Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 106

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 4
Chunk 106
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, Notes to Condensed Consolidated Financial Statement” contained
in this quarterly report.

According to a Civil Mediation Statement (No.
(2025) Lu 0783 Min Chu 2607) issued by the Shouguang People's Court of Shandong Province on March 17, 2025, Shouguang City Haoyuan Chemical
Company Limited ("SCHC"), a wholly owned subsidiary of the Company, owes the plaintiff, Shouguang Chengyu Trading Co., Ltd.,
a total of RMB 226,825.44 for goods. SCHC is also obligated to make monthly payments of RMB 50,000 to the plaintiff by the 15th of each
month, starting in April 2025, until the debt is fully paid off.

41 

Item 1A. Risk Factors

Investing in our common stock involves a high degree of risk. Before
you invest you should carefully review our Management’s Discussion and Analysis of Financial Condition and Results of Operations
set forth in Item 2 of Part I of this Quarterly Report on Form 10-Q, our consolidated financial statements and related notes included
in Item 1 of Part I of this Quarterly Report on Form 10-Q and our consolidated financial statements and related notes, as well as our
Management’s Discussion and Analysis of Financial Condition and Results of Operations and the other information in our Annual Report
on Form 10-K for the fiscal year ended December 31, 2024. Readers should carefully review risks described in other documents we file from
time to time with the Securities and Exchange Commission.

We are currently not in compliance with the Nasdaq continued
listing requirements. If we are unable to regain compliance with Nasdaq’s listing requirements, our securities could be delisted,
which could affect our common stock’s market price and liquidity and reduce our ability to raise capital.

On May 6, 2025, the Company was notified by the Listing Qualifications
Staff (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) that the Staff granted the Company’s request
to transfer the listing of its common stock, par value $0.0005 per share (the “Common Shares”), from The Nasdaq Global Select
Market tier to The Nasdaq Capital Market tier, and that the Staff granted the Company’s request for a second 180-calendar day period,
or until November 3, 2025 (the “Second Compliance Period”), to regain compliance with the $1