Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 110

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 3
Chunk 110
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 be able to identify, successfully integrate
or profitably manage any businesses or business segment we may acquire, or any expansion of our business. An expansion may involve a number
of risks, including possible adverse effects on our operating results, diversion of management’s attention, inability to retain
key personnel, risks associated with unanticipated events, risks associated with the pandemic and the financial statement effect of potential
impairment of acquired intangible assets, any of which could have a materially adverse effect on our condition and results of operations.
In addition, if competition for acquisition candidates or operations were to increase, the cost of acquiring businesses could increase
materially. We may effect an acquisition with a target business which may be financially unstable, under-managed, or in its early stages
of development or growth. Our inability to implement and manage our expansion strategy successfully may have a material adverse effect
on our business and future prospects.

Contractual Obligations and Commitments

We have no significant contractual obligations not fully recorded on
our consolidated balance sheets or fully disclosed in the notes to our consolidated financial statements. Additional information regarding
our contractual obligations and commitments at September 30, 2025 is provided in the notes to our consolidated financial statements. See
“Notes to Condensed Consolidated Financial Statements.

Material Off-Balance Sheet Arrangements

We do not currently have any off balance sheet
arrangements falling within the definition of Item 303(a) of Regulation S-K.

Critical Accounting Policies and Estimates

Our consolidated financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America and this requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts
of revenues and expenses during the reporting period. We base its estimates on historical experience and on various other assumptions
that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates
under different assumptions or conditions. We have identified the following critical accounting policies and estimates used by us in the
preparation of our financial statements: accounts receivable and allowance for doubtful accounts, inventories and allowance for obsolescence,
assets retirement obligation, property, plant and equipment, recoverability of long-lived assets, mineral rights, leases, revenue recognition,
income taxes, and loss contingencies. These policies and estimates are described in the Company’s Form 10-Q for the nine months
ended September 30, 2025.

Item 3