Company: GURE
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001193805-25-001184
Chunk: 26

Company: GULF RESOURCES, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 26
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 aggregate operating
lease right-of-use assets amount of $7,071,659 as at June 30, 2025.

As of June 30, 2025, the total operating lease
ROU assets was $5,937,515.

The total operating lease cost for the six-month
period ended June 30, 2025 and 2024 was $435,102 and $440,030.

NOTE 9 –PAYABLE AND ACCRUED EXPENSES

Payable and accrued expenses consist of the following:

Payable and Accrued
Expenses - Schedule of Accounts Payable and Accrued Liabilities

    June 30, 
    December 31,

    2025 
    2024
  
    Accounts payable 
    $380,812  
    $30,003 
  
    Salary payable 
     269,071  
     323,655 
  
    Social security insurance contribution payable 
     286,865  
     169,858 
  
    Other payable-related party 
     —  
     — 
  
    Accrued expense for construction 
     5,332,180  
     5,310,040 
  
    Accrued expense-others 
     5,282,950  
     8,489,902 
  
    Total 
    $11,551,878  
    $14,323,458 

Accrued expense-others mainly include the purchase of the unpaid portion
of salt Pans of $4,788,641, and others.

NOTE 10 – RELATED PARTY TRANSACTIONS

On September 25, 2012, the Company purchased five
floors of a commercial building in the PRC, through SYCI, from Shandong Shouguang Vegetable Seed Industry Group Co., Ltd. (the “Seller”)
at a cost of approximately $5.7 million in cash, of which Mr. Ming Yang, the Chairman of the Company, had a 99% equity interest in the
Seller. During the first quarter of 2018, the Company entered into an agreement with the Seller, a related party, to provide property
management services for an annual amount of approximately $86,911 for five years from January 1, 2023 to December 31, 2027. The expense
associated with this agreement for the three and six months ended June 30, 2025 was approximately $