Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 18

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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NOTE 12 - LEASE LIABILITIES-FINANCE AND
OPERATING LEASE

The components of finance lease liabilities were
as follows:

Lease Liabilities - Finance and Operating
Lease - Schedule of Finance and Operating Leased Liabilities

                                                       Imputed                      March 31,                     December 31,                 
                                                       Interest rate                2025                          2024                         
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Total finance lease liability                                           6.7%      $              1,317,183      $                 1,293,608  
  Less: Current portion                                                                            ( 239,771                        ( 217,743  
  Finance lease liability, net of current portion                                   $              1,077,412      $                 1,075,865  

Interest expenses from a finance lease liability
amounted to $21,722and $24,830for the three-month periods ended March 31, 2025 and 2024, respectively, were charged to the condensed
consolidated statement of loss.

The components of operating lease liabilities
as follows:

                                                           Imputed                       March 31,                     December 31,                 
                                                           Interest rate                 2025                          2024                         
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Total operating lease liabilities                                           4.89%      $              7,308,326      $                 7,433,452  
  Less: Current portion                                                                                 ( 498,483                        ( 491,850  
  Operating lease liabilities, net of current portion                                    $              6,809,843      $                 6,941,602  

The weighted average remaining operating lease
term on March 31, 2025 was17years and the weighted average discount rates was4.89%. This discount rates used are based on the base
rate quoted by the People's Bank of China and vary with the remaining term of the lease. Lease payment in the three-months ended March
31, 2025 and 2024 was $225,321and $226,259.

Maturities of lease liabilities were as follows:

Lease Liabilities - Finance and Operating
Lease - Schedule of Financing and Operating Lease Maturities

                                                                  Operating Lease                   
  Payable within:                                                                                   
  the next 12 months                                 261,485      $