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14. BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 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, 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, 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 March 31, 2018		Bromine *				Crude  Salt *				Chemical  Products				Natural Gas				Segment  Total				Corporate				Total
Net revenue (external customers)		$	—			$	1,638,493			$	608,774			$	—			$	2,247,267			$	—			$	2,247,267
Net revenue (intersegment)			—				—				—				—				—				—				—
Income (loss) from operations before income taxes(benefit)			(5,590,555	)			(807,884	)			(674,771	)			(35,655	)			(7,108,865	)			(1,188,115	)			(8,296,980	)
Income tax expense (benefit)			(1,391,152	)			(201,971	)			399,377				—				(1,193,746	)			—				(1,193,746	)
Income (loss) from operations after income taxes(benefit)			(4,199,403	)			(605,913	)			(1,074,148	)			(35,655	)			(5,915,119	)			(1,188,115	)			(7,103,234	)
Total assets			149,458,703				52,746,108				192,807,722				2,162,119				397,174,652				165,315				397,339,967
Depreciation and amortization			3,719,712				913,350				124,468				—				4,757,530				—				4,757,530
Capital expenditures			93,174				14,179				—				14,357				121,710				—				121,710
Goodwill			—				—				30,524,646				—				30,524,646				—				30,524,646

Three-Month Period Ended March 31, 2017		Bromine *				Crude  Salt *				Chemical  Products				Natural Gas				Segment  Total				Corporate				Total
Net revenue (external customers)		$	13,922,394			$	1,813,778			$	17,052,321			$	—			$	32,788,493			$	—			$	32,788,493
Net revenue (intersegment)			2,178,493				—				—				—				2,178,493				—				2,178,493
Income (loss) from operations before income taxes			5,271,933				885,888				4,946,177				(23,758	)			11,080,240				(267,243	)			10,812,997
Income taxes			1,330,103				223,582				1,268,141				—				2,821,826				—				2,821,826
Income (loss) from operations after income taxes			3,941,830				662,306				3,678,036				(23,758	)			8,258,414				(267,243	)			7,991,171
Total assets			155,178,113				28,641,633				192,675,503				1,802,854				378,298,103				37,109				378,335,212
Depreciation and amortization			3,998,581				454,447				986,070				—				5,439,098				—				5,439,098
Capital expenditures			—				—				—				59,975				59,975				—				59,975
Goodwill			—				—				27,820,174				—				27,820,174				—				27,820,174

* 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 respective segment.

		Three-Month Period Ended March 31,
Reconciliations		2018				2017
Total segment operating income (loss)		$	(7,108,865	)		$	11,080,240
Corporate costs			(129,263	)			(129,988	)
Unrealized loss on translation of intercompany balance			(1,058,852	)			(137,255	)
Income (loss) from operations			(8,296,980	)			10,812,997
Other income			126,134				83,949
Income (loss) before income taxes		$	(8,170,846	)		$	10,896,946

The following table shows the major customer(s) (10% or more) for the three-month period ended March 31, 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 three-month period ended March 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		$	2,594			$	497			$	1,085			$	4,176				12.7	%

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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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