XML 35 R19.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Note 12 - Segment and Geographic Information | 12 Months Ended
--- | ---
Aug. 31, 2016
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | 12. SEGMENT AND GEOGRAPHIC 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 40 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 resin compounds and finished products under the Natur-Tec ® brand. The following tables present the Company’s business segment information in fiscal 2016 and fiscal 2015:
|  | Fiscal 2016 |  | Fiscal 2015
ZERUST ® net sales |  | $ | 27,577,566 |  |  | $ | 26,042,909 |
Natur-Tec ® net sales |  |  | 5,355,999 |  |  |  | 4,279,784 |
Total net sales |  | $ | 32,933,565 |  |  | $ | 30,322,693 |
The following table sets forth the Company’s cost of goods sold for fiscal 2016 and fiscal 2015 by segment:
|  | Fiscal 2016 |  | Fiscal 2015
Direct cost of goods sold |  |  |  |  |  |  |  |
ZERUST ® |  | $ | 15,588,133 |  |  | $ | 14,399,456 |
Natur-Tec ® |  |  | 4,076,249 |  |  |  | 3,232,353 |
Indirect cost of goods sold |  |  | 2,655,774 |  |  |  | 2,924,124 |
Total net cost of goods sold |  | $ | 22,320,156 |  |  | $ | 20,555,932 |
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. All joint venture operations including equity in income, fees for services and related dividends are related to Zerust products and services. Geographic Information Net sales by geographic location were as follows:
|  | Fiscal Year Ended August 31,
|  | 2016 |  | 2015
Inside the U.S.A. to unaffiliated customers |  | $ | 20,304,480 |  |  | $ | 19,329,979 |
Outside the U.S.A. to: |  |  |  |  |  |  |  |
Joint ventures in which the Company is a shareholder directly and indirectly |  |  | 2,721,905 |  |  |  | 2,831,301 |
Unaffiliated customers |  |  | 9,907,180 |  |  |  | 8,161,413 |
|  | $ | 32,933,565 |  |  | $ | 30,322,693 |
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 2016 and fiscal 2015, respectively, were as follows:
|  | Fiscal 2016 |  | Fiscal 2015
Germany |  | $ | 845,857 |  |  | $ | 873,400 |
Japan |  |  | 646,015 |  |  |  | 599,108 |
Poland |  |  | 599,391 |  |  |  | 600,255 |
Thailand |  |  | 537,212 |  |  |  | 554,881 |
United Kingdom |  |  | 386,761 |  |  |  | 396,514 |
Korea |  |  | 352,393 |  |  |  | 192,539 |
France |  |  | 329,805 |  |  |  | 412,608 |
India |  |  | 300,506 |  |  |  | 277,548 |
Sweden |  |  | 265,745 |  |  |  | 323,610 |
Finland |  |  | 252,578 |  |  |  | 281,620 |
Czech |  |  | 237,062 |  |  |  | 229,185 |
China |  |  | 0 |  |  |  | 494,080 |
Other |  |  | 384,385 |  |  |  | 480,143 |
|  | $ | 5,137,710 |  |  | $ | 5,715,491 |
Sales to the Company’s joint ventures are included in the foregoing segment and geographic information; however, sales by the Company’s joint ventures to other parties are not included. The foregoing segment and geographic information represents only sales and cost of goods sold recognized directly by the Company. See Note 6 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, 2016 |  | At August 31, 2015
China |  | $ | 253,931 |  |  | $ | 45,220 |
Brazil |  |  | 66,938 |  |  |  | 46,918 |
India |  |  | 13,645 |  |  |  | 16,402 |
United States |  |  | 8,219,955 |  |  |  | 8,446,842 |
Total long-lived assets |  | $ | 8,554,469 |  |  | $ | 8,555,382 |
|  | Fiscal Year Ended August 31, 2016 |  | Fiscal Year Ended August 31, 2015
China |  | $ | 4,114,288 |  |  | $ | 1,070,422 |
Brazil |  |  | 2,172,297 |  |  |  | 2,623,938 |
India |  |  | 1,104,947 |  |  |  | 967,241 |
Other |  |  | 5,237,553 |  |  |  | 6,331,113 |
United States |  |  | 20,304,480 |  |  |  | 19,329,979 |
Total net sales |  | $ | 32,933,565 |  |  | $ | 30,322,693 |
Total long-lived assets located in China, Brazil and India primarily consist of property, plant 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.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration