Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 314

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 5
Chunk 314
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 Association, the Company’s PRC subsidiaries are required to allocate
its profit after tax to the following reserve:

Statutory Reserve

SCHC, SYCI, SHSI and DCHC are
required each year to transfer at least 10% of the profit after tax as reported under the PRC statutory financial statements to the Statutory
Reserve until the balance reaches 50% of the registered share capital. This reserve can be used to make up any loss incurred or to increase
share capital. Except for the reduction of losses incurred, any other application should not result in this reserve balance falling below
25% of the registered capital. As of December 31, 2024, the Company’s statutory provident fund stood at $26.67 million.

NOTE 14 – TREASURY STOCK

As of December 31, 2024 and December
31, 2023, the number of treasury stock of the Company was 285,830 and 285,830, respectively.

NOTE 15 – STOCK-BASED COMPENSATION

Pursuant to the Company’s
2019 Omnibus Equity Incentive Plan adopted and approved in 2019 (“2019 Plan”), awards under the 2019 Plan is limited in the
aggregate to 2,068,398 shares of our common stock, inclusive of the awards that were previously issued and outstanding under the Company’s
2007 Equity Incentive Plan, as amended (the “2007 Plan”). Upon adoption and approval of the 2019 Plan, the 2007 Plan was frozen,
no new awards will be granted under the 2007 Plan, and outstanding awards under the 2007 Plan will continue to be governed by the terms
and condition of the 2007 Plan and applicable award agreement. As of December 31, 2024, the number of shares of the Company’s common
stock available for grant of stock options and issuance under the 2019 Plan is 561,801 shares.

The fair value of each
option award is estimated on the date of grant using the Black-Scholes option-pricing model. The risk free rate is based on the
yield-to-maturity in continuous compounding of the US Government Bonds with the time-to-maturity similar to the expected tenor of
the option granted, volatility is based on the annualized historical stock price volatility of the Company, and the expected life is
based on the historical option exercise pattern.

For the year ended December 31,
202