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Note 13 - Geographic and Segment Information
 12 Months Ended
Aug. 31, 2015
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
13. GEOGRAPHIC AND SEGMENT INFORMATION
 
Segment Information
 
The Company’s chief operating decision maker ("CODM") is its Chief Executive Officer. The Company’s business is organized into two reportable segments: ZERUST® and Natur-Tec®. The Company has been selling its proprietary ZERUST® rust and corrosion inhibiting products and services to the automotive, electronics, electrical, mechanical, military and retail consumer markets for over 35 years, and more recently, has targeted and expanded into the oil and gas industry. The Company also sells a portfolio of bio-based and compostable (fully biodegradable) polymer resins and finished products under the Natur-Tec® brand.
 
The following tables present the Company’s business segment information in fiscal 2015, 2014 and 2013:
 
    Fiscal 2015   Fiscal 2014   Fiscal 2013
ZERUST
®
net sales
   $ 26,042,909     $ 23,845,288     $ 20,457,198  
Natur-Tec
®
net sales
     4,279,784       2,980,820       2,044,666  
Total net sales   $ 30,322,693     $ 26,826,108     $ 22,501,864  
 
The following table sets forth the Company’s cost of goods sold for fiscal 2015, 2014 and 2013 by segment:
 
    Fiscal 2015   Fiscal 2014   Fiscal 2013
Direct cost of goods sold                        
ZERUST
®
   $ 14,399,456     $ 12,941,234     $ 11,408,604  
Natur-Tec
®
     3,232,353       2,234,736       1,731,398  
Indirect cost of goods sold     2,924,124       2,627,183       2,333,210  
Total net cost of goods sold   $ 20,555,932     $ 17,803,153     $ 15,473,212  
 
* 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 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.
 
Geographic Information
 
Net sales by geographic location were as follows:
 
    Fiscal Year Ended August 31,
    2015   2014   2013
Inside the U.S.A. to unaffiliated customers   $ 19,329,979     $ 17,908,563     $ 16,027,619  
Outside the U.S.A. to:                        
Joint ventures in which the Company is a shareholder directly and indirectly     3,240,980       3,348,158       2,952,612  
Unaffiliated customers     7,751,734       5,569,387       3,521,633  
    $ 30,322,693     $ 26,826,108     $ 22,501,864  
 
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 2015, 2014 and 2013, respectively, were as follows:
 
    Fiscal 2015   % of Total Fees for Services Provided to Joint Ventures in Fiscal 2015   Fiscal 2014   % of Total Fees for Services Provided to Joint Ventures in Fiscal 2014   Fiscal 2013   % of Total Fees for Services Provided to Joint Ventures in Fiscal 2013
Germany   $ 873,400       15.3 %   $ 1,032,234       12.7 %   $ 1,004,958       13.7 %
Poland     600,255       10.5 %     652,291       8.0 %     525,282       7.1 %
Japan     599,108       10.5 %     669,522       8.2 %     723,977       9.8 %
Thailand     554,881       9.7 %     604,316       7.4 %     621,807       8.4 %
China     494,080       8.6 %     2,118,018       26.0 %     2,063,369       28.1 %
France     412,608       7.2 %     508,705       6.2 %     496,897       6.8 %
United Kingdom     396,514       6.9 %     385,294       4.7 %     236,125       3.2 %
Sweden     323,610       5.7 %     440,117       5.4 %     415,547       5.7 %
India     277,548       4.9 %     364,918       4.5 %     —       0.0 %
Czech     229,185       4.0 %     288,367       3.6 %     210,827       2.9 %
Korea     192,539       3.4 %     315,916       3.9 %     393,307       5.3 %
Finland     281,620       4.9 %     355,391       4.4 %     321,256       4.4 %
Other     480,143       8.4 %     407,775       5.0 %     339,628       4.6 %
    $ 5,715,491       100.0 %   $ 8,142,863       100.0 %   $ 7,352,980       100.0 %
 
See note 7 for additional details  on geographical information regarding equity in income from joint ventures.
 
The geographical distribution of key financial statement data is as follows:
 
    At August 31, 2015   At August 31, 2014
Brazil   $ 46,918     $ 115,726  
India     16,402       24,766  
China     45,220       —  
North America     7,184,623       6,337,495  
Total long-lived assets   $ 7,293,163     $ 6,477,987  
    Fiscal Year Ended August 31, 2015   Fiscal Year Ended August 31, 2014   Fiscal Year Ended August 31, 2013
Brazil   $ 2,623,938     $ 3,079,695     $ 2,394,486  
India     967,241       581,535       —  
China     1,070,422       —       —  
North America     25,661,092       23,164,878       20,107,378  
Total net sales   $ 30,322,693     $ 26,826,108     $ 22,501,864