XML 29 R18.htm IDEA: XBRL DOCUMENT
v3.21.2

Note 11 - Segment and Geographic Information | 9 Months Ended
--- | ---
May 31, 2021
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 table sets forth the Company’s net sales for the three and nine months ended May 31, 2021 and 2020 by segment:
|  | Three Months Ended May 31, |  |  | Nine Months Ended May 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
ZERUST® net sales |  | $ | 12,378,215 |  |  | $ | 7,356,781 |  |  | $ | 32,882,882 |  |  | $ | 26,322,515 |
Natur-Tec® net sales |  |  | 3,040,309 |  |  |  | 2,388,042 |  |  |  | 8,097,636 |  |  |  | 11,287,491 |
Total net sales |  | $ | 15,418,524 |  |  | $ | 9,744,823 |  |  | $ | 40,980,518 |  |  | $ | 37,610,006 |
The following table sets forth the Company’s cost of goods sold for the three and nine months ended May 31, 2021 and 2020 by segment:
|  | Three Months Ended May 31, |  |  | Nine Months Ended May 31, |
|  | 2021 |  |  | % of Segment Sales* |  |  | 2020 |  |  | % of Segment Sales* |  |  | 2021 |  |  | % of Segment Sales* |  |  | 2020 |  |  | % of Segment Sales* |
Direct cost of goods sold |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
ZERUST® |  | $ | 7,091,220 |  |  |  | 57.3 | % |  | $ | 4,011,244 |  |  |  | 54.5 | % |  | $ | 18,928,272 |  |  |  | 57.6 | % |  | $ | 14,193,113 |  |  |  | 53.9 | %
Natur-Tec® |  |  | 2,251,996 |  |  |  | 74.1 | % |  |  | 1,842,539 |  |  |  | 77.2 | % |  |  | 5,703,807 |  |  |  | 70.4 | % |  |  | 8,733,016 |  |  |  | 77.4 | %
Indirect cost of goods sold |  |  | 809,366 |  |  |  | — |  |  |  | 645,319 |  |  |  | — |  |  |  | 2,365,503 |  |  |  | — |  |  |  | 2,065,358 |  |  |  | — |
Total net cost of goods sold |  | $ | 10,152,582 |  |  |  |  |  |  | $ | 6,499,102 |  |  |  |  |  |  | $ | 26,997,582 |  |  |  |  |  |  | $ | 24,991,487 |  |  |  |  |
______________________________
* | 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. Geographic Information Net sales by geographic location for the three and nine months ended May 31, 2021 and 2020 were as follows:
|  | Three Months Ended May 31, |  |  | Nine Months Ended May 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Inside the U.S.A. to unaffiliated customers |  | $ | 6,717,886 |  |  | $ | 4,051,709 |  |  | $ | 16,198,372 |  |  | $ | 16,558,301 |
Outside the U.S.A. to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Joint ventures in which the Company is a shareholder directly and indirectly |  |  | 1,253,919 |  |  |  | 673,751 |  |  |  | 2,361,165 |  |  |  | 1,504,997 |
Unaffiliated customers |  |  | 7,446,719 |  |  |  | 5,019,363 |  |  |  | 22,420,981 |  |  |  | 19,546,708 |
|  | $ | 15,418,524 |  |  | $ | 9,744,823 |  |  | $ | 40,980,518 |  |  | $ | 37,610,006 |
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, 2021 and 2020 were as follows:
|  | Three Months Ended May 31, |
|  | 2021 |  |  | % of Total Fees for Services Provided to Joint Ventures |  |  | 2020 |  |  | % of Total Fees for Services Provided to Joint Ventures |
Germany |  | $ | 232,026 |  |  |  | 14.6 | % |  | $ | 199,877 |  |  |  | 22.8 | %
Poland |  |  | 226,174 |  |  |  | 14.2 | % |  |  | 75,118 |  |  |  | 8.6 | %
Japan |  |  | 200,270 |  |  |  | 12.6 | % |  |  | 139,268 |  |  |  | 15.9 | %
Sweden |  |  | 127,710 |  |  |  | 8.0 | % |  |  | 51,767 |  |  |  | 5.9 | %
France |  |  | 119,172 |  |  |  | 7.5 | % |  |  | 61,716 |  |  |  | 7.0 | %
Thailand |  |  | 108,842 |  |  |  | 6.9 | % |  |  | 67,919 |  |  |  | 7.7 | %
India |  |  | 107,021 |  |  |  | 6.7 | % |  |  | 24,842 |  |  |  | 2.8 | %
Czech Republic |  |  | 109,680 |  |  |  | 6.9 | % |  |  | 46,709 |  |  |  | 5.3 | %
United Kingdom |  |  | 113,886 |  |  |  | 7.2 | % |  |  | 52,484 |  |  |  | 6.0 | %
South Korea |  |  | 78,507 |  |  |  | 4.9 | % |  |  | 54,951 |  |  |  | 6.3 | %
Finland |  |  | 75,577 |  |  |  | 4.8 | % |  |  | 52,870 |  |  |  | 6.0 | %
Other |  |  | 90,756 |  |  | 5.7 | % |  | 49,185 |  |  | 5.6 | %
|  | $ | 1,589,621 |  |  | 100.0 | % | $ | 876,706 |  |  | 100.0 | %
|  | Nine Months Ended May 31, |
|  | 2021 |  |  | % of Total Fees for Services Provided to Joint Ventures |  |  | 2020 |  |  | % of Total Fees for Services Provided to Joint Ventures |
Germany |  | $ | 692,770 |  |  |  | 15.8 | % |  | $ | 620,106 |  |  |  | 17.8 | %
Poland |  |  | 626,527 |  |  |  | 14.3 | % |  |  | 441,011 |  |  |  | 12.6 | %
Japan |  |  | 561,725 |  |  |  | 12.8 | % |  |  | 453,347 |  |  |  | 13.0 | %
Sweden |  |  | 365,095 |  |  |  | 8.3 | % |  |  | 259,671 |  |  |  | 7.4 | %
France |  |  | 322,717 |  |  |  | 7.4 | % |  |  | 241,056 |  |  |  | 6.9 | %
Thailand |  |  | 306,151 |  |  |  | 7.0 | % |  |  | 261,132 |  |  |  | 7.5 | %
India |  |  | 290,713 |  |  |  | 6.6 | % |  |  | 187,826 |  |  |  | 5.4 | %
Czech Republic |  |  | 268,571 |  |  |  | 6.1 | % |  |  | 215,923 |  |  |  | 6.2 | %
United Kingdom |  |  | 247,560 |  |  |  | 5.6 | % |  |  | 202,241 |  |  |  | 5.8 | %
South Korea |  |  | 241,805 |  |  |  | 5.5 | % |  |  | 206,272 |  |  |  | 5.9 | %
Finland |  |  | 223,356 |  |  |  | 5.1 | % |  |  | 194,813 |  |  |  | 5.6 | %
Other |  |  | 241,876 |  |  | 5.5 | % |  | 207,846 |  |  | 6.0 | %
|  | $ | 4,388,866 |  |  | 100.0 | % | $ | 3,491,244 |  |  | 100.0 | %
The geographical distribution of total property and equipment and net sales is as follows:
|  | At May 31, 2021 |  |  | At August 31, 2020 |
China |  | $ | 384,523 |  |  | $ | 376,088 |
Other |  |  | 421,662 |  |  |  | 172,833 |
United States |  |  | 6,370,827 |  |  |  | 6,561,868 |
Total property and equipment |  | $ | 7,177,012 |  |  | $ | 7,110,789 |
|  | Three Months Ended May 31, |  |  | Nine Months Ended May 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
China |  | $ | 4,037,493 |  |  | $ | 3,089,135 |  |  |  | 13,025,127 |  |  | $ | 9,975,091 |
Brazil |  |  | 1,237,586 |  |  |  | 365,222 |  |  |  | 2,756,008 |  |  |  | 2,080,418 |
India |  |  | 1,540,734 |  |  |  | 631,551 |  |  |  | 4,036,208 |  |  |  | 4,727,325 |
Other |  |  | 1,884,825 |  |  |  | 1,607,206 |  |  |  | 4,964,803 |  |  |  | 4,268,871 |
United States |  |  | 6,717,886 |  |  |  | 4,051,709 |  |  |  | 16,198,372 |  |  |  | 16,558,301 |
Total net sales |  | $ | 15,418,524 |  | $ | 9,744,823 |  | $ | 40,980,518 |  | $ | 37,610,006 |
Long-lived assets located in China and other locations outside of the United States 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.

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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration