Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 506

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7A
Chunk 506
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 limited in the
aggregate to 2,068,398 shares of our common stock, inclusive of the awards that were previously issued and outstanding under the Company’s
2007 Equity Incentive Plan, as amended (the “2007 Plan”). Upon adoption and approval of the 2019 Plan, the 2007 Plan was frozen,
no new awards will be granted under the 2007 Plan, and outstanding awards under the 2007 Plan will continue to be governed by the terms
and condition of the 2007 Plan and applicable award agreement. As of December 31, 2024, the number of shares of the Company’s common
stock available for grant of stock options and issuance under the 2019 Plan is 561,801 shares.

The fair value of each
option award is estimated on the date of grant using the Black-Scholes option-pricing model. The risk free rate is based on the
yield-to-maturity in continuous compounding of the US Government Bonds with the time-to-maturity similar to the expected tenor of
the option granted, volatility is based on the annualized historical stock price volatility of the Company, and the expected life is
based on the historical option exercise pattern.

For the year ended December 31,
2024 and 2023, total compensation costs for options issued recorded in the consolidated statement of comprehensive income (loss) were
$0 and $0. There were no related tax benefits as a full valuation allowance was recorded in the years ended December 31, 2024 and 2023.

    F-20 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

DECEMBER 31, 2024

(Expressed in U.S. dollars)

NOTE 15 – STOCK-BASED COMPENSATION – Continued

The following table summarizes all Company stock option
transactions between January 1, 2024 and December 31, 2024.

Stock-Based Compensation - Schedule of Stock
Option Activity

     Number
of Option and Warrants Outstanding and exercisable  
     Weighted-
Average Exercise price of Option and
Warrants  
       Range
of Exercise Price per Common Share 
  
    Balance, January 1, 2024 
     —  
    $—  
    $— 
  
    Exercised 
     —  
    $—  
    $—