Company: GURE
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001193805-25-001627
Chunk: 76

Company: GULF RESOURCES, INC.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 76
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 in) operating activities 
    $4,574,613  
    $(293,463)
  
    Net cash used in investing activities 
     (8,673,384) 
     (60,526,213)
  
    Net cash used in financing activities 
     (260,997) 
     (264,094)
  
    Effects of exchange rate changes on cash and cash equivalents 
     104,689  
     97,369
  
    Net increase (decrease) in cash and cash equivalents 
    $(4,255,079) 
    $(60,986,401)

For the nine-month period ended September 30,
2025, we met our working capital and capital investment requirements by using cash on hand.

Net Cash provided by (used in) Operating Activities

During the nine-month period ended September 30, 2025, cash
flow provided by operating activities of approximately $4.57 million was mainly due to a non-cash adjustment related to depreciation and
amortization of property, plant and equipment of $11.75 million, a loss on disposal of long-lived assets of $2 million, a impairment of
long-lived assets of 29.78 million, and offset by a net loss of $41.07 million, a decrease in accounts receivable of $2.83 million.

During the nine-month period ended September 30, 2024, cash flow used
in by operating activities of approximately $0.29 million was mainly due to a net loss of $40.58 million, a decrease in deferred taxes
of $3.62 million and offset by depreciation and amortization expense of $14.04 million and loss on disposal of equipment of $29.17 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 September 30,
2025 and December 31, 2024.

    September 30, 2025 
    December 31, 2024

    % of total 
      
    % of total
  
    Aged 1-30 days 
    $3,422,564  
     100% 
    $419,581  
     74%
  
    Aged 31-60 days 
     —  
     —  
     144,942  
     26%
  
    Aged 61