Northern Technologies International Corp. Files 10-Q for Q1 2024

Ticker: NTIC · Form: 10-Q · Filed: Jan 11, 2024 · CIK: 875582

Northern Technologies International CORP 10-Q Filing Summary
FieldDetail
CompanyNorthern Technologies International CORP (NTIC)
Form Type10-Q
Filed DateJan 11, 2024
Risk Levellow
Pages13
Reading Time16 min
Key Dollar Amounts$0.02
Sentimentneutral

Complexity: simple

Sentiment: neutral

Topics: 10-Q, Quarterly Report, Financials, NTIC, Northern Technologies

TL;DR

<b>Northern Technologies International Corp. has filed its Q1 2024 10-Q report.</b>

AI Summary

NORTHERN TECHNOLOGIES INTERNATIONAL CORP (NTIC) filed a Quarterly Report (10-Q) with the SEC on January 11, 2024. Northern Technologies International Corp. filed a 10-Q for the quarter ended November 30, 2023. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on August 31. The filing was made on January 11, 2024. The company's principal business address is in Circle Pines, MN.

Why It Matters

For investors and stakeholders tracking NORTHERN TECHNOLOGIES INTERNATIONAL CORP, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational updates for Northern Technologies International Corp. for the first quarter of fiscal year 2024. Understanding the details within this report is crucial for assessing the company's current financial health, strategic direction, and potential risks and opportunities moving forward.

Risk Assessment

Risk Level: low — NORTHERN TECHNOLOGIES INTERNATIONAL CORP shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant negative news or disclosures that would elevate the risk level.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to understand the company's performance drivers and outlook.

Key Numbers

Key Players & Entities

FAQ

When did NORTHERN TECHNOLOGIES INTERNATIONAL CORP file this 10-Q?

NORTHERN TECHNOLOGIES INTERNATIONAL CORP filed this Quarterly Report (10-Q) with the SEC on January 11, 2024.

What is a 10-Q filing?

A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by NORTHERN TECHNOLOGIES INTERNATIONAL CORP (NTIC).

Where can I read the original 10-Q filing from NORTHERN TECHNOLOGIES INTERNATIONAL CORP?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by NORTHERN TECHNOLOGIES INTERNATIONAL CORP.

What are the key takeaways from NORTHERN TECHNOLOGIES INTERNATIONAL CORP's 10-Q?

NORTHERN TECHNOLOGIES INTERNATIONAL CORP filed this 10-Q on January 11, 2024. Key takeaways: Northern Technologies International Corp. filed a 10-Q for the quarter ended November 30, 2023.. The filing covers the first quarter of fiscal year 2024.. The company's fiscal year ends on August 31..

Is NORTHERN TECHNOLOGIES INTERNATIONAL CORP a risky investment based on this filing?

Based on this 10-Q, NORTHERN TECHNOLOGIES INTERNATIONAL CORP presents a relatively low-risk profile. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant negative news or disclosures that would elevate the risk level.

What should investors do after reading NORTHERN TECHNOLOGIES INTERNATIONAL CORP's 10-Q?

Review the detailed financial statements and management discussion within the 10-Q to understand the company's performance drivers and outlook. The overall sentiment from this filing is neutral.

How does NORTHERN TECHNOLOGIES INTERNATIONAL CORP compare to its industry peers?

Northern Technologies International Corp. operates in the coating, engraving, and allied services industry.

Are there regulatory concerns for NORTHERN TECHNOLOGIES INTERNATIONAL CORP?

The company is subject to standard SEC reporting requirements for publicly traded companies, including the filing of quarterly (10-Q) and annual (10-K) reports.

Industry Context

Northern Technologies International Corp. operates in the coating, engraving, and allied services industry.

Regulatory Implications

The company is subject to standard SEC reporting requirements for publicly traded companies, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

  1. Analyze the revenue and profitability figures for Q1 2024.
  2. Examine any disclosed risks or uncertainties in the report.
  3. Compare the Q1 2024 results to previous periods.

Year-Over-Year Comparison

This is the initial filing for Q1 2024, so a direct comparison to the previous quarter's 10-Q is not yet possible from this data alone.

Filing Stats: 3,909 words · 16 min read · ~13 pages · Grade level 20 · Accepted 2024-01-11 08:00:34

Key Financial Figures

Filing Documents

&#x2014; FINANCIAL INFORMATION

PART I &#x2014; FINANCIAL INFORMATION &#xa0; &#xa0; &#xa0; &#xa0; Item 1.

Financial Statements

Financial Statements &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; Consolidated Balance Sheets as of November 30, 2023 (unaudited) and August 31, 2023 1 &#xa0; &#xa0; &#xa0; &#xa0; Consolidated Statements of Operations (unaudited) for the Three Months Ended November 30, 2023 and 2022 2 &#xa0; &#xa0; &#xa0; &#xa0; Consolidated Statements of Comprehensive Income (unaudited) for the Three Months Ended November 30, 2023 and 2022 3 &#xa0; &#xa0; &#xa0; &#xa0; Consolidated Statements of Equity (unaudited) for the Three Months Ended November 30, 2023 and 2022 4 &#xa0; &#xa0; &#xa0; &#xa0; Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended November 30, 2023 and 2022 5 &#xa0; &#xa0; &#xa0; &#xa0;

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 6 &#xa0; &#xa0; &#xa0; Item 2. Management&#x2019; s Discussion and Analysis of Financial Condition and Results of Operations 15 &#xa0; &#xa0; &#xa0; Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 27 &#xa0; &#xa0; &#xa0; Item 4.

Controls and Procedures

Controls and Procedures 28 &#xa0; &#xa0; &#xa0;

&#x2014; OTHER INFORMATION

PART II &#x2014; OTHER INFORMATION &#xa0; &#xa0; &#xa0; Item 1.

Legal Proceedings

Legal Proceedings 29 &#xa0; &#xa0; &#xa0; Item 1A.

Risk Factors

Risk Factors 29 &#xa0; &#xa0; &#xa0; Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29 &#xa0; &#xa0; &#xa0; Item 3. Defaults Upon Senior Securities 29 &#xa0; &#xa0; &#xa0; Item 4. Mine Safety Disclosures 29 &#xa0; &#xa0; &#xa0; Item 5. Other Information 30 &#xa0; &#xa0; &#xa0; Item 6. Exhibits 30 &#xa0; &#xa0; &#xa0;

SIGNATURES

SIGNATURES 31 _________________ &#xa0; i &#xa0; &#xa0; This quarterly report on Form 10-Q contains certain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created by those sections. For more information, see &#x201c; Part I. Financial Information &#x2013; Item 2. &#xa0; Management &#x2019; s Discussion and Analysis of Financial Condition and Results of Operations &#x2013; Forward-Looking Statements. &#x201d; &#xa0; _________________ &#xa0; As used in this report, references to &#x201c; NTIC, &#x201d; the &#x201c; Company, &#x201d; &#x201c; we, &#x201d; &#x201c; our &#x201d; or &#x201c; us, &#x201d; unless the context otherwise requires, refer to Northern Technologies International Corporation and its wholly-owned and majority-owned subsidiaries, all of which are consolidated on NTIC &#x2019; s consolidated financial statements. &#xa0; As used in this report, references to: (1) &#x201c; NTIC China &#x201d; refer to NTIC &#x2019; s wholly-owned subsidiary in China, NTIC (Shanghai) Co., Ltd.; (2) &#x201c; NTI Europe &#x201d; refer to NTIC &#x2019; s wholly-owned subsidiary in Germany, NTIC Europe GmbH; (3) &#x201c; Zerust Mexico &#x201d; refer to NTIC &#x2019; s wholly-owned subsidiary in Mexico, ZERUST-EXCOR MEXICO, S. de R.L. de C.V.; (4) &#x201c; Zerust India &#x201d; refer to NTIC &#x2019; s wholly-owned subsidiary in India, HNTI Limited (formerly Harita-NTI Limited); and (5) &#x201c; NTI Asean &#x201d; refer to NTIC &#x2019; s majority-owned holding company subsidiary, NTI Asean LLC, which holds investments in certain entities that operate in the Association of Southeast Asian Nations (ASEAN) region. &#xa0; NTIC &#x2019; s consolidated financial statements do not include the accounts of any of its joint ventures. Except as otherwise indicated, references in this report to NTIC &#x

&#x2014; FINANCIAL INFORMATION

PART I &#x2014; FINANCIAL INFORMATION &#xa0;

&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0; FINANCIAL STATEMENTS

ITEM 1. &#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0; FINANCIAL STATEMENTS &#xa0; NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF NOVEMBER 30, 2023 (UNAUDITED) AND AUGUST 31, 2023 (AUDITED) &#xa0; &#xa0; &#xa0; &#xa0; November 30, 2023 &#xa0; &#xa0; August 31, 2023 &#xa0; ASSETS &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; CURRENT ASSETS: &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; Cash and cash equivalents &#xa0; $ 6,094,032 &#xa0; &#xa0; $ 5,406,173 &#xa0; Receivables: &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; Trade, excluding joint ventures, less allowance for doubtful accounts of $ 533,000 as of November 30, 2023 and August 31, 2023 &#xa0; &#xa0; 14,239,360 &#xa0; &#xa0; &#xa0; 15,645,130 &#xa0; Trade, joint ventures &#xa0; &#xa0; 778,625 &#xa0; &#xa0; &#xa0; 187,912 &#xa0; Fees for services provided to joint ventures &#xa0; &#xa0; 1,220,680 &#xa0; &#xa0; &#xa0; 1,296,594 &#xa0; Dividend receivable from joint venture &#xa0; &#xa0; 320,068 &#xa0; &#xa0; &#xa0; 1,986,027 &#xa0; Income taxes &#xa0; &#xa0; &#x2014; &#xa0; &#xa0; &#xa0; 34,202 &#xa0; Inventories &#xa0; &#xa0; 12,592,515 &#xa0; &#xa0; &#xa0; 13,096,489 &#xa0; Prepaid expenses &#xa0; &#xa0; 3,024,134 &#xa0; &#xa0; &#xa0; 2,019,029 &#xa0; Total current assets &#xa0; &#xa0; 38,269,414 &#xa0; &#xa0; &#xa0; 39,671,556 &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; PROPERTY AND EQUIPMENT, NET &#xa0; &#xa0; 14,256,990 &#xa0; &#xa0; &#xa0; 14,065,354 &#xa0; OTHER ASSETS: &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; &#xa0; Investments in joint ventures &#xa0; &#xa0; 24,599,520 &#xa0; &#xa0; &#xa0; 23,705,714 &#xa0; Deferred income tax, net &#xa0; &#xa0; 521,329 &#xa0; &#xa0; &#xa0; 530,944 &#xa0;

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) &#xa0; &#xa0; 1. &#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0; INTERIM FINANCIAL INFORMATION &#xa0; 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, 2023 and August 31, 2023 and the results of the Company&#x2019;s operations for the three months ended November 30, 2023 and 2022, the changes in stockholders&#x2019; equity for the three months ended November 30, 2023 and 2022 and the Company&#x2019;s cash flows for the three months ended November 30, 2023 and 2022, in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). &#xa0; These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company&#x2019;s annual report on Form 10-K for the fiscal year ended August 31, 2023. These consolidated financial statements also should be read in conjunction with the &#x201c; Management &#x2019; s Discussion and Analysis of Financial Condition and Results of Operations &#x201d; section appearing in this report. &#xa0; Operating results for the three months ended November 30, 2023 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 31, 2024. &#xa0; The Company evaluates events occurring after the date of the consolidated financial statements, through the date the consolidated financial statements were available to be issued, requiring recording or disclosure in the consolidated financial statements. &#xa0; &#xa0; 2. &#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0;&#xa0; ACCOUNTING PRONOUNCEMENTS &#xa0; Recently Adopted Accounting Pronouncemen

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