Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 71

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 71
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 same period in 2024.

Loss on disposal of property, plant and equipment. Loss
on disposal of property, plant and equipment was $29,169,008 in the fiscal year 2024. In June 2024, considered the bromide well and transmission
channel have been in use for many years, the Company conducted a site inspection and found that some wells and channels were seriously
damaged by water seepage which in turn required write-off or new construction, and the write-off amount is $29,169,008.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2025, cash and cash equivalents
were $7,736,081 as compared to $10,075,162 as of December 31, 2024. The components of this decrease of $2,339,081 are reflected below.

Statement of Cash Flows

    Six-Month Period Ended June 30,

    2025 
    2024
  
    Net cash used in provided by operating activities 
    $(2,139,435) 
    $(812,141)
  
    Net cash provided by (used in) investing activities 
     —  
     (60,526,213)
  
    Net cash used in financing activities 
     (260,997) 
     (264,094)
  
    Effects of exchange rate changes on cash and cash equivalents 
     61,351  
     (253,907)
  
    Net increase (decrease) in cash and cash equivalents 
    $2,339,081  
    $61,856,355 

For the six-month period ended June 30, 2025,
we met our working capital and capital investment requirements by using cash on hand.

Net Cash used in Operating Activities

During the six-month period ended June 30, 2025,
cash flow used in operating activities of approximately $2.14 million was mainly due to a net loss of $5.4 million, a decrease in accounts
receivable of $2.58 million, and offset by a non-cash adjustment related to depreciation and amortization of property, plant and equipment
of $8 million, adecreases in prepayment and deposits of $2.33 million.

During the six-month period ended June 30, 2024, cash flow used in
operating activities of approximately $0.8 million was mainly due to a net loss of $37.09