Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 32

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 32
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    $—  
    $— 
  
    Balance, June 30, 2025 
     —  
    $—  
    $— 

    Stock Options Outstanding and Exercisable

     Weighted Average 

     Remaining 

     Outstanding at June 30, 2025  
     Range of Exercise Prices  
     Contractual Life  (Years) 
  
    Outstanding and exercisable 
     —  
     —  
     — 

All options exercisable and outstanding at June
30, 2025 are fully vested. As of June 30, 2025 there was no unrecognized compensation cost related to outstanding stock options,

The aggregate intrinsic value of options outstanding and exercisable
as of June 30, 2025 was $0.

During the three and six months ended June 30,
2025 and 2024, there were no options exercised. 

    18 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2025

 (Expressed in U.S. dollars)

(UNAUDITED)

NOTE 16 – INCOME TAXES

The Company utilizes the asset and liability method of accounting for
income taxes in accordance with FASB ASC 740-10. If it is more likely than not that some portion or all of a deferred tax asset will not
be realized, a valuation allowance is recognized.

    (a)
    United States (“US”)
  
United States

Gulf Resources, Inc. may be subject to the United
States of America Tax laws at a tax rate of 21%. No provision for the US federal income taxes has been made as the Company had no US taxable
income for the three-month and six-month periods ended June 30, 2025 and 2024, and management believes that its earnings are permanently
invested in the PRC.

    (b)
    British Virgin Islands (“BVI”)

Upper Class Group Limited, a subsidiary of Gulf
Resources, Inc., was incorporated in the BVI and, under the current laws of the BVI, it is not subject to tax on income or capital gain
in the BVI. Upper Class Group Limited did not generate assessable profit for the three-month and six-month periods ended June 30, 202