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BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

NOTE 16 – 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, 2023  Bromine * 

Crude

Salt *

 

Chemical

Products

  Natural Gas 

Segment

Total

  Corporate  Total
Net revenue
(external customers)		  $8,470,372   $748,681   $—   $82,954   $9,302,007   $—   $9,302,007 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Loss from operations before income benefit   (409,692)   42,930    (417,873)   12,685    (771,950)   (27,608)   (799,558)
Income tax benefit   94,593    (11,323)   117,286    —    200,556    —    200,556 
Loss from operations after income taxes(benefit)   (315,099)   31,607    (300,587)   12,685    (571,394)   (27,608)   (599,002)
Total assets   171,616,991    11,738,247    110,666,925    1,369,522    295,391,685    347,851    295,739,536 
Depreciation and amortization   5,065,606    188,687    70,911    35,020    5,360,224    —    5,360,224 
Capital expenditures   32,742    —    —    —    32,742    —    32,742 

 

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 

      

* 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 March 31,
Reconciliations  2023  2022
Total segment operating loss  $(771,950)  $286,892 
Corporate costs   (59,960)   (68,190)
Unrealized gain (loss) on translation of intercompany balance   32,352    (283,789)
Loss from operations   (799,558)   (65,087)
Other income   41,255    40,836 
Loss before income taxes  $(758,303)  $(24,251)

 

The following table shows the major customers (10% or more) for the three-month period ended March 31, 2023.

 

Number   Customer  

Bromine

(000’s)

  

Crude Salt

(000’s)

  

Chemical Products

(000’s)

  

Total

Revenue

 (000’s)

  

Percentage of

Total

Revenue (%)

1   Shandong Brother Technology Limited     1,182       285       —       1,467       15.9 %
2   Shandong Morui Chemical Company Limited   $ 1,177     $ 260     $ —     $ 1,437       15.6 %
3   Shouguang Weidong Chemical Company Limited     1,186       202       —       1,388       15.1 %
4   Shandong Shouguangshen Runfa Marine Chemical Company Limited   $ 963     $ —     $ —     $ 963       10.4 %

 

 

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 %