XML 17 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 11 - Geographic And Segment Information
 9 Months Ended
May 31, 2013
Segment Reporting Disclosure [Text Block]  
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, 2013 and 2012 were as follows:

   
Three Months Ended
   
Nine Months Ended
 
   
May 31, 2013
   
May 31, 2012
   
May 31, 2013
   
May 31, 2012
 
Inside the U.S.A. to unaffiliated customers
    69.8 %     58.0 %     68.9 %     61.2 %
Outside the U.S.A to:
                               
Joint ventures in which the Company is a shareholder directly and indirectly
    11.1 %     10.9 %     14.9 %     12.6 %
Unaffiliated customers
    19.1 %     31.1 %     16.2 %     26.2 %
      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, 2013 and 2012 were as follows:

   
Three Months Ended
 
   
May 31,
2013
   
% of Total Fees
for Services
Provided to
Joint Ventures
   
May 31,
2012
   
% of Total Fees for
Services Provided
to Joint Ventures
 
China*
  $ 524,724       27.3 %   $ —       0.0 %
Germany
    250,000       13.0 %     241,338       32.9 %
Japan
    177,432       9.3 %     260,026       35.4 %
Thailand*
    169,085       8.8 %     —       0.0 %
Korea**
    147,867       7.7 %     61,152       8.4 %
Sweden
    141,000       7.4 %     141,257       19.2 %
Poland
    113,339       5.9 %     113,305       15.4 %
France
    104,645       5.5 %     128,480       17.5 %
Finland
    85,246       4.4 %     127,344       17.3 %
United Kingdom
    65,193       3.4 %     83,879       11.4 %
India
    —       0.0 %     (492,602 )     (67.1 )%
Other
    139,416       7.3 %     70,158       9.6 %
    $ 1,917,947       100.0 %   $ 734,337       100.0 %

* 
Joint venture owned by NTI Asean.

**
Joint venture owned by NTI Asean as of May 31, 2013, but not as of May 31, 2012.  NTI Asean results are not included on the consolidated financial statements for the three months ended May 31, 2012. (See Note 2)

   
Nine Months Ended
 
   
May 31,
2013
   
% of Total Fees
for Services
Provided to
Joint Ventures
   
May 31,
2012
   
% of Total Fees for
Services Provided
to Joint Ventures
 
China*
  $ 1,468,622       26.5 %   $ —       0.0 %
Germany
    742,213       13.4 %     742,171       21.3 %
Japan
    548,618       9.9 %     763,548       22.0 %
Thailand*
    471,074       8.5 %     —       0.0 %
Korea**
    409,997       7.4 %     138,149       4.0 %
France
    381,043       6.9 %     397,123       11.4 %
Poland
    379,650       6.9 %     341,603       9.8 %
Sweden
    305,619       5.5 %     446,191       12.8 %
Finland
    245,426       4.4 %     378,751       10.9 %
United Kingdom
    168,005       3.1 %     244,017       7.0 %
India
    —       0.0 %     (192,758 )     (5.5 )%
Other
    414,838       7.5 %     218,920       6.3 %
    $ 5,535,105       100.0 %   $ 3,477,715       100.0 %

* 
Joint venture owned by NTI Asean.

**
Joint venture owned by NTI Asean as of May 31, 2013, but not as of May 31, 2012.  NTI Asean results are not included on the consolidated financial statements for the nine months ended May 31, 2012. (See Note 2)

The following table sets forth the Company’s net sales for the three and nine months ended May 31, 2013 and 2012 by segment:

   
Three Months Ended
   
Nine Months Ended
 
   
May 31, 2013
   
May 31, 2012
   
May 31, 2013
   
May 31, 2012
 
ZERUST® sales
  $ 5,418,271     $ 7,220,258     $ 14,923,966     $ 16,243,683  
Natur-Tec™ sales
    458,762       584,646       1,491,164       1,367,663  
    $ 5,877,033     $ 7,804,904     $ 16,415,130     $ 17,611,346  

The following table sets forth the Company’s cost of goods sold for the three and nine months ended May 31, 2013 and 2012 by segment:

   
Three Months Ended
   
Nine Months Ended
 
   
May 31,
2013
   
% of
Product
Sales*
   
May 31,
2012
   
% of
Product
Sales*
   
May 31,
2013
   
% of
Product
Sales*
   
May 31,
2012
   
% of
Product
Sales*
 
Direct cost of goods sold
                                               
ZERUST®
  $ 3,115,980       57.5 %   $ 3,046,644       42.2 %   $ 8,383,345       56.2 %   $ 8,074,031       49.7 %
Natur-Tec®
    367,485       80.1 %     501,749       85.8 %     1,260,305       84.5 %     1,160,014       84.8 %
Indirect cost of goods sold
    570,899       —       595,121       —       1,735,599       —       1,599,027       —  
Total net cost of goods sold
  $ 4,054,364             $ 4,143,514             $ 11,379,249             $ 10,833,072          

*
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 key financial statement data is as follows:

   
At May 31, 2013
 
   
Brazil
   
North America
   
Total
 
Total assets
  $ 1,308,385     $ 45,202,928     $ 46,511,313  

   
At August 31, 2012
 
   
Brazil
   
North America
   
Total
 
Total assets
  $ 1,744,693     $ 40,132,934     $ 41,877,627  

   
Nine Months Ended May 31, 2013
 
   
Brazil
   
North America
   
Total
 
Net sales
  $ 1,699,084     $ 14,716,046     $ 16,415,130  
Operating income
  $ (263,353 )   $ 3,600,643     $ 3,337,290  

   
Nine Months Ended May 31, 2012
 
   
Brazil
   
North America
   
Total
 
Net sales
  $ 4,004,399     $ 13,606,947     $ 17,611,346  
Operating income
  $ 1,780,269     $ 2,382,388     $ 4,162,657  

Total assets located in Brazil 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.