0001171843-21-008091 | 10-K | XBRL Viewer | Northern Technologies International Corp

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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Aug. 31, 2021	Nov. 15, 2021	Feb. 26, 2021
Document Information [Line Items]
Entity Central Index Key	0000875582
Entity Registrant Name	Northern Technologies International Corporation
Amendment Flag	false
Current Fiscal Year End Date	--08-31
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2021
Document Type	10-K
Document Annual Report	true
Document Period End Date	Aug. 31, 2021
Document Transition Report	false
Entity File Number	001-11038
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	41-0857886
Entity Address, Address Line One	4201 Woodland Road P.O. Box 69
Entity Address, City or Town	Circle Pines
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55014
City Area Code	763
Local Phone Number	225-6600
Title of 12(b) Security	Common stock, par value $0.02 per share
Trading Symbol	NTIC
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 123,000,000.0
Entity Common Stock, Shares Outstanding		9,187,446

Consolidated Balance Sheets - USD ($)	Aug. 31, 2021	Aug. 31, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 7,680,641	$ 6,403,032
Available for sale securities	4,634	5,544,722
Receivables:
Trade excluding joint ventures, less allowance for doubtful accounts of $382,000 as of August 31, 2021 and $90,000 as of August 31, 2020	11,128,805	8,072,212
Trade joint ventures	624,808	475,900
Fees for services provided to joint ventures	1,505,127	927,286
Income taxes	386,574	19,907
Inventories	11,114,207	10,961,796
Prepaid expenses	1,302,293	797,495
Total current assets	33,747,089	33,202,350
PROPERTY AND EQUIPMENT, NET	11,821,458	7,110,789
OTHER ASSETS:
Investments in joint ventures	27,623,768	24,090,826
Deferred income taxes	92,554	209,729
Patents and trademarks, net	709,572	802,006
Operating lease right of use asset	376,438	658,788
Total other assets	28,802,332	25,761,349
Total assets	74,370,879	66,074,488
CURRENT LIABILITIES:
Accounts payable	4,290,972	3,205,241
Income taxes payable	178,923	310,922
Accrued liabilities:
Payroll and related benefits	2,879,468	1,314,978
Other	894,497	880,118
Current portion of operating lease	272,336	386,345
Total current liabilities	8,516,196	6,097,604
LONG-TERM LIABILITIES:
Operating lease, less current portion	104,102	272,443
Total long-term liabilities	104,102	272,443
COMMITMENTS AND CONTINGENCIES (Note 15)
EQUITY:
Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding	0	0
Common stock, $0.02 par value per share; authorized 15,000,000 shares as of August 31, 2021 and August 31, 2020; issued and outstanding 9,184,811 and 9,099,990, respectively	183,696	182,000
Additional paid-in capital	18,736,268	17,415,043
Retained earnings	46,973,092	42,472,810
Accumulated other comprehensive loss	(3,525,030)	(3,410,438)
Stockholders’ equity	62,368,026	56,659,415
Non-controlling interests	3,382,555	3,045,026
Total equity	65,750,581	59,704,441
Total liabilities and equity	$ 74,370,879	$ 66,074,488

Consolidated Balance Sheets (Parentheticals) - USD ($)	Aug. 31, 2021	Aug. 31, 2020
Trade receivable excluding joint ventures, allowance for doubtful accounts	$ 382,000	$ 90,000
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)	9,184,811	9,099,990
Common stock, shares outstanding (in shares)	9,184,811	9,099,990

Consolidated Statements of Operations - USD ($)	12 Months Ended
Consolidated Statements of Operations - USD ($)	Aug. 31, 2021	Aug. 31, 2020
NET SALES:
Net sales, excluding joint ventures	$ 53,470,623	$ 45,666,045
Net sales, to joint ventures	3,023,196	1,972,646
Total net sales	56,493,819	47,638,691
Cost of goods sold	36,920,814	31,609,274
Gross profit	19,573,005	16,029,417
JOINT VENTURE OPERATIONS:
Equity in income from joint ventures	7,465,214	4,270,327
Fees for services provided to joint ventures	5,964,260	4,612,885
To Total joint venture operations	13,429,474	8,883,212
OPERATING EXPENSES:
Selling expenses	12,016,974	10,656,689
General and administrative expenses	8,262,173	8,688,309
Research and development expenses	4,400,479	3,979,455
Total operating expenses	24,679,626	23,324,453
OPERATING INCOME	8,322,853	1,588,176
INTEREST INCOME	151,875	167,733
INTEREST EXPENSE	(16,086)	(16,034)
INCOME BEFORE INCOME TAX EXPENSE	8,458,642	1,739,875
INCOME TAX EXPENSE	1,461,905	2,674,635
NET INCOME (LOSS)	6,996,737	(934,760)
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	715,499	402,949
NET INCOME (LOSS) ATTRIBUTABLE TO NTIC	$ 6,281,238	$ (1,337,709)
NET INCOME (LOSS) ATTRIBUTABLE TO NTIC PER COMMON SHARE:
Basic (in dollars per share)	$ 0.69	$ (0.15)
Diluted (in dollars per share)	$ 0.64	$ (0.15)
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING:
Basic (in shares)	9,116,472	9,096,981
Diluted (in shares)	9,874,139	9,096,981
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 0.20	$ 0.13

Consolidated Statements of Comprehensive Income (Loss) - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
NET INCOME (LOSS)	$ 6,996,737	$ (934,760)
OTHER COMPREHENSIVE INCOME (LOSS) – FOREIGN CURRENCY TRANSLATION ADJUSTMENT	(92,562)	1,150,138
COMPREHENSIVE INCOME	6,904,175	215,378
LESS: COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	(737,529)	(370,347)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NTIC	$ 6,166,646	$ (154,969)

- 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.

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- Definition

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

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+ Details

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, 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 options exercised (in shares)	6,823					6,823
Stock options exercised	$ 137	(137)	0	0	0	$ 0
Stock issued for employee stock purchase plan (in shares)	6,351
Stock issued for employee stock purchase plan	$ 127	64,068	0	0	0	64,195
Stock option expense	0	1,337,774	0	0	0	1,337,774
Dividends paid to stockholders	0	0	(1,182,200)		0	(1,182,200)
Dividend received by non-controlling interest	0	0	0	0	(400,000)	(400,000)
Net income (loss)	0	0	(1,337,709)	0	402,949	(934,760)
Other comprehensive income (loss)	$ 0	0	0	1,182,740	(32,602)	1,150,138
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
Stock options exercised (in shares)	74,950					74,950
Stock options exercised	$ 1,499	582,915	0	0	0	$ 584,414
Stock issued for employee stock purchase plan (in shares)	9,871
Stock issued for employee stock purchase plan	$ 197	74,136	0	0	0	74,333
Stock option expense	0	664,174	0	0	0	664,174
Dividends paid to stockholders	0	0	(1,780,956)		0	(1,780,956)
Dividend received by non-controlling interest	0	0	0	0	(400,000)	(400,000)
Net income (loss)	0	0	6,281,238	0	715,499	6,996,737
Other comprehensive income (loss)	$ 0	0	0	(114,592)	22,030	(92,562)
BALANCE (in shares) at Aug. 31, 2021	9,184,811
BALANCE at Aug. 31, 2021	$ 183,696	$ 18,736,268	$ 46,973,092	$ (3,525,030)	$ 3,382,555	$ 65,750,581

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Aug. 31, 2021	Aug. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 6,996,737	$ (934,760)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation	664,174	1,337,774
Depreciation expense	905,299	836,601
Amortization expense	203,088	231,624
Change in allowance for doubtful accounts	262,000	25,000
Equity in income from joint ventures	(7,465,214)	(4,270,327)
Dividends received from joint ventures	3,665,365	5,672,099
Loss on disposal of property and patents	0	173,810
Deferred income taxes	114,620	1,424,529
Changes in current assets and liabilities:
Trade, excluding joint ventures	(3,030,655)	1,680,611
Trade, joint ventures	(148,908)	348,573
Fees for services provided to joint ventures	(577,841)	340,714
Income taxes	(362,438)	424,002
Inventories	58,314	(435,712)
Prepaid expenses and other	(487,771)	279,312
Accounts payable	866,597	(1,229,510)
Income tax payable	(160,231)	302,641
Accrued liabilities	1,389,804	(1,294,911)
Net cash provided by operating activities	2,892,940	4,912,070
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of property and equipment	0	2,190
Purchase of available for sale securities	(800,000)	(4,000,000)
Proceeds from the sale of available for sale securities	6,340,088	2,020,536
Purchases of property and equipment	(5,532,750)	(711,412)
Investments in patents	(110,654)	(95,996)
Net cash used in investing activities	(103,316)	(2,784,682)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividend received by non-controlling interest	(400,000)	(400,000)
Dividends paid on NTIC common stock	(1,780,956)	(1,182,200)
Proceeds from employee stock purchase plan	74,333	64,195
Proceeds from exercise of stock options	584,414	0
Net cash used in financing activities	(1,522,209)	(1,518,005)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	10,194	(63,109)
NET INCREASE IN CASH AND CASH EQUIVALENTS	1,277,609	546,274
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	6,403,032	5,856,758
CASH AND CASH EQUIVALENTS AT END OF YEAR	$ 7,680,641	$ 6,403,032

Note 1 - Nature of Business and Significant Accounting Policies

12 Months Ended

Aug. 31, 2021

Notes to Financial Statements

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

1. 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 65 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 45 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 18 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-19 Pandemic – In March 2020, the World Health Organization declared the novel coronavirus (COVID-19) outbreak a global pandemic. As a result of the COVID-19 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 2022. In fiscal year 2021, the Company was impacted by shipping issues, including freight container shortages, shipping delays, and increased costs, and supply chain issues, including longer lead times and raw material cost increases.

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), and its wholly owned subsidiaries 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. Effective as of September 1, 2021, Harita-NTI Limited (Harita-NTI) will be consolidated in the Company’s consolidated financial statements since the Company purchased the remaining 50% ownership interest of Harita-NTI effective as of September 1, 2021.

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 no 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.

When determining recognition of revenue arrangements the Company performs the following five steps: (1) identify the contracts with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) 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.

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.

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 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less. There are no 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 606-10-25-16A and does not assess if immaterial items are promised goods or services. The Company has also applied the practical expedient in paragraph 606-10-32-18 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 to 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 no 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 340-40-25-4 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 30 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 $382,000 as of August 31, 2021 and $90,000 as of August 31, 2020. 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 90 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, 2021 or 2020.

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 (in years) 5 - 30

Machinery and equipment (in years) 3 - 10

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, 2021 and 2020. 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 no 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 no 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 50 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-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 2 - Accounting Pronouncements

12 Months Ended

Aug. 31, 2021

Notes to Financial Statements

Accounting Standards Update and Change in Accounting Principle [Text Block]

2. ACCOUNTING PRONOUNCEMENTS

Recently Issued Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. 2018-19 and in April 2019, issued ASU No. 2019-04 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.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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+ Details

Note 3 - Inventories

12 Months Ended

Aug. 31, 2021

Notes to Financial Statements

Inventory Disclosure [Text Block]

3. INVENTORIES

Inventories consisted of the following:

	August 31, 2021		August 31, 2020
Production materials	$	4,453,688	$	3,866,791
Finished goods		6,660,519		7,095,005
	$	11,114,207	$	10,961,796

Note 4 - Property and Equipment, Net

12 Months Ended

Aug. 31, 2021

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

4. PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following:

	August 31, 2021			August 31, 2020
Land	$	310,365		$	310,365
Buildings and improvements		13,149,258			8,167,783
Machinery and equipment		5,453,679			4,940,912
		18,913,302			13,419,060
Less accumulated depreciation		(7,091,844	)		(6,308,271	)
	$	11,821,458		$	7,110,789

Note 5 - Patents and Trademarks, Net

12 Months Ended

Aug. 31, 2021

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

5. PATENTS AND TRADEMARKS, NET

Patents and trademarks, net consisted of the following:

	August 31, 2021			August 31, 2020
Patents and trademarks	$	3,018,507		$	2,907,852
Less accumulated amortization		(2,308,935	)		(2,105,846	)
	$	709,572		$	802,006

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 $203,088 and $231,624 for the years ended August 31, 2021 and 2020, respectively. Amortization expense is estimated to be $190,000 in each of the next four fiscal years.

Note 6 - Investments in Joint Ventures

12 Months Ended

Aug. 31, 2021

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

6. INVESTMENTS IN JOINT VENTURES

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

The Company considers the Company’s joint venture in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR) to be individually significant to the Company’s consolidated assets and income as of August 31, 2021. The Company considers the Company’s joint venture 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 LIMITED and ZERUST SPECIALTY TECH CO. LTD. Harita-NTI Limited became a wholly owned subsidiary of the Company effective as of September 1, 2021. 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, 2021
	Total		EXCOR		OTHER
Current assets	$	69,394,796	$	33,886,655	$	35,508,141
Total assets		73,814,402		36,211,520		37,602,882
Current liabilities		16,366,398		5,386,377		10,980,021
Noncurrent liabilities		1,455,524		-		1,455,524
Joint ventures’ equity		55,992,480		30,825,144		25,167,336
Northern Technologies International Corporation’s share of joint ventures’ equity		27,623,768		15,412,574		12,211,194
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		24,702,778		14,697,490		10,005,288

	Fiscal Year Ended August 31, 2021
	Total		EXCOR		OTHER
Net sales	$	120,954,550	$	46,522,688	$	74,431,862
Gross profit		53,371,610		25,389,981		27,981,629
Net income		14,921,531		8,798,995		6,122,536
Northern Technologies International Corporation’s share of equity in income of joint ventures		7,465,214		4,400,403		3,064,811
Northern Technologies International Corporation’s dividends received from joint ventures		3,665,365		1,809,900		1,855,465

	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

The Company did not make any joint venture investments during fiscal 2021 or fiscal 2020.

Note 7 - Corporate Debt

12 Months Ended

Aug. 31, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

7. CORPORATE DEBT

The Company has a revolving line of credit with PNC Bank of $5,000,000 at August 31, 2021. As described in more detail on Note 18 entitled “Subsequent Events,” this line of credit was increased from $3,000,000 to $5,000,000 effective as of August 31, 2021. No amounts were outstanding under the line of credit as of August 31, 2021 or 2020. Outstanding advances under the line of credit bear interest at a rate equal to the daily LIBOR plus 2.50%. The line of credit matures on February 22, 2022. The line of credit is governed under an amended and restated loan agreement. The loan agreement contains 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, 2021, the Company was in compliance with all debt covenants. As of August 31, 2021, NTIC did not have any letters of credit outstanding with respect to the letter of credit sub-facility available under the revolving line of credit with PNC Bank.

As of August 31, 2021, the Company had $104,363 of letters of credit with JP Morgan Chase Bank that are performance based and set to expire between 2021 and 2022.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Note 8 - Stockholders' Equity

12 Months Ended

Aug. 31, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

8. STOCKHOLDERS’ EQUITY

During fiscal 2021, NTIC’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
January 15, 2021	$	0.065	February 3, 2021	February 17, 2021
April 23, 2021	$	0.065	May 5, 2021	May 19, 2021
July 21, 2021	$	0.065	August 4, 2021	August 18, 2021

During fiscal 2020, NTIC’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

On April 23, 2020, the Company announced the temporary suspension of its quarterly cash dividend pending clarity on the financial impact of COVID-19 on the Company. Therefore, NTIC’s Board of Directors did not declare a cash dividend during the quarter ended May 31, 2020, the quarter ended August 31, 2020, or the quarter ended November 30, 2020. On January 15, 2021, the Company announced the reinstatement of its quarterly cash dividend.

On 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 no expiration date but may be terminated by the Company’s Board of Directors at any time. As of August 31, 2021, up to $2,640,548 of value in shares of common stock remained available for repurchase under the stock repurchase program.

During fiscal 2021, the Company did not repurchase or retire any shares of its common stock. During fiscal 2021, stock options to purchase an aggregate of 77,645 shares of common stock were exercised at a weighted average exercise price of $8.18 per share; some of the options were exercised on a cashless basis, resulting in the net issuance of 74,950 shares of common stock.

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 11,975 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.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Note 9 - Net Income (Loss) Per Common Share

12 Months Ended

Aug. 31, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

9. NET INCOME (LOSS) PER COMMON SHARE

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

The following is a reconciliation of the net income (loss) per share computation for fiscal 2021 and fiscal 2020:

Numerator:	August 31, 2021		August 31, 2020
Net income (loss) attributable to NTIC	$	6,281,238	$	(1,337,709	)

Denominator:
Basic-weighted shares outstanding		9,116,472		9,096,981
Weighted shares assumed upon exercise of stock options		757,667		-
Diluted – weighted shares outstanding		9,874,139		9,096,981

Basic net income (loss) per share:	$	0.69	$	(0.15	)
Diluted net income (loss) per share:	$	0.64	$	(0.15	)

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, 2021 were options outstanding to purchase 136,221 shares of common stock. 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.

Note 10 - Stock-based Compensation

12 Months Ended

Aug. 31, 2021

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 Amended and Restated 2019 Stock Incentive Plan (the 2019 Plan), 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, no 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. On January 15, 2021, the Company’s stockholders approved certain amendments to the 2019 Plan, including an increase in the number of shares of common stock available for issuance under the plan by an additional 800,000 shares. Subject to adjustment as provided in the 2019 Plan, up to a maximum of 1,600,000 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, 2021 and 2020, the Company granted stock options under the 2019 Plan to purchase an aggregate of 419,874 and 300,770 shares of its common stock to various employees and directors, respectively. As of August 31, 2021, 879,356 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 5,225 and 2,754 shares on March 1, 2021 and 2020, respectively, and 4,646 and 3,597 shares on September 1, 2020 and 2019, respectively, under the ESPP. As of August 31, 2021, 74,822 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 $664,174 and $1,337,774 during fiscal 2021 and fiscal 2020, respectively, related to the options that vested during such time. As of August 31, 2021, the total compensation cost for non-vested options not yet recognized on the Company’s consolidated statements of operations was $666,667, which is expected to be recognized during fiscal 2022 and fiscal 2023, based on outstanding options as of August 31, 2021. 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 2021			Fiscal Year 2020
Dividend yield		1.65	%		2.41	%
Expected volatility		45.4	%		45.2	%
Expected life of option (in years)		10			10
Weighted average risk-free interest rate		0.77	%		1.40	%

Stock option activity during the periods indicated was as follows:

	Number of Shares (#)			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding at August 31, 2019		839,173		$	9.13
Options granted		300,770			10.87
Options exercised		(11,975	)		5.13
Options terminated		—			—

Outstanding at August 31, 2020		1,127,968		$	9.63
Options granted		419,874			8.24
Options exercised		(77,645	)		8.18
Options terminated		(43,546	)		9.63

Outstanding at August 31, 2021		1,426,651		$	9.30	$	10,514,418

Exercisable at August 31, 2021		1,022,802		$	9.72	$	7,108,474

The weighted average per share fair value of options granted during fiscal 2021 and fiscal 2020 was $8.24 and $10.87, respectively. The weighted average remaining contractual life of the options outstanding and exercisable as of August 31, 2021 was 6.20 years and 5.09 years, respectively.

Note 11 - Segment and Geographic Information

12 Months Ended

Aug. 31, 2021

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 45 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 2021		Fiscal 2020
ZERUST® net sales	$	45,554,434	$	34,474,535
Natur-Tec® net sales		10,939,385		13,164,156
Total net sales	$	56,493,819	$	47,638,691

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

	Fiscal 2021		Fiscal 2020
Direct cost of goods sold
ZERUST®	$	26,028,555	$	18,717,684
Natur-Tec®		7,717,429		10,168,051
Indirect cost of goods sold		3,174,830		2,723,539
Total net cost of goods sold	$	36,920,814	$	31,609,274

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 2021 and fiscal 2020 were as follows:

	Fiscal Year Ended August 31,
	2021		2020
Inside the U.S.A. to unaffiliated customers	$	22,039,456	$	20,218,213
Outside the U.S.A. to:
Joint ventures in which the Company is a shareholder directly and indirectly		3,023,196		1,972,646
Unaffiliated customers		31,431,167		25,447,832
	$	56,493,819	$	47,638,691

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 2021		% of Total Fees for Services Provided to Joint Ventures			Fiscal 2020		% of Total Fees for Services Provided to Joint Ventures
Germany	$	920,902		15.4	%	$	843,752		18.3	%
Japan		826,403		13.9	%		628,889		13.6	%
Poland		798,570		13.4	%		553,198		12.0	%
Sweden		528,755		8.9	%		372,017		8.1	%
France		435,032		7.3	%		310,661		6.7	%
Thailand		399,563		6.7	%		328,452		7.1	%
India		392,074		6.6	%		250,976		5.4	%
Czech Republic		377,395		6.3	%		270,032		5.9	%
South Korea		317,042		5.3	%		266,703		5.8	%
United Kingdom		316,786		5.3	%		255,121		5.5	%
Finland		298,663		5.0	%		256,375		5.6	%
Indonesia		122,513		2.1	%		99,543		2.2	%
Other		230,562		3.8	%		177,167		3.8	%
	$	5,964,260		100.0	%	$	4,612,885		100.0	%

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.

See Note 6 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, 2021		At August 31, 2020
China	$	5,110,071	$	376,088
Other		453,199		172,833
United States		6,258,188		6,561,868
Total long-lived assets	$	11,821,458	$	7,110,789

	Fiscal Year Ended August 31, 2021		Fiscal Year Ended August 31, 2020
China	$	17,343,623	$	13,409,770
Brazil		4,122,781		2,753,930
India		5,482,989		5,655,797
Other		7,504,970		5,600,982
United States		22,039,456		20,218,212
Total net sales	$	56,493,819	$	47,638,691

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.

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.

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+ Details

Note 12 - Retirement Plan

12 Months Ended

Aug. 31, 2021

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 $237,499 and $234,534 for fiscal 2021 and fiscal 2020, respectively.

- Definition

The entire disclosure for retirement benefits.

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+ Details

Note 13 - Related Party Transactions

12 Months Ended

Aug. 31, 2021

Notes to Financial Statements

13. RELATED PARTY TRANSACTIONS

During both fiscal 2021 and fiscal 2020, 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 14 - Income Taxes

12 Months Ended

Aug. 31, 2021

Notes to Financial Statements

Income Tax Disclosure [Text Block]

14. INCOME TAXES

The provision for income taxes for the fiscal years ended August 31, 2021 and 2020 was approximately as follows:

	Fiscal Year Ended August 31,
	2021		2020
Current:
Federal	$	—	$	—
State		39,000		23,000
Foreign		1,307,000		1,226,000
		1,346,000		1,249,000
Deferred:
Federal		—		1,501,000
State		—		101,000
Foreign		115,905		(176,365	)
		115,905		1,425,635
	$	1,461,905	$	2,674,635

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, 2021 and 2020 were approximately as follows:

	Fiscal Year Ended August 31,
	2021			2020
Tax computed at statutory rates	$	1,794,000		$	365,000
State income tax, net of federal benefit		37,000			23,000
Tax effect on equity in income of international joint ventures		(1,560,000	)		(888,000	)
Tax effect of foreign operations		839,000			641,000
Deemed repatriation		—			108,000
Expired foreign tax credit		897,000			—
Research and development credit		(277,000	)		(368,000	)
Valuation allowance		(492,000	)		2,797,000
Stock based compensation		75,000			189,000
Non-controlling interest		(83,000	)		(55,000	)
Other		231,905			(137.365	)
	$	1,461,905		$	2,674,635

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 expense of approximately $113,000 and tax benefit of approximately $76,000 during fiscal 2021 and fiscal 2020, 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, 2021 and 2020 was approximately as follows:

	August 31,
	2021			2020
Accrued compensation	$	539,300		$	173,500
Inventory costs		55,100			64,000
Other accrued expenses		103,100			74,900
Lease liability		84,300			147,500
Goodwill and other intangible assets		453,000			581,200
Stock-based compensation		466,300			397,300
Foreign tax credit carryforward		4,893,300			5,790,500
Other credit and loss carryforwards		5,243,100			4,824,200
Total deferred tax assets		11,837,500			12,053,100
Valuation allowance		(11,447,500	)		(11,561,700	)
Total deferred tax assets after valuation allowance		390,000			491,400
Property and equipment		(7,300	)		(50,700	)
Right-of-use asset		(84,300	)		(147,500	)
Unremitted foreign earnings		(154,900	)		—
Other		(50,900	)		(83,400	)
Total deferred tax liabilities		(297,400	)		(281,600	)
Net deferred tax assets	$	92,600		$	209,800

As of August 31, 2020, the Company had foreign tax credit carryforwards of $5,790,500 of which $897,000 expired during August 31, 2021. The remaining $4,893,300 of foreign tax credit carryforwards as of August 31, 2021 will begin to expire if not utilized prior to August 31, 2022. In addition, the Company had federal and state tax credit carryforwards of $3,552,500 as of August 31, 2021, which began to expire in fiscal 2022. 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 $1,065,500 for federal net operating loss carryforwards and $377,600 for state net operating loss carryforwards as of August 31, 2021. The federal net operating loss carryforward has an indefinite carryforward period. The state net operating loss carryforward will begin to expire if not utilized prior to August 31, 2022. The Company has a deferred tax asset of $247,500 for foreign net operating loss carryforwards, $223,300 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.

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 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 $11,447,500 and $11,561,700 as of August 31, 2021 and 2020, respectively, 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, 2021 and 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. The change in the valuation allowance totaled a decrease of $114,000 and an increase of $2,797,000 for the years ended August 31, 2021 and 2020, respectively.

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

	Fiscal Year Ended August 31,
	2021		2020
Gross unrecognized tax benefits – beginning balance	$	278,200	$	248,000
Gross increases – prior period tax positions		4,400		15,200
Gross increases – current period tax positions		15,000		15,000
Gross unrecognized tax benefits – ending balance	$	297,600	$	278,200

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 12 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 no liability for the payment of interest and penalties as of both August 31, 2021 and August 31, 2020.

The Company is subject to taxation in the United States and various states and foreign jurisdictions. With few exceptions, as of August 31, 2021, the Company is no longer subject to federal, state, local, or foreign examinations by tax authorities for years prior to August 31, 2018.

- 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.

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+ Details

Note 15 - Commitments and Contingencies

12 Months Ended

Aug. 31, 2021

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 December 31, 2021 and June 30, 2024. The Company has the option to extend certain leases to five or 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, no leases with terms less than 12 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 no contingent rent agreements.

Present Value of Leases

	August 31, 2021		August 31, 2020
Right-of-use assets, net	$	376,438	$	658,788

Current portion of lease liability		272,336		386,345
Lease liability, less current portion		104,102		272,443
Total lease liability	$	376,438	$	658,788

As of August 31, 2021, the weighted-average remaining lease term was 1.50 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, 2021, 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, 2021 under these long-term operating leases are as follows (in thousands):

Fiscal 2022		272,336
Fiscal 2023		84,353
Fiscal 2024		26,700
Fiscal 2025		-
Total future minimum lease payments		383,389
Less amount representing interest		(6,951	)
Present value of obligations under operating leases		376,438
Less current portion		(272,336	)
Long-term operating lease obligations	$	104,102

Rent expense under these leases was approximately $386,345 and $131,840 for the years ended August 31, 2021 and 2020.

Annual Bonus Plan

On August 26, 2021, 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, 2022. For fiscal 2022, 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 2022 compared to a pre-established target EBITOI for fiscal 2022, 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 2022.

On 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. $2,366,668 was recognized for bonuses for the fiscal year ended August 31, 2021, $266,667 of the bonus is comprised of stock options granted to management on September 1, 2020 that will be expensed over three years and $2,100,000 will be paid out in cash and profit sharing subsequent to year end. This is compared to $1,300,000 recognized for bonuses for the fiscal year ended August 31, 2020, $800,000 of the bonus comprised of stock options granted to management on September 1, 2019 and $500,000 was paid out in cash and profit sharing subsequent to year end.

Concentrations

Two joint ventures (consisting of the Company’s joint ventures in the Thailand and Indonesia) accounted for 37.4% of the Company’s trade joint venture receivables as of August 31, 2021, and 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.

Legal Matters

From time to time, the Company is subject to various 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 no 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, 2021, the amount of liability, if any, with respect to these matters, individually or in the aggregate, will not materially affect the Company’s consolidated results of operations, financial position, or cash flows.

Note 16 - Statements of Cash Flows

12 Months Ended

Aug. 31, 2021

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,
	2021		2020
Cash paid during the year for income tax	$	895,646	$	1,099,635
Cash paid during the year for interest		16,086		16,034

Note 17 - Fair Value Measurements

12 Months Ended

Aug. 31, 2021

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

Level 2 - 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 3 - 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, 2021

Level 1

Level 2

Level 3

Available for sale securities

4,634

—

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

—

Valuation Techniques

Financial assets that are classified as Level 1 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 no transfers between Level 1, Level 2, or Level 3 during the fiscal years ended August 31, 2021 or August 31, 2020. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement.

Note 18 - Subsequent Events

12 Months Ended

Aug. 31, 2021

Notes to Financial Statements

Subsequent Events [Text Block]

18. SUBSEQUENT EVENTS

On October 20, 2021, NTIC’s Board of Directors declared a cash dividend of $0.07 per share of NTIC’s common stock, payable on November 17, 2021 to stockholders of record on November 3, 2021. Although NTIC’s Board of Directors intends to declare regular quarterly cash dividends going forward, the payment of any future dividends will be determined by NTIC’s Board of Directors in light of conditions then existing, including NTIC’s earnings, financial condition, cash requirements, restrictions in financing agreements, business conditions, and other factors, including without limitation the effect of COVID-19 on its business, operating results, and financial condition.

On September 21, 2021, the Company announced that it acquired the remaining 50% ownership interest in its Indian joint venture, Harita-NTI Limited, for USD $6.25 million in cash, effective as of September 1, 2021. This purchase was funded with cash available from existing operations.

Also on September 21, 2021, the Company and PNC Bank entered into an Amended and Restated Loan Agreement and Amended and Restated Security Agreement relating to the Company’s revolving line of credit with PNC Bank and the Company issued an amended and restated promissory note thereunder, in each case effective as of August 31, 2021, which together increased the line of credit from $3.0 million to $5.0 million, extended the maturity date to February 22, 2022 and revised the rate at which amounts outstanding under the line of credit bear interest to equal a per annum rate equal to the daily LIBOR plus 250 basis points (2.50%). The other material terms of the line of credit, Amended and Restated Loan Agreement and Amended and Restated Security Agreement with PNC Bank and other related documents were not affected by these amendments.

Significant Accounting Policies (Policies)

12 Months Ended

Aug. 31, 2021

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

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

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 no 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.

When determining recognition of revenue arrangements the Company performs the following five steps: (1) identify the contracts with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) 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.

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.

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 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less. There are no 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 606-10-25-16A and does not assess if immaterial items are promised goods or services. The Company has also applied the practical expedient in paragraph 606-10-32-18 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 to 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 no 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 340-40-25-4 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 – 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 30 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 $382,000 as of August 31, 2021 and $90,000 as of August 31, 2020. 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.

Receivables from Joint Ventures Policy [Policy Text Block ]

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 90 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, 2021 or 2020.

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, 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 (in years)			5				-				30
Machinery and equipment (in years)			3				-				10

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

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.

Equity Method Investments [Policy Text Block]

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, 2021 and 2020. 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 no 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 no 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.

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 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 Tax, Policy [Policy Text Block]

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 50 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)) – 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, Policy [Policy Text Block]

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 Cost, Policy [Policy Text Block]

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, 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.

Share-based Payment Arrangement [Policy Text Block]

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

12 Months Ended

Aug. 31, 2021

Notes Tables

Property and Equipment Useful Life [Table Text Block]

Buildings and improvements (in years)			5				-				30
Machinery and equipment (in years)			3				-				10

Note 3 - Inventories (Tables)

12 Months Ended

Aug. 31, 2021

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	August 31, 2021		August 31, 2020
Production materials	$	4,453,688	$	3,866,791
Finished goods		6,660,519		7,095,005
	$	11,114,207	$	10,961,796

Note 4 - Property and Equipment, Net (Tables)

12 Months Ended

Aug. 31, 2021

Notes Tables

Property, Plant and Equipment [Table Text Block]

	August 31, 2021			August 31, 2020
Land	$	310,365		$	310,365
Buildings and improvements		13,149,258			8,167,783
Machinery and equipment		5,453,679			4,940,912
		18,913,302			13,419,060
Less accumulated depreciation		(7,091,844	)		(6,308,271	)
	$	11,821,458		$	7,110,789

Note 5 - Patents and Trademarks, Net (Tables)

12 Months Ended

Aug. 31, 2021

Notes Tables

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

	August 31, 2021			August 31, 2020
Patents and trademarks	$	3,018,507		$	2,907,852
Less accumulated amortization		(2,308,935	)		(2,105,846	)
	$	709,572		$	802,006

Note 6 - Investments in Joint Ventures (Tables)

12 Months Ended

Aug. 31, 2021

Notes Tables

Condensed Balance Sheet [Table Text Block]

	As of August 31, 2021
	Total		EXCOR		OTHER
Current assets	$	69,394,796	$	33,886,655	$	35,508,141
Total assets		73,814,402		36,211,520		37,602,882
Current liabilities		16,366,398		5,386,377		10,980,021
Noncurrent liabilities		1,455,524		-		1,455,524
Joint ventures’ equity		55,992,480		30,825,144		25,167,336
Northern Technologies International Corporation’s share of joint ventures’ equity		27,623,768		15,412,574		12,211,194
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		24,702,778		14,697,490		10,005,288

	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

Condensed Income Statement [Table Text Block]

	Fiscal Year Ended August 31, 2021
	Total		EXCOR		OTHER
Net sales	$	120,954,550	$	46,522,688	$	74,431,862
Gross profit		53,371,610		25,389,981		27,981,629
Net income		14,921,531		8,798,995		6,122,536
Northern Technologies International Corporation’s share of equity in income of joint ventures		7,465,214		4,400,403		3,064,811
Northern Technologies International Corporation’s dividends received from joint ventures		3,665,365		1,809,900		1,855,465

	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

Note 8 - Stockholders' Equity (Tables)

12 Months Ended

Aug. 31, 2021

Notes Tables

Dividends Declared [Table Text Block]

Declaration Date	Amount		Record Date	Payable Date
January 15, 2021	$	0.065	February 3, 2021	February 17, 2021
April 23, 2021	$	0.065	May 5, 2021	May 19, 2021
July 21, 2021	$	0.065	August 4, 2021	August 18, 2021

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

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

12 Months Ended

Aug. 31, 2021

Notes Tables

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

Numerator:	August 31, 2021		August 31, 2020
Net income (loss) attributable to NTIC	$	6,281,238	$	(1,337,709	)

Denominator:
Basic-weighted shares outstanding		9,116,472		9,096,981
Weighted shares assumed upon exercise of stock options		757,667		-
Diluted – weighted shares outstanding		9,874,139		9,096,981

Basic net income (loss) per share:	$	0.69	$	(0.15	)
Diluted net income (loss) per share:	$	0.64	$	(0.15	)

Note 10 - Stock-based Compensation (Tables)

12 Months Ended

Aug. 31, 2021

Notes Tables

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

	Fiscal Year 2021			Fiscal Year 2020
Dividend yield		1.65	%		2.41	%
Expected volatility		45.4	%		45.2	%
Expected life of option (in years)		10			10
Weighted average risk-free interest rate		0.77	%		1.40	%

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

	Number of Shares (#)			Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding at August 31, 2019		839,173		$	9.13
Options granted		300,770			10.87
Options exercised		(11,975	)		5.13
Options terminated		—			—

Outstanding at August 31, 2020		1,127,968		$	9.63
Options granted		419,874			8.24
Options exercised		(77,645	)		8.18
Options terminated		(43,546	)		9.63

Outstanding at August 31, 2021		1,426,651		$	9.30	$	10,514,418

Exercisable at August 31, 2021		1,022,802		$	9.72	$	7,108,474

Note 11 - Segment and Geographic Information (Tables)

12 Months Ended

Aug. 31, 2021

Notes Tables

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

	Fiscal 2021		Fiscal 2020
ZERUST® net sales	$	45,554,434	$	34,474,535
Natur-Tec® net sales		10,939,385		13,164,156
Total net sales	$	56,493,819	$	47,638,691

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

	Fiscal 2021		Fiscal 2020
Direct cost of goods sold
ZERUST®	$	26,028,555	$	18,717,684
Natur-Tec®		7,717,429		10,168,051
Indirect cost of goods sold		3,174,830		2,723,539
Total net cost of goods sold	$	36,920,814	$	31,609,274

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

	Fiscal Year Ended August 31,
	2021		2020
Inside the U.S.A. to unaffiliated customers	$	22,039,456	$	20,218,213
Outside the U.S.A. to:
Joint ventures in which the Company is a shareholder directly and indirectly		3,023,196		1,972,646
Unaffiliated customers		31,431,167		25,447,832
	$	56,493,819	$	47,638,691

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

	At August 31, 2021		At August 31, 2020
China	$	5,110,071	$	376,088
Other		453,199		172,833
United States		6,258,188		6,561,868
Total long-lived assets	$	11,821,458	$	7,110,789

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

	Fiscal Year Ended August 31, 2021		Fiscal Year Ended August 31, 2020
China	$	17,343,623	$	13,409,770
Brazil		4,122,781		2,753,930
India		5,482,989		5,655,797
Other		7,504,970		5,600,982
United States		22,039,456		20,218,212
Total net sales	$	56,493,819	$	47,638,691

Fees for Services Provided to Joint Ventures [Member]

Notes Tables

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

	Fiscal 2021		% of Total Fees for Services Provided to Joint Ventures			Fiscal 2020		% of Total Fees for Services Provided to Joint Ventures
Germany	$	920,902		15.4	%	$	843,752		18.3	%
Japan		826,403		13.9	%		628,889		13.6	%
Poland		798,570		13.4	%		553,198		12.0	%
Sweden		528,755		8.9	%		372,017		8.1	%
France		435,032		7.3	%		310,661		6.7	%
Thailand		399,563		6.7	%		328,452		7.1	%
India		392,074		6.6	%		250,976		5.4	%
Czech Republic		377,395		6.3	%		270,032		5.9	%
South Korea		317,042		5.3	%		266,703		5.8	%
United Kingdom		316,786		5.3	%		255,121		5.5	%
Finland		298,663		5.0	%		256,375		5.6	%
Indonesia		122,513		2.1	%		99,543		2.2	%
Other		230,562		3.8	%		177,167		3.8	%
	$	5,964,260		100.0	%	$	4,612,885		100.0	%

Note 14 - Income Taxes (Tables)

12 Months Ended

Aug. 31, 2021

Notes Tables

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

	Fiscal Year Ended August 31,
	2021		2020
Current:
Federal	$	—	$	—
State		39,000		23,000
Foreign		1,307,000		1,226,000
		1,346,000		1,249,000
Deferred:
Federal		—		1,501,000
State		—		101,000
Foreign		115,905		(176,365	)
		115,905		1,425,635
	$	1,461,905	$	2,674,635

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

	Fiscal Year Ended August 31,
	2021			2020
Tax computed at statutory rates	$	1,794,000		$	365,000
State income tax, net of federal benefit		37,000			23,000
Tax effect on equity in income of international joint ventures		(1,560,000	)		(888,000	)
Tax effect of foreign operations		839,000			641,000
Deemed repatriation		—			108,000
Expired foreign tax credit		897,000			—
Research and development credit		(277,000	)		(368,000	)
Valuation allowance		(492,000	)		2,797,000
Stock based compensation		75,000			189,000
Non-controlling interest		(83,000	)		(55,000	)
Other		231,905			(137.365	)
	$	1,461,905		$	2,674,635

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

	August 31,
	2021			2020
Accrued compensation	$	539,300		$	173,500
Inventory costs		55,100			64,000
Other accrued expenses		103,100			74,900
Lease liability		84,300			147,500
Goodwill and other intangible assets		453,000			581,200
Stock-based compensation		466,300			397,300
Foreign tax credit carryforward		4,893,300			5,790,500
Other credit and loss carryforwards		5,243,100			4,824,200
Total deferred tax assets		11,837,500			12,053,100
Valuation allowance		(11,447,500	)		(11,561,700	)
Total deferred tax assets after valuation allowance		390,000			491,400
Property and equipment		(7,300	)		(50,700	)
Right-of-use asset		(84,300	)		(147,500	)
Unremitted foreign earnings		(154,900	)		—
Other		(50,900	)		(83,400	)
Total deferred tax liabilities		(297,400	)		(281,600	)
Net deferred tax assets	$	92,600		$	209,800

Summary of Income Tax Contingencies [Table Text Block]

	Fiscal Year Ended August 31,
	2021		2020
Gross unrecognized tax benefits – beginning balance	$	278,200	$	248,000
Gross increases – prior period tax positions		4,400		15,200
Gross increases – current period tax positions		15,000		15,000
Gross unrecognized tax benefits – ending balance	$	297,600	$	278,200

Note 15 - Commitments and Contingencies (Tables)

12 Months Ended

Aug. 31, 2021

Notes Tables

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

	August 31, 2021		August 31, 2020
Right-of-use assets, net	$	376,438	$	658,788

Current portion of lease liability		272,336		386,345
Lease liability, less current portion		104,102		272,443
Total lease liability	$	376,438	$	658,788

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

Fiscal 2022		272,336
Fiscal 2023		84,353
Fiscal 2024		26,700
Fiscal 2025		-
Total future minimum lease payments		383,389
Less amount representing interest		(6,951	)
Present value of obligations under operating leases		376,438
Less current portion		(272,336	)
Long-term operating lease obligations	$	104,102

Note 16 - Statements of Cash Flows (Tables)

12 Months Ended

Aug. 31, 2021

Notes Tables

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

	Fiscal Year Ended August 31,
	2021		2020
Cash paid during the year for income tax	$	895,646	$	1,099,635
Cash paid during the year for interest		16,086		16,034

Note 17 - Fair Value Measurements (Tables)

12 Months Ended

Aug. 31, 2021

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, 2021

Level 1

Level 2

Level 3

Available for sale securities

4,634

—

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

—

Note 1 - Nature of Business and Significant Accounting Policies (Details Textual)	12 Months Ended
	Aug. 31, 2021 USD ($)	Sep. 01, 2021	Aug. 31, 2020 USD ($)
Number of Countries in which Entity Operates	65
Number of Operating Segments	2
Number of Joint Venture Arrangements	18
Accounts Receivable, Allowance for Credit Loss, Ending Balance	$ 382,000		$ 90,000
Subsequent Event [Member] \| Acquisition of Remaining Ownership Interest in Harita-NTI Limited [Member]
Business Acquisition, Percentage of Voting Interests Acquired		50.00%
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 1 - Nature of Business and Significant Accounting Policies - Property and Equipment, Useful Life (Details)	12 Months Ended
	Aug. 31, 2021
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 3 - Inventories - Inventories (Details) - USD ($)	Aug. 31, 2021	Aug. 31, 2020
Production materials	$ 4,453,688	$ 3,866,791
Finished goods	6,660,519	7,095,005
Total inventory	$ 11,114,207	$ 10,961,796

Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($)	Aug. 31, 2021	Aug. 31, 2020
Land	$ 310,365	$ 310,365
Buildings and improvements	13,149,258	8,167,783
Machinery and equipment	5,453,679	4,940,912
Gross	18,913,302	13,419,060
Less accumulated depreciation	(7,091,844)	(6,308,271)
Net	$ 11,821,458	$ 7,110,789

Note 5 - Patents and Trademarks, Net (Details Textual) - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Amortization, Total	$ 203,088	$ 231,624
Patents and Trademarks [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	7 years
Amortization, Total	$ 203,088
Finite-Lived Intangible Asset, Expected Amortization, Year One	190,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	190,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	190,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	$ 190,000

Note 5 - Patents and Trademarks, Net - Patents and Trademarks, Net (Details) - USD ($)	Aug. 31, 2021	Aug. 31, 2020
Patents and trademarkes, net	$ 709,572	$ 802,006
Patents and Trademarks [Member]
Patents and trademarks	3,018,507	2,907,852
Less accumulated amortization	(2,308,935)	(2,105,846)
Patents and trademarkes, net	$ 709,572	$ 802,006

Note 6 - Investments in Joint Ventures (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Payments to Acquire Interest in Joint Venture	$ 0	$ 0

Note 6 - Investments in Joint Ventures - Condensed Balance Sheet of EXCOR and All Other Joint Ventures (Details) - USD ($)	Aug. 31, 2021	Aug. 31, 2020
Current assets	$ 33,747,089	$ 33,202,350
Total assets	74,370,879	66,074,488
Current liabilities	8,516,196	6,097,604
Noncurrent liabilities	104,102	272,443
Joint ventures’ equity	62,368,026	56,659,415
Investments in joint ventures	27,623,768	24,090,826
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Current assets	69,394,796	55,825,418
Total assets	73,814,402	60,295,587
Current liabilities	16,366,398	11,002,867
Noncurrent liabilities	1,455,524	365,274
Joint ventures’ equity	55,992,480	48,927,446
Investments in joint ventures	27,623,768	24,090,826
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	24,702,778	21,855,747
EXCOR [Member]
Current assets	33,886,655	25,742,619
Total assets	36,211,520	28,449,772
Current liabilities	5,386,377	2,424,565
Noncurrent liabilities	0	0
Joint ventures’ equity	30,825,144	26,025,207
Investments in joint ventures	15,412,574	13,012,606
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	14,697,490	12,981,701
All Other [Member]
Current assets	35,508,141	15,994,506
Total assets	37,602,882	16,413,073
Current liabilities	10,980,021	4,088,235
Noncurrent liabilities	1,455,524	332,275
Joint ventures’ equity	25,167,336	11,992,563
Investments in joint ventures	12,211,194	5,621,446
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	$ 10,005,288	4,404,094
Joint Ventures in France [Member]
Current assets		4,099,160
Total assets		4,873,484
Current liabilities		2,073,710
Noncurrent liabilities		0
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		0
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		0
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

Note 6 - Investments in Joint Ventures - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Net sales by segment	$ 56,493,819	$ 47,638,691
Gross profit	19,573,005	16,029,417
Net income (loss) attributable to NTIC	6,281,238	(1,337,709)
Northern Technologies International Corporation’s share of equity in income of joint ventures	7,465,214	4,270,327
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Net sales by segment	120,954,550	87,030,062
Gross profit	53,371,610	39,532,750
Net income (loss) attributable to NTIC	14,921,531	8,545,473
Northern Technologies International Corporation’s share of equity in income of joint ventures	7,465,214	4,270,327
Northern Technologies International Corporation’s dividends received from joint ventures	3,665,365	5,672,099
EXCOR [Member]
Net sales by segment	46,522,688	32,546,402
Gross profit	25,389,981	18,739,471
Net income (loss) attributable to NTIC	8,798,995	5,266,541
Northern Technologies International Corporation’s share of equity in income of joint ventures	4,400,403	2,622,423
Northern Technologies International Corporation’s dividends received from joint ventures	1,809,900	4,675,850
All Other [Member]
Net sales by segment	74,431,862	31,308,367
Gross profit	27,981,629	11,271,171
Net income (loss) attributable to NTIC	6,122,536	1,184,834
Northern Technologies International Corporation’s share of equity in income of joint ventures	3,064,811	598,032
Northern Technologies International Corporation’s dividends received from joint ventures	$ 1,855,465	249,320
Joint Ventures in France [Member]
Net sales by segment		8,133,294
Gross profit		3,061,433
Net income (loss) 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		0
Joint Ventures in Finland [Member]
Net sales by segment		3,088,865
Gross profit		1,916,001
Net income (loss) 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 income (loss) 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 income (loss) 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

Note 7 - Corporate Debt (Details Textual)		12 Months Ended
Note 7 - Corporate Debt (Details Textual)	Aug. 31, 2021 USD ($)	Aug. 31, 2021 USD ($)	Aug. 30, 2021 USD ($)	Aug. 31, 2020 USD ($)
PNC Bank [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 5,000,000	$ 5,000,000	$ 3,000,000
Long-term Line of Credit, Total	$ 0	$ 0		$ 0
Debt Instrument, Covenants, Fixed Charge Coverage Ratio		1.10
Letters of Credit Outstanding, Amount				$ 0
PNC Bank [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.50%
JP Morgan Chase Bank [Member]
Letters of Credit Outstanding, Amount	$ 104,363	$ 104,363

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Note 8 - Stockholders' Equity (Details Textual) - USD ($)						3 Months Ended			12 Months Ended
	Jul. 21, 2021	Apr. 23, 2021	Jan. 15, 2021	Jan. 22, 2020	Oct. 22, 2019	Nov. 30, 2020	Aug. 31, 2020	May 31, 2020	Aug. 31, 2021	Aug. 31, 2020	Jan. 15, 2015
Common Stock, Dividends, Per Share, Declared (in dollars per share)	$ 0.065	$ 0.065	$ 0.065	$ 0.065	$ 0.065	$ 0	$ 0	$ 0	$ 0.20	$ 0.13
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)									77,645	11,975
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in dollars per share)									$ 8.18	$ 5.13
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares)									74,950	6,823

Note 8 - Stockholders' Equity - Cash Dividends Declared (Details) - $ / shares						3 Months Ended			12 Months Ended
	Jul. 21, 2021	Apr. 23, 2021	Jan. 15, 2021	Jan. 22, 2020	Oct. 22, 2019	Nov. 30, 2020	Aug. 31, 2020	May 31, 2020	Aug. 31, 2021	Aug. 31, 2020
Amount (in dollars per share)	$ 0.065	$ 0.065	$ 0.065	$ 0.065	$ 0.065	$ 0	$ 0	$ 0	$ 0.20	$ 0.13
Record date	Aug. 04, 2021	May 05, 2021	Feb. 03, 2021	Feb. 05, 2020	Nov. 06, 2019
Payable date	Aug. 18, 2021	May 19, 2021	Feb. 17, 2021	Feb. 19, 2020	Nov. 20, 2019

Note 9 - Net Income (Loss) Per Common Share (Details Textual) - shares	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Share-based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	136,221	1,127,968

Note 9 - Net Income (Loss) Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Net income (loss) attributable to NTIC	$ 6,281,238	$ (1,337,709)
Basic-weighted shares outstanding (in shares)	9,116,472	9,096,981
Weighted shares assumed upon exercise of stock options (in shares)	757,667	0
Diluted – weighted shares outstanding (in shares)	9,874,139	9,096,981
Basic net income (loss) per share: (in dollars per share)	$ 0.69	$ (0.15)
Diluted net income (loss) per share: (in dollars per share)	$ 0.64	$ (0.15)

- Definition

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

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

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-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
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Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 35: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

+ Details

Note 10 - Stock-based Compensation (Details Textual) - USD ($)						12 Months Ended
	Mar. 01, 2021	Jan. 15, 2021	Sep. 01, 2020	Mar. 01, 2020	Sep. 01, 2019	Aug. 31, 2021	Aug. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)						419,874	300,770
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares)	5,225		4,646	2,754	3,597
Stock or Unit Option Plan Expense						$ 664,174	$ 1,337,774
Allocated Share-based Compensation Expense, Estimate, Fiscal Year Two						$ 666,667
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)						$ 8.24	$ 10.87
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year)						6 years 2 months 12 days	5 years 1 month 2 days
The 2019 Plan [member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares)		800,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)						1,600,000
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)						419,874	300,770
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares)						879,356
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)						74,822

Note 10 - Stock-based Compensation - Black-Scholes Option-pricing Model Assumptions (Details)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Dividend yield	1.65%	2.41%
Expected volatility	45.40%	45.20%
Expected life of option (in years) (Year)	10 years	10 years
Weighted average risk-free interest rate	0.77%	1.40%

Note 10 - Stock-based Compensation - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Number of shares, Outstanding (in shares)	1,127,968	839,173
Weighted average exercise price, Outstanding (in dollars per share)	$ 9.63	$ 9.13
Number of shares, Options granted (in shares)	419,874	300,770
Weighted average exercise price, Options granted (in dollars per share)	$ 8.24	$ 10.87
Number of shares, Options exercised (in shares)	(77,645)	(11,975)
Weighted average exercise price, Options exercised (in dollars per share)	$ 8.18	$ 5.13
Number of shares, Options terminated (in shares)	(43,546)	0
Weighted average exercise price, Options terminated (in dollars per share)	$ 9.63	$ 0
Number of shares, Outstanding (in shares)	1,426,651	1,127,968
Weighted average exercise price, Outstanding (in dollars per share)	$ 9.30	$ 9.63
Aggregate intrinsic value, Outstanding	$ 10,514,418
Number of shares, Exercisable (in shares)	1,022,802
Weighted average exercise price, Exercisable (in dollars per share)	$ 9.72
Aggregate intrinsic value, Exercisable	$ 7,108,474

Note 11 - Segment and Geographic Information (Details Textual)	12 Months Ended
	Aug. 31, 2021
Number of Reportable Segments	2

Note 11 - Segment and Geographic Information - Net Sales by Segment (Details) - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Net sales by segment	$ 56,493,819	$ 47,638,691
ZERUST [Member]
Net sales by segment	45,554,434	34,474,535
NaturTec [Member]
Net sales by segment	$ 10,939,385	$ 13,164,156

- 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=123359005&loc=d3e8736-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
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-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 8: 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 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 2
-Subparagraph (SX 210.5-03(1))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

+ Details

Note 11 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Cost of goods sold	$ 36,920,814	$ 31,609,274
Direct Cost of Goods Sold [Member] \| ZERUST [Member]
Cost of goods sold	26,028,555	18,717,684
Direct Cost of Goods Sold [Member] \| NaturTec [Member]
Cost of goods sold	7,717,429	10,168,051
Indirect Cost of Goods Sold [Member]
Cost of goods sold	$ 3,174,830	$ 2,723,539

Note 11 - Segment and Geographic Information - Net Sales by Geographic Location (Details) - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Net sales by segment	$ 56,493,819	$ 47,638,691
Inside the USA to Unaffiliated Customers [Member]
Net sales by segment	22,039,456	20,218,213
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member]
Net sales by segment	3,023,196	1,972,646
Unaffiliated Customers Outside the USA [Member]
Net sales by segment	$ 31,431,167	$ 25,447,832

- Definition

+ References

+ Details

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, 2021	Aug. 31, 2020
Fees	$ 5,964,260	$ 4,612,885
Percentage of Total Fees	100.00%	100.00%
GERMANY
Fees	$ 920,902	$ 843,752
Percentage of Total Fees	15.40%	18.30%
JAPAN
Fees	$ 826,403	$ 628,889
Percentage of Total Fees	13.90%	13.60%
POLAND
Fees	$ 798,570	$ 553,198
Percentage of Total Fees	13.40%	12.00%
SWEDEN
Fees	$ 528,755	$ 372,017
Percentage of Total Fees	8.90%	8.10%
FRANCE
Fees	$ 435,032	$ 310,661
Percentage of Total Fees	7.30%	6.70%
THAILAND
Fees	$ 399,563	$ 328,452
Percentage of Total Fees	6.70%	7.10%
INDIA
Fees	$ 392,074	$ 250,976
Percentage of Total Fees	6.60%	5.40%
CZECHIA
Fees	$ 377,395	$ 270,032
Percentage of Total Fees	6.30%	5.90%
KOREA, REPUBLIC OF
Fees	$ 317,042	$ 266,703
Percentage of Total Fees	5.30%	5.80%
UNITED KINGDOM
Fees	$ 316,786	$ 255,121
Percentage of Total Fees	5.30%	5.50%
FINLAND
Fees	$ 298,663	$ 256,375
Percentage of Total Fees	5.00%	5.60%
INDONESIA
Fees	$ 122,513	$ 99,543
Percentage of Total Fees	2.10%	2.20%
Other Countries [Member]
Fees	$ 230,562	$ 177,167
Percentage of Total Fees	3.80%	3.80%

Note 11 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($)	Aug. 31, 2021	Aug. 31, 2020
Total long-lived assets	$ 11,821,458	$ 7,110,789
CHINA
Total long-lived assets	5,110,071	376,088
Other Countries [Member]
Total long-lived assets	453,199	172,833
UNITED STATES
Total long-lived assets	$ 6,258,188	$ 6,561,868

Note 11 - Segment and Geographic Information - Total Net Sales by Geographic Distribution (Details) - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Net sales by segment	$ 56,493,819	$ 47,638,691
CHINA
Net sales by segment	17,343,623	13,409,770
BRAZIL
Net sales by segment	4,122,781	2,753,930
INDIA
Net sales by segment	5,482,989	5,655,797
Other Countries [Member]
Net sales by segment	7,504,970	5,600,982
UNITED STATES
Net sales by segment	$ 22,039,456	$ 20,218,212

- Definition

+ References

+ Details

Note 12 - Retirement Plan (Details Textual) - USD ($)	12 Months Ended
Note 12 - Retirement Plan (Details Textual) - USD ($)	Aug. 31, 2021	Aug. 31, 2020
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	$ 237,499	$ 234,534

Note 13 - Related Party Transactions (Details Textual) - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Bioplastic Polymers LLC [Member] \| Consulting Payment Expense [Member]
Related Party Transaction, Amounts of Transaction	$ 144,000	$ 144,000

Note 14 - Income Taxes (Details Textual) - USD ($)	12 Months Ended
Note 14 - Income Taxes (Details Textual) - USD ($)	Aug. 31, 2021	Aug. 31, 2020
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%
Foreign Withholding Tax	$ 113,000	$ (76,000)
Tax Credit Carryforward, Foreign, Expirations in Period	897,000
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	1,065,500
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	377,600
Deferred Tax Assets, Operating Loss Carryforwards, Foreign	247,500
Tax Credit Carryforward, Valuation Allowance	11,447,500	11,561,700
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	114,000	2,797,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total	0	0
Foreign Tax Authority [Member]
Tax Credit Carryforward, Amount	4,893,300	$ 5,790,500
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration	223,300
Federal and State Tax [Member]
Tax Credit Carryforward, Amount	$ 3,552,500

Note 14 - Income Taxes - Provision for Income Taxes (Details) - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Federal	$ 0	$ 0
State	39,000	23,000
Foreign	1,307,000	1,226,000
Total current	1,346,000	1,249,000
Federal	0	1,501,000
State	0	101,000
Foreign	115,905	(176,365)
Total deferred	115,905	1,425,635
Total income tax expense	$ 1,461,905	$ 2,674,635

- Definition

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

+ References + Details

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, 2021	Aug. 31, 2020
Tax computed at statutory rates	$ 1,794,000	$ 365,000
State income tax, net of federal benefit	37,000	23,000
Tax effect on equity in income of international joint ventures	(1,560,000)	(888,000)
Tax effect of foreign operations	839,000	641,000
Deemed repatriation	0	108,000
Expired foreign tax credit	897,000	0
Research and development credit	(277,000)	(368,000)
Valuation allowance	(492,000)	2,797,000
Stock based compensation	75,000	189,000
Non-controlling interest	(83,000)	(55,000)
Other	231,905	(137.365)
Total income tax expense	$ 1,461,905	$ 2,674,635

Note 14 - Income Taxes - Tax Effect of the Temporary Differences and Tax Carry Forwards Comprising Net Deferred Taxes (Details) - USD ($)	Aug. 31, 2021	Aug. 31, 2020
Accrued compensation	$ 539,300	$ 173,500
Inventory costs	55,100	64,000
Other accrued expenses	103,100	74,900
Lease liability	84,300	147,500
Goodwill and other intangible assets	453,000	581,200
Stock-based compensation	466,300	397,300
Foreign tax credit carryforward	4,893,300	5,790,500
Other credit and loss carryforwards	5,243,100	4,824,200
Total deferred tax assets	11,837,500	12,053,100
Valuation allowance	(11,447,500)	(11,561,700)
Total deferred tax assets after valuation allowance	390,000	491,400
Property and equipment	(7,300)	(50,700)
Right-of-use asset	(84,300)	(147,500)
Unremitted foreign earnings	(154,900)	0
Other	(50,900)	(83,400)
Total deferred tax liabilities	(297,400)	(281,600)
Net deferred tax assets	$ 92,600	$ 209,800

Note 14 - Income Taxes - Reconciliation of the Total Amounts of Unrecognized Tax Benefits (Details) - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Gross unrecognized tax benefits – beginning balance	$ 278,200	$ 248,000
Gross increases – prior period tax positions	4,400	15,200
Gross increases – current period tax positions	15,000	15,000
Gross unrecognized tax benefits – ending balance	$ 297,600	$ 278,200

Note 15 - Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
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)	1 year 6 months
Operating Lease, Weighted Average Discount Rate, Percent	2.31%
Operating Lease, Expense	$ 386,345	$ 131,840
Accrued Bonuses	$ 2,366,668	$ 1,300,000
Entity Wide Trade Joint Venture Receivables, Three Joint Ventures, Percentage	37.40%	88.20%
Stock Options Granted to Management [Member]
Accrued Bonuses	$ 266,667	$ 800,000
Accrued Bonuses, to Be Paid as Stock Options, Period (Year)	3 years
Paid Out in Cash and Profit Sharing [Member]
Accrued Bonuses	$ 2,100,000	$ 500,000
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 15 - Commitments and Contingencies - Present Value of Long-term Leases (Details) - USD ($)	Aug. 31, 2021	Aug. 31, 2020
Right-of-use assets, net	$ 376,438	$ 658,788
Current portion of lease liability	272,336	386,345
Lease liability, less current portion	104,102	272,443
Total lease liability	$ 376,438	$ 658,788

Note 15 - Commitments and Contingencies - Future Minimum Rents Due (Details) - USD ($)	Aug. 31, 2021	Aug. 31, 2020
Fiscal 2022	$ 272,336
Fiscal 2023	84,353
Fiscal 2024	26,700
Fiscal 2025	0
Total future minimum lease payments	383,389
Less amount representing interest	(6,951)
Present value of obligations under operating leases	376,438	$ 658,788
Less current portion	(272,336)	(386,345)
Long-term operating lease obligations	$ 104,102	$ 272,443

Note 16 - Statements of Cash Flows - Supplemental Disclosures of Cash Flow Information (Details) - USD ($)	12 Months Ended
	Aug. 31, 2021	Aug. 31, 2020
Cash paid during the year for income tax	$ 895,646	$ 1,099,635
Cash paid during the year for interest	$ 16,086	$ 16,034

Note 17 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($)	Aug. 31, 2021	Aug. 31, 2020
Available for sale securities	$ 4,634	$ 5,544,722
Fair Value, Inputs, Level 1 [Member]
Available for sale securities	4,634	5,544,722
Fair Value, Inputs, Level 2 [Member]
Available for sale securities	0	0
Fair Value, Inputs, Level 3 [Member]
Available for sale securities	$ 0	$ 0

Note 18 - Subsequent Events (Details Textual) - USD ($)									3 Months Ended			12 Months Ended
Note 18 - Subsequent Events (Details Textual) - USD ($)	Oct. 20, 2021	Sep. 01, 2021	Aug. 31, 2021	Jul. 21, 2021	Apr. 23, 2021	Jan. 15, 2021	Jan. 22, 2020	Oct. 22, 2019	Nov. 30, 2020	Aug. 31, 2020	May 31, 2020	Aug. 31, 2021	Aug. 31, 2020	Aug. 30, 2021
Common Stock, Dividends, Per Share, Declared (in dollars per share)				$ 0.065	$ 0.065	$ 0.065	$ 0.065	$ 0.065	$ 0	$ 0	$ 0	$ 0.20	$ 0.13
Dividends Payable, Date to be Paid				Aug. 18, 2021	May 19, 2021	Feb. 17, 2021	Feb. 19, 2020	Nov. 20, 2019
Dividends Payable, Date of Record				Aug. 04, 2021	May 05, 2021	Feb. 03, 2021	Feb. 05, 2020	Nov. 06, 2019
Revolving Credit Facility [Member] \| PNC Bank [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 5,000,000									$ 5,000,000		$ 3,000,000
Revolving Credit Facility [Member] \| PNC Bank [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate			2.50%
Subsequent Event [Member]
Common Stock, Dividends, Per Share, Declared (in dollars per share)	$ 0.07
Dividends Payable, Date to be Paid	Nov. 17, 2021
Dividends Payable, Date of Record	Nov. 03, 2021
Subsequent Event [Member] \| Acquisition of Remaining Ownership Interest in Harita-NTI Limited [Member]
Business Acquisition, Percentage of Voting Interests Acquired		50.00%
Payments to Acquire Businesses, Gross		$ 6,250,000