Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 601

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 601
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,452) 
    $(61,795,279)
  
    Adjustments to reconcile net Loss to net cash provided by (used in) operating activities:  

    Equity Loss in unconsolidated subsidiaries 
     59,841,154  
     61,014,900 
  
    Stock-based compensation expense-options 
     —  
     451,350 
  
    Shares issued from treasury stock for services 
     —  
     — 
  
    Changes in assets and liabilities: 
     —  
     — 
  
    Other payables and accrued expenses 
     1,251,357  
     (23,152)
  
    Net cash used in operating activities 
     (345,655) 
     (352,181)
  
    CASH FLOWS FROM FINANCING ACTIVITIES 

    Advances from group companies 
     345,655  
     352,181 
  
    Net cash provided by financing activities 
     345,655  
     352,181 
  
    NET INCREASE IN CASH AND CASH EQUIVALENTS 
     —  
     — 
  
    CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 
     —  
     — 
  
    CASH AND CASH EQUIVALENTS - END OF YEAR 
    $—  
    $— 

    S-2 

(i)Basis of presentation

In the condensed parent-company-only
financial statements, the Company’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries
since the date of acquisition. The Company’s share of net loss of its subsidiaries is included in condensed statements of comprehensive
loss using the equity method. These condensed parent- company-only financial statements should be read in connection with the consolidated
financial statements and notes thereto.

As of December 31, 2024, the
Company itself has no purchase commitment, capital commitment and operating lease commitment.

(ii)Restricted Net Assets

Schedule I of Rule 5-04 of Regulation
S-X requires the condensed financial information of registrant shall be filed when the restricted net assets of consolidated subsidiaries
exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test,
restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net