Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 101

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 2
Chunk 101
---
 components of this decrease of $2,339,081 are reflected below.

Statement of Cash Flows

    Six-Month Period Ended June 30,

    2025 
    2024
  
    Net cash used in provided by operating activities 
    $(2,139,435) 
    $(812,141)
  
    Net cash provided by (used in) investing activities 
     —  
     (60,526,213)
  
    Net cash used in financing activities 
     (260,997) 
     (264,094)
  
    Effects of exchange rate changes on cash and cash equivalents 
     61,351  
     (253,907)
  
    Net increase (decrease) in cash and cash equivalents 
    $2,339,081  
    $61,856,355 

For the six-month period ended June 30, 2025,
we met our working capital and capital investment requirements by using cash on hand.

Net Cash used in Operating Activities

During the six-month period ended June 30, 2025,
cash flow used in operating activities of approximately $2.14 million was mainly due to a net loss of $5.4 million, a decrease in accounts
receivable of $2.58 million, and offset by a non-cash adjustment related to depreciation and amortization of property, plant and equipment
of $8 million, adecreases in prepayment and deposits of $2.33 million.

During the six-month period ended June 30, 2024, cash flow used in
operating activities of approximately $0.8 million was mainly due to a net loss of $37.09 million, offset by depreciation and amortization
expenses of $9.47 million and loss on disposal of equipment of $29.17 million.

38 

Accounts receivable

Cash collections on our accounts receivable had
a major impact on our overall liquidity. The following table presents the aging analysis of our accounts receivable as of June 30, 2025
and December 31, 2024.

    June 30, 2025 
    December 31, 2024

    % of total 
      
    % of total
  
    Aged 1-30 days 
    $3,150,850  
     100% 
    $419,581  
     74%
  
    Aged 31-60 days 
     —