Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 75

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 75
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 increase in administrative expenses.

Chemical products segment

Loss from operations from our chemical products segment
was $1,055,947 for the nine-month period ended September 30, 2025, compared to a loss of $993,116 in the same period in 2024.

Natural gas segment

Loss from operations from our natural gas segment
was $127,880 for the nine-month period ended September 30, 2025, compared to a loss of $140,554 in the same period in 2024.

Interest Income (Loss), Net. interest
income, net of $56,378 represented bank interest income, net of finance lease interest expense for the nine -month period ended September
30, 2025, a decrease of $62,614 as compared to the same period in 2024.

Other Expenses, net

As the company was the joint guarantor party for the
debts of the Vegetable Group. Currently, the Vegetable Group is unable to repay the debt. As the joint liability party, our company has
to accrue a provision of $3,524,825.

Loss on Disposal of Long-lived Assets

As the company was the joint responsible party for
the debts of the Vegetable Group, the court auctioned the idle land and the attached properties on it of SYCI, resulting in a total asset
disposal loss of $2,008,853.

Impairment of Long-lived Assets

The court engaged a third-party valuer for evaluation
of the land at xiangjiang road, yangkou town ,shouguang city and its attached properties. The valuation report returned a fair value of
$4,580,892. The Company recognized an impairment loss of $29,782,912 accordingly.

Net Loss. Net loss was $41,067,789
for the nine-month period ended September 30, 2025, compared to a net loss of $40,582,933 in the same period in 2024.

31 

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2025, cash and cash equivalents
were $5,820,083 as compared to $10,075,162 as of December 31, 2024. The components of this decrease of $4,255,079 are reflected below.

Statement of Cash Flows

    Nine-Month Period Ended September 30,

    2025 
    2024
  
    Net cash provided by (used