Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 15

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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132,341,321      $                  136,143,177  

The Company has certain buildings and salt
pans erected on parcels of land located in Shouguang, PRC, and such parcels of land are collectively owned by local townships or the
government authority. The Company has not been able to obtain property ownership certificates over these buildings and salt pans.
The aggregate carrying values of these properties situated on parcels of the land are $49,444,325and $50,219,026as at March 31, 2025 and December 31, 2024, respectively.

During the three-month period ended March 31,
2025, depreciation and amortization expense totaled $3,999,026, of which $2,469,771, $783,472and $745,783were recorded in direct labor
and factory overheads incurred during plant shutdown, administrative expenses and cost of net revenue, respectively.

During the three-month period ended March 31,
2024, depreciation and amortization expense totaled $4,729,242, of which $3,106,788, $201,504and $1,420,950were recorded in direct labor
and factory overheads incurred during plant shutdown, administrative expenses and cost of net revenue, respectively.

NOTE 7 - FINANCE LEASE RIGHT-OF-USE ASSETS

Property, plant and equipment under finance lease, net consist of the
following:

Finance Lease Right-Of-Use Assets - Schedule of Property,
Plant and Equipment Under Finance Leases

                                                       March 31,                     December 31,                 
  At cost:                                                                                                        
  Buildings Buildings                                  $                208,772      $                   208,473  
  Total                                                                 208,772                          208,473  
  Less: Accumulated depreciation and amortization                     ( 133,051                        ( 131,605  
  Net book value                                       $                 75,721      $                    76,868  

The above buildings erected on parcels of land
located in Shouguang, PRC, are collectively owned by local townships. The Company has not been able to obtain property ownership
certificates over these buildings as the Company could not obtain land use rights certificates on the underlying parcels of land.

During the three-month period ended March 31,
2025, depreciation and amortization expense totaled $1,258, which was recorded in direct labor and factory overheads incurred during plant
shutdown.

During the three-month period ended March