Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 178

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 3
Chunk 178
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5.92 in the preceding year. There were 10,726,924 shares outstanding compared to 10,726,924 shares.

Foreign Currency Translation
Adjustment

For the fiscal year 2024, the Company
had a negative foreign currency translation adjustment of $2,800,874 versus a negative adjustment of $5,025,980 in the previous year.
This adjustment impacts all balance sheet translations into U.S. dollars.

42 

LIQUIDITY AND CAPITAL RESOURCES

As of December 31, 2024, cash and cash equivalents were
$10,075,162 as compared to $72,223,894 as of December 31, 2023. The components of this decrease of $62,148,732 are reflected below.

Statement of Cash Flows

    Years Ended December 31

    2024 
    2023
  
    Net cash provided by  (used in) operating activities 
    $675,068  
    $(32,751,851)
  
    Net cash used in investing activities 
    $(60,551,488) 
    $— 
  
    Net cash used in financing activities 
    $(249,240) 
    $(267,810)
  
    Effects of exchange rate changes on cash and cash equivalents 
    $(2,023,072) 
    $(2,982,659)
  
    Net decrease in cash and cash equipment 
    $(62,148,732) 
    $(36,002,320)

For the fiscal years 2024 and
2023, we met our working capital and capital investment requirements by using cash flows from operations and cash on hand.

Net Cash Provided by (Used
in) Operating Activities

During the year ended December
31, 2024, cash flow used in operating activities of approximately $0.68 million was mainly due to a net loss of $58.9 million, offset
by a non-cash adjustment related to depreciation and amortization of property, plant and equipment of $18 million, impairment of property,
gain on disposal of equipment of $29 million, plant and equipment of $6.8 million and an increase in account receivable of $4.26 million.

During the year ended
December 31, 2023, cash flow used in operating activities of approximately $32.75 million was mainly due to a net loss of $61.8
million, offset by a non-cash adjustment related to depreciation and amortization of property