Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 401

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 6
Chunk 401
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    $4,890,756 
  
    Allowance for doubtful debt 
     (29,711) 
     (25,060)
  
    Accounts receivable, net 
    $564,523  
    $4,865,696 

The overall accounts receivable
balance as of December 31, 2024 decreased by $4,301,173
compared to those of December 31, 2023. The decrease in accounts receivable is due to the decrease in sales revenue. We have policies
in place to ensure that sales are made to customers with an appropriate credit history. We perform ongoing credit evaluation on the financial
condition of our customer.

NOTE 3 – INVENTORIES

Inventories consist of:

Inventories - Schedule of Inventories, Current

    December 31, 2024 
    December 31, 2023

    Raw materials 
    $10,610  
    $32,840 
  
    Finished goods 
     1,545,521  
     804,046 
  
    Less: impairment 
     (1,240,760) 
     (259,657)
  
    Inventory, net 
    $315,371  
    $577,229 

The Company recorded impairment
charges for slow moving inventory in the amounts of $989,035 and $230,776 for the years ended December 31, 2024 and 2023.

NOTE 4 – PREPAYMENTS
AND DEPOSITS, NET

Prepayments and deposits consisted of the following:

Prepayments and
Deposits, Net - Schedule of Prepayments and Deposits, Net

    December 31, 2024
     
    December 31, 2023
  
    Prepayments and deposits
     
    $
    8,025,110

    $
    8,395,290

    Provision for impairment

    (1,648,454)

    -

    Prepayments and deposits, net
     
    $
    6,376,656

    $
    8,395,290

For the year December 31, 2024 and 2023, the Company recorded
provision of $1,663,933 and nil for the prepayments and deposits.

NOTE 5 – PREPAID LAND LEASES

The Company has the rights to
use certain parcels of land located in Shouguang, Sh