Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 37

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 37
---
 filed in Hong Kong for seven years from date of filing. For the years 2012 through
2019, HKJI did not report any taxable income. It did not file any income tax returns during these years except for 2014 and 2018. For
companies which do not have taxable income, IRD typically issues notification to companies requiring them to file income tax returns once
in every four years. The tax returns for 2014 and 2018 have been examined, and there is no Hong Kong Profits Tax was charged.

The components of the income tax benefit from
continuing operations are:

Income Taxes - Schedule of Components of Income Tax Expense Benefit

    Three-Month Period Ended September 30, 
    Nine-Month Period Ended September 30,

    2025 
    2024 
    2025 
    2024
  
    Current taxes – PRC 
    $—  
    $—  
    $—  
    $(33,224)
  
    Deferred tax – PRC entities 
     —  
     1,103,697  
     —  
     3,615,091 
  
    Total Income tax (expenses) benefits 
    $—  
    $1,103,697  
    $—  
    $3,581,867 

Significant components of the Company’s
deferred tax assets and liabilities at September 30, 2025 and December 31, 2024 are as follows:

Income Taxes - Schedule of Deferred
Tax Assets and Liabilities

    September 30, 
    December 31,

    2025 
    2024
  
    Deferred tax liabilities 
    $—  
    $— 

    Deferred tax assets: 

    Exploration costs 
     1,752,213  
     1,731,920 
  
    Allowance 
     424,457  
     729,731 
  
    Impairment of long-lived assets 
     —  
     1,686,095 
  
    PRC tax losses 
     21,243,924  
     9,125,871 
  
    Accrued liabilities 
     242,028  
     — 
  
    US federal net operating loss 
     1,763,850  
     1,661,464 
  
    Total deferred tax assets 
     25,426,