Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 487

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7A
Chunk 487
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 and deposits for the construction of the new factory building in the amount of $45,584,344
and $45,584,344,
which were recorded in the prepaid land leases, prepayments and deposits and property, plant and equipment in the consolidated balance
sheets as of December 31, 2024 and 2023.

(iii)Natural Gas Segment

In January 2017, the Company completed
the first brine water and natural gas well field construction in Daying located in Sichuan Province, China, and commenced trial production
in January 2019. On May 29, 2019, the Company received a verbal notice from the government of Tianbao Town, Daying County, Sichuan Province,
whereby the Company is required to obtain project approval for its well located in Daying, including the whole natural gas and brine water
project, and approvals for safety production inspection, environmental protection assessment, and to solve the related land issue. Until
these approvals have been received, the Company has to temporarily halt trial production at its natural gas well in Daying. In compliance
with the Chinese government new policies, the Company is also required to obtain an exploration license and a mining license for bromine
and natural gas, respectively. Pursuant to the Opinions of the Ministry of Natural Resources on Several Issues in Promoting the Reform
of Mineral Resources Management (Trial) promulgated by the Ministry of Natural Resources of PRC on January 9, 2020, which came into effect
on May 1, 2020, privately owned enterprises are allowed to participate in the natural gas production. The Company plans to proceed with
its applications for the natural gas and brine project approvals with related government departments until the governmental planning has
been finalized.

(d)      Use of Estimates

The Company’s consolidated
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and
this requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the
consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its
estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. The most
significant accounting estimates with regard to these consolidated financial statements that require the most significant and subjective
judgments include, but are not limited to, useful lives of property, plant and equipment, recoverability of long-lived assets