Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 27

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 27
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 in direct labor
and factory overheads incurred during plant shutdown.

During the three and nine months period ended
September 30, 2024, depreciation and amortization expense totaled $1,268 and $3,808, respectively, which was recorded in direct labor
and factory overheads incurred during plant shutdown.

    10 

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

 (Expressed in U.S. dollars)

(UNAUDITED)

NOTE 8 – OPERATING LEASE RIGHT–OF
USE ASSETS

The Company has the rights to use certain parcels
of land located in Shouguang, 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 $6,980,537 as at September 30, 2025.

As of September 30, 2025, the total operating
lease ROU assets was $5,847,348.

The total operating lease cost for the nine-month
period ended September 30, 2025 and 2024 was $654,450 and $659,509.

NOTE 9 –PAYABLE AND ACCRUED EXPENSES

Payables and accrued expenses
consist of the following:

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

    September 30, 
    December 31,

    2025 
    2024
  
    Accounts payable 
    $379,806  
    $30,003 
  
    Salary payable 
     292,402  
     323,655 
  
    Social security insurance contribution payable 
     289,019  
     169,858 
  
    Accrued expense for construction 
     5,372,260  
     5,310,040 
  
    Accrued expense-others 
     5,849,524  
     8,489,902 
  
    Total 
    $12,183,011  
    $14,323,458