| LEASE LIABILITIES-FINANCE AND OPERATING LEASE |
NOTE
12 – LEASE LIABILITIES-FINANCE AND OPERATING LEASE
The
components of finance lease liabilities were as follows:
SCHEDULE
OF FINANCE LEASED LIABILITIES
| | |
March
31,
2025(Restated) | | |
December
31,
2024(Restated) | |
| Total finance
lease liabilities | |
$ | 5,376,093 | | |
$ | 8,432,177 | |
| Less:
Current portion | |
| (239,771 | ) | |
| (3,342,293 | ) |
| Finance
lease liabilities, net of current portion | |
$ | 5,136,322 | | |
$ | 5,089,884 | |
The
financing leases include one contract with a lease term from January 1, 2011 to December 31, 2030, and five contracts with the lease
term from June 29, 2024 to June 28, 2044. All contracts have a non-cancellable lease period of 20 years, and the Company has the right
to preferentially renew the lease contract under the same conditions upon the contact expires. However, the Company will decide whether
to renew the lease based on the market operation situation upon the expiration.
The
components of operating lease liabilities are as follows:
SCHEDULE OF
OPERATING LEASE LIABILITIES
| | |
March
31,
2025 | | |
December
31,
2024 | |
| Total Operating
lease liabilities | |
$ | 7,308,326 | | |
$ | 7,433,452 | |
| Less:
Current portion | |
| (498,483 | ) | |
| (491,850 | ) |
| Operating
lease liabilities, net of current portion | |
$ | 6,809,843 | | |
$ | 6,941,602 | |
The
components of lease cost were as follows:
SCHEDULE OF LEASE COST
| | |
| | | |
| | |
| | |
Three-Month
Period Ended March 31, | |
| | |
2025
(Restated) | | |
2024
(Restated) | |
| Finance lease cost: | |
| | | |
| | |
| - Amortization
of right-of-use assets | |
$ | 775,702 | | |
$ | 313,941 | |
| - Interest on lease liabilities | |
| 60,857 | | |
| 24,830 | |
| Operating
lease cost | |
| 217,801 | | |
| 217,345 | |
| Total
lease cost | |
$ | 1,054,360 | | |
$ | 556,116 | |
Maturities
of lease liabilities were as follows:
SCHEDULE OF MATURITIES OF LEASE LIABILITIES
| | |
Finance
Lease | | |
Operating
Lease | |
| the next 12 months | |
$ | 261,485 | | |
$ | 631,001 | |
| the next 13 to 24 months | |
| 261,485 | | |
| 828,555 | |
| the next 25 to 36 months | |
| 261,485 | | |
| 834,455 | |
| the next 37 to 48 months | |
| 4,955,034 | | |
| 840,733 | |
| the next 49 to 60 months | |
| 261,485 | | |
| 847,059 | |
| thereafter | |
| 261,485 | | |
| 8,255,269 | |
| Total | |
$ | 6,262,459 | | |
$ | 12,237,072 | |
| Less:
Amount representing interest | |
| (886,366 | ) | |
| (4,928,746 | ) |
| Present
value of net minimum lease payments | |
$ | 5,376,093 | | |
$ | 7,308,326 | |
A
summary of supplemental information related to leases is listed as follows:
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES
| | |
March
31,
2025 | | |
December
31,
2024 | |
| Weighted average remaining lease term: | |
| | | |
| | |
| Finance leases | |
| 15.9
years | | |
| 16.2
years | |
| Operating leases | |
| 19.6
years | | |
| 19.6
years | |
| Weighted average discount rate: | |
| | | |
| | |
| Finance leases | |
| 4.62 | % | |
| 4.62 | % |
| Operating leases | |
| 4.90 | % | |
| 4.90 | % |
Supplemental
cash flow information related to leases were as follows:
SCHEDULE OF CASH FLOW, SUPPLEMENTAL
| | |
| | | |
| | |
| | |
Three-Month
Period Ended March 31, | |
| | |
2025 | | |
2024 | |
| Cash paid for amounts included in measurement of lease
liabilities: | |
| | |
| |
| -Operating cash
flows from operating leases | |
$ | 225,321 | | |
$ | 226,018 | |
| -Financing cash flows from
finance leases | |
$ | — | | |
$ | — | |
| | |
| | | |
| | |
| Non-cash information on lease
liabilities arising from obtaining ROU assets: | |
| | | |
| | |
| -Finance leases | |
$ | — | | |
$ | — | |
| -Operating leases | |
$ | — | | |
$ | — | |
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)
|