0001171843-20-007980 | 10-K | XBRL Viewer | Northern Technologies International Corp

Note 14 - Income Taxes (Tables)

12 Months Ended

Aug. 31, 2020

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Fiscal Year Ended August 31,
	2020			2019
Current:
Federal	$	—		$	—
State		23,000			48,000
Foreign		1,226,000			902,000
		1,249,000			950,000
Deferred:
Federal		1,501,000			(315,000	)
State		101,000			(21,000	)
Foreign		(177,000	)		228,000
		1,425,000			(108,000	)
	$	2,674,000		$	842,000

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Fiscal Year Ended August 31,
	2020			2019
Tax computed at statutory rates	$	365,000		$	1,398,000
State income tax, net of federal benefit		23,000			27,000
Tax effect on equity in income of international joint ventures		(888,000	)		(1,490,000	)
Tax effect of foreign operations		641,000			672,000
Deemed repatriation		108,000			204,000
Research and development credit		(368,000	)		(133,000	)
Valuation allowance		2,797,000			133,000
Stock based compensation		189,000			208,000
Non-controlling interest		(55,000	)		(74,000	)
Other		(138,000	)		(103,000	)
	$	2,674,000		$	842,000

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	August 31,
	2020			2019
Accrued compensation	$	173,500		$	153,400
Inventory costs		64,000			60,900
Other accrued expenses		74,900			39,700
Lease liability		147,500			-
Goodwill and other intangible assets		581,200			688,400
Stock-based compensation		397,300			299,300
Foreign tax credit carryforward		5,790,500			5,790,500
Other credit and loss carryforwards		4,824,200			3,631,700
Total deferred tax assets		12,053,100			10,663,900
Valuation allowance		(11,561,700	)		(8,764,300	)
Total deferred tax assets after valuation allowance		491,400			1,899,600
Property and equipment		(50,700	)		(111,900	)
Right-of-use asset		(147,500	)		-
Other		(83,400	)		(153,400	)
Total deferred tax liabilities		(281,600	)		(265,300	)
Net deferred tax assets	$	209,800		$	1,634,300

Summary of Income Tax Contingencies [Table Text Block]

	Fiscal Year Ended August 31,
	2020		2019
Gross unrecognized tax benefits – beginning balance	$	248,000	$	242,000
Gross increases – prior period tax positions		15,200		1,000
Gross increases – current period tax positions		15,000		5,000
Gross unrecognized tax benefits – ending balance	$	278,200	$	248,000

Consolidated Balance Sheets - USD ($)	Aug. 31, 2020	Aug. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 6,403,032	$ 5,856,758
Available for sale securities	5,544,722	3,565,258
Receivables:
Trade excluding joint ventures, less allowance for doubtful accounts of $90,000 as of August 31, 2020 and $65,000 as of August 31, 2019	8,072,212	9,779,518
Trade joint ventures	475,900	824,473
Fees for services provided to joint ventures	927,286	1,268,000
Income taxes	19,907	457,018
Inventories	10,961,796	10,488,728
Prepaid expenses	797,495	1,062,609
Total current assets	33,202,350	33,302,362
PROPERTY AND EQUIPMENT, NET	7,110,789	7,358,159
OTHER ASSETS:
Investments in joint ventures	24,090,826	24,207,339
Deferred income taxes	209,729	1,634,258
Patents and trademarks, net	802,006	1,008,969
Operating lease right of use asset	658,788
Total other assets	25,761,349	26,850,566
Total assets	66,074,488	67,511,087
CURRENT LIABILITIES:
Accounts payable	3,205,241	4,505,531
Income taxes payable	310,922	6,759
Accrued liabilities:
Payroll and related benefits	1,314,978	1,857,971
Other	880,118	1,471,532
Current portion of operating lease	386,345
Total current liabilities	6,097,604	7,841,793
LONG-TERM LIABILITIES:
Operating lease, less current portion	272,443
Total long-term liabilities	272,443
COMMITMENTS AND CONTINGENCIES (Note 15)
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 August 31, 2020 and August 31, 2019; issued and outstanding 9,099,990 and 9,086,816, respectively	182,000	181,736
Additional paid-in capital	17,415,043	16,013,338
Retained earnings	42,472,810	44,992,719
Accumulated other comprehensive loss	(3,410,438)	(4,593,178)
Stockholders’ equity	56,659,415	56,594,615
Non-controlling interests	3,045,026	3,074,679
Total equity	59,704,441	59,669,294
Total liabilities and equity	$ 66,074,488	$ 67,511,087

Consolidated Statements of Comprehensive Income (Loss) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
NET (LOSS) INCOME	$ (934,760)	$ 5,815,622
OTHER COMPREHENSIVE INCOME (LOSS) - FOREIGN CURRENCY TRANSLATION ADJUSTMENT	1,150,138	(1,003,643)
COMPREHENSIVE INCOME	215,378	4,811,979
COMPREHENSIVE LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	(370,347)	(598,336)
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO NTIC	$ (154,969)	$ 4,213,643

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- 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

Note 8 - Stockholders' Equity - Cash Dividends Declared (Details) - $ / shares							3 Months Ended	12 Months Ended
	Jan. 22, 2020	Oct. 22, 2019	Jul. 24, 2019	Apr. 25, 2019	Jan. 23, 2019	Oct. 24, 2018	May 31, 2020	Aug. 31, 2020	Aug. 31, 2019
Amount (in dollars per share)	$ 0.065	$ 0.065	$ 0.06	$ 0.06	$ 0.06	$ 0.06	$ 0	$ 0.13	$ 0.24
Record date	Feb. 05, 2020	Nov. 06, 2019	Aug. 07, 2019	May 09, 2019	Feb. 06, 2019	Nov. 07, 2018
Payable date	Feb. 19, 2020	Nov. 20, 2019	Aug. 21, 2019	May 23, 2019	Feb. 22, 2019	Nov. 21, 2018

Note 15 - Commitments and Contingencies - Present Value of Long-term Leases (Details) - USD ($)	Aug. 31, 2020	Aug. 31, 2019
Right-of-use assets, net	$ 658,788
Current portion of lease liability	386,345
Lease liability, less current portion	272,443
Total lease liability	$ 658,788

Note 1 - Nature of Business and Significant Accounting Policies

12 Months Ended

Aug. 31, 2020

Notes to Financial Statements

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

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

– Northern Technologies International Corporation and its Subsidiaries (collectively, the Company) develop and market proprietary environmentally beneficial products and services in over

countries either directly or via a network of joint ventures, independent distributors, and agents. The Company's primary business is corrosion prevention marketed mainly under the ZERUST

brand. 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 certified compostable (fully biodegradable) polymer resin compounds and finished products under the Natur-Tec

brand. These products are intended to reduce the Company's customers' carbon footprint and provide environmentally sound disposal options. The Company's

two

operating segments are ZERUST and Natur-Tec.

The Company participates, either directly or indirectly, in

active joint venture arrangements in North America, Europe, and Asia. Each of these joint ventures generally manufactures and markets products in the geographic territory to which it is assigned. While most of the Company's joint ventures exclusively sell rust and corrosion inhibiting products, some of the joint ventures also sell the Company's Natur-Tec

resin compounds and finished products. The profits of joint ventures are shared by the respective joint venture owners in accordance with their respective ownership percentages. The Company typically owns

50%

or less of its joint venture entities and does

not

control the decisions of these entities, including dividend declaration or amount in any given year.

Impact of COVID-

Pandemic

– In

March 2020,

the World Health Organization declared the novel coronavirus (COVID-

) outbreak a global pandemic. As a result of the COVID-

pandemic and related government mandated restrictions on the Company's business as well as the businesses of its joint ventures, customers and suppliers, disruption to the Company's business and the manufacture and sale of its products and services has occurred and is expected to continue into fiscal

2021.

Principles of Consolidation

– NTIC evaluates its voting and variable interests in entities on a qualitative and quantitative basis. NTIC consolidates entities in which it concludes it has the power to direct the activities that most significantly impact an entity's economic success and has the obligation to absorb losses or the right to receive benefits that could be significant to the entity. The consolidated financial statements include the accounts of Northern Technologies International Corporation, its wholly-owned subsidiaries, Northern Technologies Holding Company, LLC, NTIC (Shanghai) Co., Ltd. (NTIC China), ZERUST-EXCOR MEXICO, S. de R.L. de C.V (Zerust Mexico), NTIC Europe GmbH (NTI Europe), NTIC's majority-owned subsidiary in India, Natur-Tec India Private Limited (Natur-Tec India), NTIC's majority-owned subsidiary in Brazil, Zerust Prevenção de Corrosão S.A. (Zerust Brazil), NTIC's majority-owned subsidiary in Sri Lanka, Natur Tec Lanka (Pvt) Ltd (Natur Tec Lanka), and NTIC's majority-owned holding company, NTI Asean LLC (NTI Asean), Zerust Singapore Pte Ltd (Zerust Singapore) and Zerust Vietnam Co. Ltd (Zerust Vietnam). NTIC's consolidated financial statements do

not

include the accounts of any of its joint ventures.

Non-Controlling Interests

– The Company owns

75%

of Natur-Tec India,

75%

of Natur Tec Lanka,

85%

of Zerust Brazil,

60%

of NTI Asean,

60%

of Zerust Singapore Pte Ltd, and

60%

of Zerust Vietnam Co. Ltd. The remaining ownership of the consolidated entities are accounted for as non-controlling interests and reported as part of equity in the consolidated financial statements. The Company allocates gains and losses to the non-controlling interest even when such allocation results in a deficit balance, reducing the losses attributed to the controlling interest. Changes in ownership interests are treated as equity transactions if the Company maintains control.

Net Sales

– The Company includes net sales to its joint ventures and net sales to unaffiliated customers as separate line items on its consolidated statements of operations. There are

sales originating from the Company's joint ventures included in the amount, as the Company's investments in its joint ventures are accounted for using the equity method.

May 2014,

the Financial Accounting Standards Board (FASB) issued guidance creating Accounting Standards Codification (ASC) Section

606,

Revenue from Contracts with Customers

(ASC

606

), which establishes a comprehensive new model for the recognition of revenue from contracts with customers. This model is based on the core principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

September 1, 2018,

the Company adopted ASC

606

for all customer contracts using the modified retrospective method. To determine revenue recognition for arrangements within the scope of ASC

606,

the Company performs the following

five

steps: (

) identify the contracts with a customer; (

) identify the performance obligations in the contract; (

) determine the transaction price; (

) allocate the transaction price to the performance obligations in the contract; and (

) recognize revenue when or as the entity satisfies a performance obligation. The Company only applies the

five

-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods it transfers to, or services it performs for, the customer.

The adoption of ASC

606

did

not

impact the previously reported financial statements in any prior period or result in a cumulative effect adjustment to retained earnings. Therefore, the adoption of the standard did

not

impact the Company's revenue recognition process. Generally, the Company's performance obligations are satisfied when the customers take possession of the products, which normally occurs at the shipping point or destination depending on the terms of the contracts. The Company's services are generally sold based upon quotes or contracts with customers that include a fixed or determinable price, and sales arrangements do

not

contain any significant financing component for its customers. The Company does

not

recognize revenue related to product warranties, nor does the Company incur significant contract costs. Customer arrangements do

not

generate contract assets or liabilities.

Changes to the Company's significant accounting policies as a result of adopting ASC

606

are discussed below.

Revenue Recognition

– Revenue is measured based on consideration specified in the contract with a customer, adjusted for any applicable estimates of variable consideration and other factors affecting the transaction price, including noncash consideration, consideration paid or payable to customers, and significant financing components. Revenue from all customers is recognized when a performance obligation is satisfied by transferring control of a distinct good or service to a customer.

Individually promised goods and services in a contract are considered a distinct performance obligation and accounted for separately if the customer can benefit from the individual good or service on its own or with other resources that are readily available to the customer and the good or service is separately identifiable from other promises in the arrangement. When an arrangement includes multiple performance obligations, the consideration is allocated between the performance obligations in proportion to their estimated standalone selling price. Costs related to products delivered are recognized in the period incurred, unless criteria for capitalization of costs are met. Costs of revenues consist primarily of direct labor, manufacturing overhead, materials, and components. The Company does

not

incur significant upfront costs to obtain a contract. If costs to obtain a contract were to become material, the costs would be recorded as an asset and amortized to expense in a manner consistent with the related recognition of revenue.

The Company excludes government assessed and imposed taxes on revenue generating transactions that are invoiced to customers from revenue. The Company includes freight billed to customers in revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold.

The timing of revenue recognition, billing, and cash collections results in accounts receivable on the consolidated balance sheet.

Performance Obligations

- A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract's transaction price is allocated to each distinct performance obligation in proportion to its standalone selling price and recognized as revenue when, or as, the performance obligation is satisfied. The Company's various performance obligations and the timing or method of revenue recognition are discussed below. The Company's technical

service consultants work directly with the end users of NTIC's ZERUST® rust and corrosion inhibiting products to

analyze their specific needs and develop systems to meet their performance requirements.

The Company sells its products to both distributors and end-users. Each unit of product delivered under a customer order represents a distinct and separate performance obligation, as the customer can benefit from each unit on its own or with other resources that are readily available to the customer, and each unit of product is separately identifiable from other products in the arrangement.

The transaction price for the Company's products is the invoiced amount. The Company does

not

have variable consideration in the form of refunds, credits, rebates, price concessions, pricing incentives, or other items impacting transaction price. The purchase order pricing in arrangements with customers is deemed to approximate standalone selling price; therefore, the Company does

not

need to allocate proceeds on a relative standalone selling price allocation between performance obligations. The Company applies the practical expedient in paragraph

606

and does

not

disclose information about remaining performance obligations that have original expected durations of

one

year or less. There are

material obligations that extend beyond

one

year.

Revenue is recognized when transfer of control occurs, as defined by the terms in the customer agreement. The Company immediately recognizes incidental items that are immaterial in the context of the contract. The Company has applied the practical expedient in paragraph

606

16A

and does

not

assess if immaterial items are promised goods or services. The Company has also applied the practical expedient in paragraph

606

regarding the adjustment of the promised amount of consideration for the effects of a significant financing component when the customer pays for that good or service within

one

year or less, as the Company does

not

have any significant financing components in its customer arrangements since payment is received at or shortly after the point of sale, generally

thirty

ninety

days.

The Company estimates returns based on an analysis of historical experience if the right to return products is granted to its customers. The Company does

not

record a return asset, as non-conforming products are generally

not

returned. The Company's return policy does

not

vary by geography. The customer has

rotation or price protection rights, and the Company is

not

under a warranty obligation.

Sales Commissions

– Sales commissions paid to sales representatives are eligible for capitalization, as they are incremental costs that would

not

have been incurred without entering into a specific sales arrangement and are recoverable through the expected margin on the transaction. The Company has elected to apply the practical expedient provided by ASC

340

and recognize the incremental costs of obtaining contracts as an expense when incurred, as the amortization period of the assets that would have otherwise been recognized is

one

year or less. The Company records these costs as a selling expense.

Product Warranty

– The Company offers warranties on various products and services. These warranties are assurance type warranties that are

not

sold on a standalone basis; therefore, they are

not

considered distinct performance obligations. The Company estimates the costs that

may

be incurred under its warranties and records a liability in the amount of such costs at the time the revenue is recognized for the product sale.

International Revenue

– The Company markets its products to numerous countries in North America, Europe, Latin America, Asia, and other parts of the world. See Note

11,

Segment and Geographical Information, for information regarding revenue disaggregation by geography.

Trade Receivables

– Payment terms for the Company's unaffiliated customers are determined based on credit risk and vary by customer. The Company typically offers standard payment terms to unaffiliated customers of net

days. The Company does

not

accrue interest on past due accounts receivable. The Company reviews the credit histories of its customers before extending unsecured credit. The Company presents accounts and notes receivable net of an allowance for doubtful accounts. Each quarter, the Company prepares an analysis of its ability to collect outstanding receivables that provides a basis for an allowance estimate for doubtful accounts. In doing so, the Company evaluates the age of its receivables, past collection history, current financial conditions of key customers and its joint ventures, and economic conditions. Based on this evaluation, the Company establishes a reserve for specific accounts and notes receivable that it believes are uncollectible, as well as an estimate of uncollectible receivables

not

specifically known. The Company believes that an analysis of historical trends and its current knowledge of potential collection problems provide the Company with sufficient information to establish a reasonable estimate for an allowance for doubtful accounts. In the event the Company determines that a smaller or larger uncollectible accounts reserve is appropriate, the Company records a credit or charge to selling expense in the period that it made such determination. Accounts receivable have been reduced by an allowance for uncollectible accounts of

$90,000

as of

August 31, 2020

and

$65,000

as of

August 31, 2019.

Accounts are considered past due based on terms agreed upon between the Company and the customer. Accounts receivable are written-off only after all collection attempts have failed and are based on individual credit evaluation and specific circumstances of the customer.

Trade Receivables from Joint Ventures

– Trade receivables from joint ventures arise from sales of products the Company makes to its joint ventures. Payment terms for the Company's joint ventures also are determined based on credit risk; however, additional consideration is given to the individual joint venture due to the transportation time associated with ocean delivery of most products and certain other factors. Generally, accounts receivable from the Company's joint ventures unpaid after

days are considered past due. The Company does

not

accrue interest on past due balances. The Company periodically reviews amounts due from its joint ventures for collectability and, based on past experience and continuous review of the balances due, determined that an allowance for doubtful accounts related to its joint venture receivables was

not

necessary as of

August 31, 2020

2019.

Fees for Services Provided to Joint Ventures –

The Company provides services to its joint ventures including consulting, legal, travel, insurance, technical, and marketing services based on licensing or other agreements with its joint ventures. The Company receives fees for the services it provides to its joint ventures. The fees for services received by the Company from its joint ventures are generally based on either a flat fee or a percentage of net sales by the Company's joint ventures depending on local laws and tax regulations. Under the Company's agreements with its joint ventures, amounts are earned when product is shipped from joint venture facilities, at which point a sale is deemed to have occurred and results in obligation for the joint venture to pay the royalty and recognition of the fee by the Company. The Company reviews the financial situation of each of its joint ventures to assist in the likelihood of collections on amounts earned. The Company accounts for these fees on a cash basis if uncertainty exists surrounding the collection of such fees.

Cash and Cash Equivalents

– The Company includes as cash and cash equivalents highly liquid, short-term investments with maturity of

three

months or less when purchased, which are readily convertible into known amounts of cash. The Company maintains its cash in high quality financial institutions. The balances, at times,

may

exceed federally insured limits.

Available for Sale Securities

– Available for sale securities are recorded at fair value. Unrealized holding gains and losses on available for sale securities are

not

significant.

Inventories

– Inventories are recorded at the lower of cost (

first

-in,

first

-out basis) or net realizable value.

Property and Depreciation

– Property and equipment are stated at cost. Depreciation is computed using the straight-line method based on the estimated service lives of the various assets as follows:

	Buildings and improvements		5-30 years
	Machinery and equipment		3-10 years

Patents and Trademarks

– Patents and trademarks, including acquisition costs, are stated at cost, less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives of the respective assets. Upon retirement, the cost of assets disposed and the related accumulated amortization are removed from the accounts, and any resulting gain or loss is credited or charged to operations.

Investments in Joint Ventures

– Investments in the Company's joint ventures are accounted for using the equity method. Under the equity method, investments are initially recorded at cost and are adjusted for dividends, distributed and undistributed earnings and losses, changes in foreign currency exchange rates, and additional investments. In the event the Company's share of a joint venture's cumulative losses exceeds the Company's investment balance, the balance is reported at

zero

value until proportionate income exceeds the losses. The Company assesses its joint ventures for impairment on an annual basis as of

August 31

of each year as part of its fiscal year end analysis. In addition to the annual review for impairment, the Company reviews the operating results of each joint venture on a quarterly basis in comparison to its historical operating results and its accrual of fees for services provided to joint ventures. If the operating results of a joint venture do

not

meet financial performance expectations, an additional evaluation is performed on the joint venture. The Company's evaluation of its investments in joint ventures requires the Company to make assumptions about future cash flows of its joint ventures. These assumptions require significant judgment, and actual results

may

differ from assumed or estimated amounts. All investments in joint ventures had positive equity as of

August 31, 2020

and

2019.

The Company considers any of its joint ventures to be significant and discloses entity specific financial information if the joint venture's income or assets make up more than

20%

of the Company's total assets or income.

The Company classifies distributions received from its joint ventures based on the nature of the distributions, generally, in operating activities on the consolidated statements of cash flows.

If the Company is

longer able to exercise significant influence over operating and financial policy of a joint venture previously accounted for under the equity method, it maintains the investment at the carrying value as of the date that significant influence

longer exists and discontinues accruing the proportionate earnings or losses of the investment.

Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. Fair value is calculated based on publicly available market information or other estimates determined by management. The Company employs a systematic methodology on a quarterly basis that considers available quantitative and qualitative evidence in evaluating potential impairment of our investments. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, credit quality, the duration and extent to which the fair value is less than cost, and for equity securities, the Company's intent and ability to hold, or plans to sell, the investment. The Company also considers specific adverse conditions related to the financial health of and business outlook for the investee, including industry and sector performance, changes in technology, and operational and financing cash flow factors. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to other income (expense), and a new cost basis in the investment is established.

Recoverability of Long-Lived Assets

– The Company reviews its long-lived assets whenever events or changes in circumstances indicate the carrying amount of the assets

may

not

be recoverable. The Company determines potential impairment by comparing the carrying value of the assets with expected net cash flows expected to be provided by operating activities of the business or related products. If the sum of the expected undiscounted future net cash flows is less than the carrying value, the Company evaluates whether an impairment loss should be recognized. An impairment loss is measured by comparing the amount by which the carrying value exceeds the fair value of the asset. When evaluating assets for impairment, the Company groups long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities.

Income Taxes

– The Company utilizes the asset and liability method of accounting for income taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Deferred income tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in operations in the period that includes the enactment date.

The Company records net deferred tax assets to the extent the Company believes these assets will more likely than

not

be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In the event the Company determines that it would be able to realize its deferred assets in the future in excess of their net recorded amount, the Company makes an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company records uncertain tax positions on the basis of a

two

-step process whereby the Company determines whether it is more likely than

not

that the tax positions will be sustained based on the technical merits of the position and those tax positions that meet the more-likely-than-

not

recognition threshold. The Company recognizes the largest amount of tax benefit that is greater than

percent likely to be realized upon ultimate settlement with the related tax authority.

Foreign Currency Translation (Accumulated Other Comprehensive Income (Loss))

– The functional currency of NTIC China, Zerust Brazil, Natur-Tec India, Natur Tec Lanka, Zerust Mexico, Zerust Singapore, Zerust Vietnam, NTI Europe, and each unconsolidated international joint venture is the applicable local currency. The translation of the applicable foreign currencies into U.S. dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average monthly exchange rate. Translation gains or losses are reported as an element of other comprehensive income (loss).

The Company (excluding NTIC China, Zerust Brazil, Natur-Tec India, Natur Tec Lanka, Zerust Singapore, Zerust Vietnam, NTI Asean, Zerust Mexico, NTI Europe, and NTIC's joint ventures) conducts all foreign transactions based on the U.S. dollar. Since investments in joint ventures are accounted for using the equity method, any changes in foreign currency exchange rates are reflected as a foreign currency translation adjustment and do

not

change the equity in income from joint ventures reflected in the Company's consolidated statements of operations.

Fair Value of Financial Instruments

– The carrying value of cash and cash equivalents, available for sale securities, short-term accounts and notes receivable, notes payable, trade accounts payables, and other accrued expenses approximate fair value because of the short maturity of those instruments.

Shipping and Handling

– The Company records all amounts billed to customers in a sales transaction related to shipping and handling as sales. The Company records costs related to shipping and handling in cost of goods sold.

Research and Development

– The Company expenses all costs related to product research and development as incurred.

Common Stock

– The Company issues authorized but unissued shares of common stock upon the exercise of stock options.

Stock Split

– On

June 3, 2019,

NTIC's Board of Directors declared a

two

-for-

one

stock split of NTIC'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.

Earnings and dividends declared per share and weighted average shares outstanding are presented in this report after the effect of the

100

percent stock dividend. The

two

-for-

one

stock split is retroactively reflected in the share amounts in all periods presented in this report.

Stock-Based Compensation

– The Company recognizes compensation cost relating to share-based payment transactions, including grants of employee stock options and transactions under the Company's employee stock purchase plan, in its consolidated financial statements. That cost is measured based on the fair value of the equity or liability instruments issued. The Company measures the cost of employee services received in exchange for stock options and other stock-based awards based on the grant-date fair value of the award and recognizes the cost over the period the employee is required to provide services for the award (generally the vesting term).

Subsequent Events

– The Company has evaluated events occurring after the date of the consolidated financial statements for events requiring disclosure in the consolidated financial statements.

Use of Estimates

– The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Note 14 - Income Taxes (Details Textual) - USD ($)	12 Months Ended
Note 14 - Income Taxes (Details Textual) - USD ($)	Aug. 31, 2020	Aug. 31, 2019
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%
Foreign Withholding Tax	$ (76,000)	$ 4,000
Tax Credit Carryforward, Amount	3,312,400
Deferred Tax Assets, Operating Loss Carryforwards, Domestic, State, and Local	1,260,600
Deferred Tax Assets, Operating Loss Carryforwards, Foreign	251,200
Tax Credit Carryforward, Valuation Allowance	11,561,700
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	2,797,000	133,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total	0	0
Foreign Tax Authority [Member]
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration	$ 229,200
Tax Credit Carryforward, Valuation Allowance		5,790,500
Federal and State Tax [Member]
Tax Credit Carryforward, Valuation Allowance		$ 2,973,800

Note 6 - Investments in Joint Ventures - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Net sales by segment	$ 47,638,691	$ 55,750,137
Gross profit	16,029,417	17,779,893
Net (loss) income attributable to NTIC	(1,337,709)	5,209,622
Northern Technologies International Corporation’s share of equity in income of joint ventures	4,270,327	7,225,518
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Net sales by segment	87,030,062	114,635,435
Gross profit	39,532,750	51,312,013
Net (loss) income attributable to NTIC	8,545,473	14,688,999
Northern Technologies International Corporation’s share of equity in income of joint ventures	4,270,327	7,225,518
Northern Technologies International Corporation’s dividends received from joint ventures	5,672,099	5,039,041
EXCOR [Member]
Net sales by segment	32,546,402	47,015,841
Gross profit	18,739,471	25,622,261
Net (loss) income attributable to NTIC	5,266,541	10,827,448
Northern Technologies International Corporation’s share of equity in income of joint ventures	2,622,423	5,415,362
Northern Technologies International Corporation’s dividends received from joint ventures	4,675,850	3,345,600
Joint Ventures in France [Member]
Net sales by segment	8,133,294
Gross profit	3,061,433
Net (loss) income attributable to NTIC	473,137
Northern Technologies International Corporation’s share of equity in income of joint ventures	237,490
Northern Technologies International Corporation’s dividends received from joint ventures
Joint Ventures in Finland [Member]
Net sales by segment	3,088,865
Gross profit	1,916,001
Net (loss) income attributable to NTIC	419,728
Northern Technologies International Corporation’s share of equity in income of joint ventures	209,972
Northern Technologies International Corporation’s dividends received from joint ventures	325,635
Joint Ventures in India [Member]
Net sales by segment	5,481,303
Gross profit	2,498,196
Net (loss) income attributable to NTIC	697,349
Northern Technologies International Corporation’s share of equity in income of joint ventures	349,218
Northern Technologies International Corporation’s dividends received from joint ventures	261,220
Joint Ventures in Thailand [Member]
Net sales by segment	6,471,831
Gross profit	2,046,478
Net (loss) income attributable to NTIC	503,884
Northern Technologies International Corporation’s share of equity in income of joint ventures	253,192
Northern Technologies International Corporation’s dividends received from joint ventures	160,074
All Other [Member]
Net sales by segment	31,308,367	67,619,594
Gross profit	11,271,171	25,689,752
Net (loss) income attributable to NTIC	1,184,834	3,861,551
Northern Technologies International Corporation’s share of equity in income of joint ventures	598,032	1,810,156
Northern Technologies International Corporation’s dividends received from joint ventures	$ 249,320	$ 1,693,441

Note 8 - Stockholders' Equity

12 Months Ended

Aug. 31, 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 fiscal

2020,

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

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

April 23, 2020,

the Company announced the temporary suspension of its quarterly cash dividend pending clarity on the COVID-

pandemic. Therefore, the Company did

not

declare a cash dividend during the quarter ended

May 31, 2020

August 31, 2020.

During fiscal

2019,

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

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
April 25, 2019		$0.06	May 9, 2019	May 23, 2019
July 24, 2019		$0.06	August 7, 2019	August 21, 2019

January 15, 2015,

the Company's Board of Directors authorized the repurchase of up to

$3,000,000

in shares of common stock through open market purchases or unsolicited or solicited privately negotiated transactions. This program has

expiration date but

may

be terminated by the Company's Board of Directors at any time. As of

August 31, 2020,

up to

$2,640,548

in shares of common stock remained available for repurchase under the stock repurchase program.

During fiscal

2020,

the Company did

not

repurchase or retire any shares of its common stock. During fiscal

2020,

stock options to purchase an aggregate of

11,974

shares of common stock were exercised at a weighted average exercise price of

$5.13

per share; some of the options were exercised on a cashless basis, resulting in the net issuance of

6,823

shares of common stock.

During fiscal

2019,

the Company did

not

repurchase or retire any shares of its common stock. During fiscal

2019,

stock options to purchase shares of common stock were exercised.

Note 12 - Retirement Plan (Details Textual) - USD ($)	12 Months Ended
Note 12 - Retirement Plan (Details Textual) - USD ($)	Aug. 31, 2020	Aug. 31, 2019
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	15.00%
Defined Contribution Plan Maximum Amount of Employees Contributions Percent	50.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	3.50%
Defined Contribution Plan, Cost	$ 234,534	$ 228,605

Note 9 - Net (Loss) Income Per Common Share (Details Textual)			12 Months Ended
	Jun. 28, 2019	Jun. 03, 2019	Aug. 31, 2020 shares	Aug. 31, 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 (in shares)			1,127,968	141,768

Note 14 - Income Taxes - Reconciliations of the Expected Federal Income Tax at the Statutory Rate with the Provisions for Income Taxes (Details) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Tax computed at statutory rates	$ 365,000	$ 1,398,000
State income tax, net of federal benefit	23,000	27,000
Tax effect on equity in income of international joint ventures	(888,000)	(1,490,000)
Tax effect of foreign operations	641,000	672,000
Deemed repatriation	108,000	204,000
Research and development credit	(368,000)	(133,000)
Valuation allowance	2,797,000	133,000
Stock based compensation	189,000	208,000
Non-controlling interest	(55,000)	(74,000)
Other	(138,000)	(103,000)
Total income tax expense	$ 2,674,635	$ 841,837

Note 17 - Fair Value Measurements

12 Months Ended

Aug. 31, 2020

Notes to Financial Statements

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

17.

Fair Value Measurements

The Company follows the authoritative guidance on fair value measurements and disclosures with respect to assets and liabilities that are measured at fair value on both a recurring and non-recurring basis. Under this guidance, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability, developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and financial liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The hierarchy is broken down into

three

levels defined as follows:

Level

- Inputs are quoted prices in active markets for identical assets or liabilities.

Level

- Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are

not

active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly.

Level

- Inputs are unobservable for the asset or liability.

See the section below titled Valuation Techniques for further discussion of how the Company determines fair value for investments.

Assets and Liabilities That Are Measured at Fair Value on a Recurring Basis

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 costs.

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 August 31, 2020		Level 1		Level 2		Level 3
Available for sale securities	$	5,544,722	$	5,544,722	$	—	$	—

			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	$	—	$	—

Valuation Techniques

Financial assets that are classified as Level

securities include cash equivalents and available for sale securities. These are valued using quoted market prices in an active market.

The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs

may

result in a reclassification of levels for certain securities within the fair value hierarchy. The Company's policy is to recognize transfers into and out of levels within the fair value hierarchy at the end of the fiscal quarter in which the actual event or change in circumstances that caused the transfer occurs. There were

transfers between Level

Level

or Level

during the fiscal years ended

August 31, 2020

August 31, 2019.

When a determination is made to classify an asset or liability within Level

the determination is based upon the significance of the unobservable inputs to the overall fair value measurement.

Note 5 - Patents and Trademarks, Net (Details Textual) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Amortization, Total	$ 231,624	$ 261,724
Patents and Trademarks [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	7 years
Amortization, Total	$ 231,624	$ 261,724
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 13 - Related Party Transactions (Details Textual) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Bioplastic Polymers LLC [Member] \| Consulting Payment Expense [Member]
Related Party Transaction, Amounts of Transaction	$ 144,000	$ 144,000

Note 16 - Statements of Cash Flows

12 Months Ended

Aug. 31, 2020

Notes to Financial Statements

Cash Flow, Supplemental Disclosures [Text Block]

16.

STATEMENTS OF CASH FLOWS

Supplemental disclosures of cash flow information consist of:

	Fiscal Year Ended August 31,
	2020		2019
Cash paid during the year for income tax	$	1,099,635	$	841,837
Cash paid during the year for interest		16,034		13,567

Non-cash investing and financing activities:
Purchases of property and equipment included in accounts payable		—		53,512

Note 7 - Corporate Debt (Details Textual)	12 Months Ended
Note 7 - Corporate Debt (Details Textual)	Aug. 31, 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 10 - Stock-based Compensation (Details Textual)							12 Months Ended		13 Months Ended
Note 10 - Stock-based Compensation (Details Textual)	Mar. 01, 2020 shares	Sep. 01, 2019 shares	Jun. 28, 2019	Jun. 03, 2019	Mar. 01, 2019 shares	Sep. 01, 2018 shares	Aug. 31, 2020 USD ($) $ / shares shares	Aug. 31, 2019 USD ($) $ / shares shares	Oct. 01, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)							300,770	141,767
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares)	2,754	3,597			2,462	1,748
Stock or Unit Option Plan Expense \| $							$ 1,337,774	$ 1,431,925
Allocated Share-based Compensation Expense, Estimate, Fiscal Year Two \| $							$ 20,834
Stockholders' Equity Note, Stock Split, Conversion Ratio			2	2
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) \| $ / shares							$ 9.63	$ 9.02
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year)							6 years 7 days	5 years 328 days
The 2019 Plan [member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)							800,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year)							10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)							300,770	141,767
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)							499,230
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 (Year)							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 (Year)							3 years
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)									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 (in shares)							84,693

Note 10 - Stock-based Compensation - Black-Scholes Option-pricing Model Assumptions (Details)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Dividend yield	2.41%	1.32%
Expected volatility	45.20%	45.80%
Expected life of option (years) (Year)	10 years	10 years
Weighted average risk-free interest rate	1.40%	2.75%

Note 6 - Investments in Joint Ventures (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Payments to Acquire Interest in Joint Venture	$ 0	$ 0

Note 11 - Segment and Geographic Information - Fees for Services Provided to Joint Ventures by Geographic Location as a Percentage of Total Fees (Details) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Fees	$ 4,612,885	$ 5,727,579
GERMANY
Fees	843,752	852,526
JAPAN
Fees	628,889	748,489
POLAND
Fees	553,198	704,942
SWEDEN
Fees	372,017	589,654
THAILAND
Fees	328,452	418,334
FRANCE
Fees	310,661	430,537
CZECHIA
Fees	270,032	345,798
KOREA, REPUBLIC OF
Fees	266,703	346,244
FINLAND
Fees	256,375	281,295
UNITED KINGDOM
Fees	255,121	319,671
INDIA
Fees	250,976	350,172
Other Countries [Member]
Fees	$ 276,709	$ 339,917

Note 15 - Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Lessee, Operating Lease, Option to Extend Term One (Year)	5 years
Lessee, Operating Lease, Option to Extend Term Two (Year)	10 years
Finance and Operating Lease, Weighted Average Remaining Lease Term (Year)	2 years 7 days
Operating Lease, Weighted Average Discount Rate, Percent	2.31%
Operating Lease, Expense	$ 131,840
Accrued Bonuses	$ 1,300,000	$ 2,000,000
Entity Wide Trade Joint Venture Receivables, Three Joint Ventures, Percentage	88.20%	69.60%
Stock Options Granted to Management [Member]
Accrued Bonuses	$ 800,000	$ 800,000
Paid Out in Cash and Profit Sharing [Member]
Accrued Bonuses	$ 500,000	$ 1,200,000
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%

Note 11 - Segment and Geographic Information

12 Months Ended

Aug. 31, 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 tables present the Company's business segment information:

	Fiscal 2020		Fiscal 2019
ZERUST ® net sales	$	34,474,535	$	38,174,712
Natur-Tec ® net sales		13,164,156		17,575,425
Total net sales	$	47,638,691	$	55,750,137

The following table sets forth the Company's cost of goods sold by segment:

	Fiscal 2020		Fiscal 2019
Direct cost of goods sold
ZERUST®	$	18,717,684	$	21,505,335
Natur-Tec®		10,168,051		13,691,038
Indirect cost of goods sold		2,723,539		2,773,871
Total net cost of goods sold	$	31,609,274	$	37,970,244

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.

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

not

included. The foregoing geographic and segment 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 related to ZERUST

products and services.

Geographic Information

Net sales by geographic location for fiscal

2020

and fiscal

2019

were as follows:

	Fiscal Year Ended August 31,
	2020		2019
Inside the U.S.A. to unaffiliated customers	$	20,218,213	$	24,560,459
Outside the U.S.A. to:
Joint ventures in which the Company is a shareholder directly and indirectly		1,972,646		2,607,554
Unaffiliated customers		25,447,832		28,582,124
	$	47,638,691	$	55,750,137

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, respectively, were as follows:

	Fiscal 2020		Fiscal 2019
Germany	$	843,752	$	852,526
Japan		628,889		748,489
Poland		553,198		704,942
Sweden		372,017		589,654
Thailand		328,452		418,334
France		310,661		430,537
Czech Republic		270,032		345,798
South Korea		266,703		346,244
Finland		256,375		281,295
United Kingdom		255,121		319,671
India		250,976		350,172
Other		276,709		339,917
	$	4,612,885	$	5,727,579

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.

See Note

for additional details on geographical information regarding equity in income from joint ventures.

The geographical distribution of total long-lived assets and net sales is as follows:

	At August 31, 2020		At August 31, 2019
China	$	376,088	$	337,162
Other		172,833		178,087
United States		6,561,868		6,842,910
Total long-lived assets	$	7,110,789	$	7,358,159

	Fiscal Year Ended August 31, 2020		Fiscal Year Ended August 31, 2019
China	$	13,409,770	$	13,030,298
Brazil		2,753,930		3,151,509
India		5,655,797		8,109,468
Other		5,600,982		6,898,403
United States		20,218,212		24,560,459
Total net sales	$	47,638,691	$	55,750,137

Long-lived assets located in China, Brazil, Germany, and India consist of property and equipment. These assets 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.

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 recognized directly by the Company and sold in that geographic territory.

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

products and services.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Note 6 - Investments in Joint Ventures - Condensed Balance Sheet of EXCOR and All Other Joint Ventures (Details) - USD ($)	Aug. 31, 2020	Aug. 31, 2019
Current assets	$ 33,202,350	$ 33,302,362
Total assets	66,074,488	67,511,087
Current liabilities	6,097,604	7,841,793
Noncurrent liabilities	272,443
Joint ventures’ equity	56,659,415	56,594,615
Investments in joint ventures	24,090,826	24,207,339
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Current assets	55,825,418	59,162,834
Total assets	60,295,587	63,326,703
Current liabilities	11,002,867	14,145,499
Noncurrent liabilities	365,274	20,797
Joint ventures’ equity	48,927,446	49,160,407
Investments in joint ventures	24,090,826	24,207,339
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	21,855,747	22,178,126
EXCOR [Member]
Current assets	25,742,619	29,139,787
Total assets	28,449,772	31,666,841
Current liabilities	2,424,565	3,573,160
Noncurrent liabilities
Joint ventures’ equity	26,025,207	28,093,681
Investments in joint ventures	13,012,606	14,046,842
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	12,981,701	14,015,937
Joint Ventures in France [Member]
Current assets	4,099,160
Total assets	4,873,484
Current liabilities	2,073,710
Noncurrent liabilities
Joint ventures’ equity	2,799,774
Investments in joint ventures	1,399,887
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	1,399,887
Joint Ventures in Finland [Member]
Current assets	1,955,879
Total assets	2,261,147
Current liabilities	415,496
Noncurrent liabilities
Joint ventures’ equity	1,845,651
Investments in joint ventures	922,814
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	902,814
Joint Ventures in India [Member]
Current assets	4,010,855
Total assets	4,242,660
Current liabilities	1,007,529
Noncurrent liabilities	32,999
Joint ventures’ equity	3,202,132
Investments in joint ventures	1,603,013
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	738,191
Joint Ventures in Thailand [Member]
Current assets	4,022,399
Total assets	4,055,451
Current liabilities	993,332
Noncurrent liabilities
Joint ventures’ equity	3,062,119
Investments in joint ventures	1,531,060
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	1,429,060
All Other [Member]
Current assets	15,994,506	30,023,047
Total assets	16,413,073	31,659,862
Current liabilities	4,088,235	10,572,339
Noncurrent liabilities	332,275	20,797
Joint ventures’ equity	11,992,563	21,066,726
Investments in joint ventures	5,621,446	10,160,497
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$ 4,404,094	$ 8,162,189

Note 6 - Investments in Joint Ventures

12 Months Ended

Aug. 31, 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 accounting principles generally accepted in the United States of America in all material respects. All material profits on sales recorded that remain on the balance sheet from the Company to its joint ventures and from joint ventures to other joint ventures have been eliminated for financial reporting purposes.

The Company considers the Company's joint venture in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR) and the following other joint ventures in France, Finland, India and Thailand, respectively, to be individually significant to the Company's consolidated assets and income as of

August 31, 2020:

ACOBAL SAS, ZERUST OY, HARITA-NTI LTD and ZERUST SPECIALTY TECH CO. LTD. Financial information from the audited and unaudited financial statements of EXCOR and the Company's joint ventures in France, Finland, India and Thailand, as well as all the Company's other joint ventures, are summarized as follows:

	As of August 31, 2020
	Total		EXCOR		FRANCE		FINLAND		INDIA		THAILAND		OTHER
Current assets	$	55,825,418	$	25,742,619	$	4,099,160	$	1,955,879	$	4,010,855	$	4,022,399	$	15,994,506
Total assets		60,295,587		28,449,772		4,873,484		2,261,147		4,242,660		4,055,451		16,413,073
Current liabilities		11,002,867		2,424,565		2,073,710		415,496		1,007,529		993,332		4,088,235
Noncurrent liabilities		365,274		—		—		—		32,999		—		332,275
Joint ventures' equity		48,927,446		26,025,207		2,799,774		1,845,651		3,202,132		3,062,119		11,992,563
Northern Technologies International Corporation's share of joint ventures' equity		24,090,826		13,012,606		1,399,887		922,814		1,603,013		1,531,060		5,621,446
Northern Technologies International Corporation's share of joint ventures' undistributed earnings		21,855,747		12,981,701		1,399,887		902,814		738,191		1,429,060		4,404,094

	Fiscal Year Ended August 31, 2020
	Total		EXCOR		FRANCE		FINLAND		INDIA		THAILAND		OTHER
Net sales	$	87,030,062	$	32,546,402	$	8,133,294	$	3,088,865	$	5,481,303	$	6,471,831	$	31,308,367
Gross profit		39,532,750		18,739,471		3,061,433		1,916,001		2,498,196		2,046,478		11,271,171
Net income		8,545,473		5,266,541		473,137		419,728		697,349		503,884		1,184,834
Northern Technologies International Corporation's share of equity in income of joint ventures		4,270,327		2,622,423		237,490		209,972		349,218		253,192		598,032
Northern Technologies International Corporation's dividends received from joint ventures		5,672,099		4,675,850		—		325,635		261,220		160,074		249,320

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


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

The Company did

not

make any joint venture investments during fiscal

2020

or fiscal

2019.

Note 14 - Income Taxes

12 Months Ended

Aug. 31, 2020

Notes to Financial Statements

Income Tax Disclosure [Text Block]

14.

INCOME TAXES

The provision for income taxes for the fiscal years ended

August

31,

2020

and

2019

was approximately as follows:

	Fiscal Year Ended August 31,
	2020			2019
Current:
Federal	$	—		$	—
State		23,000			48,000
Foreign		1,226,000			902,000
		1,249,000			950,000
Deferred:
Federal		1,501,000			(315,000	)
State		101,000			(21,000	)
Foreign		(177,000	)		228,000
		1,425,000			(108,000	)
	$	2,674,000		$	842,000

Reconciliations of the expected federal income tax at the statutory rate of

21.0%

with the provisions for income taxes for the fiscal years ended

August 31, 2020

and

2019

were approximately as follows:

	Fiscal Year Ended August 31,
	2020			2019
Tax computed at statutory rates	$	365,000		$	1,398,000
State income tax, net of federal benefit		23,000			27,000
Tax effect on equity in income of international joint ventures		(888,000	)		(1,490,000	)
Tax effect of foreign operations		641,000			672,000
Deemed repatriation		108,000			204,000
Research and development credit		(368,000	)		(133,000	)
Valuation allowance		2,797,000			133,000
Stock based compensation		189,000			208,000
Non-controlling interest		(55,000	)		(74,000	)
Other		(138,000	)		(103,000	)
	$	2,674,000		$	842,000

The Company has

not

provided U.S. income taxes or foreign withholding taxes with respect to its portion of the cumulative undistributed earnings of certain foreign subsidiaries and joint ventures that are essentially permanent in duration. As a result of the

2017

tax law changes, U.S. federal income taxes on dividends received from the Company's foreign subsidiaries and joint ventures after

December 31, 2017

have been generally eliminated. However, the Company continues to be subject to foreign withholding taxes upon repatriation of any undistributed earnings that are

not

essentially permanent in duration. The Company recorded a tax benefit of approximately

$76,000

and tax expense of approximately

$4,000

during fiscal

2020

and fiscal

2019,

respectively, representing changes in the deferred tax liability for foreign withholding taxes to be paid with respect to the portion of the cumulative undistributed earnings of foreign subsidiaries and joint ventures that the Company determined were

not

essentially permanent in duration.

The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. The tax effect of the temporary differences and tax carryforwards comprising the net deferred taxes shown on the consolidated balance sheets as of

August

31,

2020

and

2019

was approximately as follows:

	August 31,
	2020			2019
Accrued compensation	$	173,500		$	153,400
Inventory costs		64,000			60,900
Other accrued expenses		74,900			39,700
Lease liability		147,500			-
Goodwill and other intangible assets		581,200			688,400
Stock-based compensation		397,300			299,300
Foreign tax credit carryforward		5,790,500			5,790,500
Other credit and loss carryforwards		4,824,200			3,631,700
Total deferred tax assets		12,053,100			10,663,900
Valuation allowance		(11,561,700	)		(8,764,300	)
Total deferred tax assets after valuation allowance		491,400			1,899,600
Property and equipment		(50,700	)		(111,900	)
Right-of-use asset		(147,500	)		-
Other		(83,400	)		(153,400	)
Total deferred tax liabilities		(281,600	)		(265,300	)
Net deferred tax assets	$	209,800		$	1,634,300

As of

August 31, 2020,

the Company had foreign tax credit carryforwards of approximately

$5,790,500,

which will begin to expire if

not

utilized prior to

August 31, 2021.

In addition, the Company had federal and state tax credit carryforwards of

$3,312,400

as of

August 31, 2020

which began to expire in fiscal

2021.

These federal and state tax credit carryforwards consist primarily of federal and Minnesota research and development credit carryforwards. The Company also has a deferred tax asset of

$1,260,600

for federal and state net operating loss carryforwards as of

August 31, 2020.

The federal net operating loss carryforward has an indefinite carryforward period. The Company has a deferred tax asset of

$251,200

for foreign net operating loss carryforwards,

$229,200

of which has an indefinite carryforward period.

The Company records a tax valuation allowance to reduce deferred tax assets to the amount expected to be realized when it is more likely than

not

that some portion or all of its deferred tax assets will

not

be realized.

As of

August 31, 2020,

the Company determined based on all available evidence, including historical data and projections of future results, that it is more likely than

not

that its domestic deferred tax assets, including its foreign tax credit carryforward and federal and Minnesota research and development credit carryforwards will

not

be realized. The Company determined that its domestic deferred tax assets, including its federal and state net operating loss carryforwards, foreign tax credit carryforwards, and federal and Minnesota research and development credit carryforwards will

not

be realized due to the absence of objectively verifiable sources of taxable income. On the basis of this evaluation, the Company has recorded a valuation allowance of

$11,561,700

August 31, 2020

to recognize only the portion of the deferred tax assets that is more likely than

not

to be realized. The net deferred tax asset as of

August 31, 2020

relates entirely to non-US deferred tax assets which are expected to be realized by offset of deferred tax liability for withholding tax on cumulative undistributed earnings in foreign subsidiaries and joint ventures that the Company determined were

not

essentially permanent.

As of

August 31, 2019,

the Company determined it was still in a position that a full valuation allowance was

not

necessary and recorded a valuation allowance of

$5,790,500

with respect to the foreign tax credit carryforwards and a valuation allowance of

$2,973,800

with respect to federal and state tax credit carryforwards that was determined would

not

be utilized prior to expiration. The Company determined that its foreign tax credit carryforward would

not

be realized due to insufficient foreign source taxable income within the carryforward period and the fact that for ordering purposes the foreign tax credit carryforward is

not

allowed to be utilized until after any current year foreign tax credits are utilized. The Company determined that its federal and Minnesota research and development credit carryforwards would

not

be realized due to insufficient federal and Minnesota taxable income within the carryforward period after considering the foreign tax credit utilization. The change in the valuation allowance totaled

$2,797,000

and

$133,000

for the years ended

August 31, 2020

and

2019,

respectively.

The following is a tabular reconciliation of the total amounts of approximated unrecognized tax benefits:

	Fiscal Year Ended August 31,
	2020		2019
Gross unrecognized tax benefits – beginning balance	$	248,000	$	242,000
Gross increases – prior period tax positions		15,200		1,000
Gross increases – current period tax positions		15,000		5,000
Gross unrecognized tax benefits – ending balance	$	278,200	$	248,000

The entire amount of unrecognized tax benefits would affect the effective tax rate if recognized. It is

not

expected that the amount of unrecognized tax benefits will change significantly in the next

months.

The Company recognizes interest related to unrecognized tax benefits and penalties as income tax expense. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheet. There was

liability for the payment of interest and penalties as of both

August 31, 2020

and

August 31, 2019.

The Company is subject to taxation in the United States and various states and foreign jurisdictions. With few exceptions, as of

August 31, 2020,

the Company is

longer subject to federal, state, local, or foreign examinations by tax authorities for years prior to

August 31, 2017.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Note 7 - Corporate Debt	12 Months Ended
Note 7 - Corporate Debt	Aug. 31, 2020
Notes to Financial Statements
Debt Disclosure [Text Block]	7. CORPORATE DEBT The Company has a revolving line of credit with PNC Bank, National Association (PNC Bank) of $3,000,000. No amounts were outstanding under the line of credit as of both August 31, 2020 and 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 August 31, 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 August 31, 2020 and 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. On December 16, 2019, the Company and PNC Bank extended the maturity date of the line of credit from January 7, 2020 to 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 August 31, 2020, the Company had $88,831 of letters of credit with JP Morgan Chase Bank that are performance based and set to expire between 2020 and 2022.

Note 16 - Statements of Cash Flows - Supplemental Disclosures of Cash Flow Information (Details) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Cash paid during the year for income tax	$ 1,099,635	$ 841,837
Cash paid during the year for interest	16,034	13,567
Purchases of property and equipment included in accounts payable		$ 53,512

Note 9 - Net (Loss) Income Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Net (loss) income attributable to NTIC	$ (1,337,709)	$ 5,209,622
Basic-weighted shares outstanding (in shares)	9,096,981	9,085,584
Weighted shares assumed upon exercise of stock options (in shares)		330,390
Diluted – weighted shares outstanding (in shares)	9,096,981	9,415,974
Basic net (loss) income per share: (in dollars per share)	$ (0.15)	$ 0.57
Diluted net (loss) income per share: (in dollars per share)	$ (0.15)	$ 0.55

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

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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.

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+ Details

Note 1 - Nature of Business and Significant Accounting Policies (Details Textual)			12 Months Ended
	Jun. 28, 2019	Jun. 03, 2019	Aug. 31, 2020 USD ($)	Aug. 31, 2019 USD ($)
Number of Countries in which Entity Operates			60
Number of Operating Segments			2
Accounts Receivable, Allowance for Credit Loss, Ending Balance			$ 90,000	$ 65,000
Stockholders' Equity Note, Stock Split, Conversion Ratio	2	2
Natur-Tech India [Member]
Noncontrolling Interest, Ownership Percentage by Parent			75.00%
Natur Tec Lanka [Member]
Noncontrolling Interest, Ownership Percentage by Parent			75.00%
Zerust Brazil [Member]
Noncontrolling Interest, Ownership Percentage by Parent			85.00%
NTI Asean LLC [Member]
Noncontrolling Interest, Ownership Percentage by Parent			60.00%
Zerust Singapore Pte Ltd [Member]
Noncontrolling Interest, Ownership Percentage by Parent			60.00%
Zerust Vietnam Co. Ltd [Member]
Noncontrolling Interest, Ownership Percentage by Parent			60.00%
Maximum [Member] \| Various Joint Ventures [Member]
Noncontrolling Interest, Ownership Percentage by Parent			50.00%

Note 11 - Segment and Geographic Information (Tables)

12 Months Ended

Aug. 31, 2020

Notes Tables

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

	Fiscal 2020		Fiscal 2019
ZERUST ® net sales	$	34,474,535	$	38,174,712
Natur-Tec ® net sales		13,164,156		17,575,425
Total net sales	$	47,638,691	$	55,750,137

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

	Fiscal 2020		Fiscal 2019
Direct cost of goods sold
ZERUST®	$	18,717,684	$	21,505,335
Natur-Tec®		10,168,051		13,691,038
Indirect cost of goods sold		2,723,539		2,773,871
Total net cost of goods sold	$	31,609,274	$	37,970,244

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

	Fiscal Year Ended August 31,
	2020		2019
Inside the U.S.A. to unaffiliated customers	$	20,218,213	$	24,560,459
Outside the U.S.A. to:
Joint ventures in which the Company is a shareholder directly and indirectly		1,972,646		2,607,554
Unaffiliated customers		25,447,832		28,582,124
	$	47,638,691	$	55,750,137

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

	At August 31, 2020		At August 31, 2019
China	$	376,088	$	337,162
Other		172,833		178,087
United States		6,561,868		6,842,910
Total long-lived assets	$	7,110,789	$	7,358,159

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

	Fiscal Year Ended August 31, 2020		Fiscal Year Ended August 31, 2019
China	$	13,409,770	$	13,030,298
Brazil		2,753,930		3,151,509
India		5,655,797		8,109,468
Other		5,600,982		6,898,403
United States		20,218,212		24,560,459
Total net sales	$	47,638,691	$	55,750,137

Fees for Services Provided to Joint Ventures [Member]

Notes Tables

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

	Fiscal 2020		Fiscal 2019
Germany	$	843,752	$	852,526
Japan		628,889		748,489
Poland		553,198		704,942
Sweden		372,017		589,654
Thailand		328,452		418,334
France		310,661		430,537
Czech Republic		270,032		345,798
South Korea		266,703		346,244
Finland		256,375		281,295
United Kingdom		255,121		319,671
India		250,976		350,172
Other		276,709		339,917
	$	4,612,885	$	5,727,579

Note 2 - Accounting Pronouncements (Details Textual) - USD ($)	Sep. 01, 2020	Aug. 31, 2020
Operating Lease, Liability, Total		$ 658,788
Operating Lease, Right-of-Use Asset		$ 658,788
Accounting Standards Update 2016-02 [Member]
Operating Lease, Liability, Total	$ 600,000
Operating Lease, Right-of-Use Asset	$ 600,000

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
Document And Entity Information - USD ($) $ in Millions	Aug. 31, 2020	Nov. 09, 2020	Feb. 29, 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	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding (in shares)		9,104,636
Entity Public Float			$ 86.9
Entity Shell Company	false
Document Type	10-K
Document Period End Date	Aug. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
Title of 12(b) Security	Common stock, par value $0.02 per share

Note 8 - Stockholders' Equity (Tables)

12 Months Ended

Aug. 31, 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
April 25, 2019		$0.06	May 9, 2019	May 23, 2019
July 24, 2019		$0.06	August 7, 2019	August 21, 2019

Note 13 - Related Party Transactions	12 Months Ended
Note 13 - Related Party Transactions	Aug. 31, 2020
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	13. RELATED PARTY TRANSACTIONS During both fiscal 2020 and fiscal 2019, the Company made consulting payments of $144,000 to Bioplastic Polymers LLC, an entity owned by Ramani Narayan, Ph.D., a director of the Company.

Note 17 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - USD ($)	Aug. 31, 2020	Aug. 31, 2019
Available for sale securities	$ 5,544,722	$ 3,565,258
Fair Value, Inputs, Level 1 [Member]
Available for sale securities	5,544,722	3,565,258
Fair Value, Inputs, Level 2 [Member]
Available for sale securities
Fair Value, Inputs, Level 3 [Member]
Available for sale securities

Consolidated Balance Sheets (Parentheticals) - USD ($)	Aug. 31, 2020	Aug. 31, 2019
Trade receivable excluding joint ventures, allowance for doubtful accounts	$ 90,000	$ 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)	9,099,990	9,086,816
Common stock, shares outstanding (in shares)	9,099,990	9,086,816

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Aug. 31, 2020	Aug. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (934,760)	$ 5,815,622
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Stock-based compensation	1,337,774	1,431,925
Depreciation expense	836,601	841,236
Amortization expense	231,624	261,724
Change in allowance for doubtful accounts	25,000
Equity in income from joint ventures	(4,270,327)	(7,225,518)
Dividends received from joint ventures	5,672,099	5,039,041
Loss (gain) on disposal of property and patents	173,810	(36,098)
Deferred income taxes	1,424,529	(89,637)
Changes in current assets and liabilities:
Trade, excluding joint ventures	1,680,611	(50,315)
Trade, joint ventures	348,573	(62,967)
Fees for services provided to joint ventures	340,714	89,255
Income taxes	424,002	(189,226)
Inventories	(435,712)	(1,486,833)
Prepaid expenses and other	279,312	744,323
Accounts payable	(1,229,510)	682,786
Income tax payable	302,641	(65,344)
Accrued liabilities	(1,294,911)	(222,952)
Net cash provided by operating activities	4,912,070	5,477,022
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of property and equipment	2,190
Purchase of available for sale securities	(4,000,000)	(3,365,146)
Proceeds from the sale of available for sale securities	2,020,536	3,100,000
Purchases of property and equipment	(711,412)	(960,339)
Investments in patents	(95,996)	(114,436)
Net cash used in investing activities	(2,784,682)	(1,339,921)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividend received by non-controlling interest	(400,000)	(400,000)
Investment by non-controlling interest		134,034
Dividends paid on NTIC common stock	(1,182,200)	(2,180,244)
Proceeds from employee stock purchase plan	64,195	52,546
Proceeds from exercise of stock options
Net cash used in financing activities	(1,518,005)	(2,393,664)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(63,109)	(49,702)
NET INCREASE IN CASH AND CASH EQUIVALENTS	546,274	1,693,735
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	5,856,758	4,163,023
CASH AND CASH EQUIVALENTS AT END OF YEAR	$ 6,403,032	$ 5,856,758

Note 17 - Fair Value Measurements (Tables)

12 Months Ended

Aug. 31, 2020

Notes Tables

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

			Fair Value Measurements Using Inputs Considered as
	Fair value as of August 31, 2020		Level 1		Level 2		Level 3
Available for sale securities	$	5,544,722	$	5,544,722	$	—	$	—

			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	$	—	$	—

Significant Accounting Policies (Policies)

12 Months Ended

Aug. 31, 2020

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

not

include the accounts of any of its joint ventures.

Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block]

Non-Controlling Interests

– The Company owns

75%

of Natur-Tec India,

75%

of Natur Tec Lanka,

85%

of Zerust Brazil,

60%

of NTI Asean,

60%

of Zerust Singapore Pte Ltd, and

60%

Revenue Recognition, Deferred Revenue [Policy Text Block]

Net Sales

– The Company includes net sales to its joint ventures and net sales to unaffiliated customers as separate line items on its consolidated statements of operations. There are

sales originating from the Company's joint ventures included in the amount, as the Company's investments in its joint ventures are accounted for using the equity method.

May 2014,

the Financial Accounting Standards Board (FASB) issued guidance creating Accounting Standards Codification (ASC) Section

606,

Revenue from Contracts with Customers

(ASC

606

September 1, 2018,

the Company adopted ASC

606

for all customer contracts using the modified retrospective method. To determine revenue recognition for arrangements within the scope of ASC

606,

the Company performs the following

five

steps: (

) identify the contracts with a customer; (

) identify the performance obligations in the contract; (

) determine the transaction price; (

) allocate the transaction price to the performance obligations in the contract; and (

) recognize revenue when or as the entity satisfies a performance obligation. The Company only applies the

five

-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods it transfers to, or services it performs for, the customer.

The adoption of ASC

606

did

not

impact the previously reported financial statements in any prior period or result in a cumulative effect adjustment to retained earnings. Therefore, the adoption of the standard did

not

contain any significant financing component for its customers. The Company does

not

recognize revenue related to product warranties, nor does the Company incur significant contract costs. Customer arrangements do

not

generate contract assets or liabilities.

Changes to the Company's significant accounting policies as a result of adopting ASC

606

are discussed below.

Revenue Recognition

not

The timing of revenue recognition, billing, and cash collections results in accounts receivable on the consolidated balance sheet.

Performance Obligations

service consultants work directly with the end users of NTIC's ZERUST® rust and corrosion inhibiting products to

analyze their specific needs and develop systems to meet their performance requirements.

The transaction price for the Company's products is the invoiced amount. The Company does

not

need to allocate proceeds on a relative standalone selling price allocation between performance obligations. The Company applies the practical expedient in paragraph

606

and does

not

disclose information about remaining performance obligations that have original expected durations of

one

year or less. There are

material obligations that extend beyond

one

year.

606

16A

and does

not

assess if immaterial items are promised goods or services. The Company has also applied the practical expedient in paragraph

606

regarding the adjustment of the promised amount of consideration for the effects of a significant financing component when the customer pays for that good or service within

one

year or less, as the Company does

not

have any significant financing components in its customer arrangements since payment is received at or shortly after the point of sale, generally

thirty

ninety

days.

The Company estimates returns based on an analysis of historical experience if the right to return products is granted to its customers. The Company does

not

record a return asset, as non-conforming products are generally

not

returned. The Company's return policy does

not

vary by geography. The customer has

rotation or price protection rights, and the Company is

not

under a warranty obligation.

Sales Commissions

– Sales commissions paid to sales representatives are eligible for capitalization, as they are incremental costs that would

not

340

and recognize the incremental costs of obtaining contracts as an expense when incurred, as the amortization period of the assets that would have otherwise been recognized is

one

year or less. The Company records these costs as a selling expense.

Product Warranty

– The Company offers warranties on various products and services. These warranties are assurance type warranties that are

not

sold on a standalone basis; therefore, they are

not

considered distinct performance obligations. The Company estimates the costs that

may

be incurred under its warranties and records a liability in the amount of such costs at the time the revenue is recognized for the product sale.

International Revenue

– The Company markets its products to numerous countries in North America, Europe, Latin America, Asia, and other parts of the world. See Note

11,

Segment and Geographical Information, for information regarding revenue disaggregation by geography.

Receivable [Policy Text Block]

Trade Receivables

days. The Company does

not

$90,000

as of

August 31, 2020

and

$65,000

as of

August 31, 2019.

Receivables from Joint Ventures Policy [Policy Text Block ]

Trade Receivables from Joint Ventures

days are considered past due. The Company does

not

necessary as of

August 31, 2020

2019.

Fees for Services Provided to Joint Ventures –

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

– The Company includes as cash and cash equivalents highly liquid, short-term investments with maturity of

three

months or less when purchased, which are readily convertible into known amounts of cash. The Company maintains its cash in high quality financial institutions. The balances, at times,

may

exceed federally insured limits.

Marketable Securities, Policy [Policy Text Block]

Available for Sale Securities

– Available for sale securities are recorded at fair value. Unrealized holding gains and losses on available for sale securities are

not

significant.

Inventory, Policy [Policy Text Block]

Inventories

– Inventories are recorded at the lower of cost (

first

-in,

first

-out basis) or net realizable value.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Depreciation

– Property and equipment are stated at cost. Depreciation is computed using the straight-line method based on the estimated service lives of the various assets as follows:

	Buildings and improvements		5-30 years
	Machinery and equipment		3-10 years

Intangible Assets, Finite-Lived, Policy [Policy Text Block]

Patents and Trademarks

Equity Method Investments [Policy Text Block]

Investments in Joint Ventures

zero

value until proportionate income exceeds the losses. The Company assesses its joint ventures for impairment on an annual basis as of

August 31

not

may

differ from assumed or estimated amounts. All investments in joint ventures had positive equity as of

August 31, 2020

and

2019.

The Company considers any of its joint ventures to be significant and discloses entity specific financial information if the joint venture's income or assets make up more than

20%

of the Company's total assets or income.

The Company classifies distributions received from its joint ventures based on the nature of the distributions, generally, in operating activities on the consolidated statements of cash flows.

If the Company is

longer exists and discontinues accruing the proportionate earnings or losses of the investment.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Recoverability of Long-Lived Assets

– The Company reviews its long-lived assets whenever events or changes in circumstances indicate the carrying amount of the assets

may

not

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company records net deferred tax assets to the extent the Company believes these assets will more likely than

not

The Company records uncertain tax positions on the basis of a

two

-step process whereby the Company determines whether it is more likely than

not

that the tax positions will be sustained based on the technical merits of the position and those tax positions that meet the more-likely-than-

not

recognition threshold. The Company recognizes the largest amount of tax benefit that is greater than

percent likely to be realized upon ultimate settlement with the related tax authority.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translation (Accumulated Other Comprehensive Income (Loss))

not

change the equity in income from joint ventures reflected in the Company's consolidated statements of operations.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

Shipping and Handling Cost, Policy [Policy Text Block]

Shipping and Handling

Research, Development, and Computer Software, Policy [Policy Text Block]

Research and Development

– The Company expenses all costs related to product research and development as incurred.

Stockholders' Equity, Policy [Policy Text Block]

Common Stock

– The Company issues authorized but unissued shares of common stock upon the exercise of stock options.

Stock Split [Policy Text Block]

Stock Split

– On

June 3, 2019,

NTIC's Board of Directors declared a

two

-for-

one

stock split of NTIC'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.

Earnings and dividends declared per share and weighted average shares outstanding are presented in this report after the effect of the

100

percent stock dividend. The

two

-for-

one

stock split is retroactively reflected in the share amounts in all periods presented in this report.

Share-based Payment Arrangement [Policy Text Block]

Stock-Based Compensation

Subsequent Events, Policy [Policy Text Block]

Subsequent Events

– The Company has evaluated events occurring after the date of the consolidated financial statements for events requiring disclosure in the consolidated financial statements.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

Note 10 - Stock-based Compensation (Tables)

12 Months Ended

Aug. 31, 2020

Notes Tables

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

	Fiscal Year 2020			Fiscal Year 2019
Dividend yield		2.41	%		1.32	%
Expected volatility		45.2	%		45.8	%
Expected life of option (years)		10			10
Weighted average risk-free interest rate		1.40	%		2.75	%

Share-based Payment Arrangement, Option, Activity [Table Text Block]

	Number of Shares (#)			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding at August 31, 2018		697,406		$	7.29
Options granted		141,767			18.23
Options exercised		—			—
Options terminated		—			—

Outstanding at August 31, 2019		839,173		$	9.13
Options granted		300,770			10.87
Options exercised		(11,975	)		5.13
Options terminated		—			—

	Number of Shares (#)		Weighted Average Exercise Price		Aggregate Intrinsic Value

Outstanding at August 31, 2020		1,127,968	$	9.63	$	1,091,425

Exercisable at August 31, 2020		810,363	$	9.18	$	1,091,425

Note 10 - Stock-based Compensation

12 Months Ended

Aug. 31, 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 (the

2019

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 (the

2007

Plan) and the Northern Technologies International Corporation Employee Stock Purchase Plan (the ESPP). 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. During the fiscal years ended

August 31, 2020

and

2019,

the Company granted stock options under the

2019

Plan to purchase an aggregate of

300,770

and

141,767

shares of its common stock to various employees and directors, respectively. As of

August 31, 2020,

499,230

shares of common stock remained available 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. The Company issued

2,754

and

2,462

shares on

March 1, 2020

and

2019,

respectively, and

3,597

and

1,748

shares on

September 1, 2019

and

2018,

respectively, under the ESPP. As of

August 31, 2020,

84,693

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

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 volatility factor used in the Black-Scholes option pricing model is based on historical stock price fluctuations, and the risk-free interest rate is based on U.S. treasury rates appropriate for the expected term. Dividend yield and expected volatility are estimated using historical amounts that are anticipated to be consistent with current values. Expected life of the option is based on the life of the option agreements. Based on these valuations, the Company recognized compensation expense of

$1,337,774

and

$1,431,925

during fiscal

2020

and fiscal

2019,

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

August

31,

2020,

the total compensation cost for non-vested options

not

yet recognized on the Company's consolidated statements of operations was

$20,834,

which is expected to be recognized during fiscal

2021,

based on outstanding options as of

August 31, 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:

	Fiscal Year 2020			Fiscal Year 2019
Dividend yield		2.41	%		1.32	%
Expected volatility		45.2	%		45.8	%
Expected life of option (years)		10			10
Weighted average risk-free interest rate		1.40	%		2.75	%

Stock option activity during the periods indicated was as follows:

	Number of Shares (#)			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding at August 31, 2018		697,406		$	7.29
Options granted		141,767			18.23
Options exercised		—			—
Options terminated		—			—

Outstanding at August 31, 2019		839,173		$	9.13
Options granted		300,770			10.87
Options exercised		(11,975	)		5.13
Options terminated		—			—

	Number of Shares (#)		Weighted Average Exercise Price		Aggregate Intrinsic Value

Outstanding at August 31, 2020		1,127,968	$	9.63	$	1,091,425

Exercisable at August 31, 2020		810,363	$	9.18	$	1,091,425

*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 weighted average per share fair value of options granted during fiscal

2020

and fiscal

2019

was

$9.63

and

$9.02,

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

August 31, 2020

was

6.02

years and

5.90

years, respectively.

Note 1 - Nature of Business and Significant Accounting Policies (Tables)

12 Months Ended

Aug. 31, 2020

Notes Tables

Property and Equipment Useful Life [Table Text Block]

	Buildings and improvements		5-30 years
	Machinery and equipment		3-10 years

Note 9 - Net (Loss) Income Per Common Share

12 Months Ended

Aug. 31, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

NET (LOSS) INCOME PER COMMON SHARE

Basic net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of common shares outstanding. Diluted net (loss) 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 fiscal

2020

and fiscal

2019:

Numerator:	August 31, 2020			August 31, 2019
Net (loss) income attributable to NTIC	$	(1,337,709	)	$	5,209,622

Denominator:
Basic-weighted shares outstanding		9,096,981			9,085,584
Weighted shares assumed upon exercise of stock options		-			330,390
Diluted – weighted shares outstanding		9,096,981			9,415,974

Basic net (loss) income per share:	$	(0.15	)	$	0.57
Diluted net (loss) income per share:	$	(0.15	)	$	0.55

*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 the basic net income per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted net income per share. Excluded from the computation of diluted net income per share as of

August 31, 2020

were options outstanding to purchase

1,127,968

shares of common stock due to the net loss for the period. Excluded from the computation of diluted net income per share as of

August 31, 2019

were options outstanding to purchase

141,768

shares of common stock.

Note 15 - Commitments and Contingencies

12 Months Ended

Aug. 31, 2020

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

15.

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

November 30, 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 Leases

(in thousands):	August 31, 2020
Right-of-use assets, net	$	658,788

Current portion of lease liability		386,345
Lease liability, less current portion		272,443
Total lease liability	$	658,788

As of

August 31, 2020,

the weighted-average remaining lease term was

2.02

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

August 31, 2020,

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

2.31%

to present value based on the incremental borrowing rate.

Future minimum payments for the next

five

fiscal years and thereafter as of

August 31, 2020

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

Fiscal 2021	$	386,345
Fiscal 2022		208,419
Fiscal 2023		59,993
Fiscal 2024		19,932
Total future minimum lease payments		674,689
Less amount representing interest		(15,901	)
Present value of obligations under operating leases		658,788
Less current portion		(386,345	)
Long-term operating lease obligations	$	272,443

The following table presents future minimum lease payments for the Company's operating leases as of

August 31, 2019

under ASC

840

and is being presented for comparative purposes:

Fiscal 2020	$	286,723
Fiscal 2021		241,035
Fiscal 2022		107,522
Total future minimum rent	$	635,280

Rent expense under these leases was approximately

$131,840

for the year ended

August 31, 2019.

Annual Bonus Plan

August 27, 2020,

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, 2021.

For fiscal

2021,

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

2021

compared to a pre-established target EBITOI for fiscal

2021,

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, the exact amount and percentages of which were 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

2021.

August 31, 2019,

August 31, 2020.

$1,300,000

was recognized for bonuses for the fiscal year ended

August 31, 2020,

$800,000

of the bonus is comprised of stock options granted to management on

September 1, 2019

and

$500,000

will be paid out in cash and profit sharing subsequent to year end. This is compared to

$2,000,000

recognized for bonuses for the fiscal year ended

August 31, 2019,

$800,000

of the bonus comprised of stock options granted to management on

September 1, 2018

and

$1,200,000

was paid out in cash and profit sharing subsequent to year end.

Concentrations

Five joint ventures (consisting of the Company's joint ventures in the United States, Indonesia, Philippines, Russia and India) accounted for

88.2%

of the Company's trade joint venture receivables as of

August 31, 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.

Legal Matters

March 23, 2015,

NTIC and NTI Asean LLC, a majority-owned subsidiary of NTIC, filed a lawsuit in Tianjin

Intermediate People's Court against

two

individuals, Tao Meng and Xu Hui, related to breaches of duties and contractual commitments owed to NTI Asean under certain agreements related to NTIC's former joint venture in China, Tianjin Zerust Anti-Corrosion Technologies Ltd. The lawsuit alleges, among other things, that Mr. Tao Meng and Xu Hui have engaged in self-dealing, usurped business opportunities, and received economic benefits that were required to go to Tianjin Zerust. At this point, the Company is

not

able to reasonably estimate the amount of any recovery to NTI Asean, if any.

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

August 31, 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.

Consolidated Statements of Operations - USD ($)	12 Months Ended
Consolidated Statements of Operations - USD ($)	Aug. 31, 2020	Aug. 31, 2019
NET SALES:
Net sales, excluding joint ventures	$ 45,666,045	$ 53,142,583
Net sales, to joint ventures	1,972,646	2,607,554
Total net sales	47,638,691	55,750,137
Cost of goods sold	31,609,274	37,970,244
Gross profit	16,029,417	17,779,893
JOINT VENTURE OPERATIONS:
Equity in income from joint ventures	4,270,327	7,225,518
Fees for services provided to joint ventures	4,612,885	5,727,579
Total joint venture operations	8,883,212	12,953,097
OPERATING EXPENSES:
Selling expenses	10,656,689	10,968,592
General and administrative expenses	8,688,309	9,349,559
Research and development expenses	3,979,455	3,822,070
Total operating expenses	23,324,453	24,140,221
OPERATING INCOME	1,588,176	6,592,769
INTEREST INCOME	167,733	78,257
INTEREST EXPENSE	(16,034)	(13,567)
INCOME BEFORE INCOME TAX EXPENSE	1,739,875	6,657,459
INCOME TAX EXPENSE	2,674,635	841,837
NET (LOSS) INCOME	(934,760)	5,815,622
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	402,949	606,000
NET (LOSS) INCOME ATTRIBUTABLE TO NTIC	$ (1,337,709)	$ 5,209,622
NET (LOSS) INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE:
Basic (in dollars per share)	$ (0.15)	$ 0.57
Diluted (in dollars per share)	$ (0.15)	$ 0.55
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING:
Basic (in shares)	9,096,981	9,085,584
Diluted (in shares)	9,096,981	9,415,974
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 0.13	$ 0.24

Note 11 - Segment and Geographic Information (Details Textual)	12 Months Ended
	Aug. 31, 2020
Number of Reportable Segments	2

Note 15 - Commitments and Contingencies - Future Minimum Rents Due Under ASC 840 (Details)	Aug. 31, 2019 USD ($)
Fiscal 2020	$ 286,723
Fiscal 2021	241,035
Fiscal 2022	107,522
Total future minimum rent	$ 635,280

Note 14 - Income Taxes - Tax Effect of the Temporary Differences and Tax Carry Forwards Comprising Net Deferred Taxes (Details) - USD ($)	Aug. 31, 2020	Aug. 31, 2019
Accrued compensation	$ 173,500	$ 153,400
Inventory costs	64,000	60,900
Other accrued expenses	74,900	39,700
Lease liability	147,500
Goodwill and other intangible assets	581,200	688,400
Stock-based compensation	397,300	299,300
Foreign tax credit carryforward	5,790,500	5,790,500
Other credit and loss carryforwards	4,824,200	3,631,700
Total deferred tax assets	12,053,100	10,663,900
Valuation allowance	(11,561,700)	(8,764,300)
Total deferred tax assets after valuation allowance	491,400	1,899,600
Property and equipment	(50,700)	(111,900)
Right-of-use asset	(147,500)
Other	(83,400)	(153,400)
Total deferred tax liabilities	(281,600)	(265,300)
Net deferred tax assets	$ 209,800	$ 1,634,300

Note 12 - Retirement Plan	12 Months Ended
Note 12 - Retirement Plan	Aug. 31, 2020
Notes to Financial Statements
Retirement Benefits [Text Block]	12. RETIREMENT PLAN The Company has a 401 (k) employee savings plan. Employees who meet certain age and service requirements may elect to contribute up to 15% of their salaries. The Company typically contributes the lesser of 50% of the participant's contributions or 3.5% of the employee's salary. The Company recognized expense for the savings plan of $234,534 and $228,605 for fiscal 2020 and fiscal 2019, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118257860&loc=d3e4179-114921

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
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-Section S99
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Note 11 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Cost of goods sold	$ 31,609,274	$ 37,970,244
Direct Cost of Goods Sold [Member] \| ZERUST [Member]
Cost of goods sold	18,717,684	21,505,335
Direct Cost of Goods Sold [Member] \| NaturTec [Member]
Cost of goods sold	10,168,051	13,691,038
Indirect Cost of Goods Sold [Member]
Cost of goods sold	$ 2,723,539	$ 2,773,871

Note 4 - Property and Equipment, Net (Tables)

12 Months Ended

Aug. 31, 2020

Notes Tables

Property, Plant and Equipment [Table Text Block]

	August 31, 2020			August 31, 2019
Land	$	310,365		$	310,365
Buildings and improvements		8,167,783			7,749,980
Machinery and equipment		4,940,912			4,903,664
		13,419,060			12,964,009
Less accumulated depreciation		(6,308,271	)		(5,605,850	)
	$	7,110,789		$	7,358,159

Note 2 - Accounting Pronouncements

12 Months Ended

Aug. 31, 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.

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.

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

15,

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

as of

September 1, 2019.

New Accounting Pronouncements

Not

Yet Adopted

June 2016,

the FASB issued ASU

No.

2016

13,

Measurement of Credit Losses on Financial Instruments, which revises guidance for the accounting for credit losses on financial instruments within its scope, and in

November 2018,

issued ASU

No.

2018

and in

April 2019,

issued ASU

No.

2019

and in

May 2019,

issued ASU

No.

2019

05,

and in

November 2019,

issued ASU

No.

2019

11,

which amended the standard. The new standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new approach to estimating credit losses (referred to as the current expected credit losses model) applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases and off-balance-sheet credit exposures. This ASU is effective for fiscal years beginning after

December 15, 2022,

including interim periods within those fiscal years, with early adoption permitted. Entities are required to apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the

first

reporting period in which the guidance is adopted. The Company is still evaluating the impact of this ASU.

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 4 - Property and Equipment, Net

12 Months Ended

Aug. 31, 2020

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following:

	August 31, 2020			August 31, 2019
Land	$	310,365		$	310,365
Buildings and improvements		8,167,783			7,749,980
Machinery and equipment		4,940,912			4,903,664
		13,419,060			12,964,009
Less accumulated depreciation		(6,308,271	)		(5,605,850	)
	$	7,110,789		$	7,358,159

Note 11 - Segment and Geographic Information - Net Sales by Segment (Details) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Net sales by segment	$ 47,638,691	$ 55,750,137
ZERUST [Member]
Net sales by segment	34,474,535	38,174,712
NaturTec [Member]
Net sales by segment	$ 13,164,156	$ 17,575,425

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
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-Paragraph 3
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-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 2
-Subparagraph (SX 210.5-03(1))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

+ Details

Note 5 - Patents and Trademarks, Net - Patents and Trademarks, Net (Details) - USD ($)	Aug. 31, 2020	Aug. 31, 2019
Patents and trademarkes, net	$ 802,006	$ 1,008,969
Patents and Trademarks [Member]
Patents and trademarks	2,907,852	2,938,876
Less accumulated amortization	(2,105,846)	(1,929,907)
Patents and trademarkes, net	$ 802,006	$ 1,008,969

Note 5 - Patents and Trademarks, Net (Tables)

12 Months Ended

Aug. 31, 2020

Notes Tables

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

	August 31, 2020			August 31, 2019
Patents and trademarks	$	2,907,852		$	2,938,876
Less accumulated amortization		(2,105,846	)		(1,929,907	)
	$	802,006		$	1,008,969

Note 10 - Stock-based Compensation - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Number of shares, Outstanding (in shares)	839,173	697,406
Weighted average exercise price, Outstanding (in dollars per share)	$ 9.13	$ 7.29
Number of shares, Options granted (in shares)	300,770	141,767
Weighted average exercise price, Options granted (in dollars per share)	$ 10.87	$ 18.23
Number of shares, Options exercised (in shares)	(11,974)
Weighted average exercise price, Options exercised (in dollars per share)	$ 5.13
Number of shares, Options terminated (in shares)
Weighted average exercise price, Options terminated (in dollars per share)
Number of shares, Outstanding (in shares)	1,127,968	839,173
Weighted average exercise price, Outstanding (in dollars per share)	$ 9.63	$ 9.13
Aggregate intrinsic value, Outstanding	$ 1,091,425
Number of shares, Exercisable (in shares)	810,363
Weighted average exercise price, Exercisable (in dollars per share)	$ 9.18
Aggregate intrinsic value, Exercisable	$ 1,091,425

Note 3 - Inventories (Tables)

12 Months Ended

Aug. 31, 2020

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	August 31, 2020		August 31, 2019
Production materials	$	3,866,791	$	1,980,816
Finished goods		7,095,006		8,507,912
	$	10,961,796	$	10,488,728

Consolidated Statements of Equity - 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 (in shares)	4,210
Stock issued for employee stock purchase plan	$ 84	52,462				52,546
Stock option expense		1,431,925				1,431,925
Investment by non-controlling Interest					134,034	134,034
Dividends paid to stockholders			(2,180,244)			(2,180,244)
Dividend received by non-controlling interest					(400,000)	(400,000)
NET (LOSS) INCOME			5,209,622		606,000	5,815,622
Other comprehensive loss				(995,979)	(7,664)	$ (1,003,643)
Stock options exercised (in shares)						0
BALANCE (in shares) at Aug. 31, 2019	9,086,816
BALANCE at Aug. 31, 2019	$ 181,736	16,013,338	44,992,719	(4,593,178)	3,074,679	$ 59,669,294
Stock issued for employee stock purchase plan (in shares)	6,351
Stock issued for employee stock purchase plan	$ 127	64,068				64,195
Stock option expense		1,337,774				1,337,774
Dividends paid to stockholders			(1,182,200)			(1,182,200)
Dividend received by non-controlling interest					(400,000)	(400,000)
NET (LOSS) INCOME			(1,337,709)		402,949	(934,760)
Other comprehensive loss				1,182,740	(32,602)	$ 1,150,138
Stock options exercised (in shares)	6,823					6,823
Stock options exercised	$ 137	(137)
BALANCE (in shares) at Aug. 31, 2020	9,099,990
BALANCE at Aug. 31, 2020	$ 182,000	$ 17,415,043	$ 42,472,810	$ (3,410,438)	$ 3,045,026	$ 59,704,441

Note 1 - Nature of Business and Significant Accounting Policies - Property and Equipment, Useful Life (Details)	12 Months Ended
	Aug. 31, 2020
Building and Building Improvements [Member] \| Minimum [Member]
Property and equipment (Year)	5 years
Building and Building Improvements [Member] \| Maximum [Member]
Property and equipment (Year)	30 years
Machinery and Equipment [Member] \| Minimum [Member]
Property and equipment (Year)	3 years
Machinery and Equipment [Member] \| Maximum [Member]
Property and equipment (Year)	10 years

Note 9 - Net (Loss) Income Per Common Share (Tables)

12 Months Ended

Aug. 31, 2020

Notes Tables

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

Numerator:	August 31, 2020			August 31, 2019
Net (loss) income attributable to NTIC	$	(1,337,709	)	$	5,209,622

Denominator:
Basic-weighted shares outstanding		9,096,981			9,085,584
Weighted shares assumed upon exercise of stock options		-			330,390
Diluted – weighted shares outstanding		9,096,981			9,415,974

Basic net (loss) income per share:	$	(0.15	)	$	0.57
Diluted net (loss) income per share:	$	(0.15	)	$	0.55

Note 3 - Inventories - Inventories (Details) - USD ($)	Aug. 31, 2020	Aug. 31, 2019
Production materials	$ 3,866,791	$ 1,980,816
Finished goods	7,095,006	8,507,912
Total inventory	$ 10,961,796	$ 10,488,728

Note 11 - Segment and Geographic Information - Total Net Sales by Geographic Distribution (Details) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Net sales by segment	$ 47,638,691	$ 55,750,137
CHINA
Net sales by segment	13,409,770	13,030,298
BRAZIL
Net sales by segment	2,753,930	3,151,509
INDIA
Net sales by segment	5,655,797	8,109,468
Other Countries [Member]
Net sales by segment	5,600,982	6,898,403
UNITED STATES
Net sales by segment	$ 20,218,212	$ 24,560,459

- Definition

+ References

+ Details

Note 15 - Commitments and Contingencies (Tables)

12 Months Ended

Aug. 31, 2020

Notes Tables

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

(in thousands):	August 31, 2020
Right-of-use assets, net	$	658,788

Current portion of lease liability		386,345
Lease liability, less current portion		272,443
Total lease liability	$	658,788

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

Fiscal 2021	$	386,345
Fiscal 2022		208,419
Fiscal 2023		59,993
Fiscal 2024		19,932
Total future minimum lease payments		674,689
Less amount representing interest		(15,901	)
Present value of obligations under operating leases		658,788
Less current portion		(386,345	)
Long-term operating lease obligations	$	272,443

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Fiscal 2020	$	286,723
Fiscal 2021		241,035
Fiscal 2022		107,522
Total future minimum rent	$	635,280

Note 8 - Stockholders' Equity (Details Textual)									3 Months Ended	12 Months Ended
Note 8 - Stockholders' Equity (Details Textual)	Jan. 22, 2020 $ / shares	Oct. 22, 2019 $ / shares	Jul. 24, 2019 $ / shares	Jun. 28, 2019	Jun. 03, 2019	Apr. 25, 2019 $ / shares	Jan. 23, 2019 $ / shares	Oct. 24, 2018 $ / shares	May 31, 2020 $ / shares	Aug. 31, 2020 USD ($) $ / shares shares	Aug. 31, 2019 $ / shares shares	Jan. 15, 2015 USD ($)
Stockholders' Equity Note, Stock Split, Conversion Ratio				2	2
Common Stock, Dividends, Per Share, Declared (in dollars per share) \| $ / shares	$ 0.065	$ 0.065	$ 0.06			$ 0.06	$ 0.06	$ 0.06	$ 0	$ 0.13	$ 0.24
Stock Repurchase Program, Authorized Amount \| $												$ 3,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount \| $										$ 2,640,548
Stock Repurchased and Retired During Period, Shares (in shares)										0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Including Cashless Exercises (in shares)										11,974
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in dollars per share) \| $ / shares										$ 5.13
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares)										6,823	0

Note 11 - Segment and Geographic Information - Net Sales by Geographic Location (Details) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Net sales by segment	$ 47,638,691	$ 55,750,137
Inside the USA to Unaffiliated Customers [Member]
Net sales by segment	20,218,213	24,560,459
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member]
Net sales by segment	1,972,646	2,607,554
Unaffiliated Customers Outside the USA [Member]
Net sales by segment	$ 25,447,832	$ 28,582,124

- Definition

+ References

+ Details

Note 3 - Inventories

12 Months Ended

Aug. 31, 2020

Notes to Financial Statements

Inventory Disclosure [Text Block]

INVENTORIES

Inventories consisted of the following:

	August 31, 2020		August 31, 2019
Production materials	$	3,866,791	$	1,980,816
Finished goods		7,095,006		8,507,912
	$	10,961,796	$	10,488,728

Note 16 - Statements of Cash Flows (Tables)

12 Months Ended

Aug. 31, 2020

Notes Tables

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

	Fiscal Year Ended August 31,
	2020		2019
Cash paid during the year for income tax	$	1,099,635	$	841,837
Cash paid during the year for interest		16,034		13,567

Non-cash investing and financing activities:
Purchases of property and equipment included in accounts payable		—		53,512

Note 14 - Income Taxes - Provision for Income Taxes (Details) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Federal
State	23,000	48,000
Foreign	1,226,000	902,000
Total current	1,249,000	950,000
Federal	1,501,000	(315,000)
State	101,000	(21,000)
Foreign	(177,000)	228,000
Total deferred	1,425,000	(108,000)
Total income tax expense	$ 2,674,635	$ 841,837

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Note 11 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($)	Aug. 31, 2020	Aug. 31, 2019
Total long-lived assets	$ 7,110,789	$ 7,358,159
CHINA
Total long-lived assets	376,088	337,162
Other Countries [Member]
Total long-lived assets	172,833	178,087
UNITED STATES
Total long-lived assets	$ 6,561,868	$ 6,842,910

Note 6 - Investments in Joint Ventures (Tables)

12 Months Ended

Aug. 31, 2020

Notes Tables

Condensed Balance Sheet [Table Text Block]

	As of August 31, 2020
	Total		EXCOR		FRANCE		FINLAND		INDIA		THAILAND		OTHER
Current assets	$	55,825,418	$	25,742,619	$	4,099,160	$	1,955,879	$	4,010,855	$	4,022,399	$	15,994,506
Total assets		60,295,587		28,449,772		4,873,484		2,261,147		4,242,660		4,055,451		16,413,073
Current liabilities		11,002,867		2,424,565		2,073,710		415,496		1,007,529		993,332		4,088,235
Noncurrent liabilities		365,274		—		—		—		32,999		—		332,275
Joint ventures' equity		48,927,446		26,025,207		2,799,774		1,845,651		3,202,132		3,062,119		11,992,563
Northern Technologies International Corporation's share of joint ventures' equity		24,090,826		13,012,606		1,399,887		922,814		1,603,013		1,531,060		5,621,446
Northern Technologies International Corporation's share of joint ventures' undistributed earnings		21,855,747		12,981,701		1,399,887		902,814		738,191		1,429,060		4,404,094

	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]

	Fiscal Year Ended August 31, 2020
	Total		EXCOR		FRANCE		FINLAND		INDIA		THAILAND		OTHER
Net sales	$	87,030,062	$	32,546,402	$	8,133,294	$	3,088,865	$	5,481,303	$	6,471,831	$	31,308,367
Gross profit		39,532,750		18,739,471		3,061,433		1,916,001		2,498,196		2,046,478		11,271,171
Net income		8,545,473		5,266,541		473,137		419,728		697,349		503,884		1,184,834
Northern Technologies International Corporation's share of equity in income of joint ventures		4,270,327		2,622,423		237,490		209,972		349,218		253,192		598,032
Northern Technologies International Corporation's dividends received from joint ventures		5,672,099		4,675,850		—		325,635		261,220		160,074		249,320


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

Note 5 - Patents and Trademarks, Net

12 Months Ended

Aug. 31, 2020

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

PATENTS AND TRADEMARKS, NET

Patents and trademarks, net consisted of the following:

	August 31, 2020			August 31, 2019
Patents and trademarks	$	2,907,852		$	2,938,876
Less accumulated amortization		(2,105,846	)		(1,929,907	)
	$	802,006		$	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 was

$231,624

and

$261,724

for the years ended

August 31, 2020

and

2019,

respectively. Amortization expense is estimated to be

$200,000

in each of the next

four

fiscal years.

Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($)	Aug. 31, 2020	Aug. 31, 2019
Land	$ 310,365	$ 310,365
Buildings and improvements	8,167,783	7,749,980
Machinery and equipment	4,940,912	4,903,664
Gross	13,419,060	12,964,009
Less accumulated depreciation	(6,308,271)	(5,605,850)
Net	$ 7,110,789	$ 7,358,159

Note 15 - Commitments and Contingencies - Future Minimum Rents Due (Details) - USD ($)	Aug. 31, 2020	Aug. 31, 2019
Fiscal 2021	$ 386,345
Fiscal 2022	208,419
Fiscal 2023	59,993
Fiscal 2024	19,932
Total future minimum lease payments	674,689
Less amount representing interest	(15,901)
Present value of obligations under operating leases	658,788
Less current portion	(386,345)
Long-term operating lease obligations	$ 272,443

Note 14 - Income Taxes - Reconciliation of the Total Amounts of Unrecognized Tax Benefits (Details) - USD ($)	12 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Gross unrecognized tax benefits – beginning balance	$ 248,000	$ 242,000
Gross increases – prior period tax positions	15,200	1,000
Gross increases – current period tax positions	15,000	5,000
Gross unrecognized tax benefits – ending balance	$ 278,200	$ 248,000