Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 203

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 3
Chunk 203
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 flows (undiscounted and without interest charges) and comparing such amount to
the carrying amount of the assets. An impairment loss, if one exists, is then measured as the amount by which the carrying amount of the
asset exceeds the discounted estimated future cash flows. Assets to be disposed of are reported at the lower of the carrying amount or
fair value of such assets less costs to sell. Asset impairment charges are recorded to reduce the carrying amount of the long-lived asset
that will be sold or disposed of to their estimated fair values. Charges for the asset impairment reduce the carrying amount of the long-lived
assets to their estimated salvage value in connection with the decision to dispose of such assets.

For the year ended December 31, 2024 and 2023, the Company
determined that the impairment of long-lived assets was $6,772,500 and $nil.

(m)      Retirement Benefits

Pursuant to the relevant laws and
regulations in the PRC, the Company participates in a defined contribution retirement plan for its employees arranged by a governmental
organization. The Company makes contributions to the retirement plan at the applicable rate based on the employees’ salaries. The
required contributions under the retirement plans are charged to the consolidated statement of comprehensive income (loss) on an accrual
basis when they are due. The Company’s contributions totaled $535,475 and $691,033 for the years ended December 31, 2024 and 2023,
respectively.

    F-12 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

DECEMBER 31, 2024

(Expressed in U.S. dollars)

NOTE 1 – BASIS OF PRESENTATION
AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

(n)      Mineral Rights

The Company follows FASB ASC 805
“Business Combinations” that certain mineral rights are considered tangible assets and that mineral rights should be accounted
for based on their substance. Mineral rights are included in property, plant and equipment.

(o)      Leases

The Company determines if an arrangement
is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease
liabilities in the consolidated balance sheets. Finance leases are included in finance lease ROU assets and finance lease liabilities
in the consolidated balance sheets.

ROU