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Note 11 - Segment and Geographic Information | 12 Months Ended
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Aug. 31, 2019
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | 11. 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 resins and finished products under the Natur-Tec ® brand. The following tables present the Company’s business segment information in fiscal 2019 and fiscal 2018:
|  | Fiscal 2019 |  | Fiscal 2018
ZERUST ® net sales |  | $ | 38,174,712 |  |  | $ | 41,374,305 |
Natur-Tec ® net sales |  |  | 17,575,425 |  |  |  | 10,050,516 |
Total net sales |  | $ | 55,750,137 |  |  | $ | 51,424,821 |
The following table sets forth the Company’s cost of goods sold for fiscal 2019 and fiscal 2018 by segment:
|  | Fiscal 2019 |  | Fiscal 2018
Direct cost of goods sold |  |  |  |  |  |  |  |
ZERUST® |  | $ | 21,505,335 |  |  | $ | 24,326,493 |
Natur-Tec® |  |  | 13,691,038 |  |  |  | 7,303,439 |
Indirect cost of goods sold |  |  | 2,773,871 |  |  |  | 2,535,508 |
Total net cost of goods sold |  | $ | 37,970,244 |  |  | $ | 34,165,440 |
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,
|  | 2019 |  | 2018
Inside the U.S.A. to unaffiliated customers |  | $ | 24,560,459 |  |  | $ | 25,301,243 |
Outside the U.S.A. to: |  |  |  |  |  |  |  |
Joint ventures in which the Company is a shareholder directly and indirectly |  |  | 2,607,554 |  |  |  | 2,908,072 |
Unaffiliated customers |  |  | 28,582,124 |  |  |  | 23,215,506 |
|  | $ | 55,750,137 |  |  | $ | 51,424,821 |
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 2019 and fiscal 2018, respectively, were as follows:
|  | Fiscal 2019 |  | Fiscal 2018
Germany |  | $ | 852,526 |  |  | $ | 900,316 |
Japan |  |  | 748,489 |  |  |  | 759,418 |
Poland |  |  | 704,942 |  |  |  | 775,319 |
Sweden |  |  | 589,654 |  |  |  | 600,336 |
France |  |  | 430,537 |  |  |  | 532,565 |
Thailand |  |  | 418,334 |  |  |  | 429,319 |
India |  |  | 350,171 |  |  |  | 365,018 |
South Korea |  |  | 346,244 |  |  |  | 370,171 |
Czech |  |  | 345,798 |  |  |  | 377,844 |
United Kingdom |  |  | 319,671 |  |  |  | 352,585 |
Finland |  |  | 281,296 |  |  |  | 320,501 |
Other |  |  | 339,917 |  |  |  | 358,747 |
|  | $ | 5,727,579 |  |  | $ | 6,142,139 |
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 total long-lived assets and net sales is as follows:
|  | At August 31, 2019 |  | At August 31, 2018
China |  | $ | 337,162 |  |  | $ | 205,490 |
Other |  |  | 178,087 |  |  |  | 100,955 |
United States |  |  | 6,842,910 |  |  |  | 6,862,381 |
Total long-lived assets |  | $ | 7,358,159 |  |  | $ | 7,168,826 |
|  | Fiscal Year Ended August 31, 2019 |  | Fiscal Year Ended August 31, 2018
China |  | $ | 13,030,298 |  |  | $ | 12,507,039 |
Brazil |  |  | 3,151,509 |  |  |  | 3,093,697 |
India |  |  | 8,109,468 |  |  |  | 3,052,741 |
Other |  |  | 6,898,403 |  |  |  | 7,470,101 |
United States |  |  | 24,560,459 |  |  |  | 25,301,243 |
Total net sales |  | $ | 55,750,137 |  |  | $ | 51,424,821 |
Long-lived assets located in China, Brazil, Germany, and India consist 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. 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 recognized directly by the Company and sold in that geographic territory. All joint venture operations, including equity in income, fees for services, and related dividends, are related to ZERUST ® products and services.

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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