Note 11 - Geographic And Segment Information

3 Months Ended

Nov. 30, 2012

Segment Reporting Disclosure [Text Block]

11.           GEOGRAPHIC AND SEGMENT INFORMATION

Net sales by geographic location as a percentage of total consolidated net sales for the three months ended November 30, 2012 and 2011 were as follows:

	Three Months Ended
	November 30, 2012			November 30, 2011
Inside the U.S.A. to unaffiliated customers		71.2	%		68.1	%
Outside the U.S.A. to:
Joint ventures in which the Company is a shareholder directly and indirectly		15.3			15.7
Unaffiliated customers		13.5			16.2
		100.0	%		100.0	%

Net sales by geographic location are based on the location of the customer.

Fees for services provided to joint ventures by geographic location as a percentage of total fees for services provided to joint ventures during the three months ended November 30, 2012 and 2011 were as follows:

	Three Months Ended November 30,
	2012		% of Total Fees for Services Provided to Joint Ventures			2011		% of Total Fees for Services Provided to Joint Ventures
China*	$	493,312		26.7	%	$	—		0.0	%
Germany		242,700		13.1	%		249,447		17.3	%
Japan		201,981		10.9	%		288,539		20.0	%
Thailand*		153,687		8.3	%		—		0.0	%
Korea**		138,742		7.5	%		76,465		5.3	%
France		128,502		7.0	%		141,639		9.8	%
Poland		111,472		6.0	%		97,828		6.8	%
Finland		87,851		4.8	%		132,496		9.2	%
Sweden		86,992		4.7	%		156,657		10.8	%
United Kingdom		67,058		3.6	%		79,499		5.5	%
India		—		0.0	%		136,155		9.4	%
Other		133,980		7.4	%		86,527		6.0	%
	$	1,846,277		100.0	%	$	1,445,252		100.0	%

*Joint Ventures owned by NTI Asean.

**Joint Venture owned by NTI Asean as of November 30, 2012, but not as of November 30, 2011.  NTI Asean results are not included on the consolidated financial statements for the three months ended November 30, 2011. (See Note 2)

The following table sets forth the Company’s net sales for the three months ended November 30, 2012 and 2011 by segment:

	Three Months Ended
	November 30, 2012		November 30, 2011
ZERUST® sales	$	4,795,283	$	4,452,646
Natur-Tec® sales		496,464		379,468
Total net sales	$	5,291,747	$	4,832,114

The following table sets forth the Company’s cost of goods sold for the three months ended November 30, 2012 and 2011 by segment:

	November 30, 2012		% of Product Sales*			November 30, 2011		% of Product Sales*
Direct cost of goods sold
ZERUST®	$	2,644,295		55.1	%	$	2,457,799		55.2	%
Natur-Tec®		439,673		88.6	%		296,561		78.2	%
Indirect cost of goods sold		607,004	NA				455,116	NA
Total net cost of goods sold	$	3,690,972				$	3,209,476

* The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category.

The Company’s management utilizes product net sales and direct and indirect cost of goods sold for each product in reviewing the financial performance of a product type.  Further allocation of Company expenses or assets, aside from amounts presented in the tables above, is not utilized in evaluating product performance, nor does such allocation occur for internal financial reporting.

Sales to the Company’s joint ventures are included in the foregoing geographic and segment information, however, sales by the Company’s joint ventures to other parties are not included.  The foregoing geographic and segment information represents only sales and cost of goods sold recognized directly by the Company.

The geographical distribution of key financial statement data is as follows:

	At November 30, 2012
	Brazil		North America		Total
Total assets	$	1,525,725	$	45,619,817	$	47,105,308

	At August 31, 2012
	Brazil		North America		Total
Total assets	$	1,744,693	$	40,132,934	$	41,877,627

	Three Months Ended November 30, 2012
	Brazil			North America		Total
Net sales	$	551,814		$	4,739,933	$	5,291,747
Operating income	$	(23,148	)	$	896,812	$	873,664

	Three Months Ended November 30, 2011
	Brazil			North America		Total
Net sales	$	604,920		$	4,227,194	$	4,832,114
Operating income	$	(155,174	)	$	1,187,676	$	1,032,502

Total assets located in Brazil primarily consist of cash and cash equivalents, customer receivables and inventory.  These assets are periodically reviewed to assure the net realizable value from the estimated future production based on forecasted sales exceeds the carrying value of the assets.