	$	10,081,686		53.7	%	$	10,871,316		56.7	%
Natur-Tec ®		3,276,058		77.7	%		3,354,693		79.7	%		6,890,477		77.4	%		6,510,768		79.1	%
Indirect cost of goods sold		772,729		—			679,789		—			1,420,040		—			1,363,152		—
Total net cost of goods sold	$	8,687,301				$	9,284,099				$	18,492,385				$	18,745,236

____________________________

The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category.

The Company utilizes product net sales and direct and indirect cost of goods sold for each product in reviewing the financial performance of a product type. Further allocation of Company expenses or assets, aside from amounts presented in the tables above, is

not

utilized in evaluating product performance, nor does such allocation occur for internal financial reporting.

Geographic Information

Net sales by geographic location for the

three

and

six

months ended

February

29,

2020

and

February 28, 2019

were as follows:

	Three Months Ended				Six Months Ended
	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Inside the U.S.A. to unaffiliated customers	$	6,628,647	$	6,467,940	$	14,527,345	$	13,391,874
Outside the U.S.A. to:
Joint ventures in which the Company is a shareholder directly and indirectly		245,630		708,955		831,246		1,192,142
Unaffiliated customers		6,359,506		6,138,509		12,506,592		12,825,440
	$	13,233,783	$	13,315,404	$	27,865,183	$	27,409,456

Net sales by geographic location are based on the location of the customer.

Fees for services provided to joint ventures by geographic location as a percentage of total fees for services provided to joint ventures during the

three

and

six

months ended

February

29,

2020

and

February 28, 2019

were as follows:

	Three Months Ended
	February 29, 2020		% of Total Fees for Services Provided to Joint Ventures			February 28, 2019		% of Total Fees for Services Provided to Joint Ventures
Germany	$	208,128		16.6	%	$	215,337		15.0	%
Poland		170,916		13.6	%		188,529		13.1	%
Japan		150,150		12.0	%		167,496		11.7	%
Sweden		98,398		7.8	%		149,750		10.4	%
Thailand		90,878		7.2	%		105,299		7.3	%
France		85,709		6.8	%		106,270		7.4	%
United Kingdom		64,279		5.1	%		96,209		6.7	%
Czech Republic		80,200		6.4	%		93,928		6.6	%
India		80,024		6.4	%		85,401		5.9	%
South Korea		75,289		6.0	%		87,413		6.1	%
Finland		74,001		5.9	%		64,648		4.5	%
Other		78,241		6.2	%		76,494		5.3	%
	$	1,256,213		100.0	%	$	1,436,774		100.0	%

	Six Months Ended
	February 29, 2020		% of Total Fees for Services Provided to Joint Ventures			February 28, 2019		% of Total Fees for Services Provided to Joint Ventures
Germany	$	420,229		16.1	%	$	430,328		15.0	%
Poland		365,894		14.0	%		370,374		12.9	%
Japan		314,079		12.0	%		337,296		11.7	%
Sweden		207,904		8.0	%		279,993		9.8	%
Thailand		193,212		7.4	%		203,647		7.1	%
France		179,340		6.9	%		216,332		7.6	%
United Kingdom		149,758		5.7	%		190,990		6.7	%
Czech Republic		169,214		6.5	%		183,620		6.4	%
India		162,984		6.2	%		180,128		6.3	%
South Korea		151,321		5.8	%		173,880		6.1	%
Finland		141,942		5.4	%		146,464		5.1	%
Other		158,661		6.1	%		152,157		5.3	%
	$	2,614,538		100.0	%	$	2,865,209		100.0	%

The geographical distribution of key financial statement data is as follows:

	At February 29, 2020		At August 31, 2019
China	$	397,139	$	337,162
Brazil		79,825		101,548
Germany		23,734		14,791
India		72,951		61,748
United States		6,653,875		6,842,910
Total property and equipment	$	7,227,524	$	7,358,159

	Three Months Ended
	February 29, 2020		February 28, 2019
China	$	3,024,384	$	3,005,199
Brazil		823,218		726,799
India		2,059,564		2,224,149
Other		967,111		891,317
United States		6,359,506		6,467,940
Total net sales	$	13,233,783	$	13,315,404

	Six Months Ended
	February 29, 2020		February 28, 2019
China	$	6,885,956	$	6,173,259
Brazil		1,715,196		1,551,595
India		4,095,774		3,875,790
Other		2,661,665		2,416,938
United States		12,506,592		13,391,874
Total net sales	$	27,865,183	$	27,409,456

Total property and equipment are periodically reviewed to assure the net realizable value from the estimated future production based on forecasted sales exceeds the carrying value of the assets. Total assets located in the United States include the Company’s investments in joint ventures.

Sales to the Company’s joint ventures are included in the foregoing segment and geographic information; however, sales by the Company’s joint ventures to other parties are

not

included. The foregoing segment and geographic information represents only sales and cost of goods sold recognized directly by the Company.

All joint venture operations, including equity in income, fees for services, and related dividends, are primarily related to ZERUST

products and services.

Note 12 - Commitments and Contingencies

6 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

12.

COMMITMENTS AND CONTINGENCIES

Operating Leases

The Company currently has

operating leases for various buildings, equipment and vehicles. These leases are under non-cancelable operating lease agreements with expiration dates between

March 31, 2020

and

June 30, 2024.

The Company has the option to extend certain leases to

five

ten

-year term(s) and has the right of

first

refusal on any sale.

The Company records lease liabilities within current liabilities or long-term liabilities based upon the length of time associated with the lease payments. The Company records its long-term operating leases as right-of-use assets. Upon initial adoption, using the modified retrospective transition approach,

leases with terms less than

-months have been capitalized to the consolidated balance sheet consistent with ASC

842.

Instead, these leases are recognized in the consolidated statement of operations on a straight-line expense throughout the lives of the leases.

None

of the Company’s leases contain common area maintenance or security agreements.

The Company has made certain assumptions and judgments when applying ASC

842,

the most significant of which is that the Company elected the package of practical expedients available for transition that allow the Company to

not

reassess whether expired or existing contracts contain leases under the new definition of a lease, lease classification for expired or existing leases and whether previously capitalized initial direct costs would qualify for capitalization under ASC

842.

Additionally, the Company did

not

elect to use hindsight when considering judgments and estimates such as assessments of lessee options to extend or terminate a lease or purchase the underlying asset. The Company has

contingent rent agreements.

Present Value of Long-term Leases

(in thousands):	February 29, 2020
Right-of-use assets, net	$	520,601

Current portion of lease liability		211,495
Lease liability, less current portion		309,106
Total lease liability	$	520,601

As of

February

29,

2020,

the weighted-average remaining lease term was

2.1

years. The Company’s lease agreements do

not

provide a readily determinable implicit rate nor is it available to the Company from its lessors. Instead, as of

February

29,

2020,

the Company estimates the weighted-average discount rate for its operating leases to be

4.32%

to present value based on the incremental borrowing rate.

Future minimum payments for the next

five

fiscal years and thereafter as of

February

29,

2020

under these long-term operating leases are as follows (in thousands):

Fiscal 2020	$	143,527
Fiscal 2021		263,392
Fiscal 2022		125,648
Fiscal 2023		10,222
Thereafter		2,570
Total future minimum lease payments		545,359
Less amount representing interest		(24,758	)
Present value of obligations under operating leases		520,601
Less current portion		(211,495	)
Long-term operating lease obligations	$	309,106

Annual Bonus Plan

August 31, 2019,

the Compensation Committee of the Board of Directors of the Company approved the material terms of an annual bonus plan for the Company’s executive officers as well as certain officers and employees for the fiscal year ending

August 31, 2020.

For fiscal

2020

as in past years, the total amount available under the bonus plan for all plan participants, including executive officers, is dependent upon the Company’s earnings before interest, taxes and other income, as adjusted to take into account amounts to be paid under the bonus plan and certain other adjustments (Adjusted EBITOI). Each plan participant’s percentage of the overall bonus pool is based upon the number of plan participants, the individual’s annual base salary and the individual’s position and level of responsibility within the Company. In the case of each of the Company’s executive officer participants,

75%

of the amount of their individual bonus payout will be determined based upon the Company’s actual EBITOI for fiscal

2020

compared to a pre-established target EBITOI for fiscal

2020,

and

25%

of the payout will be determined based upon such executive officer’s achievement of certain pre-established individual performance objectives. The payment of bonuses under the plan is discretionary, and bonuses

may

be paid to executive officer participants in both cash and shares of NTIC common stock, with the exact amount and percentages determined by the Company’s Board of Directors, upon recommendation of the Compensation Committee, after the completion of the Company’s consolidated financial statements for fiscal

2020.

There was

$800,000

recognized for management bonuses for the

six

months ended

February

29,

2020,

compared to

$900,000

recognized for management bonuses for the

six

months ended

February 28, 2019.

Two joint ventures (consisting of the Company’s joint ventures in South Korea and Thailand) accounted for

55.8%

of the Company’s trade joint venture receivables at

February

29,

2020,

and

five

joint ventures (consisting of the Company’s joint ventures in South Korea, Thailand, France, Germany and India) accounted for

69.6%

of the Company’s trade joint venture receivables as of

August 31, 2019.

From time to time, the Company is subject to various other claims and legal actions in the ordinary course of its business. The Company records a liability in its consolidated financial statements for costs related to claims, including future legal costs, settlements, and judgments, where the Company has assessed that a loss is probable, and an amount could be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when

amount within the range is a better estimate than any other amount. The Company discloses a contingent liability even if the liability is

not

probable or the amount is

not

estimable, or both, if there is a reasonable possibility that material loss

may

have been incurred. In the opinion of management, as of

February

29,

2020,

the amount of liability, if any, with respect to these matters, individually or in the aggregate, will

not

materially affect the Company’s consolidated results of operations, financial position or cash flows.

Note 13 - Fair Value Measurements

6 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]

13.

FAIR VALUE MEASUREMENTS

Assets and liabilities that are measured at fair value on a recurring basis primarily relate to marketable equity securities. These items are marked-to-market at each reporting period, and the Company estimates that market value approximates cost.

The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis:

			Fair Value Measurements Using Inputs Considered as
	Fair value as of February 29, 2020		Level 1		Level 2		Level 3
Available for sale securities	$	6,512,166	$	6,512,166	$	—	$	—

			Fair Value Measurements Using Inputs Considered as
	Fair value as of August 31, 2019		Level 1		Level 2		Level 3
Available for sale securities	$	3,565,258	$	3,565,258	$	—	$	—

There were

transfers between Level

Level

or Level

during the

three

and

six

months ended

February

29,

2020

and

February 28, 2019.

Note 14 - Supplemental Cash Flow Information

6 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Cash Flow, Supplemental Disclosures [Text Block]

14.

SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental disclosures of cash flow information consisted of:

	Three Months Ended				Six Months Ended
	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Cash paid for interest	$	9,377	$	3,835	$	14,821	$	6,192
Cash paid for income taxes		—	$	53,975		—	$	53,975

Note 15 - Subsequent Event

6 Months Ended

Feb. 29, 2020

Notes to Financial Statements

Subsequent Events [Text Block]

15.

SUBSEQUENT EVENT

The Company evaluated its

February

29,

2020

condensed consolidated financial statements for subsequent events through the date the condensed consolidated financial statements were issued. As a result of the novel strain of coronavirus (COVID-

) pandemic and related government mandated restrictions on the Company’s business as well as the businesses of its joint ventures, customers and suppliers, a disruption in the Company’s business and the manufacture and sale of its products and services is expected to occur. Specifically, the operations at NTI China were suspended on

January 18, 2020

and did

not

resume until

February 28, 2020.

While the disruption is currently expected to be temporary, there is considerable uncertainty around the duration. The Company expects this matter will likely have a material adverse effect on its business, operating results and financial condition for the

third

quarter of fiscal

2020

and beyond; however, the precise financial impact and duration cannot be reasonably estimated at this time. As of the date of this filing, the Company's U.S. location and its primary suppliers, continue to be operating. The Company’s location in India is currently under mandated governmental shutdown until

April 15, 2020.

Significant Accounting Policies (Policies)

6 Months Ended

Feb. 29, 2020

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements Adopted

February 2016,

the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)

No.

2016

02,

Leases

. The guidance in ASU

2016

supersedes the lease recognition requirements in the Accounting Standards Codification (ASC) Topic

840,

Leases

. ASU

2016

September 1, 2019.

The FASB has subsequently issued the following amendments to ASU

2016

02,

which have the same effective date and transition date of

September 1, 2019,

and which are collectively referred to as the new leasing standards:

ASU

No.

2018

01,

Leases (Topic

842

): Land Easement Practical Expedient for Transition to Topic

842

, which permits an entity to elect an optional transition practical expedient to

not

evaluate under Topic

842

land easements that existed or expired prior to adoption of Topic

842

and that were

not

previously accounted for as leases under the prior standard, ASC

840,

Leases

ASU

No.

2018

10,

Codification Improvements to Topic

842,

Leases

, which amends certain narrow aspects of the guidance issued in ASU

2016

02.

ASU

No.

2018

11,

Leases (Topic

842

): Targeted Improvements,

which allows for a transition approach to initially apply ASU

2016

at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption as well as an additional practical expedient for lessors to

not

separate non-lease components from the associated lease component.

ASU

No.

2018

20,

Narrow-Scope Improvements for Lessors

, which contains certain narrow scope improvements to the guidance issued in ASU

2016

02.

Additional information and disclosures required by this new standard are contained in Note

12,

titled “Commitments and Contingencies.”

The Company adopted the new leasing standards on

September 1, 2019,

using a modified retrospective transition approach to be applied to leases existing as of, or entered into after,

September 1, 2019;

and, consequently, financial information will

not

be updated and the disclosures required under Topic

842

will

not

be provided for dates and periods prior to

September 1, 2019.

$600,000

Recently Issued Accounting Pronouncements

February 2018,

the FASB issued ASU

No.

2018

02,

Income Statement – Reporting Comprehensive Income (Topic

220

) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

No.

2018

02,

however, does

not

change the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations. ASU

No.

2018

was adopted by the Company commencing with

first

quarter of the Company’s fiscal year

2020,

and it did

not

have any impact on its consolidated financial statements.

Although there are several other new accounting pronouncements issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does

not

believe any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial position or operating results.

Note 3 - Inventories (Tables)

6 Months Ended

Feb. 29, 2020

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	February 29, 2020		August 31, 2019
Production materials	$	3,908,268	$	1,980,816
Finished goods		7,516,116		8,507,912
	$	11,424,384	$	10,488,728

Note 4 - Property and Equipment, Net (Tables)

6 Months Ended

Feb. 29, 2020

Notes Tables

Property, Plant and Equipment [Table Text Block]

	February 29, 2020			August 31, 2019
Land	$	310,365		$	310,365
Buildings and improvements		7,942,162			7,749,980
Machinery and equipment		4,991,681			4,903,664
		13,244,208			12,964,009
Less accumulated depreciation		(6,016,684	)		(5,605,850	)
	$	7,227,524		$	7,358,159

Note 5 - Patents and Trademarks, Net (Tables)

6 Months Ended

Feb. 29, 2020

Notes Tables

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	February 29, 2020			August 31, 2019
Patents and trademarks	$	2,978,210		$	2,938,876
Less accumulated amortization		(2,048,078	)		(1,929,907	)
	$	930,132		$	1,008,969

Note 6 - Investments in Joint Ventures (Tables)

6 Months Ended

Feb. 29, 2020

Notes Tables

Condensed Balance Sheet [Table Text Block]

	As of February 29, 2020
	Total		EXCOR		All Other
Current assets	$	52,843,263	$	23,302,245	$	29,541,018
Total assets		56,806,232		25,573,425		31,232,807
Current liabilities		13,446,110		3,357,346		10,088,764
Noncurrent liabilities		19,924		0		19,924
Joint ventures’ equity		43,340,198		22,216,079		21,124,119
Northern Technologies International Corporation’s share of joint ventures’ equity		21,297,202		11,108,042		10,189,160
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		19,267,931		11,077,137		8,190,794

	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

Condensed Income Statement [Table Text Block]

	Three Months Ended February 29, 2020
	Total		EXCOR		All Other
Net sales	$	24,289,370	$	8,980,176	$	15,309,194
Gross profit		11,102,573		5,262,082		5,840,491
Net income		2,721,542		1,778,027		943,516
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	1,360,804	$	889,226	$	471,578
Northern Technologies International Corporation's dividends received from joint ventures	$	5,353,552	$	4,675,850	$	677,702

	Six Months Ended February 29, 2020
	Total		EXCOR		All Other
Net sales	$	49,749,664	$	18,348,415	$	31,401,249
Gross profit		22,459,707		10,587,570		11,872,137
Net income		5,309,523		3,420,354		1,889,169
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	2,654,794	$	1,710,390	$	944,404
Northern Technologies International Corporation's dividends received from joint ventures	$	5,558,926	$	4,675,850	$	883,133

	Three Months Ended February 28, 2019
	Total		EXCOR		All Other
Net sales	$	27,749,880	$	11,092,133	$	16,657,747
Gross profit		12,632,547		6,306,084		6,326,463
Net income		3,450,976		2,440,323		1,010,653
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	1,715,216	$	1,221,006	$	494,210
Northern Technologies International Corporation's dividends received from joint ventures	$	540,538	$	—	$	540,538

	Six Months Ended February 28, 2019
	Total		EXCOR		All Other
Net sales	$	58,229,806	$	23,961,656	$	34,268,150
Gross profit		25,989,438		12,989,658		12,999,780
Net income		7,614,767		5,480,125		2,134,642
Northern Technologies International Corporation’s share of equity in income from joint ventures	$	3,719,378	$	2,740,907	$	978,471
Northern Technologies International Corporation's dividends received from joint ventures	$	2,027,243	$	843,750	$	183,493

Note 8 - Stockholders' Equity (Tables)

6 Months Ended

Feb. 29, 2020

Notes Tables

Dividends Declared [Table Text Block]

Declaration Date	Amount	Record Date	Payable Date
October 22, 2019	$0.065	November 6, 2019	November 20, 2019
January 22, 2020	$0.065	February 5, 2020	February 19, 2020

Declaration Date	Amount	Record Date	Payable Date
October 24, 2018	$0.06	November 7, 2018	November 21, 2018
January 23, 2019	$0.06	February 6, 2019	February 22, 2019

Note 9 - Net Income Per Common Share (Tables)

6 Months Ended

Feb. 29, 2020

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended				Six Months Ended
Numerator:	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Net income attributable to NTIC	$	179,834	$	1,401,568	$	1,392,384	$	2,898,627

Denominator:
Basic – weighted shares outstanding		9,097,236		9,084,354		9,095,604		9,084,350
Weighted shares assumed upon exercise of stock options		364,491		363,506		288,263		378,866
Diluted – weighted shares outstanding		9,461,727		9,447,860		9,383,867		9,463,216
Basic net income per share:	$	0.02	$	0.16	$	0.15	$	0.32
Diluted net income per share:	$	0.02	$	0.15	$	0.15	$	0.31

Note 10 - Stock-based Compensation (Tables)

6 Months Ended

Feb. 29, 2020

Notes Tables

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Three and Six Months Ended
	February 29, 2020	February 28, 2019
Dividend yield	2.15%	1.32%
Expected volatility	45.2%	45.8%
Expected life of option (years)	10	10
Average risk-free interest rate	1.57%	2.75%

Note 11 - Segment and Geographic Information (Tables)

6 Months Ended

Feb. 29, 2020

Notes Tables

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

	Three Months Ended				Six Months Ended
	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
ZERUST ® net sales	$	9,016,222	$	9,108,395	$	18,965,734	$	19,173,569
Natur-Tec ® net sales		4,217,561		4,207,009		8,899,449		8,235,887
Total net sales	$	13,233,783	$	13,315,404	$	27,865,183	$	27,409,456

Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block]

	Three Months Ended										Six Months Ended
	February 29, 2020		% of Segment Sales*			February 28, 2019		% of Segment Sales*			February 29, 2020		% of Segment Sales*			February 28, 2019		% of Segment Sales*
Direct cost of goods sold
ZERUST ®	$	4,638,514		51.4	%	$	5,249,617		57.6	%	$	10,081,686		53.7	%	$	10,871,316		56.7	%
Natur-Tec ®		3,276,058		77.7	%		3,354,693		79.7	%		6,890,477		77.4	%		6,510,768		79.1	%
Indirect cost of goods sold		772,729		—			679,789		—			1,420,040		—			1,363,152		—
Total net cost of goods sold	$	8,687,301				$	9,284,099				$	18,492,385				$	18,745,236

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]

	Three Months Ended				Six Months Ended
	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Inside the U.S.A. to unaffiliated customers	$	6,628,647	$	6,467,940	$	14,527,345	$	13,391,874
Outside the U.S.A. to:
Joint ventures in which the Company is a shareholder directly and indirectly		245,630		708,955		831,246		1,192,142
Unaffiliated customers		6,359,506		6,138,509		12,506,592		12,825,440
	$	13,233,783	$	13,315,404	$	27,865,183	$	27,409,456

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]

	At February 29, 2020		At August 31, 2019
China	$	397,139	$	337,162
Brazil		79,825		101,548
Germany		23,734		14,791
India		72,951		61,748
United States		6,653,875		6,842,910
Total property and equipment	$	7,227,524	$	7,358,159

Revenue from External Customers by Geographic Areas [Table Text Block]

	Three Months Ended
	February 29, 2020		February 28, 2019
China	$	3,024,384	$	3,005,199
Brazil		823,218		726,799
India		2,059,564		2,224,149
Other		967,111		891,317
United States		6,359,506		6,467,940
Total net sales	$	13,233,783	$	13,315,404

	Six Months Ended
	February 29, 2020		February 28, 2019
China	$	6,885,956	$	6,173,259
Brazil		1,715,196		1,551,595
India		4,095,774		3,875,790
Other		2,661,665		2,416,938
United States		12,506,592		13,391,874
Total net sales	$	27,865,183	$	27,409,456

Fees for Services Provided to Joint Ventures [Member]

Notes Tables

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

	Three Months Ended
	February 29, 2020		% of Total Fees for Services Provided to Joint Ventures			February 28, 2019		% of Total Fees for Services Provided to Joint Ventures
Germany	$	208,128		16.6	%	$	215,337		15.0	%
Poland		170,916		13.6	%		188,529		13.1	%
Japan		150,150		12.0	%		167,496		11.7	%
Sweden		98,398		7.8	%		149,750		10.4	%
Thailand		90,878		7.2	%		105,299		7.3	%
France		85,709		6.8	%		106,270		7.4	%
United Kingdom		64,279		5.1	%		96,209		6.7	%
Czech Republic		80,200		6.4	%		93,928		6.6	%
India		80,024		6.4	%		85,401		5.9	%
South Korea		75,289		6.0	%		87,413		6.1	%
Finland		74,001		5.9	%		64,648		4.5	%
Other		78,241		6.2	%		76,494		5.3	%
	$	1,256,213		100.0	%	$	1,436,774		100.0	%

	Six Months Ended
	February 29, 2020		% of Total Fees for Services Provided to Joint Ventures			February 28, 2019		% of Total Fees for Services Provided to Joint Ventures
Germany	$	420,229		16.1	%	$	430,328		15.0	%
Poland		365,894		14.0	%		370,374		12.9	%
Japan		314,079		12.0	%		337,296		11.7	%
Sweden		207,904		8.0	%		279,993		9.8	%
Thailand		193,212		7.4	%		203,647		7.1	%
France		179,340		6.9	%		216,332		7.6	%
United Kingdom		149,758		5.7	%		190,990		6.7	%
Czech Republic		169,214		6.5	%		183,620		6.4	%
India		162,984		6.2	%		180,128		6.3	%
South Korea		151,321		5.8	%		173,880		6.1	%
Finland		141,942		5.4	%		146,464		5.1	%
Other		158,661		6.1	%		152,157		5.3	%
	$	2,614,538		100.0	%	$	2,865,209		100.0	%

Note 12 - Commitments and Contingencies (Tables)

6 Months Ended

Feb. 29, 2020

Notes Tables

Schedule of Components of Operating Lease Assets and Liabilities [Table Text Block]

(in thousands):	February 29, 2020
Right-of-use assets, net	$	520,601

Current portion of lease liability		211,495
Lease liability, less current portion		309,106
Total lease liability	$	520,601

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Fiscal 2020	$	143,527
Fiscal 2021		263,392
Fiscal 2022		125,648
Fiscal 2023		10,222
Thereafter		2,570
Total future minimum lease payments		545,359
Less amount representing interest		(24,758	)
Present value of obligations under operating leases		520,601
Less current portion		(211,495	)
Long-term operating lease obligations	$	309,106

Note 13 - Fair Value Measurements (Tables)

6 Months Ended

Feb. 29, 2020

Notes Tables

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

			Fair Value Measurements Using Inputs Considered as
	Fair value as of February 29, 2020		Level 1		Level 2		Level 3
Available for sale securities	$	6,512,166	$	6,512,166	$	—	$	—

			Fair Value Measurements Using Inputs Considered as
	Fair value as of August 31, 2019		Level 1		Level 2		Level 3
Available for sale securities	$	3,565,258	$	3,565,258	$	—	$	—

Note 14 - Supplemental Cash Flow Information (Tables)

6 Months Ended

Feb. 29, 2020

Notes Tables

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

	Three Months Ended				Six Months Ended
	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Cash paid for interest	$	9,377	$	3,835	$	14,821	$	6,192
Cash paid for income taxes		—	$	53,975		—	$	53,975

Note 1 - Interim Financial Information (Details Textual)	Jun. 28, 2019	Jun. 03, 2019
Stockholders' Equity Note, Stock Split, Conversion Ratio	2	2

Note 2 - Accounting Pronouncements (Details Textual) - USD ($)	Feb. 29, 2020	Sep. 01, 2019
Operating Lease, Liability, Total	$ 520,601
Operating Lease, Right-of-Use Asset	$ 520,601
Accounting Standards Update 2016-02 [Member]
Operating Lease, Liability, Total		$ 600,000
Operating Lease, Right-of-Use Asset		$ 600,000

Note 3 - Inventories - Inventories (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Production materials	$ 3,908,268	$ 1,980,816
Finished goods	7,516,116	8,507,912
Total inventory	$ 11,424,384	$ 10,488,728

Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Land	$ 310,365	$ 310,365
Buildings and improvements	7,942,162	7,749,980
Machinery and equipment	4,991,681	4,903,664
Gross	13,244,208	12,964,009
Less accumulated depreciation	(6,016,684)	(5,605,850)
Net	$ 7,227,524	$ 7,358,159

Note 5 - Patents and Trademarks, Net (Details Textual) - Patents and Trademarks [Member]	6 Months Ended
	Feb. 29, 2020 USD ($)
Finite-Lived Intangible Asset, Useful Life	7 years
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 200,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	200,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	200,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	200,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 200,000

Note 5 - Patents and Trademarks, Net - Patents and Trademarks, Net (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Patents and trademarkes, net	$ 930,132	$ 1,008,969
Patents and Trademarks [Member]
Patents and trademarks	2,978,210	2,938,876
Less accumulated amortization	(2,048,078)	(1,929,907)
Patents and trademarkes, net	$ 930,132	$ 1,008,969

Note 6 - Investments in Joint Ventures (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Payments to Acquire Interest in Joint Venture	$ 0	$ 0

Note 6 - Investments in Joint Ventures - Condensed Balance Sheet of EXCOR and All Other Joint Ventures (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Current assets	$ 52,843,263	$ 59,162,834
Total assets	56,806,232	63,326,703
Current liabilities	13,446,110	14,145,499
Noncurrent liabilities	19,924	20,797
Joint ventures’ equity	43,340,198	49,160,407
Northern Technologies International Corporation’s share of joint ventures’ equity	21,297,202	24,207,339
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	19,267,931	22,178,126
EXCOR [Member]
Current assets	23,302,245	29,139,787
Total assets	25,573,425	31,666,841
Current liabilities	3,357,346	3,573,160
Noncurrent liabilities	0
Joint ventures’ equity	22,216,079	28,093,681
Northern Technologies International Corporation’s share of joint ventures’ equity	11,108,042	14,046,842
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	11,077,137	14,015,937
All Other [Member]
Current assets	29,541,018	30,023,047
Total assets	31,232,807	31,659,862
Current liabilities	10,088,764	10,572,339
Noncurrent liabilities	19,924	20,797
Joint ventures’ equity	21,124,119	21,066,726
Northern Technologies International Corporation’s share of joint ventures’ equity	10,189,160	10,160,497
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$ 8,190,794	$ 8,162,189

Note 6 - Investments in Joint Ventures - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Net sales	$ 24,289,370	$ 27,749,880	$ 49,749,664	$ 58,229,806
Gross profit	11,102,573	12,632,547	22,459,707	25,989,438
Net income	2,721,542	3,450,976	5,309,523	7,614,767
Northern Technologies International Corporation’s share of equity in income from joint ventures	1,360,804	1,715,216	2,654,794	3,719,378
Northern Technologies International Corporation's dividends received from joint ventures	5,353,552	540,538	5,558,926	2,027,243
EXCOR [Member]
Net sales	8,980,176	11,092,133	18,348,415	23,961,656
Gross profit	5,262,082	6,306,084	10,587,570	12,989,658
Net income	1,778,027	2,440,323	3,420,354	5,480,125
Northern Technologies International Corporation’s share of equity in income from joint ventures	889,226	1,221,006	1,710,390	2,740,907
Northern Technologies International Corporation's dividends received from joint ventures	4,675,850		4,675,850	843,750
All Other [Member]
Net sales	15,309,194	16,657,747	31,401,249	34,268,150
Gross profit	5,840,491	6,326,463	11,872,137	12,999,780
Net income	943,516	1,010,653	1,889,169	2,134,642
Northern Technologies International Corporation’s share of equity in income from joint ventures	471,578	494,210	944,404	978,471
Northern Technologies International Corporation's dividends received from joint ventures	$ 677,702	$ 540,538	$ 883,133	$ 183,493

Note 7 - Corporate Debt (Details Textual)	6 Months Ended
Note 7 - Corporate Debt (Details Textual)	Feb. 29, 2020 USD ($)	Aug. 31, 2019 USD ($)
Term Loan and Line of Credit, Agreements, Loan Agreements [Member]
Debt Instrument, Covenants, Fixed Charge Coverage Ratio	1.1
PNC Bank [Member]
Letters of Credit Outstanding, Amount	$ 0	$ 0
PNC Bank [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	3,000,000
Long-term Line of Credit, Total	$ 0	0
PNC Bank [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.15%
PNC Bank [Member] \| Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,200,000
JP Morgan Chase Bank [Member]
Letters of Credit Outstanding, Amount	$ 88,831	$ 88,831

Note 8 - Stockholders' Equity (Details Textual)					3 Months Ended	6 Months Ended
Note 8 - Stockholders' Equity (Details Textual)	Sep. 01, 2019 shares	Jun. 28, 2019	Jun. 03, 2019	Sep. 01, 2018 shares	Nov. 30, 2018 shares	Feb. 29, 2020 $ / shares shares	Feb. 28, 2019 $ / shares shares
Stockholders' Equity Note, Stock Split, Conversion Ratio		2	2
Stock Repurchased and Retired During Period, Shares					0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						300,770	141,768
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period						0	0
Stock Issued During Period, Shares, Employee Stock Purchase Plans	3,597			1,748
The 2019 Plan [member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						300,770
The 2019 Plan [member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross						300,770
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price \| $ / shares						$ 10.87
The 2007 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross							141,767
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price \| $ / shares							$ 18.23

Note 8 - Stockholders' Equity - Cash Dividends Declared (Details) - $ / shares					3 Months Ended		6 Months Ended
	Jan. 22, 2020	Oct. 22, 2019	Jan. 23, 2019	Oct. 24, 2018	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Declaration date	Jan. 22, 2020	Oct. 22, 2019	Jan. 23, 2019	Oct. 24, 2018
Amount (in dollars per share)	$ 0.065	$ 0.065	$ 0.06	$ 0.06	$ 0.065	$ 0.06	$ 0.13	$ 0.12
Record date	Feb. 05, 2020	Nov. 06, 2019	Feb. 06, 2019	Nov. 07, 2018
Payable date	Feb. 19, 2020	Nov. 20, 2019	Feb. 22, 2019	Nov. 21, 2018

Note 9 - Net Income Per Common Share (Details Textual)			3 Months Ended		6 Months Ended
Note 9 - Net Income Per Common Share (Details Textual)	Jun. 28, 2019	Jun. 03, 2019	Feb. 29, 2020 shares	Feb. 28, 2019 shares	Feb. 29, 2020 shares	Feb. 28, 2019 shares
Stockholders' Equity Note, Stock Split, Conversion Ratio	2	2
Share-based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			141,768	141,768	141,768	141,768

Note 9 - Net Income Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Net income attributable to NTIC	$ 179,834	$ 1,401,568	$ 1,392,384	$ 2,898,627
Basic – weighted shares outstanding (in shares)	9,097,236	9,084,354	9,095,604	9,084,350
Weighted shares assumed upon exercise of stock options (in shares)	364,491	363,506	288,263	378,866
Diluted – weighted shares outstanding (in shares)	9,461,727	9,447,860	9,383,867	9,463,216
Basic net income per share: (in dollars per share)	$ 0.02	$ 0.16	$ 0.15	$ 0.32
Diluted net income per share: (in dollars per share)	$ 0.02	$ 0.15	$ 0.15	$ 0.31

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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-Name Accounting Standards Codification
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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Note 10 - Stock-based Compensation (Details Textual) - USD ($)	6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	300,770	141,768
Share-based Payment Arrangement, Expense	$ 658,470	$ 715,960
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount	700,138
Allocated Share-based Compensation Expense, Estimate Remainder of Fiscal Year	679,304
Allocated Share-based Compensation Expense, Estimate, Fiscal Year Two	$ 20,834
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 4.30	$ 9.02
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	6 years 193 days	6 years 146 days
The 2019 Plan [member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	800,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	300,770
The 2019 Plan [member] \| One Year after Date of Grant [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year
The 2019 Plan [member] \| One Year after Date of Grant [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	200,000
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	90.00%
Common Stock, Capital Shares Reserved for Future Issuance	87,447

Note 10 - Stock-based Compensation - Black-Scholes Option-pricing Model Assumptions (Details)	6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019
Dividend yield	2.15%	1.32%
Expected volatility	45.20%	45.80%
Expected life of option (years) (Year)	10 years	10 years
Average risk-free interest rate	1.57%	2.75%

Note 11 - Segment and Geographic Information (Details Textual)	6 Months Ended
	Feb. 29, 2020
Number of Reportable Segments	2

Note 11 - Segment and Geographic Information - Net Sales by Segment (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Net sales by segment	$ 13,233,783	$ 13,315,404	$ 27,865,183	$ 27,409,456
ZERUST [Member]
Net sales by segment	9,016,222	9,108,395	18,965,734	19,173,569
NaturTec [Member]
Net sales by segment	$ 4,217,561	$ 4,207,009	$ 8,899,449	$ 8,235,887

Note 11 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($)

3 Months Ended

6 Months Ended

Feb. 29, 2020

Feb. 28, 2019

Feb. 29, 2020

Feb. 28, 2019

Cost of goods sold

$ 8,687,301

$ 9,284,099

$ 18,492,385

$ 18,745,236

Percent of product sales

^[1]

Direct Cost of Goods Sold [Member] | ZERUST [Member]

Cost of goods sold

$ 4,638,514

$ 5,249,617

$ 10,081,686

$ 10,871,316

Percent of product sales

^[1]

51.40%

57.60%

53.70%

56.70%

Direct Cost of Goods Sold [Member] | NaturTec [Member]

Cost of goods sold

$ 3,276,058

$ 3,354,693

$ 6,890,477

$ 6,510,768

Percent of product sales

^[1]

77.70%

79.70%

77.40%

79.10%

Indirect Cost of Goods Sold [Member]

Cost of goods sold

$ 772,729

$ 679,789

$ 1,420,040

$ 1,363,152

Percent of product sales

^[1]

[1]	The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category.

Note 11 - Segment and Geographic Information - Net Sales by Geographic Location (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Net sales by segment	$ 13,233,783	$ 13,315,404	$ 27,865,183	$ 27,409,456
Inside the USA to Unaffiliated Customers [Member]
Net sales by segment	6,628,647	6,467,940	14,527,345	13,391,874
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member]
Net sales by segment	245,630	708,955	831,246	1,192,142
Unaffiliated Customers Outside the USA [Member]
Net sales by segment	$ 6,359,506	$ 6,138,509	$ 12,506,592	$ 12,825,440

Note 11 - Segment and Geographic Information - Fees for Services Provided to Joint Ventures by Geographic Location as a Percentage of Total Fees (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Fees	$ 1,256,213	$ 1,436,774	$ 2,614,538	$ 2,865,209
Percentage of Total Fees	100.00%	100.00%	100.00%	100.00%
GERMANY
Fees	$ 208,128	$ 215,337	$ 420,229	$ 430,328
Percentage of Total Fees	16.60%	15.00%	16.10%	15.00%
POLAND
Fees	$ 170,916	$ 188,529	$ 365,894	$ 370,374
Percentage of Total Fees	13.60%	13.10%	14.00%	12.90%
JAPAN
Fees	$ 150,150	$ 167,496	$ 314,079	$ 337,296
Percentage of Total Fees	12.00%	11.70%	12.00%	11.70%
SWEDEN
Fees	$ 98,398	$ 149,750	$ 207,904	$ 279,993
Percentage of Total Fees	7.80%	10.40%	8.00%	9.80%
THAILAND
Fees	$ 90,878	$ 105,299	$ 193,212	$ 203,647
Percentage of Total Fees	7.20%	7.30%	7.40%	7.10%
FRANCE
Fees	$ 85,709	$ 106,270	$ 179,340	$ 216,332
Percentage of Total Fees	6.80%	7.40%	6.90%	7.60%
UNITED KINGDOM
Fees	$ 64,279	$ 96,209	$ 149,758	$ 190,990
Percentage of Total Fees	5.10%	6.70%	5.70%	6.70%
CZECH REPUBLIC
Fees	$ 80,200	$ 93,928	$ 169,214	$ 183,620
Percentage of Total Fees	6.40%	6.60%	6.50%	6.40%
INDIA
Fees	$ 80,024	$ 85,401	$ 162,984	$ 180,128
Percentage of Total Fees	6.40%	5.90%	6.20%	6.30%
KOREA, REPUBLIC OF
Fees	$ 75,289	$ 87,413	$ 151,321	$ 173,880
Percentage of Total Fees	6.00%	6.10%	5.80%	6.10%
FINLAND
Fees	$ 74,001	$ 64,648	$ 141,942	$ 146,464
Percentage of Total Fees	5.90%	4.50%	5.40%	5.10%
Other Countries [Member]
Fees	$ 78,241	$ 76,494	$ 158,661	$ 152,157
Percentage of Total Fees	6.20%	5.30%	6.10%	5.30%

Note 11 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Total property and equipment	$ 7,227,524	$ 7,358,159
CHINA
Total property and equipment	397,139	337,162
BRAZIL
Total property and equipment	79,825	101,548
GERMANY
Total property and equipment	23,734	14,791
INDIA
Total property and equipment	72,951	61,748
UNITED STATES
Total property and equipment	$ 6,653,875	$ 6,842,910

Note 11 - Segment and Geographic Information - Total Net Sales by Geographic Distribution (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Net sales by segment	$ 13,233,783	$ 13,315,404	$ 27,865,183	$ 27,409,456
CHINA
Net sales by segment	3,024,384	3,005,199	6,885,956	6,173,259
BRAZIL
Net sales by segment	823,218	726,799	1,715,196	1,551,595
INDIA
Net sales by segment	2,059,564	2,224,149	4,095,774	3,875,790
Other Countries [Member]
Net sales by segment	967,111	891,317	2,661,665	2,416,938
UNITED STATES
Net sales by segment	$ 6,359,506	$ 6,467,940	$ 12,506,592	$ 13,391,874

Note 12 - Commitments and Contingencies (Details Textual) - USD ($)	6 Months Ended
	Feb. 29, 2020	Aug. 31, 2019	Feb. 28, 2019
Lessee, Operating Lease, Option to Extend Term One	5 years
Lessee, Operating Lease, Option to Extend Term Two	10 years
Finance and Operating Lease, Weighted Average Remaining Lease Term	2 years 36 days
Operating Lease, Weighted Average Discount Rate, Percent	4.32%
Accrued Bonuses	$ 800,000		$ 900,000
Entity Wide Trade Joint Venture Receivables, Three Joint Ventures,Percentage	55.80%	69.60%
Fiscal 2018 Bonus Plan [Member] \| Executive Officer [Member]
Percentage of Individual Bonus Payout Determined by Actual Versus Targeted EBITOI Results	75.00%
Percentage of Individuals Payout Determined Upon Achievement of Certain Pre-Established Individual Performance Objectives	25.00%
Buildings, Equipment and Vehicles [Member]
Number of Operating Lease	19

Note 12 - Commitments and Contingencies - Present Value of Long-term Leases (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Right-of-use assets, net	$ 520,601
Current portion of lease liability	211,495
Lease liability, less current portion	309,106
Total lease liability	$ 520,601

Note 12 - Commitments and Contingencies - Future Minimum Rents Due (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Fiscal 2020	$ 143,527
Fiscal 2021	263,392
Fiscal 2022	125,648
Fiscal 2023	10,222
Thereafter	2,570
Total future minimum lease payments	545,359
Less amount representing interest	(24,758)
Present value of obligations under operating leases	520,601
Less current portion	(211,495)
Long-term operating lease obligations	$ 309,106

Note 13 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - USD ($)	Feb. 29, 2020	Aug. 31, 2019
Available for sale securities	$ 6,512,166	$ 3,565,258
Fair Value, Inputs, Level 1 [Member]
Available for sale securities	6,512,166	3,565,258
Fair Value, Inputs, Level 2 [Member]
Available for sale securities
Fair Value, Inputs, Level 3 [Member]
Available for sale securities

Note 14 - Supplemental Cash Flow Information - Supplemental Disclosures of Cash Flow Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 28, 2019	Feb. 29, 2020	Feb. 28, 2019
Cash paid for interest	$ 9,377	$ 3,835	$ 14,821	$ 6,192
Cash paid for income taxes		$ 53,975		$ 53,975