Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 40

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 40
---
 for its Common Shares and consider all available options to timely remedy the bid price deficiency. If at any time during the
Second Compliance Period, the closing bid price of the Common Shares is at least $1.00 per share for a minimum of 10 consecutive business
days, the Staff will provide the Company with written confirmation of compliance and the matter will be closed,
unless the Staff exercises its discretion to extend this ten-day period pursuant to Nasdaq Listing Rule 5810(c)(3)(H).

The Company can give no assurance that it will
regain or demonstrate compliance during the Second Compliance Period. If the Company is not able to demonstrate compliance with the minimum
bid price requirement by November 3, 2025, or the Company does not comply with the terms of the extension, the Staff will provide written
notification to the Company that the Common Shares will be delisted. At that time, the Company may appeal the Staff’s determination
to the Nasdaq Hearings Panel (the “ Panel”). The Company’s appeal request would stay any delisting action by the Staff
at least pending a hearing before the Panel and the expiration of any extension that may be granted by the Panel to the Company following
the hearing.

The Company has provided written notice to Nasdaq
of its intention to cure the deficiency during the Second Compliance Period by effecting a reverse stock split, if necessary.

Our current corporate structure chart is set forth in the following
diagram:

As a result of our acquisitions of SCHC and SYCI,
our historical financial statements and the information presented below reflects the accounts of SCHC, SYCI, SHSI and DCHC. The following
discussion should be read in conjunction with our condensed consolidated financial statements and notes thereto appearing elsewhere in
this report.

RESULTS OF OPERATIONS

The following table presents certain information
derived from the condensed consolidated statements of income, cash flows and stockholders’ equity for the three-month periods ended
March 31, 2025 and 2024.

Comparison of the Three-Month Periods Ended
March 31, 2025 and 2024

                                                                         Three-Month Period                        Three-Month Period                              
                                                                         Ended March 31, 2025                      Ended March 31, 2024                            
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net revenue                                                            $                          1,604,447      $                          1,307,062        23  
  Cost of