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BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

NOTE 14 – 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

June 30, 2022

  Bromine* 

Crude

 Salt*

 

Chemical

 Products

  Natural Gas 

Segment

 Total

  Corporate  Total
Net revenue
(external customers)		  $13,893,810   $1,817,904   $—   $—   $15,711,714   $—   $15,711,714 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Income(loss) from operations before income tax benefit   5,325,541    142,968    (475,201)   (61,699)   4,931,609    177,554    5,109,163 
Income tax benefit (expense)   (1,320,295)   (36,105)   106,779    —    (1,249,621)   —    (1,249,621)
Income (loss) from operations after
income tax benefit (expense)		   4,005,246    106,863    (368,422)   (61,699)   3,681,988    177,554    3,859,542 
Total assets   171,553,183    10,002,720    115,217,810    1,495,588    298,269,301    343,808    298,613,109 
Depreciation and amortization   3,917,178    1,245,853    73,441    36,324    5,272,796    —    5,272,796 
Capital expenditures   32,822,927    —    —    —    32,822,927    —    32,822,927 

 

 

Three-Month

Period Ended

June 30, 2021

  Bromine* 

Crude

 Salt*

 

Chemical

 Products

  Natural Gas 

Segment

 Total

  Corporate  Total
Net revenue
(external customers)		  $10,025,438   $1,122,570   $—   $—   $11,148,008   $—   $11,148,008 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Income(loss) from operations before income tax benefit (expense)   2,682,233    (578,435)   (741,312)   (62,850)   1,299,636    (3,682,445)   (2,382,809)
Income tax benefit (expense)   (672,696)   145,070    171,146    —    (356,480)   —    (356,480)
Income (loss) from operations after
income tax benefit (expense)		   2,009,537    (433,365)   (570,166)   (62,850)   943,156    (3,682,445)   (2,739,289)
Total assets   138,872,887    32,840,392    122,381,338    1,846,367    295,940,984    484,076    296,425,060 
Depreciation and amortization   2,610,442    1,403,262    68,874    37,929    4,120,507    —    4,120,507 
Capital expenditures   —    —    5,806,435    —         —    5,806,435 

 

* 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 each respective segment through April 2022. Commencing May 2022, costs were assigned to the two subsidiaries (SCHC and SHSI) by independent accounting.

 

 

Six-Month

Period Ended

June 30, 2022

  Bromine* 

Crude

 Salt*

 

Chemical

 Products

  Natural Gas 

Segment

 Total

  Corporate  Total
Net revenue
(external customers)		  $22,019,825   $2,571,948   $—   $50,678   $24,642,451   $—   $24,642,451 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Income (loss) from operations before income tax benefit (expense)   6,674,375    (378,953)   (988,483)   (88,438)   5,218,501    (174,425)    5,044,076 
Income tax benefit (expense)   (1,662,456)   94,375    222,765    —    (1,345,316)   —    (1,345,316)
Loss from operations after income tax benefit (expense)   5,011,919    (284,578)   (765,718)   (88,438)   3,873,185    (174,425)    3,698,760 
Total assets   171,553,183    10,002,720    115,217,810    1,495,588    298,269,301    343,808    298,613,109 
Depreciation and amortization   7,611,927    2,439,911    149,897    74,139    10,275,874         10,275,874 
Capital expenditures   33,217,987    —    —    —    33,217,987    —    33,217,987 

 

 

Six-Month

Period Ended

June 30, 2021

  Bromine* 

Crude

 Salt*

 

Chemical

 Products

  Natural Gas 

Segment

 Total

  Corporate  Total
Net revenue
(external customers)		  $14,836,428   $1,570,823   $—   $—   $16,407,251   $—   $16,407,251 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Income (loss) from operations before income tax benefit   1,402,668    (1,588,020)   (1,487,781)   (117,637)   (1,790,770)   (3,873,463)   (5,664,233)
Income tax benefit (expense)   (353,828)   397,466    343,591    —    387,229    —    387,229 
Income (loss from operations after income tax benefit (expense)   1,048,840    (1,190,554)   (1,144,190)   (117,637)   (1,403,541)   (3,873,463)   (5,277,004)
Total assets   138,872,887    32,840,392    122,381,338    1,846,367    295,940,984    484,076    296,425,060 
Depreciation and amortization   5,531,131    2,480,722    137,481    75,530    8,224,864    —    8,224,864 
Capital expenditures   —    —    5,806,435    —         —    5,806,435 

   

* 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 until April 2022. Commencing May 2022, costs were assigned to the two subsidiaries (SCHC and SHSI) by independent accounting.

  

 

                                 
   Three-Month Period Ended June 30,  Six-Month Period Ended June 30,
Reconciliations  2022  2021  2022  2021
Total segment operating Income (loss)  $4,931,609   $1,299,636   $5,218,501   $(1,790,770)
Corporate costs   (67,987)   (3,193,107)   (136,177)   (3,279,313)
Unrealized gain on translation of intercompany balance   245,541    (489,338)   (38,248)    (594,150)
Income (loss) from operations   5,109,163    (2,382,809)   5,044,076    (5,664,233)
Other income, net of expense   42,252    36,069    83,088    71,660 
Income (loss) before taxes  $5,151,415   $(2,346,740)  $5,127,164   $(5,592,573)

 

The following table shows the major customer(s) (10% or more) for the three-month period ended June 30, 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  $1,812   $652   $—   $2,464    15.7%
2  Shandong Brother Technology Limited  $1,661   $668   $—   $2,329    14.8%
3  Shouguang Weidong Chemical Company Limited  $1,510   $497   $—   $2,007    12.8%

 

The following table shows the major customer(s) (10% or more) for the six-month period ended June 30, 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  $2,752   $965   $—   $3,717    15.1%
2  Shandong Brother Technology Limited  $2,443   $909   $—   $3,352    13.6%
3  Shouguang Weidong Chemical Company Limited  $2,128   $697   $—   $2,825    11.5%

 

The following table shows the major customer(s) (10% or more) for the three-month period ended June 30, 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  $1,752   $420   $—   $2,172    19.5%
2  Shouguang Weidong Chemical Company Limited  $1,222   $390   $—   $1,612    14.5%
3  Shandong Brother Technology Limited  $1,196   $313   $—   $1,509    13.5%

 

The following table shows the major customer(s) (10% or more) for the six-month period ended June 30, 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  $2,648   $589   $—   $3,237    19.7%
2  Shouguang Weidong Chemical Company Limited  $1,925   $498   $—   $2,423    14.8%
3  Shandong Brother Technology Limited  $1,830   $485   $—   $2,315    14.1%