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Note 11 - Segment and Geographic Information
 12 Months Ended
Aug. 31, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
11.
       SEGMENT AND GEOGRAPHIC INFORMATION
 
Segment Information
 
The Company's chief operating decision maker 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:
 
    Fiscal 2020   Fiscal 2019
ZERUST
®
net sales		   $
34,474,535
     $
38,174,712
  
Natur-Tec
®
net sales		    
13,164,156
      
17,575,425
  
Total net sales   $
47,638,691
     $
55,750,137
  
 
The following table sets forth the Company's cost of goods sold by segment:
 
    Fiscal 2020   Fiscal 2019
Direct cost of goods sold                
ZERUST®   $
18,717,684
     $
21,505,335
  
Natur-Tec®    
10,168,051
      
13,691,038
  
Indirect cost of goods sold    
2,723,539
      
2,773,871
  
Total net cost of goods sold   $
31,609,274
     $
37,970,244
  
 
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 for fiscal
2020
and fiscal
2019
were as follows:
 
    Fiscal Year Ended August 31,
    2020   2019
Inside the U.S.A. to unaffiliated customers   $
20,218,213
     $
24,560,459
  
Outside the U.S.A. to:                
Joint ventures in which the Company is a shareholder directly and indirectly    
1,972,646
      
2,607,554
  
Unaffiliated customers    
25,447,832
      
28,582,124
  
    $
47,638,691
     $
55,750,137
  
 
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, respectively, were as follows:
 
    Fiscal 2020   Fiscal 2019
Germany   $
843,752
     $
852,526
  
Japan    
628,889
      
748,489
  
Poland    
553,198
      
704,942
  
Sweden    
372,017
      
589,654
  
Thailand    
328,452
      
418,334
  
France    
310,661
      
430,537
  
Czech Republic    
270,032
      
345,798
  
South Korea    
266,703
      
346,244
  
Finland    
256,375
      
281,295
  
United Kingdom    
255,121
      
319,671
  
India    
250,976
      
350,172
  
Other    
276,709
      
339,917
  
    $
4,612,885
     $
5,727,579
  
 
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, 2020   At August 31, 2019
China   $
376,088
     $
337,162
  
Other    
172,833
      
178,087
  
United States    
6,561,868
      
6,842,910
  
Total long-lived assets   $
7,110,789
     $
7,358,159
  
 
 
   
Fiscal Year Ended
August 31, 2020
  
Fiscal Year Ended
August 31, 2019
China   $
13,409,770
     $
13,030,298
  
Brazil    
2,753,930
      
3,151,509
  
India    
5,655,797
      
8,109,468
  
Other    
5,600,982
      
6,898,403
  
United States    
20,218,212
      
24,560,459
  
Total net sales   $
47,638,691
     $
55,750,137
  
 
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 primarily related to ZERUST
®
products and services.