v3.26.1
BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

NOTE 18 – BUSINESS SEGMENTS

 

ASC 280, Disclosures about Segments, of an Enterprise and Related Information, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise engaging in business activities from which they may earn revenues and incurred expenses, and about which separate financial information is available that is evaluated regularly by the chief operating decision-marker, or decision-making group (the “CODM”), in deciding how to allocate resources and assessing performance.

 

The Company’s Chief Executive Officer (Mr. Xiaobin Liu) is determined as the CODM of the Company, Mr. Liu measures the performance of each segment based on metrics of revenue and profit before taxes from operations and uses these results to evaluate the performance of, and to allocate resources to each of the segments. The Company has organized operations into four different business segments: (1) bromine, (2) crude salt, (3) chemicals products, (4) natural gas.

 

As of December 31, 2024, and December 31, 2023, the detailed income statements of each of our divisions are presented below: 

 

Year Ended

December 31, 2024 (Restated)

  Bromine* 

Crude

Salt*

 

Chemical

Products

 

Natural

Gas

 

Segment

Total

  Corporate   Total
Net revenue
(external customers)		  $5,549,815   $2,049,988   $—   $61,207   $7,661,010   $—   $7,661,010 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Loss from operations before
income tax expense		   (17,455,130)   (668,110)   (3,185,472)   (195,364)   (21,504,076)   (744,493)   (22,248,569)
Income tax (expense) benefit   (1,632,978)   (15,204)   —    —    (1,648,182)   —    (1,648,182)
Loss from operations after
income tax (expense) benefit		   (19,088,108)   (683,314)   (3,185,472)   (195,364)   (23,152,258)   (744,493)   (23,896,751)
Total assets   72,922,299    45,581,718    45,864,635    1,698,575    166,067,227    1,755,061    167,822,288 
Depreciation and amortization   16,798,768    1,659,865    272,716    134,080    18,865,429    —    18,865,429 
Capital expenditures   28,923,642    31,602,571    —    —    60,526,213    —    60,526,213 

 

 

Year Ended

December 31, 2023

  Bromine* 

Crude

Salt*

 

Chemical

Products

 

Natural

Gas

 

Segment

Total

  Corporate  Total
Net revenue
(external customers)		  $26,921,462   $2,971,467   $—   $150,861   $30,043,790   $—   $30,043,790 
Net revenue
(intersegment)		   —    —    —    —    —    —    — 
Loss from operations before
income tax expense		   (10,005,755)   640,309    (1,653,349)   (86,284)   (11,105,079)   (785,646)   (11,890,725)
Income tax (expense) benefit   (3,214,629)   (323,988)   —    —    (3,538,617)   —    (3,538,617)
Loss from operations after
income tax (expense) benefit		   (13,220,384)   316,321    (1,653,349)   (86,284)   (14,643,696)   (785,646)   (15,429,342)
Total assets   104,414,525    11,747,999    108,259,342    1,983,126    226,404,992    266,716    226,671,708 
Depreciation and amortization   25,354,200    1,369,812    313,735    101,842    27,139,589    —    27,139,589 
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 segments.

  

 

 

                 
   Years Ended December 31,
Reconciliations  2024 (Restated)  2023
Total segment operating loss  $(21,504,076)  $(11,105,079)
Corporate costs   (744,493)   (785,646)
Unrealized gain (loss) on translation of intercompany balance   —    — 
Loss from operations   (22,248,569)   (11,890,725)
Other expenses, net   (62,113)   144,919 
Expenditure on water pollution treatment   —    (46,510,856)
Loss on disposal of property, plant and equipment   (29,169,008)   — 
Impairment of property, plant and equipment   (6,772,500)   — 
Loss before taxes  $(58,252,190)  $(58,256,662)

 

The following table shows the major customers (10% or more) for the year ended December 31, 2024

 

     

Bromine

 

Crude Salt

 

Chemical Products

 

Total Revenue

 

Percentage of

Total

Number  Customer  (000’s)  (000’s)  (000’s)  (000’s)  Revenue (%)
1   Shandong Morui Chemical Company Limited  $677   $770   $—   $1,447    18.9%
2  Shandong Brother Technology Limited  $646   $702   $—   $1,348    17.6%
3  Shouguang Weidong Chemical Company Limited
  $646   $578   $—   $1,224    16.0%

 

 

The following table shows the major customers (10% or more) for the year ended December 31, 2023

  

     

Bromine

 

Crude Salt

 

Chemical Products

 

Total Revenue

 

Percentage of

Total

Number  Customer  (000’s)  (000’s)  (000’s)  (000’s)  Revenue (%)
1  Shandong Morui Chemical Company Limited  $3,735   $1,137   $—   $4,872    16.3%
2  Shandong Brother Technology Limited  $3,639   $998   $—   $4,637    15.5%
3  Shouguang Weidong Chemical Company Limited
  $3,492   $837   $—   $4,329    14.5%
4  Shandong Shouguang Shenrunfa Marine Chemical Company Limited
  $3,018   $—   $—   $3,018    10.1%