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BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

NOTE 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, 2022  Bromine * 

Crude

Salt *

 

Chemical

Products

  Natural Gas 

Segment

Total

  Corporate  Total
Net revenue
(external customers)		  $8,126,015   $754,044   $—   $50,678   $8,930,737   $—   $8,930,737 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Loss from operations before income benefit   1,348,834    (521,921)   (513,282)   (26,739)   286,892    (351,979)   (65,087)
Income tax benefit   (342,161)   130,480    115,986    —    (95,695)   —    (95,695)
Loss from operations after income taxes(benefit)   1,006,673    (391,441)   (397,296)   (26,739)   191,197    (351,979)   (160,782)
Total assets   186,040,450    27,503,060    122,125,607    1,593,308    337,262,425    400,494    337,662,919 
Depreciation and amortization   3,694,749    1,194,058    76,456    37,815    5,003,078    —    5,003,078 
Capital expenditures   395,060         —    —    395,060    —    395,060 

 

 

Three-Month Period Ended March 31, 2021  Bromine * 

Crude

Salt *

 

Chemical

Products

  Natural Gas 

Segment

Total

  Corporate  Total
Net revenue
(external customers)		  $4,810,990   $448,253   $—   $—   $5,259,243   $—   $5,259,243 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Loss from operations before income benefit   (1,279,565)   (1,009,585)   (746,469)   (54,787)   (3,090,406)   (191,018)   (3,281,424)
Income tax benefit   318,868    252,396    172,445    —    743,709    —    743,709 
Loss from operations after income taxes(benefit)   (960,697)   (757,189)   (574,024)   (54,787)   (2,346,697)   (191,018)   (2,537,715)
Total assets   144,744,423    24,170,863    121,760,637    1,875,459    292,551,382    42,886    292,594,268 
Depreciation and amortization   2,920,689    1,077,460    68,607    37,601    4,104,357    —    4,104,357 
Capital expenditures   —    —    —    —    —    —    — 

     

* 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   2022   2021
Total segment operating loss   $ 286,892     $ (3,090,406 )
Corporate costs     (68,190 )     (86,206 )
Unrealized gain (loss) on translation of intercompany balance     (283,789 )     (104,812 ) 
Loss from operations     (65,087 )     (3,281,424 )
Other income     40,836       35,591  
Loss before income taxes   $ (24,251 )   $ (3,245,833 )

 

The following table shows the major customers (10% or more) for the three-month period ended March 31, 2022.

 

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   $ 940     $ 313     $ —     $ 1,253       14.1 %
2   Shandong Brother Technology Limited   $ 782     $ 241     $ —     $ 1,023       11.5 %

 

The following table shows the major customers (10% or more) for the three-month period ended March 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   $ 896     $ 169     $ —     $ 1,065       20.2 %
2   Shouguang Weidong Chemical Company Limited   $ 703     $ 108     $ —     $ 811       15.4 %
3   Shandong Brother Technology Limited   $ 634     $ 172     $ —     $ 806       15.3 %
4   Shandong Shouguang Shenrunfa Ocean Chemical Company Limited   $ 672     $ —     $ —     $ 672       12.8 %
5   Dongying Bomeite Chemical Company Limited   $ 565     $ —     $ —     $ 565       10.7 %