Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 309

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 5
Chunk 309
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 Right-Of-Use Assets - Schedule of Property,
Plant and Equipment Under Finance Leases

    December 31, 2024 
    December 31, 2023
  
    At cost: 

    Buildings Buildings 
    $208,473  
    $211,590 
  
    Total 
     208,473  
     211,590 
  
    Less: Accumulated depreciation and amortization 
     (131,605) 
     (128,475)
  
    Net book value 
     76,868  
     83,115 

    F-17 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

DECEMBER 31, 2024

(Expressed in U.S. dollars)

The above buildings erected on
parcels of land located in Shouguang, PRC, are collectively owned by local townships. The Company has not been able to obtain property
ownership certificates over these buildings as the Company could not obtain land use rights certificates on the underlying parcels of
land.

During the year ended December
31, 2024, depreciation and amortization expense totaled $5,068, respectively, which was recorded in direct labor and factory overheads
incurred during plant shutdown.

During the year ended December
31, 2023, depreciation and amortization expense totaled $61,981, respectively, which was recorded in direct labor and factory overheads
incurred during plant shutdown.

NOTE 8 – OPERATING LEASE RIGHT–OF-USE
ASSETS

The Company has the rights to use
certain parcels of land located in Shouguang, the PRC, through lease agreements signed with local townships or the government authority.
For parcels of land that are collectively owned by local townships, the Company cannot obtain land use rights certificates. The parcels
of land of which the Company cannot obtain land use rights certificates covers a total of approximately 34.95 square kilometers with an
aggregate operating lease right-of-use assets amount of $7,318,031 as at December 31, 2024.

As of December 31, 2024, the total operating lease ROU assets
was $6,169,855.

The total operating lease cost for the years ended December
31, 2024 and 2023 was $877,809 and $887,603.

NOTE 9