UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 29, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to __________________ Commission File Number: 001-11038 ____________________ NORTHERN TECHNOLOGIES INTERNAT ...

[Financial and Operating Highlights for Second Quarter Fiscal 2024](index=1&type=section&id=Financial%20and%20Operating%20Highlights%20for%20Second%20Quarter%20Fiscal%202024) NTIC achieved record Q2 FY2024 performance with strong sales growth, significant profitability improvement, and enhanced liquidity [Management Commentary](index=1&type=section&id=Management%20Commentary) Management reported record Q2 sales and a 40% gross margin, anticipating continued strong demand and positive cash flow - Management reported record Q2 sales for ZERUST oil and gas and record quarterly sales for Natur-Tec, reflecting strong market demand[2](index=2&type=chunk) - Gross margin improved significantly, reaching **40% in Q2**, a **5.5 percentage point increase year-over-year**, due to successful strategic execution[2](index=2&type=chunk) - The company expects strong demand to continue through the second half of fiscal 2024, with a focus on improving profitability, generating positive cash flow, and paying down its line of credit[3](index=3&type=chunk) [Key Financial & Operating Highlights](index=1&type=section&id=Key%20Financial%20%26%20Operating%20Highlights) NTIC achieved record Q2 FY2024 consolidated net sales of $20.8 million and a 313% increase in net income Q2 FY2024 Key Performance Indicators (Year-over-Year) | Metric | Q2 FY2024 | % Change (YoY) | | :--- | :--- | :--- | | Consolidated Net Sales | $20,843,000 | 14.1% | | ZERUST Industrial Net Sales | $13,051,000 | 3.1% | | ZERUST Oil and Gas Net Sales | $2,167,000 | 20.1% | | Natur-Tec Product Net Sales | $5,624,000 | 47.5% | | Gross Margin | 40.0% | +551 bps | | Net Income (attributable to NTIC) | $1,701,000 | 313% | | Net Income per Diluted Share | $0.17 | 325% | - The company generated **$5.643 million in cash from operating activities** for the first six months of fiscal 2024[7](index=7&type=chunk) - The balance sheet strengthened, shifting from net debt of **$951,000** at August 31, 2023, to net cash of **$860,000** as of February 29, 2024[7](index=7&type=chunk) [Financial Performance Analysis](index=1&type=section&id=Financial%20Performance%20Analysis) This section analyzes NTIC's net sales, profitability, and joint venture performance for Q2 and H1 FY2024 [Net Sales Performance](index=1&type=section&id=Net%20Sales%20Performance) Consolidated net sales grew 14.1% in Q2 FY2024, driven by strong Natur-Tec and ZERUST oil and gas segment growth Net Sales by Product Category (Three Months Ended) | Product Category | Q2 FY2024 | Q2 FY2023 | % Change | | :--- | :--- | :--- | :--- | | ZERUST industrial | $13,050,767 | $12,653,512 | 3.1% | | ZERUST oil and gas | $2,167,328 | $1,805,235 | 20.1% | | **Total ZERUST** | **$15,218,095** | **$14,458,747** | **5.3%** | | **Total Natur-Tec** | **$5,624,443** | **$3,812,078** | **47.5%** | | **Total Net Sales** | **$20,842,538** | **$18,270,825** | **14.1%** | Net Sales by Product Category (Six Months Ended) | Product Category | H1 FY2024 | H1 FY2023 | % Change | | :--- | :--- | :--- | :--- | | ZERUST industrial | $26,954,198 | $26,401,616 | 2.1% | | ZERUST oil and gas | $3,669,642 | $3,427,132 | 7.1% | | **Total ZERUST** | **$30,623,840** | **$29,828,748** | **2.7%** | | **Total Natur-Tec** | **$10,400,373** | **$8,394,843** | **23.9%** | | **Total Net Sales** | **$41,024,213** | **$38,223,591** | **7.3%** | [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Q2 FY2024 net income surged 313% to $1.7 million, supported by gross margin expansion and controlled operating expenses Income Statement Highlights (Q2 & H1 FY2024 vs FY2023) | Metric | Q2 FY2024 | Q2 FY2023 | H1 FY2024 | H1 FY2023 | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | $8,339,164 | $6,303,068 | $15,673,438 | $12,656,192 | | Operating Income | $2,206,271 | $813,556 | $3,582,704 | $1,643,132 | | Net Income (to NTIC) | $1,701,000 | $411,000 | $2,597,000 | $914,000 | | Diluted EPS (to NTIC) | $0.17 | $0.04 | $0.27 | $0.09 | - Operating expenses as a percentage of net sales decreased to **41.3% for Q2 FY2024**, compared to 43.1% for the same period last fiscal year, despite an increase in absolute dollar terms due to higher personnel expenses[9](index=9&type=chunk) [Joint Venture Performance](index=2&type=section&id=Joint%20Venture%20Performance) Joint venture operating income increased 4.2% in Q2 FY2024, despite a 7.9% decrease in net sales Joint Venture Performance (Q2 FY2024 vs Q2 FY2023) | Metric | Q2 FY2024 | Q2 FY2023 | % Change | | :--- | :--- | :--- | :--- | | JV Operating Income | $2,481,000 | $2,381,000 | 4.2% | | JV Net Sales (Not Consolidated) | $23,480,000 | $25,483,000 | -7.9% | - The increase in joint venture operating income was primarily due to efforts to enhance profitability, which offset the impact of lower sales[8](index=8&type=chunk) [Financial Position](index=2&type=section&id=Financial%20Position) NTIC's balance sheet shows improved liquidity with a shift from net debt to net cash and stable working capital [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) NTIC strengthened its balance sheet with increased working capital and a shift to a net cash position by Q2 FY2024 Key Balance Sheet Items | Metric | Feb 29, 2024 | Aug 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $4,835,000 | $5,406,000 | | Working Capital | $23,975,000 | $22,950,000 | | Total Debt (Line of Credit & Term Loan) | $3,975,000 | $6,357,000 | | Investments in joint ventures | $23,461,000 | $23,706,000 | - Of the **$23.5 million in joint venture investments**, **$13.1 million (55.8%)** is held in cash[12](index=12&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents NTIC's unaudited consolidated balance sheets and statements of operations for Q2 and H1 FY2024 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased slightly to $87.3 million, while total liabilities reduced and total equity increased by Q2 FY2024 Consolidated Balance Sheet Summary (in thousands) | | Feb 29, 2024 | Aug 31, 2023 | | :--- | :--- | :--- | | **ASSETS** | | | | Total current assets | $37,333 | $39,672 | | Total assets | $87,307 | $89,344 | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | $13,358 | $16,721 | | Total liabilities | $15,359 | $18,645 | | Total equity | $71,948 | $70,699 | | Total liabilities and equity | $87,307 | $89,344 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 FY2024 net sales reached $20.8 million with net income of $1.9 million, significantly up year-over-year Consolidated Statement of Operations (Three Months Ended) | | Feb 29, 2024 | Feb 28, 2023 | | :--- | :--- | :--- | | Net sales | $20,842,538 | $18,270,825 | | Gross profit | $8,339,164 | $6,303,068 | | Operating income | $2,206,271 | $813,556 | | Net income | $1,868,528 | $520,068 | | Net income attributable to NTIC | $1,701,169 | $411,497 | Consolidated Statement of Operations (Six Months Ended) | | Feb 29, 2024 | Feb 28, 2023 | | :--- | :--- | :--- | | Net sales | $41,024,213 | $38,223,591 | | Gross profit | $15,673,438 | $12,656,192 | | Operating income | $3,582,704 | $1,643,132 | | Net income | $2,953,469 | $1,153,748 | | Net income attributable to NTIC | $2,596,690 | $913,739 | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliation of GAAP to non-GAAP financial measures, primarily adjusting for amortization expense [Reconciliation of GAAP to Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Non-GAAP adjusted net income for Q2 FY2024 was $1.8 million, providing a clearer view of operating performance - The company uses non-GAAP measures to supplement GAAP reporting, believing it helps investors compare operating performance by excluding non-recurring or unusual charges[23](index=23&type=chunk) GAAP to Non-GAAP Reconciliation (Q2 FY2024) | Metric | GAAP (As Reported) | Non-GAAP (Adjusted) | | :--- | :--- | :--- | | Net Income (to NTIC) | $1,701,169 | $1,806,952 | | Diluted EPS (to NTIC) | $0.17 | $0.18 | [Corporate Information and Disclosures](index=3&type=section&id=Corporate%20Information%20and%20Disclosures) This section provides an overview of NTIC's business and important forward-looking statement disclosures [About Northern Technologies International Corporation](index=3&type=section&id=About%20Northern%20Technologies%20International%20Corporation) NTIC develops and markets environmentally beneficial corrosion prevention and bio-based polymer products globally - NTIC's main business is corrosion prevention, marketed under the **ZERUST® brand**[16](index=16&type=chunk) - The company also sells a portfolio of bio-based and biodegradable polymer products under the **Natur-Tec® brand**[16](index=16&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) Future performance statements are subject to various risks including economic conditions, supply chain, and joint venture dependencies - Statements about future performance are subject to risks including the health of the U.S. and worldwide economies, supply chain disruptions, and dependence on joint ventures[17](index=17&type=chunk) - The company directs investors to its Form 10-K and 10-Q filings for a more comprehensive understanding of business risks[17](index=17&type=chunk)

Financial Data and Key Metrics Changes - The company reported a consolidated net sales increase of 1.1% year-over-year for Q1 fiscal 2024, reaching a record of $20.2 million [18][32] - Net income attributable to NTIC was $896,000 or $0.09 per diluted share, compared to $502,000 or $0.05 per share for the same period last year, reflecting a significant improvement [38] - Operating cash flows improved by 53.6% year-over-year, generating $3.1 million compared to $2 million in the prior year [21] - Gross profit as a percentage of net sales increased to 36.3%, up from 31.8% in the prior fiscal year, indicating successful measures to combat inflationary pressures [38] Business Line Data and Key Metrics Changes - Natur-Tec net sales increased by 4.2% year-over-year to a record $4.8 million, driven by strong demand in North America and India [34] - ZERUST industrial net sales saw a 1.1% increase, while ZERUST oil and gas net sales declined by 7.4% to $1.5 million due to project timing [15][32] - Total operating expenses rose by 5.2% to $8.3 million, primarily due to increased personnel costs, with operating expenses as a percentage of net sales at 41.2% [19] Market Data and Key Metrics Changes - Sales from the company's joint ventures decreased by 4.7% year-over-year to $23.6 million, with EXCOR Germany experiencing a 17% decline due to lost customers and reduced demand linked to external factors [14][37] - NTIC China subsidiary sales decreased by 1.8% year-over-year to $3.7 million, although there was a sequential increase of 4.1% [7][32] Company Strategy and Development Direction - The company is making strategic investments to enhance infrastructure and support long-term growth, particularly in oil and gas and Natur-Tec businesses [12] - There is a focus on improving operational efficiencies and capital allocation to support growth initiatives and dividends [5][12] - The company aims to leverage partnerships to grow Natur-Tec by developing specialty applications for larger companies [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about fiscal 2024, expecting continued profitability and strong operating cash flow [5][6] - The company remains committed to the Chinese market despite current economic uncertainties, believing it will become a significant market in the future [33] - Management acknowledged the challenges posed by the ongoing Ukraine-Russia conflict, particularly in Europe, but noted stable demand trends in North America [30][41] Other Important Information - The board declared a quarterly cash dividend of $0.07 per common share, payable on November 15, 2023 [22] - As of November 30, 2023, the company had outstanding debt of $5.8 million, down from $3.6 million in August 2023 [21][39] Q&A Session Summary Question: Potential for increased sales in the oil tank business - Management confirmed the potential for sales to reach $2.5 million or $3 million in a quarter, highlighting higher gross margins in this segment [26] Question: Opportunities for partnerships in the Natur-Tec business - Management indicated that while Natur-Tec is not yet at a level for standalone valuation, there are significant opportunities for growth through partnerships with larger companies [27][45] Question: Current challenges in the German market - Management noted that the German market remains weak due to lost customers and ongoing geopolitical issues, impacting sales [29][51]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ FORM 10-Q (Mark One) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to __________________ Commission File Number: 001-11038 ____________________ NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION (Exact name of registrant as specified in its charter) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended August 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to __________________ Commission file number 001-11038 ____________________ NORTHERN TECHNOLOGIES INTERNATIONAL CORPO ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to __________________ Commission File Number: 001-11038 ____________________ NORTHERN TECHNOLOGIES INTERNATIONAL ...

Northern Technologies International Corporation (NASDAQ:NTIC) Q2 2023 Earnings Conference Call April 13, 2023 9:00 AM ET Company Participants Patrick Lynch - CEO Matt Wolsfeld - CFO Conference Call Participants Gus Richard - Northland Capital Markets Tim Clarkson - Van Clemens & Co. Operator Good day, and thank you for standing by. Welcome to the Northern Technologies International Corporation Second Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 28, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to __________________ Commission File Number: 001-11038 ____________________ NORTHERN TECHNOLOGIES INTERNAT ...

Northern Technologies International Corporation (NASDAQ:NTIC) Q1 2023 Earnings Conference Call January 12, 2023 9:00 AM ET Company Participants Patrick Lynch - CEO Matt Wolsfeld - CFO Conference Call Participants Tim Clarkson - Van Clemens & Co Gregory Weaver - Invicta Fund Operator Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Northern Technologies International Corporation First Quarter 2023 Earnings Conference Call and Webcast. [Operator Instructions]. As part of today's d ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ FORM 10-Q (Mark One) or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934‐‐ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2022 For the transition period from ________________ to __________________ Commission File Number: 001-11038 ____________________ NORTHERN TECHNOLOGIES INTERN ...