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BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2024
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, 2024   Bromine * 

Crude

Salt *

 

Chemical

Products

  Natural Gas 

Segment

Total

  Corporate  Total
Net revenue
(external customers)		  $1,146,197   $116,671   $—   $44,194   $1,307,062   $—   $1,307,062 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Loss from operations before income expense   (4,782,815)   (75,092)   (314,824)   (27,709)   (5,200,440)   (68,979)   (5,269,419)
Income tax (expense) benefit   1,198,071    —    71,989    —    1,270,060    —    1,270,060 
Loss from operations after income taxes(expense) benefit   (3,584,744)   (75,092)   (242,835)   (27,709)   (3,930,380)   (68,979)   (3,999,359)
Total assets   100,370,933    11,517,576    107,776,242    1,912,377    221,577,128    250,287    221,827,415 
Depreciation and amortization   4,449,468    181,891    68,357    33,759    4,733,475    —    4,733,475 
Capital expenditures   —    —    —    —    —    —    — 

  

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 

      

* 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.

 

 

 

NOTE 16 – BUSINESS SEGMENTS – Continued

 

                 
   Three-Month Period Ended March 31,
Reconciliations  2024  2023
Total segment operating loss  $(5,200,440)  $(771,950)
Corporate costs   (68,979)   (59,960)
Unrealized gain (loss) on translation of intercompany balance   —    32,352 
Loss from operations   (5,269,419)   (799,558)
Other income   11,230    41,255 
Other Expenses   (4,003)   — 
Loss before taxes  $(5,262,192)  $(758,303)

 

The following table shows the major customers (10% or more) for the three-month period ended March 31, 2024.

 

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   $ 134     $ 63     $ —     $ 197       15.1 %
2   Shouguang Weidong Chemical Company Limited     135       26       —       161       12.3 %
3   Shandong Brother Technology Limited     133       28       —       161       12.3 %
4   Shandong Shouguangshen Runfa Marine Chemical Company Limited   $ 135     $ —     $ —     $ 135       10.3 %

 

 

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 %