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Note 12 - Geographic And Segment Information
 12 Months Ended
Aug. 31, 2012
Segment Reporting Disclosure [Text Block]
12.           GEOGRAPHIC AND SEGMENT INFORMATION

Net sales by geographic location as a percentage of total consolidated net sales were as follows:

   
Fiscal Year Ended August 31,
 
   
2012
   
2011
 
Inside the U.S.A. to unaffiliated customers
    64.0 %     63.2 %
Outside the U.S.A. to:
               
Joint ventures in which the Company is a shareholder directly and indirectly
    12.1 %     16.5 %
Unaffiliated customers
    23.9 %     20.3 %
      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 fiscal 2012 and fiscal 2011 were as follows:

   
Fiscal 2012
   
% of Total Fees
for Services
Provided to Joint
Ventures in Fiscal
2012
   
Fiscal 2011
   
% of Total Fees
for Services
Provided to Joint
Ventures in
Fiscal 2011
 
Japan
  $ 1,022,386       22.1 %   $ 1,184,205       19.3 %
Germany
    994,347       21.5 %     1,066,659       17.4 %
Sweden
    587,069       12.7 %     575,271       9.4 %
France
    517,708       11.2 %     727,653       11.9 %
Finland
    491,988       10.6 %     535,913       8.7 %
Poland
    456,837       9.9 %     317,020       5.2 %
United Kingdom
    309,938       6.7 %     306,586       5.0 %
India
    (192,758 )     (4.1 )%     844,147       13.8 %
Other
    435,398       9.4 %     572,525       9.3 %
    $ 4,622,912       100.0 %   $ 6,129,979       100.0 %

The following table sets forth the Company’s net sales for fiscal 2012 and fiscal 2011 by segment:

   
Fiscal 2012
   
Fiscal 2011
   
$
Change
   
%
Change
 
ZERUST® net sales
  $ 20,971,275     $ 18,542,523     $ 2,428,752       13.1 %
Natur-Tec® net sales
    1,810,378       984,004       826,374       84.0 %
    $ 22,781,653     $ 19,526,527     $ 3,255,126       16.7 %

The following table sets forth the Company’s cost of goods sold for fiscal 2012 and fiscal 2011 by segment:

   
Fiscal 2012
   
% of Product
Sales*
   
Fiscal 2011
   
% of Product
Sales*
 
Direct cost of goods sold
                       
ZERUST®
  $ 10,748,865       51.3 %   $ 10,087,637       54.4 %
Natur-Tec®
    1,585,731       87.6 %     702,608       71.4 %
Indirect cost of goods sold
    2,194,190       —       1,978,395       —  
    $ 14,528,785       63.8 %   $ 12,768,640       65.4 %

*
The percent of segment sales is calculated by dividing the direct cost of sales 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 August 31, 2012
 
Brazil
 
North America
 
Total
Total assets
$1,744,693
 
$40,132,934
 
$41,877,627
           

 
At August 31, 2011
 
Brazil
 
North America
 
Total
Total assets
$1,308,996
 
$38,730,746
 
$40,039,742
           

 
Fiscal Year Ended August 31, 2012
 
Brazil
 
North America
 
Total
Net sales
$4,783,900
 
$17,997,753
 
$22,781,653
Operating income
$1,513,891
 
$3,055,878
 
$4,569,769

 
Fiscal Year Ended August 31, 2011
 
Brazil
 
North America
 
Total
Net sales
$3,530,531
 
$15,995,996
 
$19,526,527
Operating income
$708,378
 
$3,917,059
 
$4,625,437

Total assets 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.