XML 30 R19.htm IDEA: XBRL DOCUMENT
v3.10.0.1

13. BUSINESS SEGMENTS | 6 Months Ended
--- | ---
Jun. 30, 2018
Segment Reporting [Abstract] |
13. 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 (loss), 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. The Company believes that segment operating income (loss), as defined above, is an appropriate measure for evaluating the operating performance of its segments. All the customers are located in PRC.
Three-Month Period Ended June 30, 2018 |  | Bromine* |  | Crude Salt* |  | Chemical Products |  | Natural Gas |  | Segment Total |  | Corporate |  | Total
Net revenue (external customers) |  | $ | — |  |  | $ | — |  |  | $ | 4,594 |  |  | $ | — |  |  | $ | 4,594 |  |  | $ | — |  |  | $ | 4,594 |
Net revenue (intersegment) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Income(loss) from operations before income taxes(benefit) |  |  | (5,577,272 | ) |  |  | (1,731,592 | ) |  |  | (727,595 | ) |  |  | (45,295 | ) |  |  | (8,081,754 | ) |  |  | 1,250,147 |  |  |  | (6,831,607 | )
Income taxes expense (benefit) |  |  | (1,579,514 | ) |  |  | (240,367 | ) |  |  | (63,360 | ) |  |  | — |  |  |  | (1,883,241 | ) |  |  | — |  |  |  | (1,883,241 | )
Income (loss) from operations after income taxes(benefit) |  |  | (3,997,758 | ) |  |  | (1,491,225 | ) |  |  | (664,235 | ) |  |  | (45,295 | ) |  |  | (6,198,513 | ) |  |  | 1,250,147 |  |  |  | (4,948,366 | )
Total assets |  |  | 138,510,016 |  |  |  | 47,572,477 |  |  |  | 182,669,040 |  |  |  | 2,011,378 |  |  |  | 370,762,911 |  |  |  | 80,818 |  |  |  | 370,843,729 |
Depreciation and amortization |  |  | 4,018,318 |  |  |  | 611,499 |  |  |  | 124,167 |  |  |  | — |  |  |  | 4,753,984 |  |  |  | — |  |  |  | 4,753,984 |
Capital expenditures |  |  | 7,813,714 |  |  |  | 1,189,075 |  |  |  | 1,192,963 |  |  |  | 16,259 |  |  |  | 10,212,011 |  |  |  |  |  |  |  | 10,212,011 |
Goodwill |  |  | — |  |  |  | — |  |  |  | 29,010,218 |  |  |  | — |  |  |  | 29,010,218 |  |  |  | — |  |  |  | 29,010,218 |
Three-Month Period Ended June 30, 2017 |  | Bromine* |  | Crude Salt* |  | Chemical Products |  | Natural Gas |  | Segment Total |  | Corporate |  | Total
Net revenue (external customers) |  | $ | 18,423,133 |  |  | $ | 2,521,883 |  |  | $ | 26,586,973 |  |  | $ | — |  |  | $ | 47,531,989 |  |  | $ | — |  |  | $ | 47,531,989 |
Net revenue (intersegment) |  |  | 2,910,743 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,910,743 |  |  |  | — |  |  |  | 2,910,743 |
Income(loss) from operations before income taxes |  |  | 9,740,981 |  |  |  | 1,051,202 |  |  |  | 8,318,480 |  |  |  | (33,529 | ) |  |  | 19,077,134 |  |  |  | (594,662 | ) |  |  | 18,482,472 |
Income taxes |  |  | 2,464,085 |  |  |  | 245,164 |  |  |  | 2,112,201 |  |  |  | — |  |  |  | 4,821,450 |  |  |  | — |  |  |  | 4,821,450 |
Income (loss) from operations after income taxes |  |  | 7,276,896 |  |  |  | 806,038 |  |  |  | 6,206,279 |  |  |  | (33,529 | ) |  |  | 14,255,684 |  |  |  | (594,662 | ) |  |  | 13,661,022 |
Total assets |  |  | 162,696,276 |  |  |  | 32,749,355 |  |  |  | 207,885,555 |  |  |  | 1,819,284 |  |  |  | 405,150,470 |  |  |  | 114,373 |  |  |  | 405,264,843 |
Depreciation and amortization |  |  | 3,794,600 |  |  |  | 624,226 |  |  |  | 951,364 |  |  |  | — |  |  |  | 5,370,190 |  |  |  | — |  |  |  | 5,370,190 |
Goodwill |  |  | — |  |  |  | — |  |  |  | 28,332,661 |  |  |  | — |  |  |  | 28,332,661 |  |  |  | — |  |  |  | 28,332,661 |
Six-Month Period Ended June 30, 2018 |  | Bromine* |  | Crude Salt* |  | Chemical Products |  | Natural Gas |  | Segment Total |  | Corporate |  | Total
Net revenue (external customers) |  | $ | — |  |  | $ | 1,638,493 |  |  | $ | 613,368 |  |  | $ | — |  |  | $ | 2,251,861 |  |  | $ | — |  |  | $ | 2,251,861 |
Net revenue (intersegment) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Income(loss) from operations before income taxes (benefit) |  |  | (11,167,828 | ) |  |  | (2,539,475 | ) |  |  | (1,402,366 | ) |  |  | (80,950 | ) |  |  | (15,190,619 | ) |  |  | 62,032 |  |  |  | (15,128,587 | )
Income taxes expense (benefit) |  |  | (2,970,666 | ) |  |  | (442,338 | ) |  |  | 336,017 |  |  |  | — |  |  |  | (3,076,987 | ) |  |  | — |  |  |  | (3,076,987 | )
Income (loss) from operations after income taxes(benefit) |  |  | (8,197,162 | ) |  |  | (2,097,137 | ) |  |  | (1,738,383 | ) |  |  | (80,950 | ) |  |  | (12,113,632 | ) |  |  | 62,032 |  |  |  | (12,051,600 | )
Total assets |  |  | 138,510,016 |  |  |  | 47,572,477 |  |  |  | 182,669,040 |  |  |  | 2,011,378 |  |  |  | 370,762,911 |  |  |  | 80,818 |  |  |  | 370,843,729 |
Depreciation and amortization |  |  | 7,738,030 |  |  |  | 1,524,850 |  |  |  | 248,635 |  |  |  | — |  |  |  | 9,511,515 |  |  |  | — |  |  |  | 9,511,515 |
Capital expenditures |  |  | 7,906,888 |  |  |  | 1,203,254 |  |  |  | 1,192,963 |  |  |  | 30,616 |  |  |  | 10,333,721 |  |  |  |  |  |  |  | 10,333,721 |
Goodwill |  |  | — |  |  |  | — |  |  |  | 29,010,218 |  |  |  | — |  |  |  | 29,010,218 |  |  |  | — |  |  |  | 29,010,218 |
Six-Month Period Ended June 30, 2017 |  | Bromine* |  | Crude Salt* |  | Chemical Products |  | Natural Gas |  | Segment Total |  | Corporate |  | Total
Net revenue (external customers) |  | $ | 32,345,527 |  |  | $ | 4,335,661 |  |  | $ | 43,639,294 |  |  | $ | — |  |  | $ | 80,320,482 |  |  | $ | — |  |  | $ | 80,320,482 |
Net revenue (intersegment) |  |  | 5,089,236 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 5,089,236 |  |  |  | — |  |  |  | 5,089,236 |
Income(loss) from operations before income taxes |  |  | 15,012,915 |  |  |  | 1,937,089 |  |  |  | 13,264,657 |  |  |  | (57,287 | ) |  |  | 30,157,374 |  |  |  | (861,905 | ) |  |  | 29,295,469 |
Income taxes |  |  | 3,794,188 |  |  |  | 468,746 |  |  |  | 3,380,342 |  |  |  | — |  |  |  | 7,643,276 |  |  |  | — |  |  |  | 7,643,276 |
Income (loss) from operations after income taxes |  |  | 11,218,727 |  |  |  | 1,468,343 |  |  |  | 9,884,315 |  |  |  | (57,287 | ) |  |  | 22,514,098 |  |  |  | (861,905 | ) |  |  | 21,652,193 |
Total assets |  |  | 162,696,276 |  |  |  | 32,749,355 |  |  |  | 207,885,555 |  |  |  | 1,819,284 |  |  |  | 405,150,470 |  |  |  | 114,373 |  |  |  | 405,264,843 |
Depreciation and amortization |  |  | 7,793,181 |  |  |  | 1,078,673 |  |  |  | 1,937,435 |  |  |  | — |  |  |  | 10,809,289 |  |  |  | — |  |  |  | 10,809,289 |
Goodwill |  |  | — |  |  |  | — |  |  |  | 28,332,661 |  |  |  | — |  |  |  | 28,332,661 |  |  |  | — |  |  |  | 28,332,661 |
* Certain 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 the respective segment.
|  | Three-Month Period Ended June 30, |  | Six-Month Period Ended June 30,
Reconciliations |  | 2018 |  | 2017 |  | 2018 |  | 2017
Total segment operating income (loss) |  | $ | (8,081,754 | ) |  | $ | 19,077,134 |  |  | $ | (15,190,619 | ) |  | $ | 30,157,374 |
Corporate costs |  |  | (153,791 | ) |  |  | (128,007 | ) |  |  | (283,054 | ) |  |  | (257,995 | )
Unrealized gain/(loss) on translation of intercompany balance |  |  | 1,403,938 |  |  |  | (466,655 | ) |  |  | 345,086 |  |  |  | (603,910 | )
Income (loss) from operations |  |  | (6,831,607 | ) |  |  | 18,482,472 |  |  |  | (15,128,587 | ) |  |  | 29,295,469 |
Other income, net of expense |  |  | 135,493 |  |  |  | 90,656 |  |  |  | 261,627 |  |  |  | 174,605 |
Income (loss) before income taxes |  | $ | (6,696,114 | ) |  | $ | 18,573,128 |  |  | $ | (14,866,960 | ) |  | $ | 29,470,074 |
The following table shows the major customer(s) (10% or more) for the six-month period ended June 30, 2018.
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 | $ - |  | $ 534 |  | $ 155 |  | $ 689 |  | 30.6%
2 |  | Shandong Brother Technology Limited, Kuerle Xingdong Trading Limited | $ - |  | $ 670 |  | $ - |  | $ 670 |  | 29.8%
3 |  | Shouguang Weidong Chemical Company Limited | $ - |  | $ 435 |  | $ - |  | $ 435 |  | 19.3%
The following table shows the major customer(s) (10% or more) for the six-month period ended June 30, 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 | $ 5,705 |  | $ 1,251 |  | $ 2,768 |  | $ 9,724 |  | 12.1%

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
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://fasb.org/us-gaap/role/ref/legacyRef -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: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration