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BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

NOTE 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 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.

 

Year Ended

December 31, 2021

  Bromine* 

Crude

Salt*

 

Chemical

Products

  Natural Gas 

Segment

Total

  Corporate  Total
Net revenue
(external customers)		  $48,871,396   $6,080,242   $—   $78,948   $55,030,586   $—   $55,030,586 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Income (loss) from operations before income tax expense   13,364,649    (1,078,320)   (2,550,561)   (167,139)   9,568,629    (4,357,759)   5,210,870 
Income tax (expense) benefit   (3,349,220)   269,786    (3,218,784)   —    (6,298,218)   —    (6,298,218)
Income (loss) from operations after
income tax  (expense) benefit		   10,015,429    (808,534)   (5,769,345)   (167,139)   3,270,411    (4,357,759)   (1,087,348)
Total assets   155,311,561    30,530,413    122,026,497    1,622,953    309,491,424    365,438    309,856,862 
Depreciation and amortization   15,077,729    5,054,976    286,380    124,340    20,543,425    —    20,543,425 
Capital expenditures   18,205,560    2,250,126    9,637,454    —    30,093,140    —    30,093,140 

 

 

Year Ended

December 31, 2020

  Bromine* 

Crude

Salt*

 

Chemical

Products

  Natural Gas 

Segment

Total

  Corporate  Total
Net revenue
(external customers)		  $25,184,808   $3,022,216   $—   $—   $28,207,024   $—   $28,207,024 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Loss from operations before income tax expense   1,616,542    (3,589,494)   (2,745,297)   (204,514)   (4,922,763)   (4,760,629)   (9,683,392)
Income tax (expense) benefit   (404,135)   890,331    622,275    —    1,108,471    —    1,108,471 
Loss from operations after
income tax (expense) benefit		   1,212,407    (2,699,163)   (2,123,022)   (204,514)   (3,814,292)   (4,760,629)   (8,574,921)
Total assets   140,043,211    31,602,967    120,746,404    1,636,467    294,029,049    8,769    294,037,818 
Depreciation and amortization   10,714,004    4,672,181    459,558    142,117    15,987,860    —    15,987,860 
Capital expenditures   3,157,669    646,752    17,914,948    —    21,719,369    —    21,719,369 

 

* 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.

 

 

                 
  

Years Ended

December 31,

Reconciliations  2021  2020
Total segment operating Profit (loss)  $9,568,629   $(4,922,763)
Corporate costs   (3,575,099)   (2,928,603)
Unrealized gain (loss) on translation of intercompany balance   (782,660)   (1,832,026)
Profit (loss) from operations   5,210,870    (9,683,392)
Other income, net of expense   162,630    154,877 
Income (loss) before taxes  $5,373,500   $(9,528,515)

 

The following table shows the major customers (10% or more) for the year ended December 31, 2021

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  $9,314   $2,338   $—   $11,652    21.2%
 2   Shandong Brother Technology Limited  $8,018   $1,999   $—   $10,017    18.2%
 3   Shouguang Weidong Chemical Company Limited  $7,688   $1,744   $—   $9,432    17.2%

 

 

The following table shows the major customers (10% or more) for the year ended December 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  $4,901   $1,062   $—   $5,963    21.2%
 2   Shandong Brother Technology Limited  $3,188   $1,083   $—   $4,271    15.2%
 3   Shouguang Weidong Chemical Company Limited  $3,683   $876   $—   $4,559    16.2%
 4   Shandong Shouguang Shenrunfa Ocean Chemical Company Limited  $3,320   $—   $—   $3,320    11.8%
 5   Dongying Bomeite Chemical Company Limited  $2,970   $—   $—   $2,970    10.5%