Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 483

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7A
Chunk 483
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 OF NON-CASH INVESTING AND FINANCING ACTIVITIES 

The accompanying notes are an integral
part of these consolidated financial statements.

F-7 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS

DECEMBER 31, 2024

(Expressed in U.S. dollars)

NOTE 1 – NATURE OF BUSINESS AND
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)      Basis of Presentation and Consolidation

The accompanying audited 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
include the accounts of Gulf Resources, Inc. and its wholly-owned subsidiary, Upper Class Group Limited, a company incorporated in the
British Virgin Islands, which owns 100% of Hong Kong Jiaxing Industrial Limited, a company incorporated in Hong Kong (“HKJI”).
HKJI owns 100% of Shouguang City Haoyuan Chemical Company Limited (“SCHC”) which owns 100% of Shouguang Yuxin Chemical Industry
Co., Limited (“SYCI”) ,Daying County Haoyuan Chemical Company Limited (“DCHC”) and Shouguang Hengde Salt Industry
Co. Ltd. (“SHSI”). All material intercompany transactions have been eliminated on consolidation.

(b)      Going Concern Consideration

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 December 31, 2024,
As of Dec 31, 2024, the Company had current assets of $17.45 million and current liabilities of $17.73 million. As a result, the deficit
was $0.28 million, and it has suffered losses in both the fiscal years of 2024 and 2023 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