Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 1

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 1
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(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 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 March 31, 2025, As of March 31, 2025, the Company had
current assets of $17.64million and current liabilities of $15.26million. As a result, the surplus was $2.38million, and it has suffered
losses in both the fiscal years of 2025 and 2024 as well. If it is unable to raise additional funds, it may need to take measures such
as cutting administrative and operational cost and save funds.

If there are significant doubts regarding the company's
ability to continue operations, the company is attempting to alleviate such concerns through measures such as controlling operating expenses,
shifting business focus to revenue-generating activities, obtaining authorization from domestic banks and other financial institutions,
and seeking equity or debt financing. Additionally, the company will also obtain financial support commitments from related parties.
However, these situations still pose significant doubts regarding the company's ability to continue operations. The financial statements
do not consider the potential impact on the recoverability of assets, classification, and amounts and classification of liabilities if
the company is unable to continue operations.

(b) Nature
of the Business

The Company manufactures and trades bromine
through its wholly-owned subsidiary, Shouguang City Haoyuan Chemical Company Limited (“ SCHC”); manufactures and trades crude
salt through its wholly-owned subsidiary, Shouguang Hengde Salt Industry Co. Ltd (“ SHSI”); and manufactures chemical products
for use in the oil industry, pesticides, paper manufacturing industry and for human and animal antibiotics through its wholly-owned subsidiary,
Shouguang Yuxin Chemical Industry Co., Limited (“ SYCI”) in the People’s Republic of China (“ PRC”). Daying
County Haoyuan Chemical Company Limited (“ DCHC”) was established to further explore and develop natural gas and brine resources