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15. BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

15. BUSINESS SEGMENTS

The Company has four reportable segments:  bromine, crude salt, chemical products and natural gas. The reportable segments are consistent with how management views the markets served by the Company and the financial information that is reviewed by its chief operating decision maker.

An operating segment’s performance is primarily evaluated based on segment operating income, which excludes share-based compensation expense, certain corporate costs and other income not associated with the operations of the segment. These corporate costs (income) are separately stated below and also include costs that are related to functional areas such as accounting, treasury, information technology, legal, human resources, and internal audit. All intersegment transactions have been eliminated. The Company believes that segment operating income, as defined above, is an appropriate measure for evaluating the operating performance of its segments. All the customers are located in PRC.

Year Ended December 31, 2017 (Restated)		Bromine *				Crude  Salt *				Chemical  Products				Natural Gas				Segment  Total				Corporate				Total
Net revenue (external customers)		$	42,224,901			$	8,986,080			$	56,311,460			$	—			$	107,522,441			$	—			$	107,522,441
Net revenue (intersegment)			6,305,642				—				—				—				6,305,642				—				6,305,642
Income from operations before income taxes			12,460,230				2,426,137				(1,024,569	)			(116,465	)			13,745,333				(2,573,722	)			11,171,611
Income taxes			3,156,016				585,521				(131,397	)			—				3,610,140				—				3,610,140
Income from operations after income taxes			9,304,214				1,840,616				(893,172	)			(116,465	)			10,135,193				(2,573,722	)			7,561,471
Total assets			147,124,127				51,512,530				186,677,501				2,119,756				387,433,914				65,509				387,499,423
Depreciation and amortization			14,533,169				2,452,737				3,211,407				—				20,197,313				—				20,197,313
Capital expenditures			465,655				17,411,762				—				61,235				17,938,652				—				17,938,652
Goodwill			—				—				29,374,909				—				29,374,909				—				29,374,909

Year Ended December 31, 2016		Bromine *				Crude  Salt *				Chemical  Products				Natural Gas				Segment  Total				Corporate				Total
Net revenue (external customers)		$	56,811,730			$	8,985,852			$	83,477,420			$	—			$	149,275,002			$	—			$	149,275,002
Net revenue (intersegment)			8,484,617				—				—				—				8,484,617				—				8,484,617
Income from operations before income taxes			21,224,862				9,076				25,473,792				(4,906	)			46,702,824				1,020,518				47,723,342
Income taxes			5,306,216				9,022				6,494,969				—				11,810,207				—				11,810,207
Income from operations after income taxes			15,918,646				54				18,978,823				(4,906	)			34,892,617				1,020,518				35,913,135
Total assets			143,145,960				33,980,033				186,676,983				1,799,094				365,602,070				89,283				365,691,353
Depreciation and amortization			15,056,980				5,221,667				4,601,599				—				24,880,246				—				24,880,246
Capital expenditures			12,912,583				2,335,963				—				1,747,316				16,995,862				—				16,995,862
Goodwill			—				—				27,668,539				—				27,668,539				—				27,668,539

* Common production overheads, operating and administrative expenses and asset items (mainly cash and certain office equipment) of bromine and crude salt segments in SCHC were split by reference to the average selling price and production volume of respective segment.

		Years ended December 31,
Reconciliations		2017				2016
Total segment operating income		$	13,745,333			$	46,702,824
Corporate costs			(1,015,963	)			(682,210	)
Unrealized translation difference			(1,557,759	)			1,702,728
Income from operations			11,171,611				47,723,342
Other income			391,842				312,696
Income before income taxes		$	11,563,453			$	48,036,038

The following table shows the major customer(s) (10% or more) for the year ended December 31, 2017.

Number				Customer		Bromine (000’s)				Crude Salt (000’s)				Chemical Products (000’s)				Total Revenue  (000’s)				Percentage of Total Revenue (%)
	1			Shandong Morui Chemical Company Limited		$	7,852			$	2,952			$	3,463			$	14,267				13.3	%

The following table shows the major customer(s) (10% or more) for the year ended December 31, 2016.

Number				Customer		Bromine (000’s)				Crude Salt (000’s)				Chemical Products (000’s)				Total Revenue  (000’s)				Percentage of Total  Revenue (%)
	1			Shandong Morui Chemical Company Limited		$	9,823			$	2,678			$	5,347			$	17,848				12.0	%

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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://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

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