Revenue from Contracts with Customers

6 Months Ended

Feb. 28, 2022

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Note 9 — Revenue from Contracts with Customers

The Company accounts for revenue in accordance with ASC 606, “Revenue from Contracts with Customers.” The Company’s revenue is generated from the manufacture of specialty chemical products including coatings, linings, adhesives, sealants, specialty tapes, polymers and laminates. Certain of these manufactured products can incorporate customer-owned materials. The Company also recognizes, to a lesser extent, revenue through royalties and commissions from licensed manufacturers and from providing custom manufacturing-related services. The Company’s revenue recognition policies require the Company to make significant judgments and estimates. In applying the Company’s revenue recognition policy, determinations must be made as to when control of products passes to the Company’s customers, which can be either at a point in time or over time based on contractual terms with customers. Revenue is generally recognized at a point in time when control passes upon either shipment to or receipt by the customer of the Company’s products, while revenue is generally recognized over time when control of the Company’s products transfers to customers during the manufacturing process. The Company analyzes several factors, including but not limited to the nature of the products being sold and contractual terms and conditions in contracts with customers, to help the Company make such judgments about revenue recognition.

Contract Balances

The Company’s contract assets primarily relate to unbilled revenue for products currently in production at the Company’s facilities and which incorporate customer-owned material. Revenue is recognized in advance of billing to the customer in these specific circumstances, whereas billing is typically performed at the time of shipment to or receipt by the customer.

Contract assets are included in prepaid expenses and other current assets on the Company’s condensed consolidated balance sheet. The following table presents contract assets by reportable operating segment as of February 28, 2022 and August 31, 2021:

	February 28,		August 31,
	2022		2021
Contract Assets
Adhesives, Sealants and Additives	$	36	$	21
Industrial Tapes		25		82
Corrosion Protection and Waterproofing		27		25
Total	$	88	$	128

The Company did not have any contract liabilities as of February 28, 2022 and August 31, 2021.

Disaggregated Revenue

The Company disaggregates revenue from customers by geographic region, as it believes this disclosure best depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors. Disaggregated revenue by geographical region for the three and six months ended February 28, 2022 and 2021 was as follows:

	Three Months Ended February 28, 2022
	Adhesives, Sealants		Industrial		Corrosion Protection		Consolidated
	and Additives		Tapes		and Waterproofing		Revenue
Revenue
North America	$	18,882	$	29,643	$	7,827	$	56,352
Asia\Middle East		7,179		1,781		494		9,454
Europe		5,575		1,449		450		7,474
All other foreign		144		457		72		673
Total Revenue	$	31,780	$	33,330	$	8,843	$	73,953
	Six Months Ended February 28, 2022
	Adhesives, Sealants		Industrial		Corrosion Protection		Consolidated
	and Additives		Tapes		and Waterproofing		Revenue
Revenue
North America	$	38,977	$	59,277	$	17,204	$	115,458
Asia\Middle East		13,149		3,579		1,384		18,112
Europe		10,371		2,361		1,365		14,097
All other foreign		332		874		90		1,296
Total Revenue	$	62,829	$	66,091	$	20,043	$	148,963
	Three Months Ended February 28, 2021
	Adhesives, Sealants		Industrial		Corrosion Protection		Consolidated
	and Additives		Tapes		and Waterproofing		Revenue
Revenue
North America	$	17,724	$	24,504	$	6,946	$	49,174
Asia\Middle East		8,599		2,155		1,119		11,873
Europe		5,124		1,039		430		6,593
All other foreign		128		647		32		807
Total Revenue	$	31,575	$	28,345	$	8,527	$	68,447
	Six Months Ended February 28, 2021
	Adhesives, Sealants		Industrial		Corrosion Protection		Consolidated
	and Additives		Tapes		and Waterproofing		Revenue
Revenue
North America	$	36,109	$	47,809	$	15,431	$	99,349
Asia\Middle East		14,928		3,836		2,569		21,333
Europe		10,330		2,052		1,077		13,459
All other foreign		279		1,139		64		1,482
Total Revenue	$	61,646	$	54,836	$	19,141	$	135,623