Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 79

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 79
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 in the notes to our consolidated financial statements. See
“Notes to Condensed Consolidated Financial Statements.

Material Off-Balance Sheet Arrangements

We do not currently have any off balance sheet
arrangements falling within the definition of Item 303(a) of Regulation S-K.

Critical Accounting Policies and Estimates

Our consolidated financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America and this requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts
of revenues and expenses during the reporting period. We base its estimates on historical experience and on various other assumptions
that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates
under different assumptions or conditions. We have identified the following critical accounting policies and estimates used by us in the
preparation of our financial statements: accounts receivable and allowance for doubtful accounts, inventories and allowance for obsolescence,
assets retirement obligation, property, plant and equipment, recoverability of long-lived assets, mineral rights, leases, revenue recognition,
income taxes, and loss contingencies. These policies and estimates are described in the Company’s Form 10-Q for the nine months
ended September 30, 2025.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the
Company is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined
by Rule 229.10(f)(1).

33 

Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures
(as such term is defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) that are designed to ensure that information required to be disclosed
in our reports filed pursuant to the Exchange Act is recorded, processed, summarized and reported within the time periods specified in
the SEC’s rules, regulations and related forms, and that such information is accumulated and communicated to our management, including
our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions
regarding required disclosure.

Under the supervision and with the participation
of our management, including our CEO and CFO, we conducted an evaluation of the effectiveness of the design and operation of our