XML 36 R25.htm IDEA: XBRL DOCUMENT v3.25.2
BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2025
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, 2025

  Bromine* 

Crude

 Salt*

 

Chemical

 Products

  Natural Gas 

Segment

 Total

  Corporate   Total
Net revenue
(external customers)		  $7,676,374   $667,411   $—   $—   $8,343,785   $—   $8,343,785 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Income(loss) from operations before income tax benefit   (130,381)   (147,489)   (344,947)   (43,255)   (666,072)   (84,614)   (750,686)
Income tax benefit (expense)   —    —    —    —    —    —    — 
Income (loss) from operations after
income tax benefit (expense)		   (130,381)   (147,489)   (344,947)   (43,255)   (666,072)   (84,614)   (750,686)
Total assets   78,553,223    46,309,626    38,761,589    890,176    164,514,614    116,959    164,631,573 
Depreciation and amortization   3,250,589    643,242    67,512    32,543    3,993,886    —    3,993,886 
Capital expenditures   —    —    —    —    —    —    — 

 

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 

 

 

 

NOTE 17 – BUSINESS SEGMENTS – Continued

 

Six-Month

Period Ended

June 30, 2025

  Bromine* 

Crude

 Salt*

 

Chemical

 Products

  Natural Gas 

Segment

 Total

  Corporate  Total
Net revenue
(external customers)		  $9,158,243   $789,989   $—   $—   $9,948,232   $—   $9,948,232 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Income (loss) from operations before income tax benefit (expense)   (3,501,217)   (701,551)   (703,576)   (88,099)   (4,994,443)   (366,450)   (5,360,893)
Income tax benefit (expense)   —    —   —    —    —    —    — 
Loss from operations after income tax benefit (expense)   (3,501,217)   (701,551)   (703,576)   (88,099)   (4,994,443)   (366,450)   (5,360,893)
Total assets   78,553,223    46,309,626    38,761,589    890,176    164,514,614    116,959    164,631,573 
Depreciation and amortization   6,508,811    1,287,919    135,175    65,505    7,997,410    —    7,997,410 
Capital expenditures   —    —    —    —    —    —    — 

 

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 

 

* 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  2025  2024  2025  2024
Total segment operating Loss  $(666,072)  $(4,945,589)  $(4,994,443)  $(10,146,029)
Corporate costs   (84,614)   (201,408)   (366,450)   (270,387)
Unrealized gain on translation of intercompany balance   —    —    —    — 
Loss from operations   (750,686)   (5,146,997)   (5,360,893)   (10,416,416)
Interest income, net of expense   (19,879)   9,977    (39,172)   21,207 
Other Expenses,net   (3,212)   —    (3,212)   (4,003)
Loss on disposal of property, plant and equipment   —    (29,169,008)   —    (29,169,008)
Loss before taxes  $(773,777)  $(34,306,028)  $(5,403,277)  $(39,568,220)

 

The following table shows the major customer(s) (10% or more) for the three-month period ended June 30, 2025.

 

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  $1,132   $236   $—   $1,368    16.4%
 2   Shandong Brother Technology Limited  $1,016   $230   $—   $1,246    14.9%
 3   Shouguang Weidong Chemical Company Limited  $1,029   $202   $—   $1,231    14.7%
 4   Shandong Shouguangshen Runfa Marine Chemical Company Limited  $1,032   $—   $—   $1,032    12.4%

 

 

The following table shows the major customer(s) (10% or more) for the six-month period ended June 30, 2025.

 

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  $1,328   $294   $—   $1,622    16.3%
 2   Shandong Brother Technology Limited  $1,209   $266   $—   $1,475    14.8%
 3   Shouguang Weidong Chemical Company Limited  $1,226   $230   $—   $1,456    14.6%
 4   Shandong Shouguangshen Runfa Marine Chemical Company Limited  $1,227   $—   $—   $1,227    12.3%

 

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%