Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 95

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1B
Chunk 95
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Disposal of Long-lived Assets”, long-lived assets to be held and used are analyzed for impairment whenever events or changes
in circumstances indicate that the carrying amount of an asset may not be fully recoverable or that the useful lives of those assets are
no longer appropriate. The Company evaluates at each balance sheet date whether events and circumstances have occurred that indicate possible
impairment.

The Company determines the existence
of such impairment by measuring the expected future cash flows (undiscounted and without interest charges) and comparing such amount to
the carrying amount of the assets. An impairment loss, if one exists, is then measured as the amount by which the carrying amount of the
asset exceeds the discounted estimated future cash flows. Assets to be disposed of are reported at the lower of the carrying amount or
fair value of such assets less costs to sell. Asset impairment charges are recorded to reduce the carrying amount of the long-lived asset
that will be sold or disposed of to their estimated fair values. Charges for the asset impairment reduce the carrying amount of the long-lived
assets to their estimated salvage value in connection with the decision to dispose of such assets.

For the year ended December 31, 2024 and 2023, the Company
determined that the impairment of long-lived assets was $6,772,500 and $nil.

(m)      Retirement Benefits

Pursuant to the relevant laws and
regulations in the PRC, the Company participates in a defined contribution retirement plan for its employees arranged by a governmental
organization. The Company makes contributions to the retirement plan at the applicable rate based on the employees’ salaries. The
required contributions under the retirement plans are charged to the consolidated statement of comprehensive income (loss) on an accrual
basis when they are due. The Company’s contributions totaled $535,475 and $691,033 for the years ended December 31, 2024 and 2023,
respectively.

    F-12 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

DECEMBER 31, 2024

(Expressed in U.S. dollars)

NOTE 1 – BASIS OF PRESENTATION
AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

(n)      Mineral Rights

The Company follows FASB ASC 805
“Business Combinations” that certain mineral rights are considered tangible assets and that mineral rights