Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 22

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 22
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the help from independent third party professional valuation specialists, and the assumptions used in estimating fair value require
significant judgment. The use of different assumptions and judgments could result in a materially different estimate of fair value.
There are Base land price coefficient correction method and market comparison method for Prepaid land leases, and cost method for
Property, Plant and equipment are used in the valuation, which are all classified in Level 3 of the valuation hierarchy.

The following table presents the Company’s
assets measured at fair value on a non-recurring basis for the years ended September 30, 2025:

Basis of Presentation and Consolidation - Fair Value Assets
Measured on Non-Recurring Basis

    Level 3 
    Fair Value Measurement Non-Recurring 
      
    Fair Value Measurements at Reporting Date Using

    Description 
    Fair Value as of September 30,2025 US$ 
    Quoted Prices in Active Markets for Identical Assets (Level 1) US$ 
    Significant Other Observable Inputs (Level 2) US$ 
    Significant Unobservable Inputs (Level 3) US$ 
    Total Gain(Loss) for the Year Ended September 30,2025 US$
  
    As of September 30, 2025 
    Prepaid land leases 
     2,297,061  
     —  
     —  
     2,297,061  
     6,991,921 
  
    As of September 30, 2025 
    Property, Plant and equipment 
     2,283,831  
     —  
     —  
     2,283,831  
     22,790,991 

    8 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

 (Expressed in U.S. dollars)

(UNAUDITED)

NOTE 2 – ACCOUNTS RECEIVABLE, NET

Accounts receivable net consist of:

    September 30,  2025 
    December 31,  2024

    Accounts receivable 
    $3,452,624  
    $594,234 
  
    Allowance for doubtful debt 
     (30,060) 
     (29,711)
  
    Accounts receivable, net 
    $3,422,564