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15. BUSINESS SEGMENTS

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

15. BUSINESS SEGMENTS

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 September 30, 2019		Bromine*				Crude  Salt*				Chemical  Products				Natural Gas				Segment  Total				Corporate				Total
Net revenue (external customers)		$	4,270,863			$	277,679			$	—			$	—			$	4,548,542			$	—			$	4,548,542
Net revenue (intersegment)			—				—				—				—				—				—				—
Income(loss) from operations before income tax benefit			(5,185,484	)			(1,001,988	)			(744,963	)			(62,265	)			(6,994,700	)			628,291				(6,366,409	)
Income tax (expense) benefit			(5,778,726	)			(1,116,620	)			165,907				—				(6,729,439	)			—				(6,729,439	)
Income(loss) from operations after income tax benefit			(10,964,210	)			(2,118,608	)			(579,056	)			(62,265	)			(13,724,139	)			628,291				(13,095,848	)
Total assets			153,825,697				21,738,770				110,464,372				1,767,155				287,795,994				150,836				287,946,830
Depreciation and amortization			3,303,155				182,538				113,357				35,081				3,634,131				—				3,634,131
Capital expenditures			56,137,239				1,180,129				—				—				57,317,368				—				57,317,368

Three-Month Period Ended September 30, 2018		Bromine*				Crude  Salt*				Chemical  Products				Natural Gas				Segment  Total				Corporate				Total
Net revenue (external customers)		$	—			$	343,080			$	—			$	—			$	343,080			$	—			$	343,080
Net revenue (intersegment)			—				—				—				—				—				—				—
Income(loss) from operations before income tax benefit			(24,369,917	)			(2,611,203	)			(698,693	)			(32,079	)			(27,711,892	)			912,975				(26,798,917	)
Income tax benefit			4,774,432				2,171,383				235,706				—				7,181,521				—				7,181,521
Income (loss) from operations after income tax benefit			(19,595,485	)			(439,820	)			(462,987	)			(32,079	)			(20,530,371	)			912,975				(19,617,396	)
Total assets			119,939,092				39,297,116				175,343,915				1,903,319				336,483,442				16,927				336,500,369
Depreciation and amortization			3,948,751				600,912				116,549				—				4,666,212				—				4,666,212
Capital expenditures			936,598				142,529				—				—				1,079,127				—				1,079,127
Goodwill			—				—				27,902,709				—				27,902,709				—				27,902,709

* 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.

Nine -Month Period Ended September 30, 2019		Bromine*				Crude  Salt*				Chemical  Products				Natural Gas				Segment  Total				Corporate				Total
Net revenue (external customers)		$	10,022,027			$	522,758			$	—			$	51,736			$	10,596,521			$	—			$	10,596,521
Net revenue (intersegment)			—				—				—				—				—				—				—
Income(loss) from operations before income tax benefit			(8,847,210	)			(3,242,534	)			(2,074,937	)			(165,649	)			(14,330,330	)			369,725				(13,960,605	)
Income tax (expense) benefit			(4,871,839	)			(548,308	)			451,828				—				(4,968,319	)			—				(4,968,319	)
Income(loss) from operations after income tax benefit			(13,719,049	)			(3,790,842	)			(1,623,109	)			(165,649	)			(19,298,649	)			369,725				(18,928,924	)
Total assets			153,825,697				21,738,770				110,464,372				1,767,155				287,795,994				150,836				287,946,830
Depreciation and amortization			8,442,421				1,701,769				346,985				107,836				10,599,011				—				10,599,011
Capital expenditures			56,137,239				1,180,129				—				—				57,317,368				—				57,317,368

Nine -Month Period Ended September 30, 2018		Bromine*				Crude  Salt*				Chemical  Products				Natural Gas				Segment  Total				Corporate				Total
Net revenue (external customers)		$	—			$	1,981,573			$	613,368			$	—			$	2,594,941			$	—			$	2,594,941
Net revenue (intersegment)			—				—				—				—				—				—				—
Income(loss) from operations before income tax benefit			(35,537,744	)			(5,150,679	)			(2,101,059	)			(113,029	)			(42,902,511	)			975,007				(41,927,504	)
Income tax benefit			7,745,098				2,613,721				(100,311	)			—				10,258,508				—				10,258,508
Income (loss) from operations after income tax benefit			(27,792,646	)			(2,536,958	)			(2,201,370	)			(113,029	)			(32,644,003	)			975,007				(31,668,996	)
Total assets			119,939,092				39,297,116				175,343,915				1,903,319				336,483,442				16,927				336,500,369
Depreciation and amortization			11,686,782				2,125,762				365,183				—				14,177,727				—				14,177,727
Capital expenditures			8,843,486				1,345,783				1,192,963				30,616				11,412,848				—				11,412,848
Goodwill			—				—				27,902,709				—				27,902,709				—				27,902,709

* 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 September 30,								Nine-Month Period Ended September 30,
Reconciliations		2019				2018				2019				2018
Total segment operating loss		$	(6,994,700)			$	(27,711,892)			$	(14,330,330)			$	(42,902,511)
Corporate costs			(105,702)				(116,254)				(408,695)				(399,308)
Unrealized gain on translation of intercompany balance			733,993				1,029,229				778,420				1,374,315
Loss from operations			(6,366,409)				(26,798,917)				(13,960,605)				(41,927,504)
Other income, net of expense			66,820				124,362				258,052				385,989
Loss before taxes		$	(6,299,589)			$	(26,674,555)			$	(13,702,553)			$	(41,541,515)

The following table shows the major customer(s) (10% or more) for the three-month period ended September 30, 2019.

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		$	843			$	103			$	—			$	946				20.8	%
	2			Shouguang Weidong Chemical Company Limited		$	529			$	84			$	—			$	613				13.5	%
	3			Shandong Brother Technology Limited, Kuerle Xingdong Trading Limited		$	500			$	90			$	—			$	590				13	%
	4			Dongying Bomeite Chemical Company Limited		$	557			$	—			$	—			$	557				12.2	%
	5			Shandong Shouguang Shenrunfa  Ocean Chemical Company Limited		$	525			$	—			$	—			$	525				11.5	%

The following table shows the major customer(s) (10% or more) for the nine-month period ended September 30, 2019.

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		$	2,203			$	175			$	—			$	2,378				22.6	%
	2			Shouguang Weidong Chemical Company Limited		$	1,629			$	154			$	—			$	1,783				16.9	%
	3			Shandong Brother Technology Limited, Kuerle Xingdong Trading Limited		$	1,539			$	192			$	—			$	1,731				16.4	%
	4			Dongying Bomeite Chemical Company Limited		$	1,098			$	—			$	—			$	1,098				10.4	%
	5			Shandong Shouguang Shenrunfa  Ocean Chemical Company Limited		$	1,297			$	—			$	—			$	1,297				12.3	%

The following table shows the major customer(s) (10% or more) for the three-month period ended September 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		$	—			$	122			$	—			$	122				35	%
	2			Shandong Brother Technology Limited, Kuerle Xingdong Trading Limited		$	—			$	112			$	—			$	112				33	%
	3			Shouguang Weidong Chemical Company Limited		$	—			$	109			$	—			$	109				32	%

The following table shows the major customer(s) (10% or more) for the nine-month period ended September 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		$	—			$	656			$	155			$	811				31	%
	2			Shandong Brother Technology Limited, Kuerle Xingdong Trading Limited		$	—			$	783			$	—			$	783				30	%
	3			Shouguang Weidong Chemical Company Limited		$	—			$	543			$	—			$	543				21	%

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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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