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14. BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

14. 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%

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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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

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