Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 20

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 for the current year. The restricted shares
award were granted under the 2019 Omnibus Equity Incentive Plan and vested immediately. The fair value of the award on the date of
grant was $196,100which
was expensed in full during the three months period ended March 31, 2025.

Retained Earnings - Appropriated

In accordance with the relevant PRC regulations
and the PRC subsidiaries’ Articles of Association, the Company’s PRC subsidiaries are required to allocate its profit after
tax to the following reserve.:

Statutory Reserve

SCHC, SYCI, SHSI and DCHC are required each
year to transfer at least 10% of the profit after tax as reported under the PRC statutory financial statements to the Statutory
Common Reserve Funds until the balance reaches 50% of the registered share capital. This reserve can be used to make up
any loss incurred or to increase share capital. Except for the reduction of losses incurred, any other application should
not result in this reserve balance falling below 25% of the registered capital. As of March 31, 2025, the Company’s statutory
provident fund stood at $26.67million.

NOTE 14 - TREASURY STOCK

As of March 31, 2025 and December 31, 2024, the
number of treasury stock of the Company was285,830and285,830, respectively.

NOTE 15 - STOCK-BASED COMPENSATION

Pursuant to the Company’s 2019 Omnibus Equity
Incentive Plan adopted and approved in 2019 (“2019 Plan”), awards under the 2019 Plan is limited in the aggregate to2,068,398shares of our common stock, inclusive of the awards that were previously issued and outstanding under the Company’s 2007 Equity
Incentive Plan, as amended (the “2007 Plan”). Upon adoption and approval of the 2019 Plan, the 2007 Plan was frozen, no new
awards will be granted under the 2007 Plan, and outstanding awards under the 2007 Plan will continue to be governed by the terms and condition
of the 2007 Plan and applicable award agreement. As of March 31, 2025, the number of shares of the Company’s common stock available
for grant of stock options and issuance under the 2019 Plan was1,801shares.

The fair value of each option award is