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BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

NOTE 16 – 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, 2022

   Bromine*  

Crude

Salt*

  

Chemical

Products

   Natural Gas  

Segment

Total

   Corporate   Total
Net revenue
(external customers)		   $ 58,964,941     $ 6,996,552     $ —     $ 132,993     $ 66,094,486     $ —     $ 66,094,486  
Net revenue
(intersegment)		     —       —       —       —       —       —       —  
Loss from operations before income tax expense     17,905,181       2,301,885       (1,953,230 )     (148,099 )     18,105,737       (1,624,041 )     16,481,696  
Income tax (expense) benefit     (6,430,926 )     (576,485 )      420,426       —       (6,586,985 )      —       (6,586,985)  
Loss from operations after
income tax  (expense) benefit		     11,474,255       1,725,400       (1,532,804 )     (148,099 )     11,518,752       (1,624,041 )     9,894,711  
Total assets     168,643,209       11,725,456       110,400,959       1,384,249       292,153,873       277,469       292,431,342  
Depreciation and amortization     24,082,665       2,177,808       372,013       143,134       26,775,620       —       26,775,620  
Capital expenditures     37,560,932       —       —       —       37,560,932       —       37,560,932  

 

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)		     —       —       —       —       —       —       —  
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 )
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  

   

* 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  2022  2021
Total segment operating Profit (loss)  $18,105,737   $9,568,629 
Corporate costs   (1,060,405)   (3,575,099)
Unrealized gain (loss) on translation of intercompany balance   (563,636)   (782,660)
Profit (loss) from operations   16,481,696    5,210,870 
Other income, net of expense   164,739    162,630 
Loss before taxes  $16,646,435   $5,373,500 

 

The following table shows the major customers (10% or more) for the year ended December 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   $ 6,842     $ 2,718     $ —     $ 9,560       14.5 %
  2     Shandong Brother Technology Limited   $ 6,745     $ 2,211     $ —     $ 8,956       13.6 %
  3     Shouguang Weidong Chemical Company Limited   $ 5,994     $ 2,068     $ —     $ 8,061       12.2 %

 

 

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 %