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BUSINESS SEGMENTS
 9 Months Ended
Sep. 30, 2023
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 (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

September 30, 2023

  Bromine* 

Crude

 Salt*

 

Chemical

 Products

  Natural Gas 

Segment

 Total

  Corporate  Total
Net revenue
(external customers)		  $4,908,152   $889,556   $—   $67,907   $5,865,615   $—   $5,865,615 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Income(loss) from operations before income tax benefit   (2,143,203)   500,469    (397,410)   4,156    (2,035,988)   (257,300)   (2,293,288)
Income tax benefit (expense)   516,927    (125,731)   92,328    —    483,524    —    483,524 
Income (loss) from operations after
income tax benefit (expense)		   (1,626,276)   374,738    (305,082)   4,156    (1,552,464)   (257,300)   (1,809,764)
Total assets   159,846,002    11,983,765    105,533,526    1,244,427    278,607,720    285,157    278,892,877 
Depreciation and amortization   4,507,616    180,121    67,692    33,430    4,788,859    —    4,788,859 
Capital expenditures   15,149,296    —    —    —    15,149,296    —    15,149,296 

 

Three-Month

Period Ended

September 30, 2022

  Bromine* 

Crude

 Salt*

 

Chemical

 Products

  Natural Gas 

Segment

 Total

  Corporate  Total
Net revenue
(external customers)		  $19,845,773   $2,934,707   $—   $82,315   $22,862,795   $—   $22,862,795 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Income(loss) from operations before income tax benefit (expense)   10,552,343    1,876,161    (447,960)   19,500    12,000,044    (57,452)   11,942,592 
Income tax benefit(expense)   (2,642,167)   (469,197)   100,397    —    (3,010,967)   —    (3,010,967)
Income (loss) from operations after income tax benefit (expense)   7,910,176    1,406,964    (347,563)   19,500    8,989,077    (57,452)   8,931,625 
Total assets   168,912,333    11,286,079    108,653,553    1,389,190    290,241,155    303,226    290,544,381 
Depreciation and amortization   5,055,864    821,269    71,120    35,158    5,983,411    —    5,983,411 
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 the respective segment until April 2022. Commencing May 2022, costs were assigned to the two subsidiaries (SCHC and SHSI) by independent accounting.

 

 

 

NOTE 16 – BUSINESS SEGMENTS – Continued

 

Nine-Month

Period Ended

September 30, 2023

  Bromine* 

Crude

 Salt*

 

Chemical

 Products

  Natural Gas 

Segment

 Total

  Corporate  Total
Net revenue
(external customers)		  $20,734,871   $2,287,672   $—   $150,861   $23,173,404   $—   $23,173,404 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Income(loss) from operations before income tax benefit   (3,340,404)   904,482    (1,231,302)   14,011    (3,653,213)   (358,731)   (4,011,944)
Income tax benefit (expense)   800,170    (228,002)   304,611    —    876,779    —    876,779 
Income (loss) from operations after
income tax benefit (expense)		   (2,540,234)   676,480    (926,691)   14,011    (2,776,434)   (358,731)   (3,135,165)
Total assets   159,846,002    11,983,765    105,533,526    1,244,427    278,607,720    285,157    278,892,877 
Depreciation and amortization   14,521,943    553,141    207,878    102,662    15,385,624    —    15,385,624 
Capital expenditures   15,197,648    —    —    —    15,197,648    —    15,197,648 

 

Nine-Month

Period Ended

September 30, 2022

  Bromine* 

Crude

 Salt*

 

Chemical

 Products

  Natural Gas 

Segment

 Total

  Corporate  Total
Net revenue
(external customers)		  $41,865,598   $5,506,655   $—   $132,993   $47,505,246   $—   $47,505,246 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Income(loss) from operations before income tax benefit (expense)   17,226,718    1,497,208    (1,436,443)   (68,938)   17,218,545    (231,877)   16,986,668 
Income tax benefit(expense)   (4,304,623)   (374,822)   323,162    —    (4,356,283)   —    (4,356,283)
Income (loss) from operations after income tax benefit (expense)   12,922,095    1,122,386    (1,113,281)   (68,938)   12,862,262    (231,877)   12,630,385 
Total assets   168,912,333    11,286,079    108,653,553    1,389,190    290,241,155    303,226    290,544,381 
Depreciation and amortization   12,667,791    3,261,180    221,017    109,297    16,259,285    —    16,259,285 
Capital expenditures   33,217,987    —         —    33,217,987    —    33,217,987 

 

* 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.

 

 

 

NOTE 16 – BUSINESS SEGMENTS – Continued

 

                                 
   Three-Month Period Ended September 30,  Nine-Month Period Ended September 30,
Reconciliations  2023  2022  2023  2022
Total segment operating Income (loss)  $(2,035,988)  $12,000,044   $(3,653,213)  $17,218,545 
Corporate costs   (65,148)   (50,505)   (193,287)   (186,682)
Unrealized gain on translation of intercompany balance   (192,152)   (6,947)   (165,444)   (45,195)
Income (loss) from operations   (2,293,288)   11,942,592    (4,011,944)   16,986,668 
Other income, net of expense   33,967    35,755    119,805    118,843 
Income (loss) before taxes  $(2,259,321)  $11,978,347   $(3,892,139)  $17,105,511 

 

The following table shows the major customer(s) (10% or more) for the three-month period ended September 30, 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  $766   $309   $—   $1,075    18.5%
2  Shandong Morui Chemical Company Limited  $769   $298   $—   $1,067    18.4%
3  Shouguang Weidong Chemical Company Limited  $772   $282   $—   $1,054    18.2%

 

 

The following table shows the major customer(s) (10% or more) for the nine-month period ended September 30, 2023.

 

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  $3,166   $842   $—   $4,008    17.4%
2  Shandong Brother Technology Limited  $3,077   $768   $—   $3,845    16.7%
3  Shouguang Weidong Chemical Company Limited  $3,087   $677   $—   $3,764    16.4%
4  Shandong Shouguangshen Runfa Marine Chemical Company Limited  $2,532   $—   $—   $2,532    11%

 

 

 

The following table shows the major customer(s) (10% or more) for the three-month period ended September 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  $2,190   $1,123   $—   $3,313    14.8%
2  Shouguang Weidong Chemical Company Limited  $2,041   $885   $—   $2,926    12.8%
3  Shandong Brother Technology Limited  $2,339   $927   $—   $3,266    14%

 

 

The following table shows the major customer(s) (10% or more) for the nine-month period ended September 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  $4,942   $2,088   $—   $7,030    14.8%
2  Shouguang Weidong Chemical Company Limited  $4,169   $1,583   $—   $5,752    12.1%
3  Shandong Brother Technology Limited  $4,782   $1,836   $—   $6,618    14%