SCHEDULE I – PARENT ONLY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2025

Condensed Financial Information Disclosure [Abstract]

SCHEDULE I – PARENT ONLY FINANCIAL INFORMATION

SCHEDULE I – PARENT ONLY FINANCIAL INFORMATION

The following presents condensed parent company only financial information of Gulf Resources, Inc.

Condensed Balance Sheets


		As of December 31,
		2025					2024 (Restated)
Prepayments and deposits		$		—			$	—
Total Current Assets				—				—
Non-Current Assets
Interests in subsidiaries				48,950,428				82,861,465
Amounts due from group companies				64,632,281				61,943,090
Deferred tax assets, net				—				—
Total non-current assets				113,582,709				144,804,555
Total Assets				113,582,709				144,804,555

Liabilities and Stockholders’ Equity
Current Liabilities
Other payables and accrued expenses		$		642,677			$	387,168
Amounts due to related parties				1,462,110				1,462,110
Amounts due to group companies				—				142,702
Total Current Liabilities				2,104,787				1,991,980

Total Liabilities				2,104,787				1,991,980

Stockholders’ Equity
PREFERRED STOCK; $0.001 par value; 1,000,000 shares authorized; none outstanding				—				—
COMMON STOCK; $0.0005 par value; 80,000,000 shares authorized; 1,568,114 and 1,120,145 shares issued; and 1,539,531 and 1,091,562 shares outstanding as of December 31, 2025 and December 31, 2024				784				560
Treasury stock; 28,583 shares as of December 31, 2025 and December 31, 2024 at cost				(1,372,673	)			(1,372,673	)
Additional paid-in capital				105,927,142				101,712,325
Share to be issued				—				194,700
Retained earnings unappropriated				(7,526,347	)			36,393,884
Retained earnings appropriated				26,667,097				26,667,097
Currency translation adjustment				(12,218,081	)			(20,783,318	)
Total Stockholders’ Equity				111,477,922				142,812,575
Total Liabilities and Stockholders’ Equity		$		113,582,709			$	144,804,555

Condensed Statements of Loss


		Years Ended December 31,
		2025				2024 (Restated)
OPERATING EXPENSES
General and administrative expenses		$	(1,443,957	)		$	(742,480	)
TOTAL OPERATING EXPENSES			(1,443,957	)			(742,480	)
OTHER EXPENSES
Interest expense			—				—
TOTAL OTHER EXPENSES			—				—
TOTAL EXPENSES			(1,443,957	)			(742,480	)
Equity in net loss of subsidiaries			(42,476,274	)			(59,157,892	)
LOSS BEFORE INCOME TAXES			(43,920,231	)			(59,900,372	)
INCOME TAXES			—				—
NET LOSS		$	(43,920,231	)		$	(59,900,372	)

Condensed Statements of Cash Flows


		Years Ended December 31,
		2025				2024 (Restated)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss		$	(43,920,231	)		$	(59,900,372	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Equity loss in unconsolidated subsidiaries			42,476,274				59,157,892
Stock-based compensation expense-options			—				—
Shares issued from treasury stock for services			—				—
Changes in assets and liabilities:			—				—
Other payables and accrued expenses			255,509				396,825
Net cash used in operating activities			(1,188,448	)			(345,655	)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from group companies			1,188,448				345,655
Net cash provided by financing activities			1,188,448				345,655
NET INCREASE IN CASH AND CASH EQUIVALENTS			—				—
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR			—				—
CASH AND CASH EQUIVALENTS - END OF YEAR		$	—			$	—

(i)	Basis of presentation

In the condensed parent-company-only financial statements, the Company’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. The Company’s share of net loss of its subsidiaries is included in condensed statements of comprehensive loss using the equity method. These condensed parent- company-only financial statements should be read in connection with the consolidated financial statements and notes thereto.

As of December 31, 2025, the Company itself has no purchase commitment, capital commitment and operating lease commitment.

(ii)	Restricted Net Assets

Schedule I of Rule 5-04 of Regulation S-X requires the condensed financial information of registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party (i.e., lender, regulatory agency, foreign government, etc.).

The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the subsidiaries of Gulf Resources, Inc. exceed 25% of the consolidated net assets of Gulf Resources, Inc. The ability of the Company’s Chinese operating subsidiaries to pay dividends may be restricted due to the foreign exchange control policies and availability of cash balances of the Chinese operating subsidiaries. Because a significant portion of the Company’s operations and revenues are conducted and generated in China, a significant portion of the revenues being earned and currency received are denominated in RMB. RMB is subject to the exchange control regulation in China, and, as a result, the Company may be unable to distribute any dividends outside of China due to PRC exchange control regulations that restrict the Company’s ability to convert RMB into US Dollars.