Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 580

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 8
Chunk 580
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ization expense totaled $5,068, respectively, which was recorded in direct labor and factory overheads
incurred during plant shutdown.

During the year ended December
31, 2023, depreciation and amortization expense totaled $61,981, respectively, which was recorded in direct labor and factory overheads
incurred during plant shutdown.

NOTE 8 – OPERATING LEASE RIGHT–OF-USE
ASSETS

The Company has the rights to use
certain parcels of land located in Shouguang, the PRC, through lease agreements signed with local townships or the government authority.
For parcels of land that are collectively owned by local townships, the Company cannot obtain land use rights certificates. The parcels
of land of which the Company cannot obtain land use rights certificates covers a total of approximately 34.95 square kilometers with an
aggregate operating lease right-of-use assets amount of $7,318,031 as at December 31, 2024.

As of December 31, 2024, the total operating lease ROU assets
was $6,169,855.

The total operating lease cost for the years ended December
31, 2024 and 2023 was $877,809 and $887,603.

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

    December 31, 2024 
    December 31, 2023
  
    Accounts payable 
    $30,003  
    $206,984 
  
    Salary payable 
     323,655  
     216,253 
  
    Social security insurance contribution payable 
     169,858  
     172,398 
  
    Other payable-related party 
     —  
     88,086 
  
    Accrued expense for construction 
     5,310,040  
     5,389,437 
  
    Accrued expense-others 
     8,489,902  
     2,760,778 
  
    Total 
    $14,323,458  
    $8,833,936 

Accrued expense-others mainly include the purchase
of the unpaid portion of salt Pans  of $7,878,182, and others.

NOTE 10 – RELATED PARTY TRANSACTIONS

On September