Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 469

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7
Chunk 469
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 company assesses its
liquidity by monitoring cash and cash equivalents, as well as operating and capital expenditure commitments. As of December 31,
2024, As of Dec 31, 2024, the Company had current assets of $17.45 million and current liabilities of $17.73 million. As a result,
the deficit was $0.28 million, and it has suffered losses in both the fiscal years of 2024 and 2023 as well. If it is unable to
raise additional funds, it may need to take measures such as cutting administrative and operational cost and save funds.  If
there are significant doubts regarding the company's ability to continue operations, the company is attempting to alleviate such
concerns through measures such as controlling operating expenses, shifting business focus to revenue-generating activities,
obtaining authorization from domestic banks and other financial institutions, and seeking equity or debt financing. Additionally,
the company will also obtain financial support commitments from related parties. However, these situations still pose significant
doubts regarding the company's ability to continue operations. The financial statements do not consider the potential impact on the
recoverability of assets, classification, and amounts and classification of liabilities if the company is unable to continue
operations.

Contractual Obligations and Commitments

We have no significant contractual
obligations not fully recorded on our consolidated balance sheets or fully disclosed in the notes to our consolidated financial statements.
Additional information regarding our contractual obligations and commitments at December 31, 2024 is provided in the notes to our consolidated
financial statements.

44 

Material Off-Balance Sheet Arrangements

We do not currently have any off-balance sheet arrangements
falling within the definition of Item 303(a) of Regulation S-K.

Critical Accounting Policies and Estimates

Our Consolidated Financial Statements
are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), which requires us
to make judgments, estimates and assumptions. See “Note 1 – Nature of Business and Summary of Significant Accounting Policies,”
in Notes to the Consolidated Financial Statements, which is included in “Item 8. Financial Statements and Supplementary Data,”
which describes our significant accounting policies and methods used in the preparation of our Consolidated Financial Statements. The
methods, estimates and judgments that we use in applying our accounting policies require us to make difficult and subjective judgments,
often as a result of the need to make estimates regarding matters that are inherently uncertain.

Our most