Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 32

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 32
---
 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 at September 30, 2025 GULF RESOURCES 'statutory provident fund stood at
$26.67 million.

NOTE 14 – TREASURY STOCK

As of September 30, 2025 and December 31, 2024,
the number of treasury stock of the Company was 28,583 and 28,583, 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 to 2,068,398
shares 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 September 30, 2025, the number of shares of the Company’s common stock available
for grant of awards under the 2019 Plan was 1,801 shares.

The fair value of each option award is estimated
on the date of grant using the Black-Scholes option-pricing model. The risk free rate is based on the yield-to-maturity in continuous
compounding of the US Government Bonds with the time-to-maturity similar to the expected tenor of the option granted, volatility is based
on the annualized historical stock price volatility of the Company, and the expected life is based on the historical option exercise pattern.

For the three and nine months ended September 30, 2025 and 2024, total
compensation costs for options issued recorded in the consolidated statement of loss were $0. There were no related tax benefits