FINANCE LEASE RIGHT-OF-USE ASSETS

3 Months Ended

Mar. 31, 2025

NOTE 7 – FINANCE LEASE RIGHT-OF-USE ASSETS

Property, plant and equipment under finance lease, net consist of the following:

	March 31, 2025 (Restated)			December 31, 2024 (Restated)
At cost:
Buildings	$	64,490,648		$	64,398,063
Total		64,490,648			64,398,063
Less: Accumulated depreciation and amortization		(20,045,864	)		(19,242,775	)
Net book value	$	44,444,784		$	45,155,288

The above buildings erected on parcels of land located in Shouguang, PRC, are collectively owned by local townships. The Company has not been able to obtain property ownership certificates over these buildings as the Company could not obtain land use rights certificates on the underlying parcels of land.

During the three-month period ended March 31, 2025, depreciation and amortization expense totaled $775,702, were recorded in direct labor and factory overheads incurred during plant shutdown, cost of revenue, and general & administrative expenses.

During the three-month period ended March 31, 2024, depreciation and amortization expense totaled $313,941, were recorded in direct labor and factory overheads incurred during plant shutdown, cost of revenue, and general & administrative expenses.

See Note 22- Restatement, for discussion regarding the impact of the Restatement.

GULF RESOURCES, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

(Expressed in U.S. dollars)

(UNAUDITED)