Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 34

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1A
Chunk 34
---

determine not to submit a transfer application or make the required representation, the Staff will provide notice that the Company’s
securities will be subject to delisting.

The
Nasdaq Price Deficiency Letter has no immediate impact on the listing of the Company’s common stock, which will continue to be listed
and traded on The Nasdaq Global Select Market, subject to the Company’s compliance with the other continued listing requirements
of The Nasdaq Stock Market.

We
cannot assure you that we will be able to regain compliance with Nasdaq listing standards. Our failure to continue to meet these requirements
would result in our common stock being delisted from Nasdaq We and holders of our securities could be materially adversely impacted if
our securities are delisted from Nasdaq. In particular:

·we may be unable to raise equity capital on acceptable terms or at all;

·we may lose the confidence of our customers, which would jeopardize our ability to continue our business
as currently conducted;

·the price of our common stock will likely decrease as a result of the loss of market efficiencies associated
with Nasdaq and the loss of federal preemption of state securities laws;

·holders may be unable to sell or purchase our securities when they wish to do so;

·we may become subject to stockholder litigation;

·we may lose the interest of institutional investors in our common stock;

·we may lose media and analyst coverage;

·our common stock could be considered a “penny stock,” which would likely limit the level
of trading activity in the secondary market for our common stock; and

·we would likely lose any active trading market for our common stock, as it may only be traded on one
of the over-the-counter markets, if at all.

As a China-based issuer, the Company provides the following
material risk factors related to doing business in China:

Risks Related to Doing Business in China

Because all of our
operations are in China, our business is subject to the complex and rapidly evolving laws and regulations there. The Chinese government
may exercise significant oversight and discretion over the conduct of our business and may intervene in or influence our operations at
any time, which could result in a material change in our operations and/or the value of our common stock.

As a
business operating in China, we are subject to the laws and regulations of the PRC, which can be complex and evolve rapidly. The PRC
government has the power to exercise significant oversight and discretion over the conduct of our business, and the regulations