0001171843-23-000225 | 10-Q | XBRL Viewer | Northern Technologies International Corp

Print Document View Excel Document

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Nov. 30, 2022	Jan. 12, 2023
Document Information [Line Items]
Entity Central Index Key	0000875582
Amendment Flag	false
Current Fiscal Year End Date	--08-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Nov. 30, 2022
Document Transition Report	false
Entity File Number	001-11038
Entity Registrant Name	NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	41-0857886
Entity Address, Address Line One	4201 Woodland Road
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 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 Common Stock, Shares Outstanding		9,366,358

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Nov. 30, 2022	Aug. 31, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 6,066,321	$ 5,333,890
Available for sale securities	5,590	5,590
Receivables:
Trade, excluding joint ventures, less allowance for doubtful accounts of $439,000 as of November 30, 2022 and August 31, 2022	14,398,185	14,136,930
Trade, joint ventures	593,601	697,861
Fees for services provided to joint ventures	1,123,478	1,765,117
Income taxes	226,731	0
Inventories	15,236,496	16,341,729
Prepaid expenses	2,241,664	1,953,764
Total current assets	39,892,066	40,234,881
PROPERTY AND EQUIPMENT, NET	12,145,152	12,170,493
OTHER ASSETS:
Investments in joint ventures	20,331,746	21,814,754
Intangible asset, net	6,530,512	6,633,878
Goodwill	4,782,376	4,782,376
Operating lease right of use asset	440,921	557,571
Total other assets	32,085,555	33,788,579
Total assets	84,122,773	86,193,953
CURRENT LIABILITIES:
Accounts payable	6,032,918	7,796,494
Line of credit	5,450,000	5,900,000
Income taxes payable	12,210	30,742
Accrued liabilities:
Payroll and related benefits	1,601,033	2,297,543
Other	1,069,489	667,292
Current portion of operating lease	317,496	373,330
Total current liabilities	14,483,146	17,065,401
LONG-TERM LIABILITIES:
Deferred income tax, net	1,643,007	1,700,015
Operating lease, less current portion	123,425	184,241
Total long-term liabilities	1,766,432	1,884,256
Commitments and contingencies
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 November 30, 2022 and August 31, 2022; issued and outstanding 9,366,358 and 9,232,483, respectively	187,327	184,650
Additional paid-in capital	20,721,235	19,939,131
Retained earnings	50,563,210	50,716,613
Accumulated other comprehensive loss	(7,305,836)	(7,245,132)
Stockholders’ equity	64,165,936	63,595,262
Non-controlling interests	3,707,259	3,649,034
Total equity	67,873,195	67,244,296
Total liabilities and equity	$ 84,122,773	$ 86,193,953

Consolidated Balance Sheets (Current Period Unaudited)-parentheticals (Parentheticals) - USD ($)	Nov. 30, 2022	Aug. 31, 2022
Accounts Receivable, Allowance for Credit Loss, Current	$ 439,000	$ 439,000
Preferred Stock, No 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, Ending Balance (in shares)	0	0
Common Stock, Par or Stated Value Per Share (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)	9,366,358	9,232,483
Common Stock, Shares, Outstanding, Ending Balance (in shares)	9,366,358	9,232,483

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
NET SALES:
Net sales	$ 19,952,766	$ 18,193,413
Cost of goods sold	13,599,642	12,490,483
Gross profit	6,353,124	5,702,930
JOINT VENTURE OPERATIONS:
Equity in income from joint ventures	1,189,404	1,374,749
Fees for services provided to joint ventures	1,181,805	1,258,858
Total joint venture operations	2,371,209	2,633,607
OPERATING EXPENSES:
Selling expenses	3,507,434	3,237,758
General and administrative expenses	3,130,599	2,596,347
Research and development expenses	1,256,724	1,235,821
Total operating expenses	7,894,757	7,069,926
OPERATING INCOME	829,576	1,266,611
REMEASUREMENT GAIN ON ACQUISITION OF EQUITY METHOD INVESTEE	0	3,951,550
INTEREST INCOME	6,168	10,943
INTEREST EXPENSE	(91,331)	(2,891)
INCOME BEFORE INCOME TAX EXPENSE	744,413	5,226,213
INCOME TAX EXPENSE	110,733	504,380
NET INCOME	633,680	4,721,833
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	131,438	228,074
NET INCOME ATTRIBUTABLE TO NTIC	$ 502,242	$ 4,493,759
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE:
Basic (in dollars per share)	$ 0.05	$ 0.49
Diluted (in dollars per share)	$ 0.05	$ 0.46
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING:
Basic (in shares)	9,317,680	9,199,976
Diluted (in shares)	9,718,931	9,779,770
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share)	$ 0.07	$ 0.07

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
NET INCOME	$ 633,680	$ 4,721,833
OTHER COMPREHENSIVE LOSS – FOREIGN CURRENCY TRANSLATION ADJUSTMENT	(53,917)	(409,064)
COMPREHENSIVE INCOME	579,763	4,312,769
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	(138,225)	(156,065)
COMPREHENSIVE INCOME ATTRIBUTABLE TO NTIC	$ 717,988	$ 4,468,834

- Definition

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

+ References + Details

- Definition

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

+ References + Details

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI https://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22663-107794

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 6: 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)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 11: 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)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 6
-URI https://asc.fasb.org/extlink&oid=124431353&loc=SL124452729-227067

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=126954810&loc=d3e3000-108585

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI https://asc.fasb.org/extlink&oid=126929396&loc=SL4569616-111683

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 18: 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))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI https://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 23: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669625-108580

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 27: 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)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 28: 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)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 29: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(1)
-URI https://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 31: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI https://asc.fasb.org/extlink&oid=120409616&loc=SL4591551-111686

Reference 32: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI https://asc.fasb.org/extlink&oid=120409616&loc=SL4591552-111686

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22658-107794

+ Details

Consolidated Statements of Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Noncontrolling Interest [Member]	Total
BALANCE AT AUGUST 31, 2021 (in shares) at Aug. 31, 2021	9,184,811
BALANCE AT AUGUST 31, 2021 at Aug. 31, 2021	$ 183,696	$ 18,736,268	$ 46,973,092	$ (3,525,030)	$ 3,382,555	$ 65,750,581
Stock options exercised (in shares)	16,000
Stock options exercised	$ 320	138,880	0	0	0	139,200
Stock issued for employee stock purchase plan (in shares)	2,635
Stock issued for employee stock purchase plan	$ 53	38,479	0	0	0	38,532
Investment by non-controlling interest	0	0	0	0	(200,000)	(200,000)
Dividends paid to shareholders	0	0	(643,121)	0	0	(643,121)
Net income	0	0	4,493,759	0	228,074	4,721,833
Comprehensive loss	0	0	0	(337,055)	(72,009)	(409,064)
Stock option expense	$ 0	232,883	0	0	0	232,883
BALANCE AT NOVEMBER 30, 2021 (in shares) at Nov. 30, 2021	9,203,446
BALANCE AT NOVEMBER 30, 2021 at Nov. 30, 2021	$ 184,069	19,146,510	50,823,730	(3,862,085)	3,338,620	69,630,844
BALANCE AT AUGUST 31, 2021 (in shares) at Aug. 31, 2022	9,232,483
BALANCE AT AUGUST 31, 2021 at Aug. 31, 2022	$ 184,650	19,939,131	50,716,613	(7,245,132)	3,649,034	67,244,296
Stock options exercised (in shares)	130,254
Stock options exercised	$ 2,605	413,958	0	0	0	416,563
Stock issued for employee stock purchase plan (in shares)	3,620
Stock issued for employee stock purchase plan	$ 72	38,624	0	0	0	38,696
Investment by non-controlling interest	0	0	0	0	(80,000)	(80,000)
Dividends paid to shareholders	0	0	(655,645)	0	0	(655,645)
Net income	0	0	502,242	0	131,438	633,680
Comprehensive loss	0	0	0	(60,704)	6,787	(53,917)
Stock option expense	$ 0	329,522	0	0	0	329,522
BALANCE AT NOVEMBER 30, 2021 (in shares) at Nov. 30, 2022	9,336,357
BALANCE AT NOVEMBER 30, 2021 at Nov. 30, 2022	$ 187,327	$ 20,721,235	$ 50,563,210	$ (7,305,836)	$ 3,707,259	$ 67,873,195

Consolidated Statements of Equity (Unaudited)-parentheticals - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Common Stock [Member]
Stock option expense	$ 0	$ 0
Additional Paid-in Capital [Member]
Stock option expense	329,522	232,883
Retained Earnings [Member]
Stock option expense	0	0
AOCI Attributable to Parent [Member]
Stock option expense	0	0
Noncontrolling Interest [Member]
Stock option expense	0	0
Stock option expense	$ 329,522	$ 232,883

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME	$ 633,680	$ 4,721,833
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	329,522	232,883
Depreciation expense	262,876	215,306
Amortization expense	147,811	119,894
Remeasurement gain on acquisition of equity method investee	0	(3,951,550)
Equity in income from joint ventures	(1,189,404)	(1,374,749)
Dividends received from joint ventures	3,042,688	5,042,271
Deferred income taxes	(54,376)	126,852
Changes in current assets and liabilities:
Trade, excluding joint ventures	(539,925)	(308,325)
Trade, joint ventures	104,260	(166,438)
Fees for services provided to joint ventures	641,639	304,258
Income taxes	(226,731)	(119,978)
Inventories	948,661	516,283
Prepaid expenses and other	(252,301)	(418,888)
Accounts payable	(1,573,008)	98,545
Income tax payable	(18,407)	(102,074)
Accrued liabilities	(254,442)	(1,617,099)
Net cash provided by operating activities	2,002,543	3,319,024
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of Zerust India business, net of cash acquired	0	(5,062,003)
Purchases of property and equipment	(409,094)	(315,390)
Investments in patents	(44,445)	(52,197)
Net cash used in investing activities	(453,539)	(5,429,590)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from line of credit	(450,000)	2,500,000
Dividends paid on NTIC common stock	(655,645)	(643,121)
Proceeds from the exercise of stock options	416,563	139,200
Dividends received by non-controlling interest	(80,000)	(200,000)
Proceeds from employee stock purchase plan	38,696	38,532
Net cash (used in) provided by financing activities	(730,386)	1,834,611
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS:	(86,187)	642,879
NET INCREASE IN CASH AND CASH EQUIVALENTS	732,431	366,924
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	5,333,890	7,680,641
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 6,066,321	$ 8,047,565

Note 1 - Interim Financial Information

3 Months Ended

Nov. 30, 2022

Notes to Financial Statements

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

1.	INTERIM FINANCIAL INFORMATION

In the opinion of management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, which are of a normal recurring nature, and present fairly the consolidated financial position of Northern Technologies International Corporation and its subsidiaries (the Company) as of November 30, 2022 and August 31, 2022 and the results of the Company’s operations for the three months ended November 30, 2022 and 2021, the changes in stockholders’ equity for the three months ended November 30, 2022 and 2021 and the Company’s cash flows for the three months ended November 30, 2022 and 2021, in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP).

These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s annual report on Form 10-K for the fiscal year ended August 31, 2022. These consolidated financial statements also should be read in conjunction with the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section appearing in this report.

Operating results for the three months ended November 30, 2022 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 31, 2023.

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

Impact of COVID-19 Pandemic

As a result of the novel coronavirus (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 continued to occur during the first quarter of fiscal 2023 and may continue during the remainder of fiscal 2023. In the first quarter of fiscal 2023, the Company continued to be impacted by shipping issues, including increased costs, supply chain issues, including longer lead times, and raw material cost increases.

Note 2 - Accounting Pronouncements

3 Months Ended

Nov. 30, 2022

Notes to Financial Statements

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

2.	ACCOUNTING PRONOUNCEMENTS

Recently Adopted 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.

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-URI https://asc.fasb.org/topic&trid=2122394

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 105
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126987489&loc=SL124442142-165695

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (d)(1)
-URI https://asc.fasb.org/extlink&oid=126986314&loc=SL124402458-218513

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iii)
-URI https://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(4)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(ii)
-URI https://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(i)
-URI https://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(1)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (d)(2)
-URI https://asc.fasb.org/extlink&oid=126986314&loc=SL124402458-218513

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iv)
-URI https://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section S99
-Paragraph 5
-Subparagraph (SAB Topic 11.M.Q2)
-URI https://asc.fasb.org/extlink&oid=122038215&loc=d3e31137-122693

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(1)
-URI https://asc.fasb.org/extlink&oid=122640432&loc=SL121648383-210437

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (h)(2)
-URI https://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(2)
-URI https://asc.fasb.org/extlink&oid=122640432&loc=SL121648383-210437

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 848
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (e)(1)
-URI https://asc.fasb.org/extlink&oid=125980421&loc=SL122150809-237846

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(2)
-URI https://asc.fasb.org/extlink&oid=126983759&loc=SL121830611-158277

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section S99
-Paragraph 6
-URI https://asc.fasb.org/extlink&oid=122038215&loc=SL108384541-122693

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 10
-Section 65
-Paragraph 5
-Subparagraph (f)(1)
-URI https://asc.fasb.org/extlink&oid=128293352&loc=SL126838806-209984

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (e)(2)
-URI https://asc.fasb.org/extlink&oid=126983955&loc=SL121967933-165497

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (c)(2)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL126732908-238011

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 10
-Section 65
-Paragraph 5
-Subparagraph (f)(3)
-URI https://asc.fasb.org/extlink&oid=128293352&loc=SL126838806-209984

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (c)(1)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL126732908-238011

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (e)(1)
-URI https://asc.fasb.org/extlink&oid=126983955&loc=SL121967933-165497

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(1)
-URI https://asc.fasb.org/extlink&oid=126983759&loc=SL121830611-158277

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (c)(3)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL126732908-238011

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(1)
-URI https://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(2)
-URI https://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(3)
-URI https://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (e)(3)
-URI https://asc.fasb.org/extlink&oid=126983955&loc=SL121967933-165497

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 848
-SubTopic 10
-Section 65
-Paragraph 2
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=125980421&loc=SL125981372-237846

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)(1)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(1)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(3)
-URI https://asc.fasb.org/extlink&oid=126983759&loc=SL121830611-158277

+ Details

Note 3 - Inventories

3 Months Ended

Nov. 30, 2022

Notes to Financial Statements

Inventory Disclosure [Text Block]

3.	INVENTORIES

Inventories consisted of the following:

	November 30, 2022		August 31, 2022
Production materials	$	5,340,632	$	6,496,656
Finished goods		9,895,864		9,845,073
	$	15,236,496	$	16,341,729

Note 4 - Property and Equipment, Net

3 Months Ended

Nov. 30, 2022

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

4.	PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following:

	November 30, 2022			August 31, 2022
Land	$	310,365		$	310,365
Buildings and improvements		14,927,540			14,778,759
Machinery and equipment		5,749,249			5,643,320
		20,987,154			20,732,444
Less accumulated depreciation		(8,842,002	)		(8,561,951	)
	$	12,145,152		$	12,170,493

Note 5 - Intangible Assets, Net

3 Months Ended

Nov. 30, 2022

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

5.	INTANGIBLE ASSETS, NET

Intangible assets, net consisted of the following:

	As of November 30, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Patents and trademarks	$	3,270,100	$	(2,557,670	)	$	712,430
Customer relationships		6,347,000		(528,918	)		5,818,082
Total intangible assets, net		9,617,100		(3,086,588	)		6,530,512

	As of August 31, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Patents and trademarks	$	3,225,655	$	(2,515,644	)	$	710,011
Customer relationships		6,347,000		(423,133	)		5,923,867
Total intangible assets, net		9,572,655		(2,938,777	)		6,633,878

Amortization expense related to intangible assets was $147,811 and $119,894 for the three months ended November 30, 2022 and 2021, respectively.

As of November 31, 2022, future amortization expense related to intangible assets for each of the next five years and thereafter was as follows:

Remainder of 2023	$	613,000
2024		613,000
2025		613,000
2026		613,000
2027		613,000
Thereafter		3,465,512
Total	$	6,530,512

Note 6 - Investments in Joint Ventures

3 Months Ended

Nov. 30, 2022

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 U.S. GAAP in all material respects. All material profits on sales recorded that remain on the consolidated balance sheet from the Company to its joint ventures and from joint ventures to other joint ventures have been eliminated for financial reporting purposes.

Financial information from the audited and unaudited financial statements of the Company’s joint venture in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR), and all the Company’s other joint ventures are summarized as follows:

	As of November 30, 2022
	Total		EXCOR		All Other
Current assets	$	50,644,203	$	23,082,855	$	27,561,348
Total assets		54,232,523		25,102,700		29,129,823
Current liabilities		12,684,139		2,848,920		9,835,219
Noncurrent liabilities		354,984		-		354,984
Joint ventures’ equity		41,193,400		22,253,780		18,939,620
Northern Technologies International Corporation’s share of joint ventures’ equity		20,331,746		11,126,892		9,204,854
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		19,303,110		11,095,987		8,207,123

	Three Months Ended November 30, 2022
	Total		EXCOR		All Other
Net sales	$	24,730,289	$	10,145,921	$	14,584,368
Gross profit		9,693,568		4,720,042		4,973,526
Net income		2,646,908		1,742,287		904,621
Northern Technologies International Corporation’s share of equity in income from joint ventures		1,189,400		871,144		318,260
Northern Technologies International Corporation's dividends received from joint ventures		3,042,688		2,459,500		583,188

	As of August 31, 2022
	Total		EXCOR		All Other
Current assets	$	52,428,831	$	26,047,914	$	26,380,917
Total assets		55,854,457		27,932,532		27,921,925
Current liabilities		10,981,833		2,943,895		8,037,938
Noncurrent liabilities		1,138,980		—		1,138,980
Joint ventures’ equity		43,733,644		24,988,637		18,745,007
Northern Technologies International Corporation’s share of joint ventures’ equity		21,814,754		12,494,320		9,320,434
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		21,256,923		12,463,415		8,793,508

	Three Months Ended November 30, 2021
	Total		EXCOR		All Other
Net sales	$	27,022,995	$	11,300,228	$	15,722,767
Gross profit		11,032,959		5,468,986		5,563,973
Net income		2,777,605		1,821,547		956,058
Northern Technologies International Corporation’s share of equity in income from joint ventures		1,374,749		910,773		463,976
Northern Technologies International Corporation's dividends received from joint ventures		5,042,271		4,255,200		787,071

Note 7 - Corporate Debt

3 Months Ended

Nov. 30, 2022

Notes to Financial Statements

Debt Disclosure [Text Block]

7.	CORPORATE DEBT

The Company had a revolving line of credit with a bank of $7,000,000 as of November 30, 2022. The line of credit had a maturity date of January 7, 2023 and bore interest at an annual rate equal to the daily Bloomberg Short-Term Bank Yield (BSBY) Index plus 250 basis points (2.50%).

Borrowings of $5,450,000 and $5,900,000 were outstanding under the line of credit as of November 30, 2022 and August 31, 2022, respectively. The average interest rate was 5.80% and 2.57% during the three months ended November 30, 2022 and 2021.

The obligations of the Company under the loan agreement were secured by a lien on all of the Company’s personal property, excepting certain liens. The loan agreement contained 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. As of November 30, 2022, the Company was in compliance with all debt covenants.

As of November 30, 2022 and August 31, 2022, the Company 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 the bank.

On January 6, 2023, the Company entered into a Credit Agreement with JPMorgan Chase Bank, N.A., which provides the Company with a senior secured revolving line of credit of up to $10.0 million, which includes a $5.0 million sublimit for standby letters of credit. In connection with the execution of the new Credit Agreement, the prior loan agreement was terminated. See Note 16 entitled “Subsequent Event.”

- 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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Note 8 - Stockholders' Equity

3 Months Ended

Nov. 30, 2022

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

8.	STOCKHOLDERS’ EQUITY

On October 20, 2022, the Company’s Board of Directors declared a cash dividend of $0.07 per share of the Company’s common stock, payable on November 16, 2022 to stockholders of record on November 3, 2022. On October 20, 2021, the Company’s Board of Directors declared a cash dividend of $0.07 per share of the Company’s common stock, payable on November 17, 2021 to stockholders of record on November 3, 2021.

During the three months ended November 30, 2022 and 2021, the Company repurchased no shares of its common stock.

The Company issued 3,620 and 2,636 shares of common stock on September 1, 2022 and 2021, respectively, under the Northern Technologies International Corporation Employee Stock Purchase Plan (the ESPP). The ESPP is compensatory for financial reporting purposes. As of November 30, 2022, 65,600 shares of common stock remained available for sale under the ESPP.

- 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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 16
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 50
-Paragraph 6
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008

+ Details

Note 9 - Net Income Per Common Share

3 Months Ended

Nov. 30, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

9.	NET INCOME PER COMMON SHARE

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

The following is a reconciliation of the net income per share computation for the three months ended November 30, 2022 and 2021:

	Three Months Ended
Numerator:	November 30, 2022		November 30, 2021
Net income attributable to NTIC	$	502,242	$	4,493,759

Denominator
Basic – weighted shares outstanding		9,317,680		9,199,976
Weighted shares assumed upon exercise of stock options		401,251		579,794
Diluted – weighted shares outstanding		9,718,931		9,779,770
Basic net income per share:	$	0.05	$	0.49
Diluted net income per share:	$	0.05	$	0.46

The dilutive impact summarized above relates to the periods when the average market price of the Company’s common stock exceeded the exercise price of the potentially dilutive option securities granted. Net income per common share was based on the weighted average number of common shares outstanding during the periods when computing basic net income per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted net income per share. Excluded from the computation of diluted net income per share for the three months ended November 30, 2022 were options outstanding to purchase 305,514 shares of common stock. Excluded from the computation of diluted net income per share for the three months ended November 30, 2021 were options outstanding to purchase 311,061 shares of common stock.

Note 10 - Stock-based Compensation

3 Months Ended

Nov. 30, 2022

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

10.

STOCK-BASED COMPENSATION

A summary of stock option activities under the Northern Technologies International Corporation Amended and Restated 2019 Stock Incentive Plan (the 2019 Plan) and the Northern Technologies International Corporation Amended and Restated 2007 Stock Incentive Plan (the 2007 Plan) is as follows:

	Number of Options Outstanding			Weighted Average Exercise Price
Outstanding as of August 31, 2022		1,544,727		$	10.23
Granted		272,102		$	11.38
Exercised		(178,331	)	$	6.03
Cancelled/Forfeited		-			-
Outstanding as of November 30, 2022		1,638,498		$	10.88

The weighted average per share fair value of options granted during the three months ended November 30, 2022 and 2021 was $4.85 and $7.29, respectively. The weighted average remaining contractual life of the options outstanding as of November 30, 2022 and 2021 was 6.66 years and 6.41 years, respectively.

The Company recognized compensation expense of $329,522 and $232,883 during the three months ended November 30, 2022 and 2021, respectively. As of November 30, 2022, there was $1,999,892 of unrecognized compensation expense. The amount is expected to be recognized over a period of 2.7 years.

Note 11 - Segment and Geographic Information

3 Months Ended

Nov. 30, 2022

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 almost 50 years and, more recently, has targeted and expanded into the oil and gas industry. The Company also sells a portfolio of bio-based and compostable (fully biodegradable) polymer resins and finished products under the Natur-Tec® brand.

The following table sets forth the Company’s net sales for the three months ended November 30, 2022 and 2021 by segment:

	Three Months Ended
	November 30, 2022		November 30, 2021
ZERUST® net sales	$	15,370,001	$	14,423,785
Natur-Tec® net sales		4,582,765		3,769,628
Total net sales	$	19,952,766	$	18,193,413

The following table sets forth the Company’s cost of goods sold for the three months ended November 30, 2022 and 2021 by segment:

	November 30, 2022		% of Product Sales*			November 30, 2021		% of Product Sales*
Direct cost of goods sold
ZERUST®	$	9,179,254		59.7	%	$	8,706,667		60.4	%
Natur-Tec®		3,570,673		77.9	%		2,922,098		77.5	%
Indirect cost of goods sold		849,715	NA				861,718	NA
Total net cost of goods sold ….	$	13,599,642				$	12,490,483

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

The Company utilizes product net sales and direct and indirect cost of goods sold for each product in reviewing the financial performance of a product type. Further allocation of Company expenses or assets, aside from amounts presented in the tables above, is not utilized in evaluating product performance, nor does such allocation occur for internal financial reporting.

Geographic Information

Net sales by geographic location for the three months ended November 30, 2022 and 2021 were as follows:

	Three Months Ended
	November 30, 2022		November 30, 2021
Inside the U.S.A. to unaffiliated customers	$	7,478,161	$	6,156,322
Outside the U.S.A. to:
Joint ventures in which the Company is a shareholder directly and indirectly		633,465		840,439
Unaffiliated customers		11,841,140		11,196,652
	$	19,952,766	$	18,193,413

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

Fees for services provided to joint ventures by geographic location as a percentage of total fees for services provided to joint ventures during the three months ended November 30, 2022 and 2021 were as follows:

	Three Months Ended
	November 30, 2022		% of Total Fees for Services Provided to Joint Ventures			November 30, 2021		% of Total Fees for Services Provided to Joint Ventures
Germany	$	193,828		16.4	%	$	218,430		17.4	%
Poland		186,696		15.8	%		176,927		14.1	%
Japan		147,920		12.5	%		166,807		13.3	%
France		109,357		9.3	%		116,295		9.2	%
Sweden		100,436		8.5	%		108,070		8.6	%
Finland		90,432		7.7	%		80,173		6.4	%
Thailand		82,956		7.0	%		87,554		7.0	%
Czech Republic		80,332		6.8	%		70,098		5.6	%
South Korea		63,395		5.4	%		62,626		5.0	%
United Kingdom		57,691		4.9	%		94,927		7.5	%
Other		68,762		5.7	%		76,951		5.9	%
	$	1,181,805		100.0	%	$	1,258,858		100.0	%

The geographical distribution of total property and equipment and net sales is as follows:

	At November 30, 2022		At August 31, 2022
China	$	5,740,401	$	5,826,898
Other		631,835		565,022
United States		5,772,916		5,778,573
Total property and equipment, net	$	12,145,152	$	12,170,493

	Three Months Ended
	November 30, 2022		November 30, 2021
China	$	3,746,640	$	4,057,853
Brazil		1,367,418		1,296,217
India		4,846,927		4,476,984
Other		2,513,620		2,206,037
United States		7,478,161		6,156,322
Total net sales	$	19,952,766	$	18,193,413

Long-lived assets consist of property and equipment. These assets are periodically reviewed to assure the net realizable value from the estimated future production based on forecasted sales exceeds the carrying value of the assets.

Sales to the Company’s joint ventures are included in the foregoing segment and geographic information; however, sales by the Company’s joint ventures to other parties are not included. The foregoing segment and geographic information represents only sales recognized directly by the Company and sold in that geographic territory.

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

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Note 12 - Commitments and Contingencies

3 Months Ended

Nov. 30, 2022

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

12.

COMMITMENTS AND CONTINGENCIES

Concentrations

Two joint ventures (consisting of the Company’s joint ventures in Thailand and Japan) accounted for 47.4% of the Company’s trade joint venture receivables as of November 30, 2022, and two joint ventures (consisting of the Company’s joint ventures in South Korea and Japan) accounted for 42.4% of the Company’s trade joint venture receivables as of November 30, 2021.

Legal Matters

From time to time, the Company is subject to various other claims and legal actions in the ordinary course of its business. The Company records a liability in its consolidated financial statements for costs related to claims, including future legal costs, settlements and judgments, where the Company has assessed that a loss is probable, and an amount could be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when 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 November 30, 2022, the amount of liability, if any, with respect to these matters, individually or in the aggregate, will not materially affect the Company’s consolidated results of operations, financial position or cash flows.

Note 13 - Fair Value Measurements

3 Months Ended

Nov. 30, 2022

Notes to Financial Statements

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

13.

FAIR VALUE MEASUREMENTS

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

November 30, 2022

Level 1

Level 2

Level 3

Available for sale securities

5,590

—

Fair Value Measurements

Using Inputs Considered as

Fair value as of

August 31, 2022

Level 1

Level 2

Level 3

Available for sale securities

5,590

—

There were no transfers between Level 1, Level 2, or Level 3 during the three months ended November 30, 2022 or 2021.

Note 14 - Supplemental Cash Flow Information

3 Months Ended

Nov. 30, 2022

Notes to Financial Statements

Cash Flow, Supplemental Disclosures [Text Block]

14.

SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental disclosures of cash flow information consisted of:

Three Months Ended

November 30,

2022

November 30,

2021

Cash paid for interest

91,331

2,891

Note 15 - Income Taxes

3 Months Ended

Nov. 30, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

15.

INCOME TAXES

Income tax expense for the three months ended November 30, 2022 was $110,733 compared to $504,380 for the three months ended November 30, 2021. The expense was largely due to foreign operations. The Company has federal and state tax credit carry forwards, net operating loss carry forwards and foreign tax carry forwards. The Company has recorded a full valuation allowance against the U.S. deferred tax assets as of November 30, 2022 and August 31, 2022.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Note 16 - Subsequent Event

3 Months Ended

Nov. 30, 2022

Notes to Financial Statements

Subsequent Events [Text Block]

16.

SUBSEQUENT EVENT

On January 6, 2023, Northern Technologies International Corporation entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. (“JPM”), which provides NTIC with a senior secured revolving line of credit (the “Credit Facility”) of up to $10.0 million. The Credit Facility includes a $5.0 million sublimit for standby letters of credit.

Unless terminated earlier, the Credit Facility will mature on January 6, 2024, and the principal amount thereunder, together with all accrued unpaid interest and other amounts owing thereunder, if any, will be payable in full on such date. Borrowings under the Credit Agreement bear interest at a floating rate, at the option of NTIC, equal to either the CB Floating Rate or the Adjusted SOFR Rate. The term “CB Floating Rate” means the greater of the Prime Rate in the United States or 2.50%. The term “Adjusted SOFR Rate” means the term secured overnight financing rate for either one, three or six months (depending on the interest period selected by NTIC) plus 0.10% per annum. With respect to any borrowings using an Adjusted SOFR Rate, there is an applicable margin of 2.15% applied per annum. There is no applicable margin with respect to borrowings using a CB Floating Rate.

The Credit Agreement contains customary affirmative and negative covenants, including, among other matters, limitations on NTIC’s ability to incur additional debt, grant liens, engage in certain business operations and transactions, make certain investments, modify its organizational documents or form any new subsidiaries, subject to certain exceptions. Further, the Credit Agreement contains a negative covenant that restricts the ability of NTIC to redeem or repurchase its common stock or pay dividends if the result of which would cause an event of default under the Credit Agreement. The Credit Agreement also requires the Company to maintain a Fixed Charge Coverage Ratio of at least 1.25 to 1.00. The term “Fixed Charge Coverage Ratio” means the ratio, computed for the NTIC on a consolidated basis, of net income plus income tax expense, plus amortization expense, plus depreciation expense, plus interest expense, and plus dividends received from joint ventures, minus unfinanced capital expenditures and equity in income from joint ventures, all computed for the twelve month period then ending, to scheduled principal payments made, plus scheduled finance lease payments made, plus interest expense paid, plus income tax expense paid, and plus cash distributions and dividends paid, all computed for the same twelve month period then ending.

The Credit Agreement also contains customary events of default, including, without limitation, payment defaults, material inaccuracy of representations and warranties, covenant defaults, bankruptcy and insolvency proceedings, cross-defaults to certain other agreements, breach of any financial covenant and change of control. Upon the occurrence and during the continuance of any event of default, JPM may accelerate the payment of the obligations thereunder and exercise various other customary default remedies.

In connection with the execution of the Credit Agreement described above, on January 6, 2023, the Amended and Restated Loan Agreement dated August 31, 2021 between Northern Technologies International Corporation and PNC Bank, National Association was terminated.

Note 3 - Inventories (Tables)

3 Months Ended

Nov. 30, 2022

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	November 30, 2022		August 31, 2022
Production materials	$	5,340,632	$	6,496,656
Finished goods		9,895,864		9,845,073
	$	15,236,496	$	16,341,729

Note 4 - Property and Equipment, Net (Tables)

3 Months Ended

Nov. 30, 2022

Notes Tables

Property, Plant and Equipment [Table Text Block]

	November 30, 2022			August 31, 2022
Land	$	310,365		$	310,365
Buildings and improvements		14,927,540			14,778,759
Machinery and equipment		5,749,249			5,643,320
		20,987,154			20,732,444
Less accumulated depreciation		(8,842,002	)		(8,561,951	)
	$	12,145,152		$	12,170,493

Note 5 - Intangible Assets, Net (Tables)

3 Months Ended

Nov. 30, 2022

Notes Tables

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Remainder of 2023	$	613,000
2024		613,000
2025		613,000
2026		613,000
2027		613,000
Thereafter		3,465,512
Total	$	6,530,512

Customer Relationships and Assembled Workforce [Member]

Notes Tables

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

	As of November 30, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Patents and trademarks	$	3,270,100	$	(2,557,670	)	$	712,430
Customer relationships		6,347,000		(528,918	)		5,818,082
Total intangible assets, net		9,617,100		(3,086,588	)		6,530,512

	As of August 31, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Patents and trademarks	$	3,225,655	$	(2,515,644	)	$	710,011
Customer relationships		6,347,000		(423,133	)		5,923,867
Total intangible assets, net		9,572,655		(2,938,777	)		6,633,878

Note 6 - Investments in Joint Ventures (Tables)

3 Months Ended

Nov. 30, 2022

Notes Tables

Condensed Balance Sheet [Table Text Block]

	As of November 30, 2022
	Total		EXCOR		All Other
Current assets	$	50,644,203	$	23,082,855	$	27,561,348
Total assets		54,232,523		25,102,700		29,129,823
Current liabilities		12,684,139		2,848,920		9,835,219
Noncurrent liabilities		354,984		-		354,984
Joint ventures’ equity		41,193,400		22,253,780		18,939,620
Northern Technologies International Corporation’s share of joint ventures’ equity		20,331,746		11,126,892		9,204,854
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		19,303,110		11,095,987		8,207,123

	As of August 31, 2022
	Total		EXCOR		All Other
Current assets	$	52,428,831	$	26,047,914	$	26,380,917
Total assets		55,854,457		27,932,532		27,921,925
Current liabilities		10,981,833		2,943,895		8,037,938
Noncurrent liabilities		1,138,980		—		1,138,980
Joint ventures’ equity		43,733,644		24,988,637		18,745,007
Northern Technologies International Corporation’s share of joint ventures’ equity		21,814,754		12,494,320		9,320,434
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings		21,256,923		12,463,415		8,793,508

Condensed Income Statement [Table Text Block]

	Three Months Ended November 30, 2022
	Total		EXCOR		All Other
Net sales	$	24,730,289	$	10,145,921	$	14,584,368
Gross profit		9,693,568		4,720,042		4,973,526
Net income		2,646,908		1,742,287		904,621
Northern Technologies International Corporation’s share of equity in income from joint ventures		1,189,400		871,144		318,260
Northern Technologies International Corporation's dividends received from joint ventures		3,042,688		2,459,500		583,188

	Three Months Ended November 30, 2021
	Total		EXCOR		All Other
Net sales	$	27,022,995	$	11,300,228	$	15,722,767
Gross profit		11,032,959		5,468,986		5,563,973
Net income		2,777,605		1,821,547		956,058
Northern Technologies International Corporation’s share of equity in income from joint ventures		1,374,749		910,773		463,976
Northern Technologies International Corporation's dividends received from joint ventures		5,042,271		4,255,200		787,071

Note 9 - Net Income Per Common Share (Tables)

3 Months Ended

Nov. 30, 2022

Notes Tables

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

	Three Months Ended
Numerator:	November 30, 2022		November 30, 2021
Net income attributable to NTIC	$	502,242	$	4,493,759

Denominator
Basic – weighted shares outstanding		9,317,680		9,199,976
Weighted shares assumed upon exercise of stock options		401,251		579,794
Diluted – weighted shares outstanding		9,718,931		9,779,770
Basic net income per share:	$	0.05	$	0.49
Diluted net income per share:	$	0.05	$	0.46

Note 10 - Stock-based Compensation (Tables)

3 Months Ended

Nov. 30, 2022

Notes Tables

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

	Number of Options Outstanding			Weighted Average Exercise Price
Outstanding as of August 31, 2022		1,544,727		$	10.23
Granted		272,102		$	11.38
Exercised		(178,331	)	$	6.03
Cancelled/Forfeited		-			-
Outstanding as of November 30, 2022		1,638,498		$	10.88

Note 11 - Segment and Geographic Information (Tables)

3 Months Ended

Nov. 30, 2022

Notes Tables

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

	Three Months Ended
	November 30, 2022		November 30, 2021
ZERUST® net sales	$	15,370,001	$	14,423,785
Natur-Tec® net sales		4,582,765		3,769,628
Total net sales	$	19,952,766	$	18,193,413

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

	November 30, 2022		% of Product Sales*			November 30, 2021		% of Product Sales*
Direct cost of goods sold
ZERUST®	$	9,179,254		59.7	%	$	8,706,667		60.4	%
Natur-Tec®		3,570,673		77.9	%		2,922,098		77.5	%
Indirect cost of goods sold		849,715	NA				861,718	NA
Total net cost of goods sold ….	$	13,599,642				$	12,490,483

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

	Three Months Ended
	November 30, 2022		November 30, 2021
Inside the U.S.A. to unaffiliated customers	$	7,478,161	$	6,156,322
Outside the U.S.A. to:
Joint ventures in which the Company is a shareholder directly and indirectly		633,465		840,439
Unaffiliated customers		11,841,140		11,196,652
	$	19,952,766	$	18,193,413

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

	At November 30, 2022		At August 31, 2022
China	$	5,740,401	$	5,826,898
Other		631,835		565,022
United States		5,772,916		5,778,573
Total property and equipment, net	$	12,145,152	$	12,170,493

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

	Three Months Ended
	November 30, 2022		November 30, 2021
China	$	3,746,640	$	4,057,853
Brazil		1,367,418		1,296,217
India		4,846,927		4,476,984
Other		2,513,620		2,206,037
United States		7,478,161		6,156,322
Total net sales	$	19,952,766	$	18,193,413

Fees for Services Provided to Joint Ventures [Member]

Notes Tables

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

	Three Months Ended
	November 30, 2022		% of Total Fees for Services Provided to Joint Ventures			November 30, 2021		% of Total Fees for Services Provided to Joint Ventures
Germany	$	193,828		16.4	%	$	218,430		17.4	%
Poland		186,696		15.8	%		176,927		14.1	%
Japan		147,920		12.5	%		166,807		13.3	%
France		109,357		9.3	%		116,295		9.2	%
Sweden		100,436		8.5	%		108,070		8.6	%
Finland		90,432		7.7	%		80,173		6.4	%
Thailand		82,956		7.0	%		87,554		7.0	%
Czech Republic		80,332		6.8	%		70,098		5.6	%
South Korea		63,395		5.4	%		62,626		5.0	%
United Kingdom		57,691		4.9	%		94,927		7.5	%
Other		68,762		5.7	%		76,951		5.9	%
	$	1,181,805		100.0	%	$	1,258,858		100.0	%

Note 13 - Fair Value Measurements (Tables)

3 Months Ended

Nov. 30, 2022

Notes Tables

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

Fair Value Measurements

Using Inputs Considered as

Fair value as of

November 30, 2022

Level 1

Level 2

Level 3

Available for sale securities

5,590

—

Fair Value Measurements

Using Inputs Considered as

Fair value as of

August 31, 2022

Level 1

Level 2

Level 3

Available for sale securities

5,590

—

Note 14 - Supplemental Cash Flow Information (Tables)

3 Months Ended

Nov. 30, 2022

Notes Tables

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

Three Months Ended

November 30,

2022

November 30,

2021

Cash paid for interest

91,331

2,891

Note 3 - Inventories - Inventories (Details) - USD ($)	Nov. 30, 2022	Aug. 31, 2022
Production materials	$ 5,340,632	$ 6,496,656
Finished goods	9,895,864	9,845,073
Inventory, Net, Total	$ 15,236,496	$ 16,341,729

Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($)	Nov. 30, 2022	Aug. 31, 2022
Land	$ 310,365	$ 310,365
Buildings and improvements	14,927,540	14,778,759
Machinery and equipment	5,749,249	5,643,320
Property, Plant and Equipment, Gross, Ending Balance	20,987,154	20,732,444
Less accumulated depreciation	(8,842,002)	(8,561,951)
Property, Plant and Equipment, Net, Total	$ 12,145,152	$ 12,170,493

Note 5 - Intangible Assets, Net (Details Textual) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Amortization of Intangible Assets	$ 147,811	$ 119,894

Note 5 - Intangible Assets, Net - Intangible Assets, Net (Details) - USD ($)	Nov. 30, 2022	Aug. 31, 2022
Gross carrying amount	$ 9,617,100	$ 9,572,655
Accumulated amortization	(3,086,588)	(2,938,777)
Net carrying amount	6,530,512	6,633,878
Patents and Trademarks [Member]
Gross carrying amount	3,270,100	3,225,655
Accumulated amortization	(2,557,670)	(2,515,644)
Net carrying amount	712,430	710,011
Customer Relationships [Member]
Gross carrying amount	6,347,000	6,347,000
Accumulated amortization	(528,918)	(423,133)
Net carrying amount	$ 5,818,082	$ 5,923,867

Note 5 - Intangible Assets, Net - Future Amortization Expense (Details) - USD ($)	Nov. 30, 2022	Aug. 31, 2022
Remainder of 2023	$ 613,000
2024	613,000
2025	613,000
2026	613,000
2027	613,000
Thereafter	3,465,512
Total	$ 6,530,512	$ 6,633,878

Note 6 - Investments in Joint Ventures - Condensed Balance Sheet of EXCOR and All Other Joint Ventures (Details) - USD ($)	Nov. 30, 2022	Aug. 31, 2022
Current assets	$ 39,892,066	$ 40,234,881
Total assets	84,122,773	86,193,953
Current liabilities	14,483,146	17,065,401
Noncurrent liabilities	1,766,432	1,884,256
Joint ventures’ equity	64,165,936	63,595,262
Investments in joint ventures	20,331,746	21,814,754
EXCOR and All Other Joint Venturs [Member]
Investments in joint ventures	20,331,746	21,814,754
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	19,303,110	21,256,923
EXCOR [Member]
Investments in joint ventures	11,126,892	12,494,320
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	11,095,987	12,463,415
All Other [Member]
Investments in joint ventures	9,204,854	9,320,434
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings	8,207,123	8,793,508
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Current assets	50,644,203	52,428,831
Total assets	54,232,523	55,854,457
Current liabilities	12,684,139	10,981,833
Noncurrent liabilities	354,984	1,138,980
Joint ventures’ equity	41,193,400	43,733,644
EXCOR [Member]
Current assets	23,082,855	26,047,914
Total assets	25,102,700	27,932,532
Current liabilities	2,848,920	2,943,895
Noncurrent liabilities		0
Joint ventures’ equity	22,253,780	24,988,637
Joint Ventures in France [Member]
Current assets		26,380,917
Total assets		27,921,925
Current liabilities		8,037,938
Noncurrent liabilities		1,138,980
Joint ventures’ equity		$ 18,745,007
All Other [Member]
Current assets	27,561,348
Total assets	29,129,823
Current liabilities	9,835,219
Noncurrent liabilities	354,984
Joint ventures’ equity	$ 18,939,620

Note 6 - Investments in Joint Ventures - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Net sales	$ 19,952,766	$ 18,193,413
Gross profit	6,353,124	5,702,930
Net income	502,242	4,493,759
Northern Technologies International Corporation’s share of equity in income from joint ventures	1,189,404	1,374,749
EXCOR and All Other Joint Venturs [Member]
Northern Technologies International Corporation’s share of equity in income from joint ventures	1,189,400	1,374,749
Northern Technologies International Corporation's dividends received from joint ventures	3,042,688	5,042,271
EXCOR [Member]
Northern Technologies International Corporation’s share of equity in income from joint ventures	871,144	910,773
Northern Technologies International Corporation's dividends received from joint ventures	2,459,500	4,255,200
All Other [Member]
Northern Technologies International Corporation’s share of equity in income from joint ventures	318,260	463,976
Northern Technologies International Corporation's dividends received from joint ventures	583,188	787,071
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Net sales	24,730,289	27,022,995
Gross profit	9,693,568	11,032,959
Net income	2,646,908	2,777,605
EXCOR [Member]
Net sales	10,145,921	11,300,228
Gross profit	4,720,042	5,468,986
Net income	1,742,287	1,821,547
Joint Ventures in France [Member]
Net sales		15,722,767
Gross profit		5,563,973
Net income		$ 956,058
All Other [Member]
Net sales	14,584,368
Gross profit	4,973,526
Net income	$ 904,621

Note 7 - Corporate Debt (Details Textual) - USD ($)	3 Months Ended
Note 7 - Corporate Debt (Details Textual) - USD ($)	Nov. 30, 2022	Nov. 30, 2021	Jan. 06, 2023	Aug. 31, 2022
PNC Bank [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 7,000,000
Long-Term Line of Credit, Total	$ 5,450,000			$ 5,900,000
Debt, Weighted Average Interest Rate	5.80%	2.57%
Letters of Credit Outstanding, Amount	$ 0			$ 0
PNC Bank [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.50%
PNC Bank [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) Swap Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	2.50%
JP Morgan Chase Bank [Member] \| Revolving Credit Facility [Member] \| Subsequent Event [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 10,000,000.0
JP Morgan Chase Bank [Member] \| Standby Letters of Credit [Member] \| Subsequent Event [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 5,000,000.0

Note 8 - Stockholders' Equity (Details Textual) - $ / shares					3 Months Ended
	Oct. 20, 2022	Sep. 01, 2022	Oct. 20, 2021	Sep. 01, 2021	Nov. 30, 2022	Nov. 30, 2021
Common Stock, Dividends, Per Share, Declared	$ 0.07		$ 0.07		$ 0.07	$ 0.07
Dividends Payable, Date Declared	Nov. 16, 2022		Nov. 17, 2021
Stock Repurchased and Retired During Period, Shares (in shares)					0	0
Stock Issued During Period, Shares, Employee Stock Purchase Plans		3,620		2,636
ESPP [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant					65,600

Note 9 - Net Income Per Common Share (Details Textual) - shares	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	305,514	311,061

Note 9 - Net Income Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Net income	$ 502,242	$ 4,493,759
Basic – weighted shares outstanding (in shares)	9,317,680	9,199,976
Weighted shares assumed upon exercise of stock options (in shares)	401,251	579,794
Diluted – weighted shares outstanding (in shares)	9,718,931	9,779,770
Basic net income per share: (in dollars per share)	$ 0.05	$ 0.49
Diluted net income per share: (in dollars per share)	$ 0.05	$ 0.46

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1448-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1337-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e4984-109258

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e3842-109258

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1252-109256

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e3842-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1252-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1337-109256

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

+ Details

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 6
-URI https://asc.fasb.org/extlink&oid=124431353&loc=SL124452729-227067

Reference 7: 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)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI https://asc.fasb.org/extlink&oid=126954810&loc=d3e3602-108585

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 13: 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)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22663-107794

Reference 16: 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)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 17: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22658-107794

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669619-108580

Reference 25: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669625-108580

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 32: 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)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&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))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

+ Details

Note 10 - Stock-based Compensation (Details Textual) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 4.85	$ 7.29
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year)	6 years 7 months 28 days	6 years 4 months 28 days
Share-Based Payment Arrangement, Expense	$ 329,522	$ 232,883
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 1,999,892
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)	2 years 8 months 12 days

Note 10 - Stock-based Compensation - Stock Option Activity (Details)	3 Months Ended
	Nov. 30, 2022 $ / shares shares
Number of shares, Outstanding (in shares) \| shares	1,544,727
Weighted average exercise price, Outstanding (in dollars per share) \| $ / shares	$ 10.23
Number of shares, Options granted (in shares) \| shares	272,102
Weighted average exercise price, Options granted (in dollars per share) \| $ / shares	$ 11.38
Number of shares, Options exercised (in shares) \| shares	(178,331)
Weighted average exercise price, Options exercised (in dollars per share) \| $ / shares	$ 6.03
Number of shares, Options Forfeited (in shares) \| shares	0
Weighted average exercise price, Options forfeited (in dollars per share) \| $ / shares	$ 0
Number of shares, Outstanding (in shares) \| shares	1,638,498
Weighted average exercise price, Outstanding (in dollars per share) \| $ / shares	$ 10.88

Note 11 - Segment and Geographic Information (Details Textual)	3 Months Ended
	Nov. 30, 2022
Number of Reportable Segments	2

Note 11 - Segment and Geographic Information - Net Sales by Segment (Details) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Net sales	$ 19,952,766	$ 18,193,413
ZERUST [Member]
Net sales	15,370,001	14,423,785
NaturTec [Member]
Net sales	$ 4,582,765	$ 3,769,628

- 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 https://asc.fasb.org/extlink&oid=126901519&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 https://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
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: 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)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 9: 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))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 12: 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)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 14: 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)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI https://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 21: 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)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 22: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(1))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

+ Details

Note 11 - Segment and Geographic Information - Cost of Goods Sold by Segment (Details) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
ZERUST®	$ 13,599,642	$ 12,490,483
Indirect Cost of Goods Sold [Member]
ZERUST®	849,715	861,718
ZERUST [Member] \| Direct Cost of Goods Sold [Member]
ZERUST®	$ 9,179,254	$ 8,706,667
ZERUST®	59.70%	60.40%
NaturTec [Member] \| Direct Cost of Goods Sold [Member]
ZERUST®	$ 3,570,673	$ 2,922,098
ZERUST®	77.90%	77.50%

Note 11 - Segment and Geographic Information - Net Sales by Geographic Location (Details) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Net sales	$ 19,952,766	$ 18,193,413
Inside the USA to Unaffiliated Customers [Member]
Net sales	7,478,161	6,156,322
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member]
Net sales	633,465	840,439
Unaffiliated Customers Outside the USA [Member]
Net sales	$ 11,841,140	$ 11,196,652

- 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 ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Germany	$ 1,181,805	$ 1,258,858
Germany	100.00%	100.00%
GERMANY
Germany	$ 193,828	$ 218,430
Germany	16.40%	17.40%
POLAND
Germany	$ 186,696	$ 176,927
Germany	15.80%	14.10%
JAPAN
Germany	$ 147,920	$ 166,807
Germany	12.50%	13.30%
FRANCE
Germany	$ 109,357	$ 116,295
Germany	9.30%	9.20%
SWEDEN
Germany	$ 100,436	$ 108,070
Germany	8.50%	8.60%
FINLAND
Germany	$ 90,432	$ 80,173
Germany	7.70%	6.40%
THAILAND
Germany	$ 82,956	$ 87,554
Germany	7.00%	7.00%
CZECHIA
Germany	$ 80,332	$ 70,098
Germany	6.80%	5.60%
KOREA, REPUBLIC OF
Germany	$ 63,395	$ 62,626
Germany	5.40%	5.00%
UNITED KINGDOM
Germany	$ 57,691	$ 94,927
Germany	4.90%	7.50%
Other Countries [Member]
Germany	$ 68,762	$ 76,951
Germany	5.70%	5.90%

Note 11 - Segment and Geographic Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($)	Nov. 30, 2022	Aug. 31, 2022
China	$ 12,145,152	$ 12,170,493
CHINA
China	5,740,401	5,826,898
Other Countries [Member]
China	631,835	565,022
UNITED STATES
China	$ 5,772,916	$ 5,778,573

Note 11 - Segment and Geographic Information - Total Net Sales by Geographic Distribution (Details) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Net sales	$ 19,952,766	$ 18,193,413
CHINA
Net sales	3,746,640	4,057,853
BRAZIL
Net sales	1,367,418	1,296,217
INDIA
Net sales	4,846,927	4,476,984
Other Countries [Member]
Net sales	2,513,620	2,206,037
UNITED STATES
Net sales	$ 7,478,161	$ 6,156,322

- Definition

+ References

+ Details

Note 12 - Commitments and Contingencies (Details Textual)	Nov. 30, 2022	Nov. 30, 2021
Entity Wide Trade Joint Venture Receivables, Two Joint Ventures, Percentage	47.40%	42.40%

Note 13 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($)	Nov. 30, 2022	Aug. 31, 2022
Available for sale securities	$ 5,590	$ 5,590
Fair Value, Inputs, Level 1 [Member]
Available for sale securities	5,590	5,590
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 14 - Supplemental Cash Flow Information - Supplemental Disclosures of Cash Flow Information (Details) - USD ($)	3 Months Ended
	Nov. 30, 2022	Nov. 30, 2021
Cash paid for interest	$ 91,331	$ 2,891

Note 15 - Income Taxes (Details Textual) - USD ($)	3 Months Ended
Note 15 - Income Taxes (Details Textual) - USD ($)	Nov. 30, 2022	Nov. 30, 2021
Income Tax Expense (Benefit), Total	$ 110,733	$ 504,380

- Definition

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

+ References + Details

Note 16 - Subsequent Event (Details Textual) - JP Morgan Chase Bank [Member] - Subsequent Event [Member] $ in Millions	Jan. 06, 2023 USD ($)
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 10
Debt Instrument, Covenants, Fixed Charge Coverage Ratio	1.25
Revolving Credit Facility [Member] \| Prime Rate [Member]
Debt Instrument, Floating Rate, Benchmark	2.50%
Revolving Credit Facility [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.10%
Revolving Credit Facility [Member] \| Adjusted SOFR Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	2.15%
Standby Letters of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 5