Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 48

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 associated with unanticipated events and the financial statement effect of potential impairment of acquired intangible
assets, any of which could have a materially adverse effect on our condition and results of operations. In addition, if competition
for acquisition candidates or operations were to increase, the cost of acquiring businesses could increase materially. We may effect an
acquisition with a target business which may be financially unstable, under-managed, or in its early stages of development or growth.
Our inability to implement and manage our expansion strategy successfully may have a material adverse effect on our business and future
prospects.

Contractual Obligations and Commitments

We have no significant contractual obligations
not fully recorded on our condensed consolidated balance sheets or fully disclosed in the notes to our condensed consolidated financial
statements. Additional information regarding our contractual obligations and commitments at March 31, 2025 is provided in the notes to
our condensed consolidated financial statements.

Material Off-Balance Sheet Arrangements

We do not currently have any off -balance sheet
arrangements falling within the definition of Item 303(a) of Regulation S-K.

Critical Accounting Policies and Estimates

Our consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in the United States of America and this requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements
and the reported amounts of revenues and expenses during the reporting period. We base its estimates on historical experience and on various
other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from
these estimates under different assumptions or conditions. We have identified the following critical accounting policies and estimates
used by us in the preparation of our financial statements: accounts receivable and allowance for doubtful accounts, inventories and allowance
for obsolescence, assets retirement obligation, property, plant and equipment, recoverability of long-lived assets, mineral rights, leases,
revenue recognition, income taxes, and loss contingencies. These policies and estimates are described in the Company’s Form 10-Q
for the three months ended March 31, 2025.

Item 3. Quantitative and Qualitative Disclosures About Market Risk