Note 10 - Geographic And Segment Information

6 Months Ended

Feb. 28, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

10.        GEOGRAPHIC AND SEGMENT INFORMATION

Net sales by geographic location as a percentage of total consolidated net sales for the three and six months ended February 28, 2014 and 2013 were as follows:

	Three Months Ended						Six Months Ended
	February 28, 2014			February 28, 2013			February 28, 2014			February 28, 2013
Inside the U.S.A. to unaffiliated customers		62.1	%		65.6	%		66.6	%		68.4	%
Outside the U.S.A to:
Joint ventures in which the Company is a shareholder directly and indirectly		12.9	%		18.2	%		11.7	%		16.8	%
Unaffiliated customers		25.0	%		16.2	%		21.7	%		14.8	%
		100.0	%		100.0	%		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 February 28, 2014 and 2013 were as follows:

	Three Months Ended
	February 28, 2014		% of Total Fees for Services Provided to Joint Ventures			February 28, 2013		% of Total Fees for Services Provided to Joint Ventures
China	$	523,451		25.4	%	$	450,586		25.4	%
Germany		263,556		12.8	%		249,513		14.1	%
Japan		167,410		8.2	%		169,205		9.6	%
India		166,858		8.1	%		—		0.0	%
Poland		152,518		7.4	%		154,839		8.7	%
Thailand		130,441		6.3	%		148,303		8.4	%
France		122,972		6.0	%		147,896		8.3	%
Korea		108,797		5.3	%		123,388		7.0	%
Sweden		92,223		4.5	%		77,627		4.4	%
United Kingdom		79,935		3.9	%		35,754		2.0	%
Finland		76,537		3.7	%		72,329		4.1	%
Other		172,973		8.4	%		141,441		8.0	%
	$	2,057,671		100.0	%	$	1,770,881		100.0	%

	Six Months Ended
	February 28, 2014		% of Total Fees for Services Provided to Joint Ventures			February 28, 2013		% of Total Fees for Services Provided to Joint Ventures
China	$	1,111,633		26.7	%	$	943,897		26.1	%
Germany		527,111		12.6	%		492,213		13.6	%
Japan		340,691		8.2	%		371,186		10.3	%
Poland		317,085		7.6	%		266,311		7.4	%
Thailand		282,999		6.8	%		301,989		8.4	%
Korea		270,221		6.5	%		262,131		7.2	%
France		251,075		6.0	%		276,398		7.6	%
Sweden		202,193		4.8	%		164,619		4.6	%
Finland		181,740		4.4	%		160,180		4.4	%
India		166,858		4.0	%		—		0.0	%
United Kingdom		154,632		3.7	%		102,812		2.8	%
Other		361,081		8.7	%		275,422		7.6	%
	$	4,167,319		100.0	%	$	3,617,158		100.0	%

The following table sets forth the Company’s net sales for the three and six months ended February 28, 2014 and 2013 by segment:

	Three Months Ended				Six Months Ended
	February 28, 2014		February 28, 2013		February 28, 2014		February 28, 2013
ZERUST® sales	$	5,555,051	$	4,710,412	$	11,304,064	$	9,505,695
Natur-Tec™ sales		663,957		535,938		1,224,044		1,032,402
Total net sales	$	6,219,008	$	5,246,350	$	12,528,108	$	10,538,097

The following table sets forth the Company’s cost of goods sold for the three and six months ended February 28, 2014 and 2013 by segment:

	Three Months Ended										Six Months Ended
	February 28, 2014		% of Product Sales*			February 28, 2013		% of Product Sales*			February 28, 2014		% of Product Sales*			February 28, 2013		% of Product Sales*
Direct cost of goods sold
ZERUST®	$	2,965,790		53.4	%	$	2,623,070		55.7	%	$	6,047,554		53.5	%	$	5,267,365		55.4	%
Natur-Tec®		490,573		73.9	%		453,147		84.6	%		940,037		76.8	%		892,820		86.5	%
Indirect cost of goods sold		595,470		—			557,696		—			1,222,273		—			1,164,700		—
Total net cost of goods sold	$	4,051,833				$	3,633,913				$	8,209,864				$	7,324,885

* 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 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:

	As of February 28, 2014		As of August 31, 2013
Brazil	$	934,780	$	1,193,373
India		332,217		—
North America		49,554,310		47,860,576
Total assets	$	50,821,307	$	49,053,949

	Six Months Ended
	February 28, 2014		February 28, 2013
Brazil	$	1,153,012	$	1,131,469
India		168,779		—
North America		11,206,317		9,406,628
Total net sales	$	12,528,108	$	10,538,097

	Six Months Ended
	February 28, 2014			February 28, 2013
Brazil	$	(145,955	)	$	(106,759	)
India		5,800			—
North America		3,307,688			1,950,278
Total operating income	$	3,167,533		$	1,843,519

Total assets located in Brazil and India 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.