Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 393

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 6
Chunk 393
---
 supplier primarily consists of prepayments for
purchase of cryptocurrency mining machines and standardized computing equipment. The Company reviews its advance to suppliers on a periodic
basis and determines the adequacy of provision when amounts outstanding are not likely to be collected in cash or utilized against receive
of products. An allowance for doubtful is recorded in the period in which the Company cash collection or receipts of products is remote.

    F-10 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

DECEMBER 31, 2024

(Expressed in U.S. dollars)

NOTE 1 – BASIS OF PRESENTATION
AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

(j)      Property, Plant and Equipment

Property, plant and equipment
are stated at cost less accumulated depreciation and any impairment losses. Expenditures for new facilities or equipment, and major expenditures
for betterment of existing facilities or equipment are capitalized and depreciated, when available for intended use, using the straight-line
method at rates sufficient to depreciate such costs less 5% residual value over the estimated productive lives. All other ordinary repair
and maintenance costs are expensed as incurred.

Mineral rights are recorded at
cost less accumulated depreciation and any impairment losses. Mineral rights are amortized ratably over the term of the lease, or the
equivalent term under the units of production method, whichever is shorter.

Construction in process primarily
represents direct costs of construction of property, plant and equipment. Costs incurred are capitalized and transferred to property,
plant and equipment upon completion and depreciation will commence when the completed assets are placed in service.

The Company’s depreciation
and amortization policies on property, plant and equipment, other than mineral rights and construction in process, are as follows:

Basis of Presentation and Summary of
Significant Accounting Policies - Schedule of Property, Plant and Equipment Useful Life

    Minimum Maximum
    Useful life
                                                                               (in years)
  
    Buildings (including salt pans)
    8 - 20
  
    Plant and machinery (including protective shells, transmission channels and ducts)
    3 - 8
  
    Motor vehicles Motor Vehicles
    5
  
    Furniture, fixtures and equipment
    3 - 8

Property, plant and equipment
under the finance lease are depreciated over their expected useful lives on the same basis as owned assets, or where shorter, the term
of the