Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 510

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7A
Chunk 510
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    $(322,890)
  
    Deferred taxes – PRC entities 
     (1,632,978) 
     (3,215,727)
  
    Total Income tax (expenses) benefits 
    $(1,648,182) 
    $(3,538,617)

Significant components of the
Company’s deferred tax assets and liabilities at December 31, 2024 and December 31, 2023 are as follows:

Income Taxes - Schedule of Deferred
Tax Assets and Liabilities

    December 31, 
    December 31,

    2024 
    2023
  
    Deferred tax assets: 

    Exploration costs 
    $1,731,920  
    $1,757,816 
  
    Allowance 
     729,731  
     — 
  
    Impairment of property plant and equipment 
     1,686,095  
     — 
  
    PRC tax losses 
     9,125,871  
     11,941,045 
  
    US federal net operating loss 
     1,661,464  
     1,694,013 
  
    Total deferred tax assets 
     14,935,081  
     15,392,874 
  
    Valuation allowance 
     (14,935,081) 
     (13,533,849)
  
    Net deferred tax asset 
    $—  
    $1,859,025 

Deferred tax assets
consist of future reversals of existing taxable temporary differences and adequate future taxable income, exclusive of reversing
deductible temporary differences. As of December 31, 2024 and 2023, valuation allowances were mainly provided against deferred tax
assets caused by exploration costs, Impairment of property plant and equipment, Allowance
and net operating loss where it was determined it was more likely than not that the benefits of the deferred tax assets will not be
realized due to their continuous losses.

The increase in valuation allowance for the year ended
December 31, 2024 is $1,401,232.

The increase in valuation allowance for the year ended
December 31, 2023 is $3,516,915.

There were no unrecognized tax benefits and accrual
for uncertain tax positions as of December 31, 2024 and 2023. There were no amounts accrued for penalties and interest for the years