Note 12 - Geographic and Segment Information

6 Months Ended

Feb. 28, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

12.           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, 2015 and 2014 were as follows:

	Three Months Ended						Six Months Ended
	February 28, 2015			February 28, 2014			February 28, 2015			February 28, 2014
Inside the U.S.A. to unaffiliated customers		61.4	%		62.1	%		64.3	%		66.6	%
Outside the U.S.A to:
Joint ventures in which the Company is a shareholder directly and indirectly		16.9	%		12.9	%		14.1	%		11.7	%
Unaffiliated customers		21.7	%		25.0	%		21.6	%		21.7	%
		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 accounted for under the equity method by geographic location as a percentage of total fees for services provided to joint ventures during the three months ended February 28, 2015 and 2014 were as follows:

	Three Months Ended
	February 28, 2015		% of Total Fees for Services Provided to Joint Ventures			February 28, 2014		% of Total Fees for Services Provided to Joint Ventures
Germany	$	202,633		20.4	%	$	263,556		12.8	%
Thailand		156,519		15.7	%		130,441		6.3	%
Japan		124,202		12.5	%		167,410		8.2	%
Poland		116,612		11.7	%		152,518		7.4	%
United Kingdom		115,000		11.6	%		79,935		3.9	%
France		76,518		7.7	%		122,972		6.0	%
India		73,971		7.4	%		166,858		8.1	%
Sweden		72,297		7.3	%		92,223		4.5	%
Finland		52,693		5.3	%		76,537		3.7	%
China		—		0.0	%		523,451		25.4	%
Other		4,415		0.4	%		281,770		13.7	%
	$	994,860		100.0	%	$	2,057,671		100.0	%

	Six Months Ended
	February 28, 2015		% of Total Fees for Services Provided to Joint Ventures			February 28, 2014		% of Total Fees for Services Provided to Joint Ventures
Germany		440,954		14.1	%		527,111		12.6	%
Thailand		297,152		9.5	%		282,999		6.8	%
Japan		284,544		9.1	%		340,691		8.2	%
Poland		287,836		9.2	%		317,085		7.6	%
United Kingdom		211,371		6.8	%		154,632		3.7	%
France		209,898		6.7	%		251,075		6.0	%
India		143,262		4.6	%		166,858		4.0	%
Sweden		159,217		5.1	%		202,193		4.8	%
Finland		146,215		4.7	%		181,740		4.4	%
China	$	516,139		16.5	%	$	1,111,633		26.7	%
Other		431,942		13.7	%		631,302		15.2	%
	$	3,128,530		100.0	%	$	4,167,319		100.0	%

The following table sets forth the Company’s net sales for the three and six months ended February 28, 2015 and 2014 by segment:

	Three Months Ended				Six Months Ended
	February 28, 2015		February 28, 2014		February 28, 2015		February 28, 2014
ZERUST® sales	$	5,783,985	$	5,555,051	$	12,022,056	$	11,304,064
Natur-Tec™ sales		944,724		663,957		1,920,748		1,224,044
Total net sales	$	6,728,709	$	6,219,008	$	13,942,804	$	12,528,108

The following table sets forth the Company’s cost of goods sold for the three and six months ended February 28, 2015 and 2014 by segment:

	Three Months Ended										Six Months Ended
	February 28, 2015		% of Product Sales*			February 28, 2014		% of Product Sales*			February 28, 2015		% of Product Sales*			February 28, 2014		% of Product Sales*
Direct cost of goods sold
ZERUST®	$	3,171,103		54.8	%	$	2,965,790		53.4	%	$	6,509,691		54.1	%	$	6,047,554		53.5	%
Natur-Tec®		719,048		76.1	%		490,573		73.9	%		1,501,623		78.2	%		940,037		76.8	%
Indirect cost of goods sold		767,589		—			595,470		—			1,453,037		—			1,222,273		—
Total net cost of goods sold	$	4,657,740				$	4,051,833				$	9,464,351				$	8,209,864

* 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, 2015		As of August 31, 2014
Brazil	$	1,065,105	$	1,429,054
China		1,268,072		—
India		359,992		363,894
United States		47,411,333		52,264,827
Total assets	$	50,104,502	$	54,057,775

	Six Months Ended
	February 28, 2015		February 28, 2014
Brazil	$	1,418,236	$	1,153,012
China		20,732		—
India		416,772		168,779
United States		12,087,064		11,206,317
Total net sales	$	13,942,804	$	12,528,108

	Six Months Ended
	February 28, 2015			February 28, 2014
Brazil	$	(41,559	)	$	(145,955	)
China		(358,168	)		—
India		(9,246	)		5,800
United States		2,184,424			3,307,688
Total operating income	$	1,775,451		$	3,167,533

Total assets located in Brazil, China 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.