Northern Technologies Q1 2025 Filing

TL;DR

NTIC filed its Q1 2025 10-Q. Check financials.

AI Summary

Northern Technologies International Corp. reported its first quarter results for the period ending November 30, 2024. The company's financial performance for this quarter is detailed in this 10-Q filing, providing insights into its operational and financial standing.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Northern Technologies International Corp., crucial for evaluating the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly filing (10-Q) and does not contain immediate, significant negative news.

Key Players & Entities

• NORTHERN TECHNOLOGIES INTERNATIONAL CORP (company) — Filer
• 20241130 (date) — End of reporting period
• 20250110 (date) — Filing date
• 0000875582 (company) — Central Index Key

FAQ

Key Financial Figures

• $0.02 — ich registered Common stock, par value $0.02 per share NTIC The Nasdaq Stock Mar

Filing Documents

• ntic20241130_10q.htm (10-Q) — 1002KB
• ex_761711.htm (EX-10.1) — 27KB
• ex_761712.htm (EX-10.2) — 52KB
• ex_761713.htm (EX-31.1) — 11KB
• ex_761714.htm (EX-31.2) — 12KB
• ex_761715.htm (EX-32.1) — 5KB
• ex_761716.htm (EX-32.2) — 5KB
• chase.jpg (GRAPHIC) — 4KB
• 0001171843-25-000165.txt ( ) — 5551KB
• ntic-20241130.xsd (EX-101.SCH) — 52KB
• ntic-20241130_def.xml (EX-101.DEF) — 330KB
• ntic-20241130_lab.xml (EX-101.LAB) — 288KB
• ntic-20241130_pre.xml (EX-101.PRE) — 365KB
• ntic-20241130_cal.xml (EX-101.CAL) — 48KB
• ntic20241130_10q_htm.xml (XML) — 781KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets as of November 30, 2024 (unaudited) and August 31, 2024 (audited) 1 Consolidated Statements of Operations (unaudited) for the Three Months Ended November 30, 2024 and 2023 2 Consolidated Statements of Comprehensive Income (unaudited) for the Three Months Ended November 30, 2024 and 2023 3 Consolidated Statements of Equity (unaudited) for the Three Months Ended November 30, 2024 and 2023 4 Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended November 30, 2024 and 2023 5

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 6 -15 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 -27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 4.

Controls and Procedures

Controls and Procedures 29

— OTHER INFORMATION

PART II — OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 30 Item 1A.

Risk Factors

Risk Factors 30 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30 Item 3. Defaults Upon Senior Securities 30 Item 4. Mine Safety Disclosures 30 Item 5. Other Information 31 Item 6. Exhibits 31

SIGNATURES

SIGNATURES 33 _________________ 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 " Part I. Financial Information – Item 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements. " i _________________ As used in this report, references to " NTIC, " the " Company, " " we, " " our " or " us, " 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 ' s consolidated financial statements. As used in this report, references to: (1) " NTIC China " refer to NTIC ' s wholly-owned subsidiary in China, NTIC (Shanghai) Co., Ltd.; (2) " NTI Europe " refer to NTIC ' s wholly-owned subsidiary in Germany, NTIC Europe GmbH; (3) " Zerust Mexico " refer to NTIC ' s wholly-owned subsidiary in Mexico, ZERUST-EXCOR MEXICO, S. de R.L. de C.V.; (4) " Zerust India " refer to NTIC ' s wholly-owned subsidiary in India, HNTI Limited (formerly Harita-NTI Limited); and (5) " NTI Asean " refer to NTIC ' 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. NTIC ' 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 ' s joint ventures do not include any of NTIC ' s wholly-owned or majority-owned subsidiaries. As used in this report, references to " EXCOR " refer to NTIC ' s joint venture in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH. All trademarks, trade names or service mar

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF NOVEMBER 30, 2024 (UNAUDITED) AND AUGUST 31, 2024 (AUDITED) November 30, 2024 August 31, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 5,569,834 $ 4,952,184 Receivables: Trade, less allowance for credit losses of $ 310,000 as of November 30, 2024 and August 31, 2024 16,081,710 19,187,079 Fees for services provided to joint ventures 1,170,328 1,235,016 Income taxes 688,806 392,293 Inventories, net 14,337,384 14,390,844 Prepaid expenses 2,454,288 1,421,803 Total current assets 40,302,350 41,579,219 PROPERTY AND EQUIPMENT, NET 17,053,239 16,265,653 OTHER ASSETS: Investments in joint ventures 25,492,921 25,397,287 Deferred income tax, net 508,495 544,464 Intangible assets, net 5,573,945 5,682,945 Goodwill 4,782,376 4,782,376 Operating lease right of use assets 324,329 424,558 Total other assets 36,682,066 36,831,630 Total assets $ 94,037,655 $ 94,676,502 LIABILITIES AND EQUITY CURRENT LIABILITIES: Line of credit $ 4,518,734 $ 4,291,608 Term loan 2,761,592 2,820,835 Accounts payable 6,559,744 6,393,355 Income taxes payable 256,849 327,781 Accrued liabilities: Payroll and related benefits 2,710,181 3,163,372 Other 1,094,381 574,876 Current portion of operating leases 217,441 325,116 Total current liabilities 18,118,922 17,896,943 LONG-TERM LIABILITIES: Deferred income tax, net 1,504,796 1,504,796 Operating leases, less current portion 106,888 99,442 Total long-term liabilities $ 1,611,684 $ 1,604,238 COMMITMENTS AND CONTINGENCIES (Note 12) EQUITY: Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding — — Common stock, $ 0.02 par value per share; authorized 15,000,000 shares as of November 30, 2024 and August 31, 2024; issued and outstanding 9

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 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, 2024 and August 31, 2024, the results of the Company's operations for the three months ended November 30, 2024 and 2023, the changes in stockholders' equity for the three months ended November 30, 2024 and 2023 and the Company's cash flows for the three months ended November 30, 2024 and 2023, 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, 2024. 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, 2024 are not necessarily indicative of the results that may be expected for the full fiscal year ending August 31, 2025. Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the Consolidated Statements of Cash Flows for the three months ended November 30, 2023 to reclassify joint venture receivables, tax receivables and tax payables. 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, requi

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View this 10-Q filing on SEC EDGAR