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BUSINESS SEGMENTS
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

NOTE 18 – 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

September 30, 2025

  Bromine* 

Crude

 Salt*

 

Chemical

 Products

  Natural Gas 

Segment

 Total

  Corporate   Total
Net revenue
(external customers)		  $8,052,331   $992,250   $—   $—   $9,044,581   $—   $9,044,581 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Loss from operations before income tax benefit   (274,496)   453,824    (352,371)   (39,781)   (212,824)   (121,104)   (333,928)
Income tax benefit (expense)   —    —    —    —    —    —    — 
Loss from operations after
income tax benefit (expense)		   (274,496)   453,824    (352,371)   (39,781)   (212,824)   (121,104)   (333,928)
Total assets   74,250,761    52,514,527    4,276,746    859,069    131,901,103    6,444    131,907,547 
Depreciation and amortization   3,279,111    377,279    64,302    31,028    3,751,720    —    3,751,720 
Capital expenditures   —    8,673,384    —    —    8,673,384    —    8,673,384 

 

 

Three-Month

Period Ended

September 30, 2024

  Bromine* 

Crude

 Salt*

 

Chemical

 Products

  Natural Gas 

Segment

 Total

  Corporate  Total
Net revenue
(external customers)		  $1,571,313   $654,039   $—   $17,013   $2,242,365   $—   $2,242,365 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Loss from operations before income tax benefit   (4,029,999)   (102,657)   (339,038)   (39,072)   (4,510,766)   (70,843)   (4,581,609)
Income tax benefit (expense)   1,001,067    18,020    84,610    —    1,103,697    —    1,103,697 
Loss from operations after
income tax benefit (expense)		   (3,028,932)   (84,637)   (254,428)   (39,072)   (3,407,069)   (70,843)   (3,477,912)
Total assets   89,030,860    48,060,437    54,871,374    1,812,636    193,775,307    109,987    193,885,294 
Depreciation and amortization   3,818,547    649,997    68,221    33,478    4,570,243    —    4,570,243 
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 18 – BUSINESS SEGMENTS – Continued

 

Nine-Month

Period Ended

September 30, 2025

  Bromine* 

Crude

 Salt*

 

Chemical

 Products

  Natural Gas 

Segment

 Total

  Corporate  Total
Net revenue
(external customers)		  $17,210,574   $1,782,239   $—   $—   $18,992,813   $—   $18,992,813 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Loss from operations before income tax benefit   (3,775,713)   (247,727)   (1,055,947)   (127,880)   (5,207,267)   (487,554)   (5,694,821)
Income tax benefit (expense)   —    —    —    —    —    —    — 
Loss from operations after
income tax benefit (expense)		   (3,775,713)   (247,727)   (1,055,947)   (127,880)   (5,207,267)   (487,554)   (5,694,821)
Total assets   74,250,761    52,514,527    4,276,746    859,069    131,901,103    6,444    131,907,547 
Depreciation and amortization   9,787,922    1,665,198    199,478    96,532    11,749,130    —    11,749,130 
Capital expenditures   —    8,673,384    —    —    8,673,384    —    8,673,384 

 

 

Nine-Month

Period Ended

September 30, 2024

  Bromine* 

Crude

 Salt*

 

Chemical

 Products

  Natural Gas 

Segment

 Total

  Corporate  Total
Net revenue
(external customers)		  $4,576,744   $1,294,645   $—   $61,207   $5,932,596   $—   $5,932,596 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Loss from operations before income tax benefit   (13,475,400)   (47,725)   (993,116)   (140,554)   (14,656,795)   (341,230)   (14,998,025)
Income tax benefit (expense)   3,361,390    (15,204)   235,681    —    3,581,867    —    3,581,867 
Loss from operations after
income tax benefit (expense)		   (10,114,010)   (62,929)   (757,435)   (140,554)   (11,074,928)   (341,230)   (11,416,158)
Total assets   89,030,860    48,060,437    54,871,374    1,812,636    193,775,307    109,987    193,885,294 
Depreciation and amortization   12,718,202    1,013,663    204,892    100,797    14,037,554    —    14,037,554 
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 each respective segment through April 2022. Commencing May 2022, costs were assigned to the two subsidiaries (SCHC and SHSI) by independent accounting.

 

 

 

NOTE 18 – BUSINESS SEGMENTS – Continued

 

                                 
   Three-Month Period Ended September 30,  Nine-Month Period Ended September 30,
Reconciliations  2025  2024  2025  2024
Total segment operating Loss  $(212,824)  $(4,510,766)  $(5,207,267)  $(14,656,795)
Corporate costs   (121,104)   (70,843)   (487,554)   (341,230)
Loss from operations   (333,928)   (4,581,609)   (5,694,821)   (14,998,025)
Interest income, net of expense   (17,206)   (14,971)   (56,378)   6,236 
Other expense, net   (3,521,613)   —    (3,524,825)   (4,003)
Loss on disposal of long-lived assets   (2,008,853)   —    (2,008,853)   (29,169,008)
Impairment of long-lived assets   (29,782,912)   —    (29,782,912)   — 
Loss before taxes  $(35,664,512)  $(4,596,580)  $(41,067,789)  $(44,164,800)

 

The following table shows the major customer(s) (10% or more) for the three-month period ended September 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 Brother Technology Limited  $1,160   $445   $—   $1,605    17.8%
2  Shandong Morui Chemical Company Limited  $1,158   $313   $—   $1,471    16.3%
3  Shandong Shouguangshen Runfa Marine Chemical Company Limited  $1,350   $—   $—   $1,350    14.9%
4  Shouguang Weidong Chemical Company Limited  $962   $233   $—   $1,195    13.2%
5  Shandong Xurui New Materials Company Limited  $925   $—   $—   $925    10.2%

 

The following table shows the major customer(s) (10% or more) for the nine-month period ended September 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  $2,487   $607   $—   $3,094    16.3%
2  Shandong Brother Technology Limited  $2,369   $712   $—   $3,081    16.2%
3  Shouguang Weidong Chemical Company Limited  $2,187   $464   $—   $2,651    14.0%
4  Shandong Shouguangshen Runfa Marine Chemical Company Limited  $2,577   $—   $—   $2,577    13.6%

 

The following table shows the major customer(s) (10% or more) for the three-month period ended September 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  $188   $243   $—   $431    19.2%
2  Shandong Brother Technology Limited  $190   $233   $—   $423    18.9%
3  Shouguang Weidong Chemical Company Limited  $189   $178   $—   $367    16.4%
                             

 

The following table shows the major customer(s) (10% or more) for the nine-month period ended September 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  $543   $462   $—   $1,005    16.9%
2  Shandong Brother Technology Limited  $515   $447   $—   $962    16.2%
3  Shouguang Weidong Chemical Company Limited  $516   $386   $—   $902    15.2%