GULF RESOURCES INC
For the period ended Sep 30, 2024. Filed Nov 19, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 19, 2024
GURE$3.15+3.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-10-11.
0001193805-24-001241
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-19.
0001193805-24-001395
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 110 previous paragraphs and 110 current paragraphs.
43 unchanged; 39 reworded; 28 added; 27 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (28)
Current report
On November 5, 2024, the Company received a notice in the form of a letter (“Price Deficiency Letter”) from Nasdaq stating that the Company was not in compliance with Nasdaq Listing Rule 5450(a)(1) because the bid price for the Company’s common stock had closed below $1.00 per share for the previous 34 consecutive business days (the “Minimum Bid Price Requirement”). In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been given 180 calendar days, or until May 5, 2025, to regain compliance with the Minimum Bid Price Requirement. If at any time before May 5, 2025, the bid price of the Company’s common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, the Staff will provide written confirmation that the Company has achieved compliance. In the event the Company does not regain compliance, the Company may be eligible for additional time. To qualify for the additional compliance period, the Company will be required to (i) submit, no later than the expiration date, an on-line Transfer Application, (ii) submit a non-refundable $5,000 application fee, (iii) meet the continued listing requirement for the market value of its publicly held shares and all other continued listing standards for The Nasdaq Stock Market, with the exception of the bid price requirement, and (iv) will need to provide written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split if necessary. As part of its review process, the Staff will make a determination of whether they believe the Company will be able to cure this deficiency. Should the Staff conclude that the Company will not be able to cure the deficiency, or should the Company determine not to submit a transfer application or make the required representation, the Staff will provide notice that the Company’s securities will be subject to delisting.
Current report
The Nasdaq Price Deficiency Letter has no immediate impact on the listing of the Company’s common stock, which will continue to be listed and traded on The Nasdaq Global Select Market, subject to the Company’s compliance with the other continued listing requirements of The Nasdaq Stock Market.
Current report
For the three-month period ended September 30, 2024, the bromine segment had a net cost of revenue of $3,794,088.
Current report
For the three-month period ended September 30, 2023 the cost of net revenue for the bromine segment was $5,995,496.
Current report
For the three-month period ended September 30, 2024 the cost of net revenue for the crude salt segment was $277,451.
Current report
For the three-month period ended September 30, 2023 the cost of net revenue for the crude salt segment was $378,100.
Current report
For the three-month period ended September 30, 2024, the gross loss for our bromine segment was 141%, compared to 22% in the three-month period ended September 30, 2023. The increase in gross loss margin was primarily attributable to the lower average selling price of bromine of $2,396 per ton in the three-month period ended September 30, 2024 compared to $3,237 per ton in the three-month period ended September 30, 2023.
Current report
For the three-month period ended September 30, 2024, the gross profit margin for our crude salt segment was 58%.
Current report
Loss from operations from our bromine segment was $4,029,999 for the three-month period ended September 30, 2024, compared to loss from operations of $2,143,203 in the same period in 2023. The decrease of the net revenue of bromine was due to the 57% decrease in tonnes sold and the 26% decrease in average selling price of bromine in the third quarter of 2024.
Current report
Loss from operations from our crude salt segment was $102,657 for the three-month period ended September 30, 2024, compared to income from operations of $500,469 in the same period in 2023. The decrease of net revenue of crude salt was mainly due to the 20% decrease in tonnes sold and the 8% decrease in average selling price of crude salt for the three-month period ended September 30, 2024.
Current report
Comparison of the Nine-Month Period Ended September 30, 2024 and 2023
Current report
For the nine-month period ended September 30, 2024 the cost of net revenue for the bromine segment was $10,595,899.
Current report
For the nine-month period ended September 30, 2023 the cost of net revenue for the bromine segment was $19,187,620.
Current report
For the nine-month period ended September 30, 2024 the cost of net revenue for the crude salt segment was $707,344. The cost of net revenue for our crude salt segment for the nine-month period ended September 30, 2023 was $1,276,119.
Current report
The reason for the decrease is that there is that with the creation of SHSI, some costs formerly allocated to crude sale were allocated to bromine.
Current report
Gross Profit. Loss profit was $5,370,923, or 91%, of net revenue for nine-month period ended September 30, 2024 compared to $2,708,986, or 12%, of net revenue for the same period in 2023.
Current report
For the nine-month period ended September 30, 2024, the gross loss margin for our bromine segment was 132%, compared to 7% in the nine-month period ended September 30, 2023. The increase in gross loss margin was primarily attributable to the lower average selling price of bromine of $2,423 per ton in the nine-month period ended September 30, 2024 compared to $3,493 per ton in the nine-month period ended September 30, 2023.
Current report
For the nine-month period ended September 30, 2023, the gross profit margin for our bromine segment was 7%.
Current report
For the nine-month period ended September 30, 2024, the gross profit margin for our crude salt segment was 45%.
Current report
For the nine-month period ended September 30, 2023 the gross profit margin for our crude salt segment was 44%.
Current report
Loss from operations from our bromine segment was $13,475,400 for the nine-month period ended September 30, 2024, compared to a loss of $3,340,404 in the same period in 2023. The increase in gross loss margin was primarily attributable to the lower average selling price of bromine of $2,423 per ton in the nine-month period ended September 30, 2024 compared to $3,493 per ton in the nine-month period ended September 30, 2023.
Current report
Loss from operations from our crude salt segment was $47,725 for the nine-month period ended September 30, 2024, compared to an income of $904,482 in the same period in 2023.
Current report
Loss from operations from our chemical products segment was $993,116 for the nine-month period ended September 30, 2024, compared to a loss of $1,231,302 in the same period in 2023.
Current report
Loss from operations from our natural gas segment was $140,554 for the nine-month period ended September 30, 2024, compared to an income of $14,011 in the same period in 2023.
Current report
Net Income Per Share
Current report
For the nine months ended September 30, 2024, net loss per share was $3.78 compared to a loss of $0.29 in the period ending September 30, 2023. There were 10,726,924 shares outstanding compared to 10,431,924 shares.
Current report
Foreign Currency Translation Adjustment
Current report
For the nine months ending September 30, 2024, the Company had a positive foreign currency translation adjustment of $1,859,755 versus a positive adjustment of $7,879,513 in the previous year. This adjustment impacts all balance sheet translations into U.S. dollars.
Removed paragraphs (27)
Previous report
The August Notice has no immediate effect on the listing or trading of the Company’s common stock on the Nasdaq Global Select Market. While the Company can provide no assurance to the timing, the Company has submitted a letter to Nasdaq confirming that there has been no change to its original plan to regain compliance with respect to the filing requirements, and will continue to work diligently to complete and file its delayed SEC reports.
Previous report
For the three-month period ended June 30, 2024, the cost of net revenue for the bromine segment was $4,729,059.
Previous report
For the three-month period ended June 30, 2023, the cost of net revenue for the bromine segment was $7,043,681.
Previous report
For the three-month period ended June 30, 2024 the cost of net revenue for the crude salt segment was $382,999.
Previous report
For the three-month period ended June 30, 2023 the cost of net revenue for the crude salt segment was $277,761.
Previous report
For the three-month period ended June 30, 2023, the gross profit margin for our bromine segment was 4%.
Previous report
For the three-month period ended June 30, 2024, the gross profit margin for our crude salt segment was 27%.
Previous report
Loss from operations from our bromine segment was $4,662,586 for the three-month period ended June 30, 2024, compared to income from operations of $787,509 in the same period in 2023. This decrease was due to a 67% decrease in tonnes sold and a 22% decrease in average selling price.
Previous report
Income from operations from our crude salt segment was $130,024 for the three-month period ended June 30, 2024, compared to income from operations of $361,083 in the same period in 2023.
Previous report
Equipment Lease
Previous report
For the six-month period ended June 30, 2024, the cost of net revenue for the bromine segment was $6,801,811.
Previous report
For the six-month period ended June 30, 2023, the cost of net revenue for the bromine segment was $13,192,124.
Previous report
For the six-month period ended June 30, 2024, the cost of net revenue for the crude salt segment was $429,893.
Previous report
For the six-month period ended June 30, 2023, the cost of net revenue for the crude salt segment was $898,019.
Previous report
Gross Profit. Gross loss was $3,541,672, or 96%, of net revenue for six-month period ended June 30, 2024 compared to $3,217,273, or 19%, of net revenue for the same period in 2023.
Previous report
For the six-month period ended June 30, 2024, the gross loss for our bromine segment was 126%, compared to 17% in the six-month period ended June 30, 2023. The decrease in gross profit margin was primarily attributable to the higher average selling price of bromine of $2,438 per ton in the six-month period ended June 30, 2024 compared to $3,580 per ton in the six-month period ended June 30, 2023.
Previous report
For the six-month period ended June 30, 2023, the gross profit margin for our bromine segment was 17%.
Previous report
For the six-month period ended June 30, 2024, the gross profit margin for our crude salt segment was 33%.
Previous report
For the six-month period ended June 30, 2023 the gross profit margin for our crude salt segment was 35%.
Previous report
Loss from operations from our bromine segment was $9,445,401 for the six-month period ended June 30, 2024, compared to an loss from operations of $1,197,201 in the same period in 2023. This decrease was due to a 72% decrease in tonnes sold and a 32% decrease in average selling price.
Previous report
Income from operations from our crude salt segment was $54,932 for the six-month period ended June 30, 2024, compared to a loss from operations of $404,013 in the same period in 2023.
Previous report
Loss from operations from our chemical products segment was $654,078 for the six-month period ended June 30, 2024, compared to a loss from operations of $833,892 in the same period in 2023.
Previous report
Loss from operations from our natural gas segment by equipment lease was $101,482 for the six-month period ended June 30, 2024, compared to a income from operations of $9,855 in the same period in 2023.
Previous report
The overall accounts receivable balance as of June 30, 2024 decreased by $3,129,401, as compared to those of December 31, 2023. We have policies in place to ensure that sales are made to customers with an appropriate credit history. We perform ongoing credit evaluation on the financial condition of our customers. No allowance for doubtful accounts for the three-month and six-month periods ended June 30, 2024 is required.
Previous report
Inventory
Previous report
Our inventory consists of the following:
Previous report
The net inventory level as of June 30, 2024 decreased by $163,469 (or 28%), as compared to the net inventory level as of December 31, 2023.
Reworded paragraphs (39)
Previous wording
Pursuant to the notification from the government of Shouguang City, all bromine facilities in Shouguang City were temporarily closed from December 10, 2022 until February 1, 2023 8:00 AM China Time. To comply with such notification, the Company had temporarily stopped production at its bromine facilities during the aforesaid period and reopened the operating bromine and crude salt factories in February, 2023 as planned.
Current wording
Pursuant to the notification from the government of Shouguang City, all bromine facilities in Shouguang City were temporarily closed from December 10, 2022 until February 1, 2023. To comply with such notification, the Company had temporarily stopped production at its bromine facilities during the aforesaid period and reopened the operating bromine and crude salt factories in February, 2023.
Previous wording
On November 24, 2017, Gulf Resources received a letter from the People’s Government of Yangkou County, Shouguang City notifying the Company that due to the new standards and regulations relating to safety production and environmental pollution, from certain local governmental departments, such as the municipal environmental protection department, the security supervision department and the fire department, its chemical enterprises would have to be relocated to a new industrial park called Bohai Marine Fine Chemical Industry Park. Although our chemical companies were in compliance with regulations, they were also close to a residential area. As a result, the government determined we should relocate to the Bohai park. Chemical companies that are not being asked to move into the park are being permanently closed. Since our factories closed, the Company has secured from the government the land use rights for its chemical plant. On January 6, 2020, the Company received the environmental protection approval by the government of Shouguang City, Shandong Province for the proposed Yuxin Chemical factory. The Company began the construction on its new chemical facilities located at Bohai Marine Fine Chemical Industrial Park in June 2020. The construction was expected to take approximately one year and an additional six months to complete the equipment installation and testing, however due to the COVID epidemic and electrical restrictions, the opening of the chemical factory has been delayed. [The Company has received the refrigeration and air compressor units. On July 26, 2023, the Company announced that the delivery of the remaining equipment for its Yuxin chemical factory has been temporarily delayed and to review its chemical products strategy.
Current wording
On November 24, 2017, Gulf Resources received a letter from the People’s Government of Yangkou County, Shouguang City notifying the Company that due to the new standards and regulations relating to safety production and environmental pollution, from certain local governmental departments, such as the municipal environmental protection department, the security supervision department and the fire department, its chemical enterprises would have to be relocated to a new industrial park called Bohai Marine Fine Chemical Industry Park. Although our chemical companies were in compliance with regulations, they were also close to a residential area. As a result, the government determined we should relocate to the Bohai park. Chemical companies that are not being asked to move into the park are being permanently closed. Since our factories closed, the Company has secured from the government the land use rights for its chemical plant. On January 6, 2020, the Company received the environmental protection approval by the government of Shouguang City, Shandong Province for the proposed Yuxin Chemical factory. The Company began the construction on its new chemical facilities located at Bohai Marine Fine Chemical Industrial Park in June 2020. The construction was expected to take approximately one year and an additional six months to complete the equipment installation and testing, however due to the COVID epidemic and electrical restrictions, the opening of the chemical factory has been delayed. The Company has received the refrigeration and air compressor units. On July 26, 2023, the Company announced that the delivery of the remaining equipment for its Yuxin chemical factory has been temporarily delayed and the Company will re-evaluate its chemical products strategy.
Previous wording
On June 26, 2024, the Company received a letter from Nasdaq indicating that, based on its further review and the plan of compliance submitted by the Company on June 14, 2024, Nasdaq has determined to grant an exception to enable the Company to regain compliance with the Rule. The terms of the exception are as follows: on or before October 14, 2024, the Company must file the Delinquent Reports, as required by the Rule. In the event the Company does not satisfy the terms, Nasdaq will provide written notification that its securities will be delisted. At that time, the Company may appeal Nasdaq’s determination to a hearings panel.
Current wording
On June 26, 2024, the Company received a letter from Nasdaq indicating that, based on its further review and the plan of compliance submitted by the Company on June 14, 2024, Nasdaq has determined to grant an exception to enable the Company to regain compliance with the Rule. The terms of the exception were as follows: on or before October 14, 2024, the Company must file the Delinquent Reports, as required by the Rule. In the event the Company does not satisfy the terms, Nasdaq will provide written notification that its securities will be delisted. At that time, the Company may appeal Nasdaq’s determination to a hearings panel.
Previous wording
Subsequently, on August 20, 2024, the Company received a notice (the “August Notice”) from Nasdaq indicating that, because the Company is delinquent in filing its quarterly report on Form 10-Q for the period ended June 30, 2024, the Company is not in compliance with the Rule. The Notice also indicates that as a result of this additional delinquency, the Company must submit an update to its original plan to regain compliance with respect to the filing requirements. The Company has until September 4, 2024 to submit such update to Nasdaq.
Current wording
Subsequently, on August 20, 2024, the Company received a notice (the “August Notice”) from Nasdaq indicating that, because the Company is delinquent in filing its quarterly report on Form 10-Q for the period ended June 30, 2024, the Company was not in compliance with the Rule. The Notice also indicates that as a result of this additional delinquency, the Company must submit an update to its original plan to regain compliance with respect to the filing requirements. The Company has until September 4, 2024 to submit such update to Nasdaq. On October 15, 2024, the Company received written notice from the Staff that, as a result of the Company filing the Delinquent Filings with the SEC, the Staff has determined that the Company complies with the Rule and considers the matter to be closed.
Previous wording
The following table presents certain information derived from the condensed consolidated statements of operations, cash flows and stockholders equity for the three-month and six-month periods ended June 30, 2024 and 2023.
Current wording
The following table presents certain information derived from the condensed consolidated statements of operations, cash flows and stockholders equity for the three-month and nine-month periods ended September 30, 2024 and 2023.
Previous wording
For the three-month periods ended June 30, 2024 and 2023, the net revenue for the bromine segment was $1,859,234 and $7,356,347, respectively. The decrease of the net revenue of bromine was due to a decrease in selling prices and tonnes sold of bromine in the second quarter of 2023. The sale price of bromine in the second quarter of 2024 was 22% lower than in the second quarter of 2023, and the quantity sold was 67% lower than in the second quarter of 2023.
Current wording
For the three-month periods ended September 30, 2024 and 2023, the net revenue for the bromine segment was $1,571,313 and $4,908,152, respectively. The decrease of the net revenue of bromine was due to the 57% decrease in tonnes sold and the 26% decrease in average selling price of bromine in the third quarter of 2024. The average selling price of bromine in the third quarter of 2024 was $2,396 compared to the average selling price of bromine in the third quarter of 2023 of $3,237 (calculated by dividing revenue by tonnes).
Previous wording
For the three-month periods ended June 30, 2024 and 2023, the net revenue for the crude salt was $523,935 and $649,435, respectively. The decrease of net revenue of crude salt was mainly due to 33% decrease in average selling price of crude salt for the three-month period ended June 30, 2024.
Current wording
For the three-month periods ended September 30, 2024 and 2023, the net revenue for the crude salt was $654,039 and $889,556, respectively. The decrease of net revenue of crude salt was mainly due to the 20% decrease in tonnes sold and the 8% decrease in average selling price of crude salt for the three-month period ended September 30, 2024.
Previous wording
For the six-month period ended June 30, 2024 and 2023, the net revenue was $0.
Current wording
For the three-month period ended September 30, 2024 and 2023, the net revenue was $0.
Previous wording
For the three-month period ended June 30, 2024 and 2023, the net revenue for the equipment lease was $0.
Current wording
For the three-month period ended September 30, 2024 and 2023, the net revenue for the equipment lease was $17,013 and $67,907.
Previous wording
Cost** **of net revenue reflects mainly the raw materials consumed and the direct salaries and benefits of staff engaged in the production process, electricity, depreciation and amortization of manufacturing plant and machinery and other manufacturing costs. Our cost of net revenue was $5,112,058 for the three-month period ended June 30, 2024, an decrease of $2,209,384 (or 30%) as compared to the same period in 2023 due to the decrease of net revenue by 70% for the three-month period ended June 30, 2024 as compared to the same period in 2023 .
Current wording
Cost** **of net revenue reflects mainly the raw materials consumed, the direct salaries and benefits of staff engaged in the production process, electricity, depreciation and amortization of manufacturing plant and machinery and other manufacturing costs.
Previous wording
(i)Utilization ratio is calculated based on the annualized actual production volume in tonnes for the periods divided by the annual production capacity in tonnes.
Current wording
(i) Utilization ratio is calculated based on the annualized actual production volume in tonnes for the periods divided by the annual production capacity in tonnes of all the seven factories including those that have not commenced operations.
Previous wording
Cost of net revenue for our natural gas segment for the three-month period ended June 30, 2024 and 2023 was $0.
Current wording
Cost of net revenue for our natural gas segment for the three-month period ended September 30, 2024 and 2023 was $77 and 306, respectively.
Previous wording
***Gross Profit.***Gross loss was $2,728,889, or 115%, of net revenue for the three-month period ended June 30, 2024, representing a decrease of $3,413,229, as compared to a gross profit of $684,340, or 9%, of net revenue for the same period in 2023.
Current wording
***Gross Profit.***Gross loss was $1,829,251 or 82%, of net revenue for three-month period ended September 30, 2024, representing an decrease of $1,320,964, as compared to a gross profit of $508,287 or 9%, of net revenue for the same period in 2023.
Previous wording
For the three-month period ended June 30, 2024, the gross loss margin for our bromine segment was 154%, compared to 4% in the three-month period ended June 30, 2023. The decrease in gross profit margin was primarily attributable to the lower average selling price of bromine of $2,379 per ton in the three-month period ended June 30, 2024 compared to $3,065 per ton in the three-month period ended June 30, 2023 and the number of sales was down 67% from the second quarter of 2023.
Current wording
For the three-month period ended September 30, 2023, the gross loss margin for our bromine segment was 22%.
Previous wording
For the three-month period ended June 30, 2023, the gross loss margin for our crude salt segment was 57%.
Current wording
For the three-month period ended September 30, 2023, the gross profit margin for our crude salt segment was 57%.
Previous wording
Direct labor and factory overheads incurred during plant shutdownOn September 1, 2017, the Company received notification from the government of Yangkou County, Shouguang City of PRC that stated that production at all its bromine and crude salt and chemical factories should be halted with immediate effect in order for the Company to perform rectification and improvement in accordance with the county’s new safety and environmental protection requirements. On November 24, 2017, the Company received a letter from the Government of Yangkou County, Shouguang City notifying the Company to relocate its two chemical production plants located in the second living area of the Qinghe Oil Extraction Plant to Bohai Park. As a result, direct labor and factory overhead costs (including depreciation of plant and machinery) in the amount of $1,714,503 and $1,055,529 incurred for the three-month periods ended June 30, 2024 and 2023, respectively, for the factories that have not resumed production were presented as part of the operating expenses.
Current wording
Direct labor and factory overheads incurred during plant shutdownOn September 1, 2017, the Company received notification from the government of Yangkou County, Shouguang City of PRC that stated that production at all its bromine and crude salt and chemical factories should be halted with immediate effect in order for the Company to perform rectification and improvement in accordance with the county’s new safety and environmental protection requirements. On November 24, 2017, the Company received a letter from the Government of Yangkou County, Shouguang City notifying the Company to relocate its two chemical production plants located in the second living area of the Qinghe Oil Extraction Plant to Bohai Park. As a result, direct labor and factory overhead costs (including depreciation of plant and machinery) in the amount of $1,736,345 and $1,007,689 incurred for the three-month periods ended September 30, 2024 and 2023, respectively, of factories that have not resumed production were presented as part of the operating expense.
Previous wording
General and Administrative Expenses General and administrative expenses were $689,972 for the three-month period ended June 30, 2024, representing an increase of $96,647 as compared to $593,325 for the same period in 2023.
Current wording
General and Administrative Expenses General and administrative expenses were $1,002,529 for the three-month period ended September 30, 2024, representing an increase of $239,645 as compared to $762,884 for the same period in 2023.
Previous wording
Income (loss) from OperationsLoss from operations was $5,146,997 for the three-month period ended June 30, 2024, compared to loss from operations of $919,098 in the same period in 2023.
Current wording
Income (loss) from Operationsloss from operations was $4,581,609 for the three-month period ended September 30, 2024, compared to income of $2,293,288 in the same period in 2023.
Previous wording
Loss from operations from our chemical products segment was $339,254 for the three-month period ended June 30, 2024, compared to loss from operations of $416,019 in the same period in 2023.
Current wording
Loss from operations from our chemical products segment was $339,038 for the three-month period ended September 30, 2024, compared to loss from operations of $397,410 in the same period in 2023.
Previous wording
Loss from operations from our natural gas segment was $73,773 for the three -month period ended June 30, 2024, compared to a loss from operations of $2,830 in the same period in 2023.
Current wording
Loss from operations from our natural gas segment was $39,072 for the three -month period ended September 30, 2024, compared to an income of $4,156 in the same period in 2023.
Previous wording
Other Income, Net. Other income, net of $21,207 represented bank interest income, net of capital lease interest expense for the six -month period ended June 30, 2024, an decrease of $64,631 (or approximately 75%) as compared to the same period in 2023.
Current wording
Other Income(loss), Net Other loss, net of $14,971 represented bank interest income, net of capital lease interest expense for the three -month period ended September 30, 2024, a decrease of $48,938 as compared to the same period in 2023.
Previous wording
***Net Income (loss)***Net loss was $33,097,918 for the three-month period ended June 30, 2024, compared to a net income of $681,816 in the same period in 2023.
Current wording
***Net Income (loss)***Net loss was $3,492,883 for the three-month period ended September 30, 2024, compared to a net loss of $1,775,797 in the same period in 2023.
Previous wording
Net revenue. The table below shows the changes in net revenue in the respective segment of the Company for the six-month period ended June 30, 2024 as compared to the same period in 2023:
Current wording
Net revenue. The table below shows the changes in net revenue in the respective segment of the Company for the nine-month period ended September 30, 2024 as compared to the same period in 2023:
Previous wording
Net revenue from our bromine segment decreased to $3,005,431 for the six-month period ended June 30, 2024 compared to $15,826,719 for the same period in 2023 due to the lower selling price of bromine and tonnes of bromine .
Current wording
Net revenue from our bromine segment decreased to $4,576,744 for the nine-month period ended September 30, 2024 compared to $20,734,871 for the same period in 2023 respectively, due to the lower selling price and selling quantity.
Previous wording
Net revenue from our crude salt segment decreased to $640,606 for the six-month period ended June 30, 2024 compared $1,398,116 for the same period in 2023 due to the lower selling tonnes of crude salt.
Current wording
Net revenue from our crude salt segment decreased to $1,294,645 for the nine-month period ended September 30, 2024 compared $2,287,672 for the same period in 2023, respectively, due to the lower selling price and selling quantity.
Previous wording
For the six-month period ended June 30, 2024 and 2023, the net revenue for the chemical products segment was $0 due to the closure of our chemical factories since September 1, 2017.
Current wording
For the nine-month period ended September 30, 2024 and 2023, the net revenue for the chemical products segment was $0 due to the closure of our chemical factories since September 1, 2017.
Previous wording
For the three-month period ended June 30, 2024 and 2023, the net revenue for the natural gas was $0.
Current wording
For the nine-month period ended September 30, 2024 and 2023, the net revenue for the natural gas was $0.
Previous wording
For the six-month period ended June 30, 2024 and 2023, the net revenue for the equipment lease was $44,194 and $82,954.
Current wording
For the nine-month period ended September 30, 2024 and 2023, the net revenue for the equipment lease was $61,207 and $150,861.
Previous wording
Cost of net revenue for our natural gas segment for the six-month period ended June 30, 2024 and 2023 was $199 and $373, respectively.
Current wording
Cost of net revenue for our natural gas segment for the nine-month period ended September 30, 2024 and 2023 was $276 and $679.
Previous wording
For the six-month period ended June 30, 2024, the gross profit margin for our chemical segment was 0% due to the closure of our plant and factories to perform rectification and improvement. As a result, there were no chemical products for sale for the six-month period ended June 30, 2024.
Current wording
For the nine-month period ended September 30, 2024, the gross profit margin for our chemical segment was 0% due to the closure of our chemical products plant. As a result of the closure, there were no chemical products for sale for the nine-month period ended September 30, 2024.
Previous wording
Direct labor and factory overheads incurred during plant shutdownOn September 1, 2017, the Company received notification from the government of Yangkou County, Shouguang City of PRC that stated that production at all its bromine and crude salt and chemical factories should be halted with immediate effect in order for the Company to perform rectification and improvement in accordance with the county’s new safety and environmental protection requirements. On November 24, 2017, the Company received a letter from the Government of Yangkou County, Shouguang City notifying the Company to relocate its two chemical production plants located in the second living area of the Qinghe Oil Extraction Plant to Bohai Park. As a result, direct labor and factory overhead costs (including depreciation of plant and machinery) in the amount of $5,449,192 and $3,464,265 incurred for the three-month periods ended June 30, 2024 and 2023, respectively, for the factories that have not resumed production were presented as part of the operating expense.
Current wording
Direct labor and factory overheads incurred during plant shutdownOn September 1, 2017, the Company received notification from the government of Yangkou County, Shouguang City of PRC that stated that production at all its bromine and crude salt and chemical factories should be halted with immediate effect in order for the Company to perform rectification and improvement in accordance with the county’s new safety and environmental protection requirements. On November 24, 2017, the Company received a letter from the Government of Yangkou County, Shouguang City notifying the Company to relocate its two chemical production plants located in the second living area of the Qinghe Oil Extraction Plant to Bohai Park. As a result, direct labor and factory overhead costs (including depreciation of plant and machinery) in the amount of $7,185,537 and $4,471,954 incurred for the nine-month periods ended September 30, 2024 and 2023, respectively, for the factories that have not resumed production were presented as part of the operating expense.
Previous wording
General and Administrative Expenses. General and administrative expenses were $1,407,428 for the six-month period ended June 30, 2024, a decrease of $95,948 (or 6%) as compared to $1,503,376 for the same period in 2023.
Current wording
General and Administrative Expenses. General and administrative expenses were $2,409,957 for the nine-month period ended September 30, 2024, a increase of $143,697 (or 6%) as compared to $2,266,260 for the same period in 2023. The increase was mainly due to the unrealized foreign currency transaction loss on intercompany balance recorded in nine-month period ended September 30, 2024 compared to an unrealized foreign currency transaction gain on intercompany balance recorded in the same period in the previous year.
Previous wording
***Income (Loss) from Operations.***Loss from operations was $10,416,416 for the six-month period ended June 30, 2024, compared to income from operations of $1,718,656 in the same period in 2023.
Current wording
***Income (Loss) from Operations.***Loss from operations was $14,998,025 for the nine-month period ended September 30, 2024, compared to an income of $4,011,944 in the same period in 2023.
Previous wording
Other Income, Net Other income, net of 9,977 represented bank interest income, net of capital lease interest expense for the three-month period ended June 30, 2024, an decrease of $34,606 (or approximately 78%) as compared to the same period in 2023.
Current wording
Other Income, Net. Other income, net of $6,236 represented bank interest income, net of capital lease interest expense for the nine -month period ended September 30, 2024, a decrease of $113,569, (or approximately 95%) as compared to the same period in 2023.
Previous wording
Net Income (Loss). Net loss was $37,090,050 for the six-month period ended June 30, 2024, compared to a net loss of $1,239,563 in the same period in 2023.
Current wording
Net Income (Loss). Net loss was $40,582,933 for the nine-month period ended September 30, 2024, compared to a net loss of $3,015,360 in the same period in 2023.
Previous wording
As of June 30, 2024, cash and cash equivalents were $10,367,539 as compared to $72,223,894 as of December 31, 2023. The components of this decrease of $61,856,355 are reflected below.
Current wording
As of September 30, 2024, cash and cash equivalents were $11,237,493 as compared to $72,223,894 as of December 31, 2023. The components of this decrease of $60,986,401 are reflected below.
Previous wording
For the six-month period ended June 30, 2024, we met our working capital and capital investment requirements by using cash on hand.
Current wording
For the nine-month period ended September 30, 2024, we met our working capital and capital investment requirements by using cash on hand.
Previous wording
During the six-month period ended June 30, 2024, cash flow used in operating activities of approximately $0.8 million was mainly due to a net loss of $37.09 million, offset by depreciation and amortization expenses of $9.47 million and loss on disposal of equipment of $29.17 million.
Current wording
During the six-month period ended September 30, 2024, cash flow used in by operating activities of approximately $0.29 million was mainly due to a net loss of $40.58 million, a decrease in deferred taxes of $3.62 million and offset by depreciation and amortization expense of $14.04 million and loss on disposal of equipment of $29.17 million.
Previous wording
During the six-month period ended June 30, 2023, cash flow provided by operating activities of approximately $11 million was mainly due to a net loss of $1.24 million, a decrease in accounts receivable of $3.15 million, a decrease in accounts payable of $1.56 million, a decrease in deferred taxes of $0.4 million, and a non-cash adjustment related to depreciation and amortization of property, plant and equipment of $10.6 million, offset by increases in operating leases, and prepayments.
Current wording
During the nine-month period ended September 30, 2023, cash flow provided by operating activities of approximately $9.9 million was mainly due to a non-cash adjustment for depreciation and amortization expense of $15.4 million and offset by a net loss of $3.02 million and an increase in prepayments and deposits of $3.95 million.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Comparison of the Six-Month Period Ended June 30, 2024 and 2023