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Note 11 - Geographic and Segment Information
 9 Months Ended
May 31, 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 and nine months ended May 31, 2012 and 2011 were as follows:

   
Three Months Ended
   
Nine Months Ended
 
   
May 31, 2012
   
May 31, 2011
   
May 31, 2012
   
May 31, 2011
 
Inside the U.S.A. to unaffiliated customers
    58.0 %     66.8 %     61.2 %     63.4 %
Outside the U.S.A. to:
                               
Joint ventures in which the Company is a shareholder directly and indirectly
    10.9       15.2       12.6       15.6  
Unaffiliated customers
    31.1       18.0       26.2       21.0  
      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 and nine months ended May 31, 2012 and 2011 were as follows:

   
Three Months Ended May 31,
 
   
2012
   
% of Total Fees
for Services
Provided to
Joint Ventures
   
2011
   
% of Total Fees
for Services Provided
to Joint Ventures
 
Japan
  $ 260,026       35.4 %   $ 324,185       20.0 %
Germany
    241,338       32.9 %     279,125       17.2 %
Sweden
    141,257       19.2 %     131,450       8.1 %
France
    128,480       17.5 %     181,764       11.2 %
Finland
    127,344       17.3 %     147,791       9.1 %
United Kingdom
    83,879       11.4 %     84,573       5.2 %
India
    (492,602 )     (67.1 %)     250,116       15.4 %
Other
    244,615       33.4 %     224,581       13.8 %
    $ 734,337       100.0 %   $ 1,623,585       100.0 %

   
Nine Months Ended May 31,
 
   
2012
   
% of Total Fees
for Services
Provided to
Joint Ventures
   
2011
   
% of Total Fees
for Services
Provided to
Joint Ventures
 
Japan
  $ 763,548       22.0 %   $ 833,354       18.6 %
Germany
    742,171       21.3 %     800,877       17.9 %
Sweden
    446,191       12.8 %     425,561       9.5 %
France
    397,123       11.4 %     505,354       11.3 %
Finland
    378,751       10.9 %     414,567       9.3 %
United Kingdom
    244,017       7.0 %     243,917       5.4 %
India
    (192,758 )     (5.5 %)     611,985       13.7 %
Other
    698,672       20.1 %     641,899       14.3 %
    $ 3,477,715       100.0 %   $ 4,477,514       100.0 %

* See the Financial Overview section of the Management’s Discussion and Analysis of Financial Condition and Results of Operations for an explanation of the fees for services provided to joint ventures as they relate to the Company’s joint venture in India, Harita NTI Limited.
The following table sets forth the Company’s net sales for the three and nine months ended May 31, 2012 and 2011 by segment:
   
Three Months Ended
   
Nine Months Ended
 
   
May 31, 2012
   
May 31, 2011
   
May 31, 2012
   
May 31, 2011
 
ZERUST® sales                                      
  $ 7,220,258     $ 4,855,535     $ 16,243,683     $ 13,307,276  
Natur-Tec® sales                  
    584,646       245,243       1,367,663       670,061  
Total net sales             
  $ 7,804,904     $ 5,100,778     $ 17,611,346     $ 13,977,337  

The following table sets forth the Company’s cost of goods sold for the three and nine months ended May 31, 2012 and 2011 by segment:

         
Three Months Ended
               
Nine Months Ended
       
   
May 31,
2012
   
% of
Product
Sales*
   
May 31,
2011
   
% of
Product
Sales*
   
May 31,
2012
   
% of
Product
Sales*
   
May 31,
2011
   
% of
Product
Sales*
 
Direct cost of goods sold
                                               
ZERUST®
  $ 3,046,644       42.2 %   $ 2,758,270       56.8 %   $ 8,074,031       49.7 %   $ 7,288,098       54.8 %
Natur-Tec®
    501,749       85.8 %     216,880       88.4 %     1,160,014       84.8 %     574,315       85.7 %
Indirect cost of goods sold
    595,121       —       483,701       —       1,599,027       —       1,293,375       —  
Total net cost of goods sold
  $ 4,143,514             $ 3,458,851             $ 10,833,072             $ 9,155,788          

* 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 long-lived assets is set forth as follows:

   
May 31, 
2012
   
August 31, 
2011
 
United States
  $ 3,635,139     $ 3,499,518  
Brazil
    117,876       136,817  
Consolidated
  $ 3,753,015     $ 3,636,335  

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.