Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 128

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1A
Chunk 128
---
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.

If we are unable to comply with the applicable
continued listing requirements or standards of Nasdaq, there is a possibility that our common stock could be delisted. At present, we
are not in compliance with certain Nasdaq continued listing requirements. Should we be unable to regain compliance, our securities may
be subject to delisting, which could impact the market price and liquidity of our common stock and potentially limit our access to capital.

We have received a determination
from Nasdaq regarding potential delisting and, while we have effected a reverse stock split and timely appealed against such determination.
While these actions reflect our commitment to maintaining our listing, there can be no assurance that we will regain or maintain compliance
with Nasdaq’s continued listing requirements. A delisting could have implications for the trading and liquidity of our common stock,
as well as our capital-raising efforts.

On November 4, 2025, we received a
letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) indicating that we had not regained
compliance with Nasdaq Listing Rule 5550(a)(2) (“Minimum Bid Price Requirement”) by the November 3, 2025 deadline. As a result,
our securities would be scheduled for trading suspension. On November 7, 2025, we promptly appealed the Staff’s determination to
the Nasdaq Hearings Panel (the “Panel a hearing before the Panel has been scheduled on December 9, 2025.

We are actively evaluating a range
of available strategic and corporate actions that may assist in regaining compliance with the Minimum Bid Price Requirement. Apart from
the reverse stock split which we have already implemented, we also intend to enhance investor engagement