Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 9

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 9
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 in financing activities 
     (260,997) 
     (264,094)

    EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 
     61,351  
     (253,907)
  
    NET DECREASE IN CASH AND CASH EQUIVALENTS 
     (2,339,081) 
     (61,856,355)
  
    CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 
     10,075,162  
     72,223,894 
  
    CASH AND CASH EQUIVALENTS - END OF PERIOD 
    $7,736,081  
    $10,367,539 

4 

    GULF RESOURCES, INC.
  
    AND SUBSIDIARIES
  
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
  
    (Expressed in U.S. dollars)

    Years Ended June 30,

    2025 
    2024
  
    SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION 

    Cash paid during the six-month period ended June 30, 2025 for: 

    Paid for taxes 
    $811,828  
    $886,928 
  
    Interest on finance lease obligation 
    $43,396  
    $49,644 
  
    SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES 

See accompanying notes to the condensed consolidated financial statements.

5 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2025

(Expressed in U.S. dollars)

(UNAUDITED)

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

(a)  Basis
of Presentation and Consolidation

The accompanying audited consolidated financial
statements have been prepared by Gulf Resources, Inc. (“Gulf Resources”), a Nevada corporation and its subsidiaries (collectively,
the “Company”).

The consolidated financial statements
include the accounts of Gulf Resources, Inc. and its wholly-owned subsidiary, Upper Class Group Limited, a company incorporated in the
British Virgin Islands, which owns 100% of