Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 26

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 26
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cost of net revenue.

During the three-month period ended September 30, 2024,
depreciation and amortization expense totaled $4,522,525,
of which $1,211,694, $203,244 and $3,107,587 were recorded in direct labor and factory overheads incurred during plant shutdown,
administrative expenses and cost of net revenue. During the
nine-month period ended September 30, 2024,depreciation and
amortization expense totaled $13,980,751 of which $5,601,791, $605,945 and $7,773,015 were recorded in direct labor and factory
overheads incurred during plant shutdown, administrative expenses
and cost of net revenue.

The company had done the impairment of $22,790,991 for these assets based
on the independent third party evaluation report, and further been auctioned by the court due to the compulsory execution related to
litigation. Please see note 16 for more details.

For those acquired crude salt assets bought back
in year 2024. The company carried out and completed an update and renovation on them during year 2025, with a total cost of $8,673,384.

NOTE 7 –FINANCE LEASE RIGHT-OF-USE ASSETS

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

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

    September 30,  2025 
    December 31,  2024
  
    At cost: 

    Buildings Buildings 
    $210,916  
    $208,473 
  
    Total 
     210,916  
     208,473 
  
    Less: Accumulated depreciation and amortization 
     (136,957) 
     (131,605)
  
    Net book value 
    $73,959  
    $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 and nine months period ended
September 30, 2025, depreciation and amortization expense totaled $1,266 and $3,778, respectively, which was recorded