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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

  Bromine* 

Crude

 Salt*

 

Chemical

 Products

  Natural Gas 

Segment

 Total

  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.

  

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 %