Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 47

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 history. We perform ongoing credit evaluation on the financial condition of our customers.

Inventory

Our inventory consists of the following:

                      March 31, 2025                                            December 31, 2024                        
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                       % of total                                                        
  Raw materials       $                    41,865                        8      $                       10,610        3  
  Finished goods                          413,194                       92                             304,761       97  
  Total               $                   455,059                      100      $                      315,371      100  

The net inventory level as of March 31, 2025 increased
by $139,688(or 44%), as compared to the net inventory level as of December 31, 2024. The increase in inventory goods is an estimate that
market demand may rise.

Raw materials increased by $31,255 as of March
31, 2025 as compared to December 31, 2024.

Our finished goods increased by $108,433 as of
March 31, 2025 as compared to December 31, 2024.

Net Cash Provided by (Used in) Investing
Activities

We have no investing activities for the three-month
periods ended March 31, 2025 and 2024.

Net Cash Provided by (Used in)
Financing Activities

We have no financing activities for the three-month
periods ended March 31, 2025 and 2024.

We believe that our available funds and cash flows
generated from operations will be sufficient to meet our anticipated ongoing operating needs and our obligations as they full due in the
next twelve (12) months.

We had available cash of approximately $8.52 million
at March 31, 2025, most of which is in highly liquid current deposits which earn no or little interest. We do not anticipate paying cash
dividends in the foreseeable future.

We intend to continue to focus our efforts on
the activities of SCHC, SYCI, SHSI and DCHC as these segments continue to expand within the Chinese market.

We may not be able to identify, successfully integrate
or profitably manage any businesses or business segment we may acquire, or any expansion of our business. An expansion may involve a number
of risks, including possible adverse effects on our operating results, diversion of management’s attention, inability to retain
key personnel, risks