Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 24

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 Period Ended March 31,                             
                                            2025                                    2024                   
  Current taxes – PRC                       $                                       $         —            
  Deferred tax – PRC entities                                                                 ( 1,270,060  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────
  Total Income tax (expenses) benefits      $                                       $         ( 1,270,060  

Significant components of the Company’s
deferred tax assets and liabilities at March 31, 2025 and December 31, 2024 are as follows:

Income Taxes - Schedule of Deferred
Tax Assets and Liabilities

                                                  March 31,                        December 31,                    
                                                  2025                             2024                            
  Deferred tax liabilities                        $                         —      $                            —  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Deferred tax assets:                                                                                             
  Exploration costs                                                 1,734,410                           1,731,920  
  Allowance                                                           420,144                             729,731  
  Impairment of property plant and equipment                        1,688,519                           1,686,095  
  PRC tax losses                                                   10,455,188                           9,125,871  
  US federal net operating loss                                     1,720,637                           1,661,464  
  Total deferred tax assets                                        16,018,898                          14,935,081  
  Valuation allowance                                            ( 16,018,898                        ( 14,935,081  
  Net deferred tax asset                          $                         —      $                            —  

Deferred tax assets consist of future reversals of existing taxable
temporary differences and adequate future taxable income, exclusive of reversing deductible temporary differences. As of March 31, 2025
and 2024, valuation allowances were mainly provided against deferred tax assets caused by exploration costs and net operating loss where
it was determined it was more likely than not that the benefits of the deferred tax assets will not be realized due to their continuous
losses.

The increase in valuation allowance for the three-month
period ended March 31, 2025 is $1,083,817.

The increase in valuation allowance for the three-month
period ended March 31, 2024 is $14,473.

There were no unrecognized tax benefits and accrual
for uncertain tax positions as of March 31, 2025 and December 31, 202