Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 49

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 49
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 Shouguang City Government in February 2019 informing
the Company that Factory No. 1, No. 4, No. 7 and No. 9 have passed inspection and were approved to resume operation.

In addition, on August 28, 2019, the People’s Government of Shandong
Province, issued a regulation titled “Investment Project Management Requirements of Chemical Companies in Shandong Province”
permitting the construction of facilities on existing sites or infrastructure of bromine manufacturing and other chemical industry-related
types of projects (clause 11 of section 3). The Company believes that the goal of the government is to standardize and regulate the industry
and not to demolish the facilities or penalize the manufacturers. As of the date of this report, the Company has not been notified by
the local government that it will take any measure to enforce the administrative penalties. Based on information known to date, the Company
believes that it is remote that the Written Decisions or Court Rulings will be enforced within the expected timeframe and a material penalty
or costs and expenses against the Company will result. However, there can be no assurance that there will not be any further enforcement
action, the occurrence of which may result in further liabilities, penalties and operational disruption.

In view of the above facts and circumstances, the Company believes
that it is not necessary to accrue for any estimated losses or impairment as of September 30, 2025.

NOTE 22 - SUBSEQUENT EVENT

Subsequent Event

As previously disclosed, at the 2025 Annual Meeting
of Stockholders of the Company held on September 9, 2025, the stockholders of the Company approved a proposal to authorize the Company’s
Board of Directors (the “Board”) to amend the Company’s Articles of Incorporation with the Secretary of State of the
State of Nevada to effect a reverse stock split of the outstanding shares of the Company’s common stock, par value $0.0005 (“Common
Stock”) at a reverse split ratio of between 1-for-2 and 1-for-10 as determined by the Board.

On October 10, 2025, pursuant to the authority granted
by the Company’s stockholders, the Board effectuated and approved a one-for-ten (1:10) reverse stock split ratio (the “Reverse
Stock Split”) of the Common Stock. The Reverse Stock Split became effective at 12:01 am Eastern Time on October 27,