Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 497

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7A
Chunk 497
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 assets that
have the contractual right to receive cash. The ASU requires an entity to recognize expected credit losses rather than incurred
losses for financial assets. For public entities, the amendments are effective for fiscal years beginning after December 15, 2019,
including interim periods within those fiscal years. For the Company which is a smaller reporting company, ASU No. 2019-10 extends
the effective dates for two years. The Company had evaluated the effect of the adoption of this standard on the consolidated
financial statements and related disclosures. And the Company had adopted this standard beginning January 1, 2024.

Recently Issued Accounting Pronouncements Not Yet
Adopted

There were no recently issued accounting pronouncements
not yet adopted for the year ended December 31, 2024.

    F-15 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

DECEMBER 31, 2024

(Expressed in U.S. dollars)

NOTE 2 – ACCOUNTS RECEIVABLE, NET    

    December 31, 2024 
    December 31, 2023

    Accounts receivable 
    $594,234  
    $4,890,756 
  
    Allowance for doubtful debt 
     (29,711) 
     (25,060)
  
    Accounts receivable, net 
    $564,523  
    $4,865,696 

The overall accounts receivable
balance as of December 31, 2024 decreased by $4,301,173
compared to those of December 31, 2023. The decrease in accounts receivable is due to the decrease in sales revenue. 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 customer.

NOTE 3 – INVENTORIES

Inventories consist of:

Inventories - Schedule of Inventories, Current

    December 31, 2024 
    December 31, 2023

    Raw materials 
    $10,610  
    $32,840 
  
    Finished goods 
     1,545,521  
     804,046 
  
    Less: impairment 
     (1,240,760) 
     (259,657)
  
    Inventory, net