XML 36 R25.htm IDEA: XBRL DOCUMENT
v3.24.3

BUSINESS SEGMENTS | 6 Months Ended
--- | ---
Jun. 30, 2024
Segment Reporting [Abstract] |
BUSINESS SEGMENTS | NOTE 17 – 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 June 30, 2024 Corporate |  | Bromine* |  | Crude Salt* |  | Chemical Products |  | Natural Gas |  | Segment Total Operating Segment |  | Corporate |  | Total
Net revenue (external customers) |  | $ | 1,859,234 |  |  | $ | 523,935 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,383,169 |  |  | $ | — |  |  | $ | 2,383,169 |
Net revenue (intersegment) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Income(loss) from operations before income tax benefit |  |  | (4,662,586 | ) |  |  | 130,024 |  |  |  | (339,254 | ) |  |  | (73,773 | ) |  |  | (4,945,589 | ) |  |  | (201,408 | ) |  |  | (5,146,997 | )
Income tax benefit (expense) |  |  | 1,162,252 |  |  |  | (33,224 | ) |  |  | 79,082 |  |  |  | — |  |  |  | 1,208,110 |  |  |  | — |  |  |  | 1,208,110 |
Income (loss) from operations after income tax benefit (expense) |  |  | (3,500,334 | ) |  |  | 96,800 |  |  |  | (260,172 | ) |  |  | (73,773 | ) |  |  | (3,737,479 | ) |  |  | (201,408 | ) |  |  | (3,938,887 | )
Total assets |  |  | 90,430,154 |  |  |  | 47,346,898 |  |  |  | 54,185,082 |  |  |  | 1,837,520 |  |  |  | 193,799,654 |  |  |  | 126,372 |  |  |  | 193,926,026 |
Depreciation and amortization |  |  | 4,446,605 |  |  |  | 181,775 |  |  |  | 68,314 |  |  |  | 33,560 |  |  |  | 4,730,254 |  |  |  | — |  |  |  | 4,730,254 |
Capital expenditures |  |  | 28,923,642 |  |  |  | 31,602,571 |  |  |  | — |  |  |  | — |  |  |  | 60,526,213 |  |  |  | — |  |  |  | 60,526,213 |
Three-Month Period Ended June 30, 2023 |  | Bromine* |  | Crude Salt* |  | Chemical Products |  | Natural Gas |  | Segment Total |  | Corporate |  | Total
Net revenue (external customers) |  | $ | 7,356,347 |  |  | $ | 649,435 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,005,782 |  |  | $ | — |  |  | $ | 8,005,782 |
Net revenue (intersegment) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Income(loss) from operations before income tax benefit |  |  | (787,509 | ) |  |  | 361,083 |  |  |  | (416,019 | ) |  |  | (2,830 | ) |  |  | (845,275 | ) |  |  | (73,823 | ) |  |  | (919,098 | )
Income tax benefit (expense) |  |  | 188,650 |  |  |  | (90,948 | ) |  |  | 94,997 |  |  |  | — |  |  |  | 192,699 |  |  |  | — |  |  |  | 192,699 |
Income (loss) from operations after income tax benefit (expense) |  |  | (598,859 | ) |  |  | 270,135 |  |  |  | (321,022 | ) |  |  | (2,830 | ) |  |  | (652,576 | ) |  |  | (73,823 | ) |  |  | (726,399 | )
Total assets |  |  | 160,263,878 |  |  |  | 11,461,786 |  |  |  | 104,995,852 |  |  |  | 1,278,027 |  |  |  | 277,999,543 |  |  |  | 307,923 |  |  |  | 278,307,466 |
Depreciation and amortization |  |  | 4,948,721 |  |  |  | 184,333 |  |  |  | 69,275 |  |  |  | 34,212 |  |  |  | 5,236,541 |  |  |  | — |  |  |  | 5,236,541 |
Capital expenditures |  |  | 15,610 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 15,610 |  |  |  | — |  |  |  | 15,610 |
* 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 17 – BUSINESS SEGMENTS – Continued
Six-Month Period Ended June 30, 2024 |  | Bromine* |  | Crude Salt* |  | Chemical Products |  | Natural Gas |  | Segment Total |  | Corporate |  | Total
Net revenue (external customers) |  | $ | 3,005,431 |  |  | $ | 640,606 |  |  | $ | — |  |  | $ | 44,194 |  |  | $ | 3,690,231 |  |  | $ | — |  |  | $ | 3,690,231 |
Net revenue (intersegment) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Income (loss) from operations before income tax benefit (expense) |  |  | (9,445,401 | ) |  |  | 54,932 |  |  |  | (654,078 | ) |  |  | (101,482 | ) |  |  | (10,146,029 | ) |  |  | (270,387 | ) |  |  | (10,416,416 | )
Income tax benefit (expense) |  |  | 2,360,323 |  |  |  | (33,224 | ) |  |  | 151,071 |  |  |  | — |  |  |  | 2,478,170 |  |  |  | — |  |  |  | 2,478,170 |
Loss from operations after income tax benefit (expense) |  |  | (7,085,078 | ) |  |  | 21,708 |  |  |  | (503,007 | ) |  |  | (101,482 | ) |  |  | (7,667,859 | ) |  |  | (270,387 | ) |  |  | (7,938,246 | )
Total assets |  |  | 90,430,154 |  |  |  | 47,346,898 |  |  |  | 54,185,082 |  |  |  | 1,837,520 |  |  |  | 193,799,654 |  |  |  | 126,372 |  |  |  | 193,926,026 |
Depreciation and amortization |  |  | 8,899,655 |  |  |  | 363,666 |  |  |  | 136,671 |  |  |  | 67,319 |  |  |  | 9,467,311 |  |  |  |  |  |  |  | 9,467,311 |
Capital expenditures |  |  | 28,923,642 |  |  |  | 31,602,571 |  |  |  | — |  |  |  | — |  |  |  | 60,526,213 |  |  |  | — |  |  |  | 60,526,213 |
Six-Month Period Ended June 30, 2023 |  | Bromine* |  | Crude Salt* |  | Chemical Products |  | Natural Gas |  | Segment Total |  | Corporate |  | Total
Net revenue (external customers) |  | $ | 15,826,719 |  |  | $ | 1,398,116 |  |  | $ | — |  |  | $ | 82,954 |  |  | $ | 17,307,789 |  |  | $ | — |  |  | $ | 17,307,789 |
Net revenue (intersegment) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Income (loss) from operations before income tax benefit (expense) |  |  | (1,197,201 | ) |  |  | 404,013 |  |  |  | (833,892 | ) |  |  | 9,855 |  |  |  | (1,617,225 | ) |  |  | (101,431 | ) |  |  | (1,718,656 | )
Income tax benefit (expense) |  |  | 283,243 |  |  |  | (102,271 | ) |  |  | 212,283 |  |  |  | — |  |  |  | 393,255 |  |  |  | — |  |  |  | 393,255 |
Loss from operations after income tax benefit (expense) |  |  | (913,958 | ) |  |  | 301,742 |  |  |  | (621,609 | ) |  |  | 9,855 |  |  |  | (1,223,970 | ) |  |  | (101,431 | ) |  |  | (1,325,401 | )
Total assets |  |  | 160,263,878 |  |  |  | 11,461,786 |  |  |  | 104,995,852 |  |  |  | 1,278,027 |  |  |  | 277,999,543 |  |  |  | 307,923 |  |  |  | 278,307,466 |
Depreciation and amortization |  |  | 10,014,327 |  |  |  | 373,020 |  |  |  | 140,186 |  |  |  | 69,232 |  |  |  | 10,596,765 |  |  |  |  |  |  |  | 10,596,765 |
Capital expenditures |  |  | 48,352 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 48,352 |  |  |  | — |  |  |  | 48,352 |
* 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 17 – BUSINESS SEGMENTS – Continued
|  | Three-Month Period Ended June 30, |  | Six-Month Period Ended June 30,
Reconciliations |  | 2024 |  | 2023 |  | 2024 |  | 2023
Total segment operating Income (loss) |  | $ | (4,945,589 | ) |  | $ | (845,275 | ) |  | $ | (10,146,029 | ) |  | $ | (1,617,225 | )
Corporate costs |  |  | (201,408 | ) |  |  | (68,179 | ) |  |  | (270,387 | ) |  |  | (128,139 | )
Unrealized gain on translation of intercompany balance |  |  | — |  |  |  | (5,644 | ) |  |  | — |  |  |  | 26,708 |
Income (loss) from operations |  |  | (5,146,997 | ) |  |  | (919,098 | ) |  |  | (10,416,416 | ) |  |  | (1,718,656 | )
Other income, net of expense |  |  | 9,977 |  |  |  | 44,583 |  |  |  | 21,207 |  |  |  | 85,838 |
Other Expenses |  |  | (29,169,008 | ) |  |  | — |  |  |  | (29,173,011 | ) |  |  | — |
Income (loss) before taxes |  | $ | (34,306,028 | ) |  | $ | (874,515 | ) |  | $ | (39,568,220 | ) |  | $ | (1,632,818 | )
The following table shows the major customer(s) (10% or more) for the three-month period ended June 30, 2024. Business Segments - Schedule of Revenue by Major Customers
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 |  | $ | 192 |  |  | $ | 186 |  |  | $ | — |  |  | $ | 378 |  |  |  | 15.8 | %
2 |  | Shandong Morui Chemical Company Limited |  | $ | 221 |  |  | $ | 156 |  |  | $ | — |  |  | $ | 377 |  |  |  | 15.8 | %
3 |  | Shouguang Weidong Chemical Company Limited |  | $ | 192 |  |  | $ | 182 |  |  | $ | — |  |  | $ | 374 |  |  |  | 15.7 | %
The following table shows the major customer(s) (10% or more) for the six-month period ended June 30, 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 |  | $ | 355 |  |  | $ | 219 |  |  | $ | — |  |  | $ | 574 |  |  |  | 15.5 | %
2 |  | Shandong Brother Technology Limited |  | $ | 325 |  |  | $ | 214 |  |  | $ | — |  |  | $ | 539 |  |  |  | 14.6 | %
3 |  | Shouguang Weidong Chemical Company Limited |  | $ | 327 |  |  | $ | 208 |  |  | $ | — |  |  | $ | 535 |  |  |  | 14.5 | %
The following table shows the major customer(s) (10% or more) for the three-month period ended June 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 |  | $ | 1,221 |  |  | $ | 283 |  |  | $ | — |  |  | $ | 1,504 |  |  |  | 18.8 | %
2 |  | Shouguang Weidong Chemical Company Limited |  | $ | 1,130 |  |  | $ | 192 |  |  | $ | — |  |  | $ | 1,322 |  |  |  | 16.5 | %
3 |  | Shandong Brother Technology Limited |  | $ | 1,129 |  |  | $ | 174 |  |  | $ | — |  |  | $ | 1,303 |  |  |  | 16.3 | %
4 |  | Shandong Shouguang God Runfa Marine Chemical Company Limited |  | $ | 1,052 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,052 |  |  |  | 13.1 | %
The following table shows the major customer(s) (10% or more) for the six-month period ended June 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 |  | $ | 2,397 |  |  | $ | 544 |  |  | $ | — |  |  | $ | 2,941 |  |  |  | 17.1 | %
2 |  | Shandong Brother Technology Limited |  | $ | 2,311 |  |  | $ | 459 |  |  | $ | — |  |  | $ | 2,770 |  |  |  | 16.1 | %
3 |  | Shouguang Weidong Chemical Company Limited |  | $ | 2,315 |  |  | $ | 395 |  |  | $ | — |  |  | $ | 2,710 |  |  |  | 15.7 | %
4 |  | Shandong Shouguangshen Runfa Marine Chemical Company Limited |  | $ | 2,015 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,015 |  |  |  | 11.7 | %

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration