Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 16

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 31,
2024, depreciation and amortization expense totaled $1,270, which was recorded in direct labor and factory overheads incurred during plant
shutdown.

NOTE 8 - OPERATING LEASE RIGHT-OF USE ASSETS

The Company has the rights to use certain
parcels of land located in Shouguang, the 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 approximately34.95square kilometers with an aggregate
operating lease right-of-use assets amount of $7,190,872as of March 31, 2025.

As of March 31, 2025, the total operating lease
ROU assets was $6,050,429.

The total operating lease cost for the three-month
period ended March 31, 2025 and 2024 was $217,801and $217,345.

NOTE 9 - PAYABLE AND ACCRUED EXPENSES

Payable and accrued expenses consist of the following:

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

                                                      March 31,                      December 31,                  
                                                      2025                           2024                          
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Accounts payable                                    $                 390,250      $                     30,003  
  Salary payable                                                        231,442                           323,655  
  Social security insurance contribution payable                        286,083                           169,858  
  Other payable-related party                                                 —                                 —  
  Accrued expense for construction                                    5,317,674                         5,310,040  
  Accrued expense-others                                              5,431,216                         8,489,902  
  Total                                               $              11,656,665      $                 14,323,458  

Accrued expense-others mainly include the purchase of the unpaid portion
of salt Pans of $4,788,641, and others.

NOTE 10 - RELATED PARTY TRANSACTIONS

On September 25, 2012, the Company purchased
five floors of a commercial building in the PRC, through SYCI, from Shandong Shouguang Vegetable Seed Industry Group Co