13. Segment Information

9 Months Ended

May 31, 2017

Notes

13. Segment Information

13.           SEGMENT INFORMATION

The Company has four principal reportable segments. These reportable segments were determined based on the nature of the products offered.  Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. 

The Company evaluates performance based on several factors, of which the primary financial measure is business segment income before taxes.  The following tables show the operations of the Company's reportable segments.

Following is a summary of segmented information for the nine month periods ended May 31, 2017 and 2016:

	2017	2016
Sales to unaffiliated customers:
Industrial wood products	$    2,857,334	$    3,810,183
Lawn, garden, pet and other	29,692,781	30,313,357
Seed processing and sales	2,834,311	2,587,373
Industrial tools and clamps	1,254,897	877,441
	$  36,639,323	$  37,588,354
Income (loss) before income taxes:
Industrial wood products	$        (58,597)	$         36,714
Lawn, garden, pet and other	2,494,172	2,417,382
Seed processing and sales	126,507	(95,840)
Industrial tools and clamps	86,581	(83,839)
Corporate and administrative	721,141	359,478
	$    3,369,804	$     2,633,895
Identifiable assets:
Industrial wood products	$     1,066,183	$     1,074,934
Lawn, garden, pet and other	11,987,315	10,215,128
Seed processing and sales	528,954	364,294
Industrial tools and clamps	494,625	504,628
Corporate and administrative	8,400,927	8,895,151
	$  22,478,004	$   21,054,135
Depreciation and amortization:
Industrial wood products	$              248	$               573
Lawn, garden, pet and other	38,626	49,318
Seed processing and sales	9,857	7,943
Industrial tools and clamps	986	1,528
Corporate and administrative	172,983	167,599
	$       222,700	$        226,961
Capital expenditures:
Industrial wood products	$                   -	$                    -
Lawn, garden, pet and other	-	-
Seed processing and sales	12,495	-
Industrial tools and clamps	-	-
Corporate and administrative	355,870	79,520
	$       368,365	$          79,520
Interest expense:	$                   -	$               658

*              Litigation expense of $115,990 incurred during the nine months ended May 31, 2016 is included in the 2016 balance (Note 12(a)).

The following table lists sales made by the Company to customers which were in excess of 10% of total sales for the nine months ended May 31, 2017 and 2016:

	2017	2016
Sales	$      18,011,073	$      18,108,481

The Company conducts business primarily in the United States, but also has limited amounts of sales in foreign countries. The following table lists sales by country for the nine months ended May 31, 2017 and 2016:

	2017		2016
United States	$	34,483,170	$	34,666,374
Canada		1,425,525		1,051,116
Mexico / Latin America		636,954		1,774,158
Middle East		-		11,686
Europe		16,330		-
Asia/Pacific		77,344		85,020

All of the Company’s significant identifiable assets were located in the United States as of May 31, 2017 and 2016.