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Note 11 - Geographic and Segment Information
 3 Months Ended
Nov. 30, 2011
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, 2011 and November 30, 2010 were as follows:

   
Three Months Ended November 30,
 
   
2011
   
2010
 
Inside the U.S.A. to unaffiliated customers
  68.1%     67.2%  
Outside the U.S.A. to:
           
Joint ventures in which the Company is a
     shareholder directly and indirectly
  15.7     16.4  
Unaffiliated customers
  16.2     16.4  
    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 the three months ended November 30, 2011 and 2010 were as follows:

   
Three Months Ended November 30,
 
   
2011
   
% of Total Fees
for Services
Provided to Joint
Ventures
   
2010
   
% of Total Fees for
Services Provided to
Joint Ventures
 
Japan
  $ 288,539       20.0 %   $ 276,000       19.0 %
Germany
    249,447       17.3 %     257,276       17.7 %
Sweden
    156,657       10.8 %     144,111       9.9 %
France
    141,639       9.8 %     164,482       11.3 %
India
    136,155       9.4 %     200,711       13.8 %
Finland
    132,496       9.2 %     144,211       9.9 %
United Kingdom
    79,499       5.5 %     82,642       5.7 %
Other
    260,820       18.1 %     182,347       12.6 %
    $ 1,445,252             $ 1,451,780          

The following table sets forth the Company’s net sales for the three months ended November 30, 2011 and 2010 by segment:

   
Three Months Ended November 30,
 
   
2011
   
2010
   
$ Change
   
% Change
 
ZERUST® net sales
  $ 4,452,646     $ 3,875,428     $ 557,218       14.9 %
Natur-Tec® net sales
    379,468       223,013       156,455       70.2 %
    $ 4,832,114     $ 4,098,441     $ 733,673       17.9 %

The following table sets forth the Company’s cost of goods sold for the three months ended November 30, 2011 and 2010 by segment:

   
Three Months Ended November 30,
 
   
2011
   
% of Segment
Sales*
   
2010
   
% of Segment
Sales*
 
Direct cost of goods sold
                       
ZERUST®
  $ 2,457,799     55.2%     $ 2,146,839     55.4%  
Natur-Tec™
    296,561     78.2%       180,630     81.0%  
Indirect cost of goods sold
    455,116    
NA
      363,236    
NA
 
    $ 3,209,476           $ 2,690,705        

*
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 long-lived assets is set forth as follows:

   
November 30,
 
   
2011
   
2010
 
United States
  $ 3,456,123     $ 3,386,100  
Brazil
    133,858       56,207  
Consolidated
  $ 3,589,981     $ 3,442,307  

Long-lived assets consist primarily of property and equipment. 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.