Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 30

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 30
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4. The restricted shares award were granted under the 2019 Omnibus Equity Incentive Plan 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.

During the six months ended June 30, 2025, the Company granted in the
aggregate, 265,000 restricted shares of common stock on March 21, 2025 to a consultant, the company's directors, officers and
an employee as compensation for services rendered for the current year. The restricted shares award were granted under the 2019 Omnibus
Equity Incentive Plan and vested immediately. The fair value of the award on the date of grant was $196,100 which was expensed in
full during the six months period ended June 30, 2025.

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 Common Reserve Funds

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
Common Reserve Funds until the balance reaches 50% of the registered share capital.  This reserve can be used to make up
any loss incurred or to increase share capital.  Except for the reduction of losses incurred, any other application should
not result in this reserve balance falling below 25% of the registered capital. As at June 30, 2025, GULF RESOURCES 'statutory
provident fund stood at $26.67 million.

NOTE 14 – TREASURY STOCK

As of June 30, 2025 and December 31, 2024, the
number of treasury stock of the Company was 285,830 and 285,830, respectively.

    17 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2025

 (Expressed in U.S. dollars)

(UNAUDITED)

NOTE 15 – STOCK-BASED COMPENSATION

Pursuant to the Company’s 2019