Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 68

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 68
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 same period in 2024.

Other Expenses, net

As the company was the joint guarantor party for the
debts of Shandong Shouguang Vegetable Industry Group Co., Ltd. and Shandong Shouguang Vegetable Seed Group Co., Ltd. ("Vegetable
Group"). Currently, the Vegetable Group is unable to repay the debt. As the joint liability party, our company has to accrue a provision
of $3,521,613.

Loss on Disposal of Long-lived Assets

As the company was the joint responsible party for the debts
of the Vegetable Group, the court auctioned the idle land and the attached properties on it of SYCI, resulting in a total asset disposal
loss of $2,008,853.

Impairment of Long-lived Assets

The court engaged a third-party valuer for evaluation
of the land at xiangjiang road, yangkou town ,shouguang city and its attached properties. The valuation report returned a fair value of
$4,580,892. The Company recognized an impairment loss of $29,782,912 accordingly.

Net Loss Net loss was $35,664,512 for the
three-month period ended September 30, 2025, compared to a net loss of

$3,492,883 in the same period in 2024.

26 

Comparison of the Nine-Month Period Ended
September 30, 2025 and 2024

    Nine-Month Period Ended September 30, 2025 
    Nine-Month Period Ended September 30, 2024 
    Percent Change Increase/ (Decrease)
  
    Net revenue 
    $18,992,813  
    $5,932,596  
     220%
  
    Cost of net revenue 
     (16,948,185) 
     (11,303,519) 
     50%
  
    Gross profit (loss) 
     2,044,628  
     (5,370,923) 
     (138%)
  
    Sales and marketing expenses 
     (35,868) 
     (31,608) 
     13%
  
    Direct labor and factory overheads incurred during plant shutdown 
     (4,533,760) 
     (7,185,537) 
     (37%)
  
    General and administrative expenses 
     (3,169,821