Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 107

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 2
Chunk 107
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 loss was $41,067,789
for the nine-month period ended September 30, 2025, compared to a net loss of $40,582,933 in the same period in 2024.

31 

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2025, cash and cash equivalents
were $5,820,083 as compared to $10,075,162 as of December 31, 2024. The components of this decrease of $4,255,079 are reflected below.

Statement of Cash Flows

    Nine-Month Period Ended September 30,

    2025 
    2024
  
    Net cash provided by (used in) operating activities 
    $4,574,613  
    $(293,463)
  
    Net cash used in investing activities 
     (8,673,384) 
     (60,526,213)
  
    Net cash used in financing activities 
     (260,997) 
     (264,094)
  
    Effects of exchange rate changes on cash and cash equivalents 
     104,689  
     97,369
  
    Net increase (decrease) in cash and cash equivalents 
    $(4,255,079) 
    $(60,986,401)

For the nine-month period ended September 30,
2025, we met our working capital and capital investment requirements by using cash on hand.

Net Cash provided by (used in) Operating Activities

During the nine-month period ended September 30, 2025, cash
flow provided by operating activities of approximately $4.57 million was mainly due to a non-cash adjustment related to depreciation and
amortization of property, plant and equipment of $11.75 million, a loss on disposal of long-lived assets of $2 million, a impairment of
long-lived assets of 29.78 million, and offset by a net loss of $41.07 million, a decrease in accounts receivable of $2.83 million.

During the nine-month period ended September 30, 2024, cash flow used
in by operating activities of approximately $0.29 million was mainly due to a net loss of $40.58 million, a decrease in deferred taxes
of $3.62 million and offset by depreciation and amortization expense of $14.04 million and loss on disposal of equipment of $29.17 million.

Accounts receivable

Cash collections