Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 138

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1A
Chunk 138
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 that the PCAOB has determined it is unable to inspect or investigate completely because of a restriction imposed
by a non-U.S. authority in the auditor’s local jurisdiction (a “Commission-Identified Issuer”). Under the HFCAA, if
the SEC conclusively identifies an issuer as a Commission-Identified Issuer for three consecutive years, the SEC is required to prohibit
the trading of the issuer’s securities on a national securities exchange or through any other method that is within the jurisdiction
of the SEC to regulate, including over-the counter markets in the United States. Our securities may be prohibited from trading on the
Nasdaq or other U.S. stock exchanges if our auditor is not inspected by the PCAOB for three consecutive years, and this ultimately could
result in our securities being delisted.

Furthermore, in June 2021, the U.S. Senate passed
the Accelerating Holding Foreign Companies Accountable Act (“AHFCAA”),which, if enacted, would amend the HFCAA and require
the SEC to prohibit an issuer’s securities from trading on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections
for two consecutive years (as opposed to the three years under the HFCAA). In February 2022, the U.S. House of Representatives passed
the America Creating Opportunities for Manufacturing Pre-Eminence in Technology and Economic Strength (COMPETES) Act of 2022 (the “America
COMPETES Act”), which similarly would amend the HFCAA to shorten the number of non-inspection years from three years to two years.
The America COMPETES Act, however, includes a broader range of legislation than the AHFCA Act in response to the U.S. Innovation and Competition
Act passed by the U.S. Senate in 2021. The U.S. House of Representatives and the U.S. Senate will need to agree on amendments to these
respective bills to allow the legislature to pass their amended bills before the President can sign the bill into law. It is unclear if
or when either of these bills will be signed into law.

40 

In September 2021, the PCAOB adopted PCAOB Rule
6100, Board Determinations Under the Holding Foreign Companies Accountable Act, which provides a framework for the PCAOB to use when determining
whether the PCAOB is unable to inspect or investigate completely a registered public accounting firm located in a foreign jurisdiction
because of a position taken by one or more authorities in that jurisdiction for the purposes