Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 10

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 10
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 FLOW INFORMATION 

    Cash paid during the nine-month period ended September 30, 2025 for: 

    Paid for taxes 
    $1,662,154  
    $1,013,382 
  
    Interest on finance lease obligation 
    $61,580  
    $70,835 
  
    SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES 

See accompanying notes to the condensed consolidated financial statements.

4 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

(Expressed in U.S. dollars)

(UNAUDITED)

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

(a)           Basis
of Presentation and Consolidation

The accompanying unaudited consolidated financial
statements have been prepared by Gulf Resources, Inc. (“Gulf Resources”), a Nevada corporation and its subsidiaries (collectively,
the “Company”).

The consolidated financial statements
include the accounts of Gulf Resources, Inc. and its wholly-owned subsidiary, Upper Class Group Limited, a company incorporated in
the British Virgin Islands, which owns 100% of Hong Kong Jiaxing Industrial Limited, a company incorporated in Hong Kong
(“HKJI”). HKJI owns 100% of Shouguang City Haoyuan Chemical Company Limited (“SCHC”) which owns 100% of
Shouguang Yuxin Chemical Industry Co., Limited (“SYCI”), Daying County Haoyuan Chemical Company Limited
(“DCHC”) and Shouguang Hengde Salt Industry Co. Ltd.
(“SHSI”).  All material intercompany transactions have been eliminated on consolidation.

(b)  Going Concern Consideration

The consolidated financial statements are prepared on the going concern
basis, meaning that the enterprise is expected to realize the assets and settle the liabilities through normal business operations. However,
the going concern of the enterprise relies on many factors, such as profitable operations, generating operating cash flows, obtaining
financing, etc.

The company assesses its liquidity by monitoring cash and cash equivalents,
as well as operating and capital expenditure commitments. As of September 30, 2025, the Company had
current assets of $15.67 million and current liabilities of $17