Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 36

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 36
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 as of June 30, 2025 and December 31, 2024 and no amounts accrued for penalties and interest for the three
and six months ended June 30, 2025 and 2024.

    20 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2025

 (Expressed in U.S. dollars)

(UNAUDITED)

NOTE 17 – BUSINESS SEGMENTS

The Company has four reportable segments:  bromine,
crude salt, chemical products and natural gas. The reportable segments are consistent with how management views the markets served by
the Company and the financial information that is reviewed by its chief operating decision maker.

An operating segment’s performance is primarily
evaluated based on segment operating income, which excludes share-based compensation expense, certain corporate costs and other income
not associated with the operations of the segment. These corporate costs (income) are separately stated below and also include costs that
are related to functional areas such as accounting, treasury, information technology, legal, human resources, and internal audit. The
Company believes that segment operating income, as defined above, is an appropriate measure for evaluating the operating performance of
its segments. All the customers are located in PRC.

    Three-Month Period Ended June 30, 2025 Operating Segment 
    Bromine* 
    Crude  Salt* 
    Chemical  Products 
    Natural Gas 
    Segment  Total 
    Corporate Corporate 
    Total
  
    Net revenue (external customers) 
    $7,676,374  
    $667,411  
    $—  
    $—  
    $8,343,785  
    $—  
    $8,343,785 
  
    Net revenue (intersegment) 
     —  
     —  
     —  
     —  
     —  
     —  
     — 
  
    Income(loss) from operations before income tax benefit 
     (130,381) 
     (147,489) 
     (344,947) 
     (43,255) 
     (666,072) 
     (84,614) 
     (750,686)
  
    Income tax benefit (expense) 
     —