Company: GURE
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001193805-25-000638
Chunk: 21

Company: GULF RESOURCES, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 estimated
on the date of grant using the Black-Scholes option-pricing model. The risk free rate is based on the yield-to-maturity in continuous
compounding of the US Government Bonds with the time-to-maturity similar to the expected tenor of the option granted, volatility is based
on the annualized historical stock price volatility of the Company, and the expected life is based on the historical option exercise pattern.

For the three months ended March 31, 2025 and 2024, total compensation
costs for options issued recorded in the consolidated statement of loss were $0. There were no related tax benefits as a full valuation
allowance was recorded in the three months ended March 31, 2025 and 2024.

The following table summarizes all Company stock
option transactions between January 1, 2025 and March 31, 2025.

Stock-Based Compensation - Schedule of Stock
Option Activity

                                   Number of Option                         Weighted- Average Exercise price of Option              Range of                         
                                                                                                                                                                     
                                   and Warrants                             and Warrants                                            Exercise Price per Common Share  
                                                                                                                                                                     
                                   Outstanding and exercisable                                                                                                       
  Balance, January 1, 2025         —                                $       —                                               $       —                                
  Granted during the period        —                                        —                                                       —                                
  Exercised during the period      —                                        —                                                       —                                
  Expired during the period        —                                $       —                                               $       —                                
  Balance, March 31, 2025          —                                $       —                                               $       —                                
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

  Stock Options and Warrants Outstanding and Exercisable                                                                                
                                                                                                                      Weighted Average  
                                                                                                                      Remaining         
                                                              Outstanding at March 31, 2025      Range of             Contractual Life  
  Outstanding and exercisable                                 —                                  —                    —                 

All options exercisable and outstanding at March
31, 2025 are fully vested. As of March 31, 2025 there was no unrecognized compensation cost related to outstanding stock options,

The aggregate intrinsic value of options outstanding and exercisable
as of March 31, 2025 and 2024 was $0.

NOTE 16 - INCOME TAXES

The Company utilizes the asset and liability method
of accounting for income taxes in accordance with FASB ASC 740-10. If it is more likely than not that some