XML 59 R16.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 10 - Geographic and Segment Information
 9 Months Ended
May 31, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
10.           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, 2014 and 2013 were as follows:

   
Three Months Ended
   
Nine Months Ended
 
   
May 31, 2014
   
May 31, 2013
   
May 31, 2014
   
May 31, 2013
 
Inside the U.S.A. to unaffiliated customers
    69.0 %     69.8 %     67.4 %     68.9 %
Outside the U.S.A to:
                               
Joint ventures in which the Company is a shareholder directly and indirectly
    13.6 %     11.1 %     12.4 %     14.9 %
   Unaffiliated customers
    17.4 %     19.1 %     20.2 %     16.2 %
      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, 2014 and 2013 were as follows:

   
Three Months Ended
 
   
May 31,
2014
   
% of Total Fees
for Services
Provided to
Joint Ventures
   
May 31,
2013
   
% of Total Fees for
Services Provided
to Joint Ventures
 
China
  $ 478,979       23.9 %   $ 524,724       27.3 %
Germany
    257,215       12.8 %     250,000       13.0 %
India
    204,777       10.2 %     —       0.0 %
Japan
    170,079       8.5 %     177,432       9.3 %
Poland
    152,157       7.6 %     113,339       5.9 %
Thailand
    148,113       7.4 %     169,085       8.8 %
France
    139,719       7.0 %     104,645       5.5 %
Sweden
    130,613       6.5 %     141,000       7.4 %
United Kingdom
    127,697       6.4 %     65,193       3.4 %
Finland
    87,416       4.4 %     85,246       4.4 %
Czech
    71,489       3.6 %     55,322       2.9 %
Other
    33,351       1.7 %     231,961       12.1 %
    $ 2,001,775       100.0 %   $ 1,917,947       100.0 %

   
Nine Months Ended
 
   
May 31,
2014
   
% of Total Fees
for Services
Provided to
Joint Ventures
   
May 31,
2013
   
% of Total Fees for
Services Provided
to Joint Ventures
 
China
  $ 1,590,612       25.8 %   $ 1,468,622       26.5 %
Germany
    784,326       12.7 %     742,213       13.4 %
Japan
    510,769       8.3 %     548,618       9.9 %
Poland
    469,242       7.6 %     379,650       6.9 %
Thailand
    431,112       7.0 %     471,074       8.5 %
France
    390,794       6.3 %     381,043       6.9 %
India
    371,635       6.0 %     —       0.0 %
Sweden
    332,806       5.4 %     305,619       5.5 %
United Kingdom
    282,329       4.6 %     168,005       3.1 %
Finland
    269,155       4.4 %     245,426       4.4 %
Czech
    229,230       3.7 %     147,741       2.7 %
Other
    507,084       8.2 %     677,094       12.2 %
    $ 6,169,094       100.0 %   $ 5,535,105       100.0 %

The following table sets forth the Company’s net sales for the three and nine months ended May 31, 2014 and 2013 by segment:

   
Three Months Ended
   
Nine Months Ended
 
   
May 31, 2014
   
May 31, 2013
   
May 31, 2014
   
May 31, 2013
 
ZERUST® sales
  $ 5,992,095     $ 5,418,271     $ 17,296,159     $ 14,923,966  
Natur-Tec™ sales
    928,725       458,762       2,152,769       1,491,164  
Total net sales
  $ 6,920,820     $ 5,877,033     $ 19,448,928     $ 16,415,130  

The following table sets forth the Company’s cost of goods sold for the three and nine months ended May 31, 2014 and 2013 by segment:

   
Three Months Ended
   
Nine Months Ended
 
   
May 31,
2014
   
% of
Product
Sales*
   
May 31,
2013
   
% of
Product
Sales*
   
May 31,
2014
   
% of
Product
Sales*
   
May 31,
2013
   
% of
Product
Sales*
 
Direct cost of goods sold
                                               
   ZERUST®
  $ 3,288,809       54.9 %   $ 3,115,980       57.5 %   $ 9,336,363       54.0 %   $ 8,383,345       56.2 %
   Natur-Tec®
    695,778       74.9 %     367,485       80.1 %     1,635,815       76.0 %     1,260,305       84.5 %
Indirect cost of goods sold
    684,735       —       570,899       —       1,907,008       —       1,735,599       —  
Total net cost of goods sold
  $ 4,669,322             $ 4,054,364             $ 12,879,186             $ 11,379,249          

* 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 May 31,
2014
   
As of
August 31,
2013
 
Brazil
  $ 1,080,330     $ 1,193,373  
India
    358,423       —  
North America
    50,750,114       47,860,576  
Total assets
  $ 52,188,867     $ 49,053,949  

   
Three Months Ended
   
Nine Months Ended
 
   
May 31, 2014
   
May 31, 2013
   
May 31, 2014
   
May 31, 2013
 
Brazil
  $ 712,125     $ 567,615     $ 1,865,137     $ 1,699,084  
India
    192,921       —       361,700       —  
North America
    6,015,774       5,309,418       17,222,091       14,716,046  
Total net sales
  $ 6,920,820     $ 5,877,033     $ 19,448,928     $ 16,415,130  

   
Three Months Ended
   
Nine Months Ended
 
   
May 31, 2014
   
May 31, 2013
   
May 31, 2014
   
May 31, 2013
 
Brazil
  $ 70,464     $ (156,594 )   $ (75,491 )   $ (263,353 )
India
    72       —       5,872       —  
North America
    1,694,695       1,650,365       5,002,383       3,600,643  
Total operating income
  $ 1,765,231     $ 1,493,771     $ 4,932,764     $ 3,337,290  

Total assets located in Brazil 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.