Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 28

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 28
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as follows:

Lease Liabilities - Finance and Operating
Lease - Schedule of Finance and Operating Leased Liabilities

    Imputed 
    June 30, 
    December 31,

    Interest rate 
    2025 
    2024
  
    Total finance lease liability 
     6.7% 
    $1,080,351  
    $1,293,608 
  
    Less: Current portion 
        
     (188,550) 
     (217,743)
  
    Finance lease liability, net of current portion 
        
    $891,801  
    $1,075,865 

Interest expenses from finance lease obligations
amounted to $21,674 and $24,814 for the three-month period ended June 30, 2025 and 2024, respectively, which were charged to the condensed
consolidated statement of income (loss). Interest expenses from finance lease obligations amounted to $43,396 and $49,644 for the six-month
period ended June 30, 2025 and 2024, respectively, which were charged to the condensed consolidated statement of income (loss).

The components of operating lease liabilities
as follows:

    Imputed 
    June 30, 
    December 31,

    Interest rate 
    2025 
    2024
  
    Total operating lease liabilities 
     4.89% 
    $6,896,993  
    $7,433,452 
  
    Less: Current portion 
        
     (162,134) 
     (491,850)
  
    Operating lease liabilities, net of current portion 
        
    $6,734,859  
    $6,941,602 

The weighted average remaining operating lease
term at June 30, 2025 was 17 years and the weighted average discounts rate was 4.89%. Lease payments for the three-month period ended
June 30, 2025 and 2024, respectively, were $520,167 and $530,962. Lease payments for the six-month period ended June 30, 2025 and 2024,
respectively, were $745,488 and $757,221.

Maturities of lease liabilities were as follows:

Lease Liabilities - Finance and Operating
Lease - Schedule of Financing and Operating Lease Maturities

    Financial lease 
    Operating Lease