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Here are 1-3 brief analogies for Northern Technologies International (NTIC):

• A specialized 3M for industrial rust prevention and bioplastics.
• Like a focused DuPont specializing in corrosion protection and sustainable bioplastics.

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• ZERUST®/EXCOR® VCI Packaging: Films, papers, bags, and emitters infused with Volatile Corrosion Inhibitor (VCI) technology to protect metals from rust during storage and shipping.
• Industrial Fluids: Corrosion inhibitor additives and solutions for various industrial oils, lubricants, and water-based systems.
• VCI Powder and Liquid Concentrates: Concentrated VCI formulations used by manufacturers to produce corrosion prevention products or for direct application.
• Corrosion Inhibitor Devices: Specialized emitters and diffusers that release VCI molecules into enclosed spaces to protect metal components.
• Rust Remover Products: Environmentally friendly solutions designed to safely and effectively remove rust from metal surfaces without abrasive methods.

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Northern Technologies International (NTIC) primarily operates on a Business-to-Business (B2B) model, selling its products and solutions to other companies.

Major Customers:

NTIC's major direct customers are its global network of joint ventures (JVs) and independent distributors. According to its most recent 10-K filings, sales to its joint ventures represent a significant portion of its consolidated net sales (e.g., 69% for the fiscal year ended August 31, 2023).

These joint ventures, in turn, distribute and sell NTIC's ZERUST®/EXCOR® corrosion protection products and Natur-Tec® bioplastics to a diverse range of end-user companies across various industries. While these end-user companies are not direct major customers of NTIC itself, they represent the ultimate beneficiaries of NTIC's technology.

The types of end-user industries served by NTIC's network include:

• Automotive: Manufacturers and suppliers for corrosion protection of metal components.
• Electrical & Electronics: For protecting sensitive electronic parts during storage and transit.
• Heavy Equipment: Manufacturers of machinery, agricultural equipment, and construction vehicles.
• Packaging: Companies using bioplastics for various packaging applications (e.g., food and beverage, consumer goods).
• Military: For the protection of defense-related equipment.
• Other industrial sectors requiring corrosion inhibition or sustainable plastic solutions.

Due to the nature of their business relationships and competitive considerations, NTIC does not typically disclose the specific names of individual major joint ventures or their direct end-user customers with revenue percentages in its public filings. The joint ventures themselves are private entities and do not have public company symbols.

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• Cortec Corporation (private)

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G. Patrick Lynch, President and Chief Executive Officer

Mr. Lynch has been an employee of Northern Technologies International Corporation (NTIC) since 1995, serving as President since July 2005 and Chief Executive Officer since January 2006. He was appointed a director of NTIC in February 2004. Prior to his CEO role, Mr. Lynch was President of North American Operations for NTIC from May 2004 to July 2005, and before that, he held various positions including Vice President of Strategic Planning, Corporate Secretary, and Project Manager. Additionally, he is an officer and director of Inter Alia Holding Company, a financial and management consulting firm that is a significant stockholder of NTIC. Before joining NTIC, Mr. Lynch held sales management positions at Fuji Electric Co., Ltd. in Tokyo, Japan, and worked in programming project management for BMW AG in Munich, Germany. He earned an M.B.A. degree from the University of Michigan Business School.

Matthew C. Wolsfeld, Chief Financial Officer and Corporate Secretary

Mr. Wolsfeld became Northern Technologies International Corporation's Chief Financial Officer in November 2001 and Corporate Secretary in November 2004, having joined the company in February 2001. From May 2001 to November 2001, he served as NTIC's Controller. Prior to his tenure at NTIC, Mr. Wolsfeld worked in an auditing role at PricewaterhouseCoopers LLP in Minneapolis, Minnesota, from 1997 to 2001. He is a Certified Public Accountant and holds a B.A. degree in Accounting from the University of Notre Dame and an M.B.A. degree from the University of Minnesota, Carlson School of Business.

Vineet R. Dalal, Vice President and Director, Global Market Development - Natur-Tec

Mr. Dalal serves as Vice President and Director of Global Market Development for Natur-Tec.

Brian Haglund, Vice President, Operations, North America

Mr. Haglund holds the position of Vice President of Operations for North America.

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Key Risks to Northern Technologies International (NTIC)

1. Dependence on Joint Ventures and International Operations: Northern Technologies International's business model relies significantly on a global network of joint ventures (JVs), which are crucial for its revenue generation and worldwide market reach. The company explicitly states that the success of these JVs and the relationships with its partners are critical, and risks associated with international operations, such as exchange rate fluctuations, tariffs, trade disputes, and political unrest, can materially affect its results. The "lumpy nature of big project orders," particularly in the ZERUST® oil and gas segment, has been noted as a factor causing volatility and significant drops in net income and joint venture operating income in fiscal 2025.
2. Economic Uncertainty and Industry-Specific Volatility: The company's financial performance is closely tied to the health of the U.S. and global economies. Factors such as economic uncertainty, recessionary indicators, inflation, increased interest rates, and turmoil in global credit and financial markets pose significant risks. Furthermore, sales within its ZERUST® oil and gas segment are subject to considerable variability, leading to potential fluctuations in quarterly financial results.
3. Competition and Market Acceptance of Products: Northern Technologies International faces the risk of increased competition across its markets. The acceptance and widespread adoption of its existing and new products, particularly within its bioplastics division (Natur-Tec®), are vital for its future growth and market position.

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ZERUST® Corrosion Prevention Solutions

Natur-Tec® Bio-based and Biodegradable Polymer Compounds

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Northern Technologies International (NTIC) is poised for future revenue growth over the next 2-3 years, driven by several key initiatives and market trends:

1. Expansion of the Zerust Oil & Gas Business: NTIC is strategically investing in and expanding its Zerust Oil & Gas division. This includes securing new multi-year contracts, such as a significant offshore production asset preservation contract in Brazil valued at approximately R$70 million (US$13 million) over three years. The company is also adding new salespeople and resources to support foreseeable future growth in this segment, which typically yields higher gross margins than its core industrial business.
2. Growth of Natur-Tec Products: The Natur-Tec brand, which focuses on bio-based and biodegradable polymer resin compounds, is expected to continue its growth trajectory. Recent new customer acquisitions in North America and India have contributed to strong sales, and robust market demand for new applications of certified compostable plastics is anticipated to fuel further expansion.
3. Recovery and Growth in the China Market: NTIC China has shown stabilizing and improving sales trends, approaching levels last experienced in fiscal 2021 and 2022. Management is cautiously optimistic about continued demand improvement in China, which is expected to support higher incremental sales and profitability in this important market.
4. Enhanced Performance of Global Joint Ventures: NTIC emphasizes efforts to enhance profitability and expand global customer relationships through its network of joint ventures across Europe and Asia. While joint venture sales can fluctuate, the company continues to focus on strengthening this global infrastructure to support broader market reach and sales growth.
5. Strategic Investments in Innovative Solutions and New Applications: NTIC is committed to developing and commercializing innovative, environmentally beneficial products. The success of new product launches, such as Natur-Tec's biobased polymers, demonstrates the company's ability to attract new customers and boost revenue by addressing evolving market demands for sustainable alternatives to conventional plastics.

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Share Repurchases

• Northern Technologies International Corporation did not repurchase any shares of its common stock during the nine months ended May 31, 2024, or May 31, 2023.

Share Issuance

• The company issued common stock under its Employee Stock Purchase Plan (ESPP) resulting in proceeds of $79,967 for the nine months ended May 31, 2024, and $75,464 for the nine months ended May 31, 2023.
• Specific share issuances under the ESPP include 3,496 shares on September 1, 2023, and 3,284 shares on March 1, 2024.

Outbound Investments

• In September 2021, Northern Technologies International Corporation acquired the remaining 50% ownership interest in its Indian joint venture, HARITA-NTI LTD. ("Zerust India"), for $6.25 million in cash.
• In fiscal year 2023, the company recorded a one-time gain related to the liquidation of a joint venture in China.
• Northern Technologies International Corporation plans to continue investing in its subsidiaries and joint ventures.

Capital Expenditures

• For the nine months ended May 31, 2024, NTIC spent $2,515,248 on capital expenditures. The primary focus was facility improvements to a warehouse purchased in fiscal 2023 and the installation of a new Enterprise Resource Planning (ERP) software system and associated equipment.
• Cash used in investing activities for the full fiscal year 2024 was $3,418,228.
• For the nine months ended May 31, 2023, net cash used in investing activities, primarily for purchases of property and equipment and investments in patents, amounted to $2,678,748.