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15. BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2020
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. 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, 2020   Bromine *  

Crude

Salt *

  

Chemical

Products

   Natural Gas  

Segment

Total

   Corporate   Total
Net revenue
(external customers)		   $ 462,846     $ 94,824     $ —     $ —     $ 557,670     $ —     $ 557,670  
Net revenue
(intersegment)		     —       —       —       —       —       —       —  
Income (loss) from operations before income taxes(benefit)     (2,866,438 )     (1,513,582 )     (710,909 )     (48,846 )     (5,139,775 )     304,346       (4,835,429 )
Income tax benefit     717,438       378,396       160,609       —       1,256,443       —       1,256,443  
Income (loss) from operations after income taxes(benefit)     (2,149,000 )     (1,135,186 )     (550,300 )     (48,846 )     (3,883,332 )     304,346       (3,578,986 )
Total assets     117,061,540       39,066,713       109,222,446       1,657,769       267,008,468       105,430       267,113,898  
Depreciation and amortization     2,197,844       1,108,443       113,484       35,120       3,454,891       —       3,454,891  
Capital expenditures     3,157,669       646,752       3,611,790       —       7,416,211       —       7,416,211  

 

 

Three-Month Period Ended March 31, 2019   Bromine *  

Crude

 Salt *

  

Chemical

 Products

   Natural Gas  

Segment

 Total

   Corporate   Total
Net revenue
(external customers)		   $ —     $ —     $ —     $ 38,570     $ 38,570     $ —     $ 38,570  
Net revenue
(intersegment)		     —       —       —       —       —       —       —  
Loss from operations before income taxes benefit     (3,625,014 )     (1,411,809 )     (673,550 )     (41,983 )     (5,752,356 )     (643,674 )     (6,396,030 )
Income tax benefit     897,347     352,952     144,838       —       1,395,137     —       1,395,137
Loss from operations after income taxes benefit     (2,727,667 )     (1,058,857 )     (528,712 )     (41,983 )     (4,357,219 )     (643,674 )     (5,000,893 )
Total assets     124,257,161       38,212,093       146,602,776       1,888,494       310,960,524       19,094       310,979,618  
Depreciation and amortization     2,118,077       1,105,108       117,388       36,676       3,377,249       —       3,377,249  
Capital expenditures     2,528,111       —       —       —       2,528,111       —       2,528,111  

 

* 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   2020   2019
Total segment operating loss   $ (5,139,775 )   $ (5,752,356 )
Corporate costs     (96,103 )     (140,446 )
Unrealized gain (loss) on translation of intercompany balance     400,449       (503,228 )
Loss from operations     (4,835,429 )     (6,396,030 )
Other income     39,228       96,755  
Loss before income taxes   $ (4,796,201 )   $ (6,299,275 )

 

The following table shows the major customer(s) (10% or more) for the three-month period ended March 31, 2020.

 

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   $ 70     $ 41     $ —     $ 111       20 %
2   Shandong Brother Technology Limited   $ 60     $ 36     $ —     $ 96       17.1 %
3   Shouguang Weidong Chemical Company Limited   $ 65     $ 18     $ —     $ 83       14.9 %
4   Dongying Bomeite Chemical Company Limited   $ 70     $ —     $ —     $ 70       12.5 %
5   Shandong Shouguang Shenrunfa Ocean Chemical Company Limited   $ 57     $ —     $ —     $ 57       10.2 %
6   Shouguang JinWang Chemical Company Limited   $ 56     $ —     $ —     $ 56       10 %