Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 216

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 3
Chunk 216
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13 –– EQUITY

Restricted Shares

A restricted stock award (“RSA”) is an award of common shares that is subject
to certain restrictions during a specified period.

Restricted stock awards are independent
of option grants and are generally subject to forfeiture if employment terminates prior to the release of the restrictions. The grantee
cannot transfer the shares before the restricted shares vest. Shares of nonvested restricted stock have the same voting rights as common
stock, are entitled to receive dividends and other distributions thereon and are considered to be currently issued and outstanding. The
Company expenses the cost of the restricted stock awards, which is determined to be the fair market value of the shares at the date of
grant, straight-line over the period during which the restrictions lapse. For these purposes, the fair market value of the restricted
stock is determined based on the closing price of the Company's common stock on the grant date.

During the year ended December
31, 2023, the Company granted in the aggregate, 295,000 restricted shares of common stock to a consultant, the company's directors, officers
and an employee. The restricted shares award were granted under the 2019 Omnibus Equity Incentive Plan (See Note 15) and vested immediately.
The fair value of the award on the date of grant was $451,350 which was expensed in full during the year ended December 31, 2023.

The Company granted an
aggregate of 295,000
restricted shares of common stock in January 2025 to a consultant, the Company's directors, officers, and an employee as
compensation for services rendered for the year ended December 31, 2024. The restricted shares award were granted under the 2019
Omnibus Equity Incentive Plan (See Note 15) and vested immediately. The fair value of the award on the date of grant was $194,700
which was expensed in full during the year ended December 31, 2024.

Retained Earnings - Appropriated

In accordance with the relevant
PRC regulations and the PRC subsidiaries’ Articles of Association, the Company’s PRC subsidiaries are required to allocate
its profit after tax to the following reserve:

Statutory Reserve

SCHC, SYCI, SHSI and DCHC are
required each year to transfer at least 10% of the profit after tax as reported under the PRC statutory financial statements to the Statutory
Reserve until the balance reaches