Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 46

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 mainly by using cash on hand.

Net Cash Provided by (Used in) Operating Activities

During the three -month period ended March 31, 2025, cash flow used
in operating activities of approximately $1.58 million was mainly due to a net loss of $4.62 million, an increase in accounts receivable
of $1.5 million, offset by a non-cash adjustment related to depreciation and amortization of property, plant and equipment of $4 million.

During the three-month period ended March 31, 2024, cash flow used
in operating activities of approximately $1.33 million was mainly due to a net loss of $3.99 million, an increase in accounts receivable
of $0.4 million, a non-cash adjustment related to deferred taxes of $1.27 million, offset by depreciation and amortization expenses of
$4.73 million.

Accounts receivable

Cash collections on our accounts receivable had
a major impact on our overall liquidity. The following table presents the aging analysis of our accounts receivable as of March 31, 2025
and December 31, 2024.

                         March 31, 2025                              December 31, 2024                        
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Aged 1-30 days         $                   1,787,222      85       $                      419,581      74   
  Aged 31-60 days                            —              —                               144,942      26   
  Aged 61-90 days                            —              —                               —            —    
  Aged 91-120 days                           327,000        15                              —            —    
  Aged 121-150 days                          —              —                               —            —    
  Aged 151-180 days                          —              —                               —            —    
  Aged 181-210 days                          —              —                               —            —    
  Aged 211-240 days                          —              —                               —            —    
  Total                  $                   2,114,222      100      $                      564,523      100  

The overall accounts receivable balance as of March 31, 2025 increased
by $1,549,699, as compared to those of December 31, 2024. We have policies in place to ensure that sales are made to customers with an
appropriate credit