GULF RESOURCES, INC.
For the period ended Sep 30, 2025. Filed Nov 19, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 19, 2025
GURE$3.15+3.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-13.
0001193805-25-001184
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-19.
0001193805-25-001627
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 122 previous paragraphs and 126 current paragraphs.
49 unchanged; 33 reworded; 43 added; 39 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 18 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (43)
Current report
The Company received a notice (the “Initial Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) on April 18, 2024 notifying the Company that due to the Company’s failure to timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “Form 10-K”), with the SEC, the Company is not in compliance with Nasdaq’s continued listing requirements under Nasdaq Listing Rule 5250(c)(1) (the “Rule”), which requires the timely filing of all required periodic reports with the SEC, and the Company subsequently received a notice (the “May Notice”) from Nasdaq on May 21, 2024 due to the Company’s non-compliance with the Rule as a result of the Company’s failure to timely file its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024 (the “Form 10-Q”, together with the Form 10-K, the “Delinquent Reports”). The May Notice states that the Company has until June 17, 2024 to submit to Nasdaq a plan to regain compliance with the Rule.
Current report
On November 12, 2025, the Company issued a press release providing certain updates on its hearing scheduling process with the Nasdaq Hearings Panel. The Company has received a hearing notification letter from Nasdaq scheduling an oral hearing for December 9, 2025. As of November 10, 2025, the Company’s common stock had maintained the requisite closing bid price in compliance with Listing Rule 5550(a)(2). In light of the above and in accordance with the instructions provided by the hearing notification letter, the Company has submitted a request to cancel the hearing, subject to the Company’s Listing Analyst review and confirmation.
Current report
Net Loss of $35,664,512 for the three-month periods ended September 30, 2025.
Current report
The increase in net loss was mainly due to a rise of 2,008,853 in loss on disposal of long-lived assets, a rise of 29,782,912 in impairment of long-lived assets, and an increase of 3,521,613 in provision accrued liabilities.
Current report
For the three-month periods ended September 30, 2025 and 2024, the net revenue for the crude salt was $992,250 and $654,039, respectively. The increase of net revenue of crude salt was mainly due to the 58% increase in tonnes sold and the 4% decrease in average selling price of crude salt for the three-month period ended September 30, 2025.
Current report
For the three-month period ended September 30, 2025 and 2024, the net revenue was $0 and $17,013.
Current report
The decrease in income was due to the fact that the relevant documents of the client were incomplete, which prevented us from continuing the cooperation.
Current report
For the three -month period ended September 30, 2025 and 2024 the cost of net revenue for the bromine segment was $7,666,463 and $3,794,088, respectively. The increase in costs is mainly due to the increase in sales volume.
Current report
For the three -month period ended September 30, 2025 and 2024 the cost of net revenue for the crude salt segment was $330,322 and $277,451, respectively. The increase in costs is mainly due to the increase in sales volume.
Current report
Cost of net revenue for our natural gas segment for the three-month period ended September 30, 2025 and 2024 was $0 and 77, respectively. The decrease in income was due to the fact that the relevant documents of the client were incomplete, which prevented us from continuing the cooperation.
Current report
For the three-month period ended September 30, 2025, the gross profit margin for our crude salt segment was 67%. The increase of net revenue of crude salt was mainly due to the 58% increase in tonnes sold and the 4% decrease in average selling price of crude salt for the three-month period ended September 30, 2025.
Current report
For the three-month period ended September 30, 2024, the gross profit margin for our crude salt segment was 58%.
Current report
Gross profit for our natural gas segment for the three-month period ended September 30, 2025 and 2024 was $0 and $16,936 respectively. The decrease in income was due to the fact that the relevant documents of the client were incomplete, which prevented us from continuing the cooperation.
Current report
Loss from operations from our bromine segment was $274,496 for the three-month period ended September 30, 2025, compared to loss from operations of $4,029,999 in the same period in 2024. The increase of the net revenue of bromine was due to the 238% increase in tonnes sold and the 52% increase in average selling price of bromine in the third quarter of 2025.
Current report
Income from operations from our crude salt segment was $453,824 for the three-month period ended September 30, 2025, compared to loss from operations of $102,657 in the same period in 2024. The increase of net revenue of crude salt was mainly due to the 58% increase in tonnes sold and the 4% decrease in average selling price of crude salt for the three-month period ended September 30, 2025.
Current report
Loss from operations from our chemical products segment was $352,371 for the three-month period ended September 30, 2025, compared to loss from operations of $339,038 in the same period in 2024.
Current report
Other Expenses, net
Current report
As the company was the joint guarantor party for the debts of Shandong Shouguang Vegetable Industry Group Co., Ltd. and Shandong Shouguang Vegetable Seed Group Co., Ltd. ("Vegetable Group"). Currently, the Vegetable Group is unable to repay the debt. As the joint liability party, our company has to accrue a provision of $3,521,613.
Current report
Loss on Disposal of Long-lived Assets
Current report
As the company was the joint responsible party for the debts of the Vegetable Group, the court auctioned the idle land and the attached properties on it of SYCI, resulting in a total asset disposal loss of $2,008,853.
Current report
Impairment of Long-lived Assets
Current report
The court engaged a third-party valuer for evaluation of the land at xiangjiang road, yangkou town ,shouguang city and its attached properties. The valuation report returned a fair value of $4,580,892. The Company recognized an impairment loss of $29,782,912 accordingly.
Current report
Net Loss Net loss was $35,664,512 for the three-month period ended September 30, 2025, compared to a net loss of
Current report
$3,492,883 in the same period in 2024.
Current report
Comparison of the Nine-Month Period Ended September 30, 2025 and 2024
Current report
For the nine-month period ended September 30, 2025 and 2024, the net revenue for the natural gas was $0 and $61,207,respectively. The decrease in income was due to the fact that the relevant documents of the client were incomplete, which prevented us from continuing the cooperation.
Current report
For the nine-month period ended September 30, 2025 and 2024 the cost of net revenue for the bromine segment was $16,216,406 and $10,595,899, respectively. The increase in costs is mainly due to the increase in sales volume.
Current report
For the nine-month period ended September 30, 2025 and 2024 the cost of net revenue for the crude salt segment was $731,779 and $707,344, respectively. The increase in costs is mainly due to the increase in sales volume.
Current report
Cost of net revenue for our natural gas segment for the nine-month period ended September 30, 2025 and 2024 was $0 and $276, respectively. The decrease in income was due to the fact that the relevant documents of the client were incomplete, which prevented us from continuing the cooperation.
Current report
Gross Profit. Income profit was $2,044,628, or 10.8%, of net revenue for nine-month period ended September 30, 2025 compared to gross loss $5,370,923, or 91%, of net revenue for the same period in 2024.
Current report
For the nine-month period ended September 30, 2025, the gross profit margin for our crude salt segment was 59%.
Current report
For the nine-month period ended September 30, 2024 the gross profit margin for our crude salt segment was 45%.
Current report
Gross profit for our natural gas segment for the nine-month period ended September 30, 2025 and 2024 was $0 and $60,931 respectively. The decrease in income was due to the fact that the relevant documents of the client were incomplete, which prevented us from continuing the cooperation.
Current report
Loss from operations from our bromine segment was $3,775,713 for the nine-month period ended September 30, 2025, compared to a loss of $13,475,400 in the same period in 2024. The decrease in gross loss margin was primarily attributable to the higher average selling price of bromine of $3,751 per ton in the nine-month period ended September 30, 2025 compared to $2,423 per ton in the nine-month period ended September 30, 2024.
Current report
Loss from operations from our chemical products segment was $1,055,947 for the nine-month period ended September 30, 2025, compared to a loss of $993,116 in the same period in 2024.
Current report
Other Expenses, net
Current report
As the company was the joint guarantor party for the debts of the Vegetable Group. Currently, the Vegetable Group is unable to repay the debt. As the joint liability party, our company has to accrue a provision of $3,524,825.
Current report
Loss on Disposal of Long-lived Assets
Current report
As the company was the joint responsible party for the debts of the Vegetable Group, the court auctioned the idle land and the attached properties on it of SYCI, resulting in a total asset disposal loss of $2,008,853.
Current report
Impairment of Long-lived Assets
Showing the first 40 of 43 passages. Open the source sections for the rest.
Removed paragraphs (39)
Previous report
The Company intends to closely monitor the closing bid price for its Common Shares and consider all available options to timely remedy the bid price deficiency. If at any time during the Second Compliance Period, the closing bid price of the Common Shares is at least $1.00 per share for a minimum of 10 consecutive business days, the Staff will provide the Company with written confirmation of compliance and the matter will be closed, unless the Staff exercises its discretion to extend this ten-day period pursuant to Nasdaq Listing Rule 5810(c)(3)(H).
Previous report
The Company can give no assurance that it will regain or demonstrate compliance during the Second Compliance Period. If the Company is not able to demonstrate compliance with the minimum bid price requirement by November 3, 2025, or the Company does not comply with the terms of the extension, the Staff will provide written notification to the Company that the Common Shares will be delisted. At that time, the Company may appeal the Staff’s determination to the Nasdaq Hearings Panel (the “Panel”). The Company’s appeal request would stay any delisting action by the Staff at least pending a hearing before the Panel and the expiration of any extension that may be granted by the Panel to the Company following the hearing.
Previous report
Net Loss of $773,777 for the three-month periods ended June 30, 2025 was mainly attributable to increased General and administrative expenses.
Previous report
Net Loss of $33,097,918 for the three-month periods ended June 30, 2024 was mainly attributable to decreased sales and reduced margins. The company also suffered a loss of $29,169,008 on retirement of fixed assets .
Previous report
For the three-month periods ended June 30, 2025 and 2024, the net revenue for the crude salt was $667,411 and $523,935, respectively. The increase of net revenue of crude salt was mainly due to 22% increase in average selling price of crude salt for the three-month period ended June 30, 2025.
Previous report
For the three-month period ended June 30, 2025 and 2024, the net revenue for the natural gas production was $0.
Previous report
For the three-month period ended June 30, 2025, the cost of net revenue for the bromine segment was $7,016,815.
Previous report
For the three-month period ended June 30, 2024, the cost of net revenue for the bromine segment was $4,729,059.
Previous report
For the three-month period ended June 30, 2025 the cost of net revenue for the crude salt segment was $340,315.
Previous report
For the three-month period ended June 30, 2024 the cost of net revenue for the crude salt segment was $382,999.
Previous report
For the three-month period ended June 30, 2025, the gross profit margin for our crude salt segment was 49%.
Previous report
For the three-month period ended June 30, 2024, the gross profit margin for our crude salt segment was 27%.
Previous report
Loss from operations from our bromine segment was $130,381 for the three-month period ended June 30, 2025, compared to loss from operations of $4,662,586 in the same period in 2024. This decrease was due to a 152% increase in tonnes sold and a 64% increase in average selling price.
Previous report
Loss from operations from our crude salt segment was $147,489 for the three-month period ended June 30, 2025, compared to income from operations of $130,024 in the same period in 2024.
Previous report
Loss from operations from our chemical products segment was $344,947 for the three-month period ended June 30, 2025, compared to loss from operations of $339,254 in the same period in 2024.
Previous report
***Loss on disposal of property, plant and equipment.***Loss on disposal of property, plant and equipment was $29,169,008 in the fiscal year 2024. In June 2024, considered the bromide well and transmission channel have been in use for many years, the Company conducted a site inspection and found that some wells and channels were seriously damaged by water seepage which in turn required write-off or new construction, and the write-off amount is $29,169,008.
Previous report
***Net Income (loss)***Net loss was $773,777 for the three-month period ended June 30, 2025, compared to a net loss of $33,097,918 in the same period in 2024.
Previous report
Comparison of the Six-Month Period Ended June 30, 2025 and 2024
Previous report
Net Loss of $5,403,277 for the six-month periods ended June 30, 2025 was mainly attributable to increased General and administrative expenses.
Previous report
Net Loss of $37,090,050 for the six-month periods ended June 30, 2024 was mainly attributable to decreased sales and reduced margins. The company also suffered a loss of $29,169,008 on retirement of fixed assets .
Previous report
For the six-month period ended June 30, 2025 and 2024, the net revenue for the natural gas production was $0 and $44,194, respectively. The 100% decrease in revenue was primarily due to the expiration of contracts.
Previous report
For the six-month period ended June 30, 2025, the cost of net revenue for the bromine segment was $8,549,943.
Previous report
For the six-month period ended June 30, 2024, the cost of net revenue for the bromine segment was $6,801,811.
Previous report
For the six-month period ended June 30, 2025, the cost of net revenue for the crude salt segment was $401,457.
Previous report
For the six-month period ended June 30, 2024, the cost of net revenue for the crude salt segment was $429,893.
Previous report
Cost of net revenue for our chemical products segment for the six-month period ended June 30, 2025 and 2024 was $0.
Previous report
Cost of net revenue for our natural gas segment for the six-month period ended June 30, 2025 and 2024 was $0 and $199, respectively.
Previous report
Gross Profit (Loss). Gross profit was $996,832, or 10%, of net revenue for six-month period ended June 30, 2025 compared to a loss of $3,541,672, or 96%, of net revenue for the same period in 2024.
Previous report
For the six-month period ended June 30, 2025, the gross profit margin for our crude salt segment was 49.2%.
Previous report
For the six-month period ended June 30, 2024 the gross profit margin for our crude salt segment was 33%.
Previous report
Gross profit for our natural gas segment for the six-month period ended June 30, 2025 and 2024 was $0 and $43,995 respectively.
Previous report
Loss from operations from our bromine segment was $3,501,217 for the six-month period ended June 30, 2025, compared to an loss from operations of $9,445,401 in the same period in 2024. This decrease was due to a 93% increase in tonnes sold and a 58% increase in average selling price.
Previous report
Loss from operations from our chemical products segment was $703,576 for the six-month period ended June 30, 2025, compared to a loss from operations of $654,078 in the same period in 2024.
Previous report
Net Income (Loss). Net loss was $5,403,277 for the six-month period ended June 30, 2025, compared to a net loss of $37,090,050 in the same period in 2024.
Previous report
Loss on disposal of property, plant and equipment. Loss on disposal of property, plant and equipment was $29,169,008 in the fiscal year 2024. In June 2024, considered the bromide well and transmission channel have been in use for many years, the Company conducted a site inspection and found that some wells and channels were seriously damaged by water seepage which in turn required write-off or new construction, and the write-off amount is $29,169,008.
Previous report
Net Cash used in Operating Activities
Previous report
Inventory
Previous report
Our inventory consists of the following:
Previous report
The net inventory level as of June 30, 2025 increased by $199,642 (or 63%), as compared to the net inventory level as of December 31, 2024. The increase in inventory is due to the growth in current sales volume.
Reworded paragraphs (33)
Previous wording
Pursuant to the notification from the government of Shouguang City, all bromine facilities in Shouguang City were temporarily closed from December 10, 2022 until February 1, 2023 8:00 AM China Time. To comply with such notification, the Company had temporarily stopped production at its bromine facilities during the aforesaid period and reopened the operating bromine and crude salt factories in February, 2023 as planned.
Current wording
Pursuant to the notification from the government of Shouguang City, all bromine facilities in Shouguang City were temporarily closed from December 10, 2022 until February 1, 2023. To comply with such notification, the Company had temporarily stopped production at its bromine facilities during the aforesaid period and reopened the operating bromine and crude salt factories in February, 2023.
Previous wording
On November 24, 2017, Gulf Resources received a letter from the People’s Government of Yangkou County, Shouguang City notifying the Company that due to the new standards and regulations relating to safety production and environmental pollution, from certain local governmental departments, such as the municipal environmental protection department, the security supervision department and the fire department, its chemical enterprises would have to be relocated to a new industrial park called Bohai Marine Fine Chemical Industry Park. Although our chemical companies were in compliance with regulations, they were also close to a residential area. As a result, the government determined we should relocate to the Bohai park. Chemical companies that are not being asked to move into the park are being permanently closed. Since our factories closed, the Company has secured from the government the land use rights for its chemical plant. On January 6, 2020, the Company received the environmental protection approval by the government of Shouguang City, Shandong Province for the proposed Yuxin Chemical factory. The Company began the construction on its new chemical facilities located at Bohai Marine Fine Chemical Industrial Park in June 2020. The construction was expected to take approximately one year and an additional six months to complete the equipment installation and testing, however due to the COVID epidemic and electrical restrictions, the opening of the chemical factory has been delayed. [The Company has received the refrigeration and air compressor units. On July 26, 2023, the Company announced that the delivery of the remaining equipment for its Yuxin chemical factory has been temporarily delayed and to review its chemical products strategy.
Current wording
On November 24, 2017, Gulf Resources received a letter from the People’s Government of Yangkou County, Shouguang City notifying the Company that due to the new standards and regulations relating to safety production and environmental pollution, from certain local governmental departments, such as the municipal environmental protection department, the security supervision department and the fire department, its chemical enterprises would have to be relocated to a new industrial park called Bohai Marine Fine Chemical Industry Park. Although our chemical companies were in compliance with regulations, they were also close to a residential area. As a result, the government determined we should relocate to the Bohai park. Chemical companies that are not being asked to move into the park are being permanently closed. Since our factories closed, the Company has secured from the government the land use rights for its chemical plant. On January 6, 2020, the Company received the environmental protection approval by the government of Shouguang City, Shandong Province for the proposed Yuxin Chemical factory. The Company began the construction on its new chemical facilities located at Bohai Marine Fine Chemical Industrial Park in June 2020. The construction was expected to take approximately one year and an additional six months to complete the equipment installation and testing, however due to the COVID epidemic and electrical restrictions, the opening of the chemical factory has been delayed. The Company has received the refrigeration and air compressor units. On July 26, 2023, the Company announced that the delivery of the remaining equipment for its Yuxin chemical factory has been temporarily delayed and the Company will re-evaluate its chemical products strategy.
Previous wording
As previously announced, on November 5, 2024, the Staff notified the Company that the bid price for the Common Shares had closed below $1.00 per share for 30 consecutive business days and, as a result, the Company no longer satisfied Nasdaq Listing Rule 5450(a)(1), the minimum bid price requirement applicable to The Nasdaq Global Select Market issuers. Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company was afforded an initial 180-calendar day grace period, through May 5, 2025, to regain compliance with the minimum bid price requirement.
Current wording
As previously announced, on November 5, 2024, the Staff notified the Company that the bid price for the Common Shares no longer satisfied Nasdaq Listing Rule 5450(a) (1), the minimum bid price requirement applicable to The Nasdaq Global Select Market issuers. Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company was afforded an initial 180-calendar day grace period, through May 5, 2025, to regain compliance with the minimum bid price requirement.
Previous wording
On May 6, 2025, the Company was notified by the Listing Qualifications Staff (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) that the Staff granted the Company’s request to transfer the listing of its common stock, par value $0.0005 per share (the “Common Shares”), from The Nasdaq Global Select Market tier to The Nasdaq Capital Market tier, and that the Staff granted the Company’s request for a second 180-calendar day period, or until November 3, 2025 (the “Second Compliance Period”), to regain compliance with the $1.00 bid price requirement, as set forth in Nasdaq Listing Rule 5550(a)(2). To regain compliance with such minimum price requirement, the Company must evidence a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business days. The transfer of the listing of the Common Shares from The Nasdaq Global Select Market to The Nasdaq Capital Market took effect with the open of business on May 8, 2025. The transfer is not expected to impact trading in the Common Shares, which will continue to trade on Nasdaq under the symbol “GURE.”
Current wording
On May 6, 2025, the Company was notified by the Nasdaq that the Company’s request to transfer the listing of its Common Stock, from The Nasdaq Global Select Market tier to The Nasdaq Capital Market tier has been granted, and that the Company was granted a second 180-calendar day period, or until November 3, 2025 (the “Second Compliance Period”), to regain compliance with the requisite bid price requirement, as set forth in Nasdaq Listing Rule 5550(a)(2). The transfer of the listing of the Common Shares from The Nasdaq Global Select Market to The Nasdaq Capital Market took effect with the open of business on May 8, 2025. The transfer is not expected to impact trading in the Common Shares, which will continue to trade on Nasdaq under the symbol “GURE.”
Previous wording
The following table presents certain information derived from the condensed consolidated statements of operations, cash flows and stockholders equity for the three-month and six-month periods ended June 30, 2025 and 2024.
Current wording
The following table presents certain information derived from the condensed consolidated statements of operations, cash flows and stockholders equity for the three-month and nine-month periods ended September 30, 2025 and 2024.
Previous wording
For the three-month periods ended June 30, 2025 and 2024, the net revenue for the bromine segment was $7,676,374 and $1,859,234, respectively. The increase of the net revenue of bromine was due to a increase in selling prices and tonnes sold of bromine in the second quarter of 2025. The sale price of bromine in the second quarter of 2025 was 64% higher than in the second quarter of 2024, and the quantity sold was 152% higher than in the second quarter of 2024.
Current wording
For the three-month periods ended September 30, 2025 and 2024, the net revenue for the bromine segment was $8,052,331 and $1,571,313, respectively. The increase of the net revenue of bromine was due to the 238% increase in tonnes sold and the 52% increase in average selling price of bromine in the third quarter of 2025. The average selling price of bromine in the third quarter of 2025 was $3,637 compared to the average selling price of bromine in the third quarter of 2024 of $2,396 (calculated by dividing revenue by tonnes).
Previous wording
Cost** **of net revenue reflects mainly the raw materials consumed and the direct salaries and benefits of staff engaged in the production process, electricity, depreciation and amortization of manufacturing plant and machinery and other manufacturing costs. Our cost of net revenue was $7,357,130 for the three-month period ended June 30, 2025, an increase of $2,245,072 (or 44%) as compared to the same period in 2024 due to the increase of net revenue by 250% for the three-month period ended June 30, 2025 as compared to the same period in 2024 .
Current wording
Cost of net revenue reflects mainly the raw materials consumed and the direct salaries and benefits of staff engaged in the production process, electricity, depreciation and amortization of manufacturing plant and machinery and other manufacturing costs. Our cost of net revenue was $7,996,785 for the three-month period ended September 30, 2025, an increase of $3,925,169 (or 96%) as compared to the same period in 2024 due to the increase of net revenue by 303% for the three-month period ended September 30, 2025 as compared to the same period in 2024.
Previous wording
(i)Utilization ratio is calculated based on the annualized actual production volume in tonnes for the periods divided by the annual production capacity in tonnes.
Current wording
(i) Utilization ratio is calculated based on the annualized actual production volume in tonnes for the periods divided by the annual production capacity in tonnes.
Previous wording
***Gross Profit (Loss).***Gross profit was $986,655, or 115%, of net revenue for the three-month period ended June 30, 2025, representing a increase of $3,715,544, as compared to a gross loss of $2,728,889, or 115%, of net revenue for the same period in 2024.
Current wording
*Gross Profit (Loss)**.***Gross profit was $1,047,796 or12%, of net revenue for three-month period ended September 30, 2025, representing an increase of $2,877,047, as compared to a gross loss of $1,829,251 or 82%, of net revenue for the same period in 2024.
Previous wording
For the three-month period ended June 30, 2025, the gross profit margin for our bromine segment was 9%, compared to gross loss margin of 154% in the three-month period ended June 30, 2024. The increase in gross profit margin was primarily attributable to the higher average selling price of bromine of $3,892 per ton in the three-month period ended June 30, 2025 compared to $2,379 per ton in the three-month period ended June 30, 2024 and the number of sales was up 152% from the second quarter of 2024.
Current wording
For the three-month period ended September 30, 2025, the gross profit for our bromine segment was 5%, compared to gross loss margin of 141% in the three-month period ended September 30, 2024. The increase in gross profit margin was primarily attributable to the higher average selling price of bromine of $3,637 per ton in the three-month period ended September 30, 2025 compared to $2,396 per ton in the three-month period ended September 30, 2024 and the number of sales was up 238% from the second quarter of 2024.
Previous wording
Direct labor and factory overheads incurred during plant shutdownOn September 1, 2017, the Company received notification from the government of Yangkou County, Shouguang City of PRC that stated that production at all its bromine and crude salt and chemical factories should be halted with immediate effect in order for the Company to perform rectification and improvement in accordance with the county’s new safety and environmental protection requirements. On November 24, 2017, the Company received a letter from the Government of Yangkou County, Shouguang City notifying the Company to relocate its two chemical production plants located in the second living area of the Qinghe Oil Extraction Plant to Bohai Park. As a result, direct labor and factory overhead costs (including depreciation of plant and machinery) in the amount of $727,774 and $1,714,503 incurred for the three-month periods ended June 30, 2025 and 2024, respectively, for the factories that have not resumed production were presented as part of the operating expenses.
Current wording
Direct labor and factory overheads incurred during plant shutdownOn September 1, 2017, the Company received notification from the government of Yangkou County, Shouguang City of PRC that stated that production at all its bromine and crude salt and chemical factories should be halted with immediate effect in order for the Company to perform rectification and improvement in accordance with the county’s new safety and environmental protection requirements. On November 24, 2017, the Company received a letter from the Government of Yangkou County, Shouguang City notifying the Company to relocate its two chemical production plants located in the second living area of the Qinghe Oil Extraction Plant to Bohai Park. As a result, direct labor and factory overhead costs (including depreciation of plant and machinery) in the amount of $580,178 and $1,736,345 incurred for the three-month periods ended September 30, 2025 and 2024, respectively, of factories that have not resumed production were presented as part of the operating expense.
Previous wording
General and Administrative Expenses General and administrative expenses were $994,765 for the three-month period ended June 30, 2025, representing an increase of $304,793 as compared to $689,972 for the same period in 2024.
Current wording
General and Administrative Expenses General and administrative expenses were $785,533 for the three-month period ended September 30, 2025, representing an decrease of $216,966 as compared to $1,002,529 for the same period in 2024.
Previous wording
Loss from OperationsLoss from operations was $750,686 for the three-month period ended June 30, 2025, compared to loss from operations of $5,146,997 in the same period in 2024.
Current wording
Loss from OperationsLoss from operations was $333,928 for the three-month period ended September 30, 2025, compared to loss from operations of $4,581,609 in the same period in 2024.
Previous wording
Loss from operations from our natural gas segment was $43,225 for the three -month period ended June 30, 2025, compared to a loss from operations of $73,773 in the same period in 2024.
Current wording
Loss from operations from our natural gas segment was $39,781 for the three -month period ended September 30, 2025, compared to a loss of $39,072 in the same period in 2024.
Previous wording
Interest Income (Loss), Net. Other loss, net of $39,172 represented bank interest income, net of finance lease interest expense for the six -month period ended June 30, 2025, a decrease of $60,374 as compared to the same period in 2024.
Current wording
Interest income, net Interest income, net of $17,206 represented bank interest income, net of finance lease interest expense for the three-month period ended September 30, 2025, an increase of $2,235 as compared to the same period in 2024.
Previous wording
Net revenue. The table below shows the changes in net revenue in the respective segment of the Company for the six-month period ended June 30, 2025 as compared to the same period in 2024:
Current wording
Net revenue. The table below shows the changes in net revenue in the respective segment of the Company for the nine-month period ended September 30, 2025 as compared to the same period in 2024:
Previous wording
Net revenue from our bromine segment increased to $9,158,243 for the six-month period ended June 30, 2025 compared to $3,005,431 for the same period in 2024 due to the higher selling price of bromine and tonnes sold of bromine.
Current wording
Net revenue from our bromine segment increased to $17,210,574 for the nine-month period ended September 30, 2025 compared to $4,576,744 for the same period in 2024 due to the higher selling price of bromine and tonnes sold of bromine.
Previous wording
Net revenue from our crude salt segment increased to $789,989 for the six-month period ended June 30, 2025 compared $640,606 for the same period in 2024 due to the higher selling tonnes of crude salt.
Current wording
Net revenue from our crude salt segment increased to $1,782,239 for the nine-month period ended September 30, 2025 compared $1,294,645 for the same period in 2024, respectively, due to the higher selling quantity.
Previous wording
For the six-month period ended June 30, 2025 and 2024, the net revenue for the chemical products segment was $0 due to the closure of our chemical factories since September 1, 2017.
Current wording
For the nine-month period ended September 30, 2025 and 2024, the net revenue for the chemical products segment was $0 due to the closure of our chemical factories since September 1, 2017.
Previous wording
Cost** **of net revenue reflects mainly the raw materials consumed-direct salaries and benefits of staff engaged in the production process, electricity, depreciation and amortization of manufacturing plant and machinery and other manufacturing costs. Our cost of net revenue was $8,951,400 for six-month period ended June 30, 2025, representing a $1,719,497 (or 24%) increase compared to the six-month period ended June 30, 2024. The increase in costs was mainly due to a significant increase in sales volume.
Current wording
Cost of net revenue reflects mainly the raw materials consumed-direct salaries and benefits of staff engaged in the production process, electricity, depreciation and amortization of manufacturing plant and machinery and other manufacturing costs. Our cost of net revenue was $16,948,185 for nine-month period ended September 30, 2025, representing a $5,644,666 (or 50%) increase compared to the nine- month period ended September 30, 2025. The increase in costs was mainly due to a significant increase in sales volume.
Previous wording
For the six-month period ended June 30, 2025, the gross profit margin for our bromine segment was 6.7%, compared to gross loss margin of 126% in the six-month period ended June 30, 2024. The increase in gross profit margin was primarily attributable to the higher average selling price of bromine of $3,857 per ton in the six-month period ended June 30, 2025 compared to $2,438 per ton in the six-month period ended June 30, 2024.
Current wording
For the nine-month period ended September 30, 2025, the gross profit margin for our bromine segment was 6%, compared to gross loss margin of 132% in the nine-month period ended September 30, 2024. The increase in gross loss margin was primarily attributable to the higher average selling price of bromine of $3,751 per ton in the nine-month period ended September 30, 2025 compared to $2,423 per ton in the nine-month period ended September 30, 2024.
Previous wording
For the six-month period ended June 30, 2025, the gross profit margin for our chemical segment was 0% due to the closure of our plant and factories to perform rectification and improvement. As a result, there were no chemical products for sale for the six-month period ended June 30, 2025.
Current wording
For the nine-month period ended September 30, 2025, the gross profit margin for our chemical segment was 0% due to the closure of our chemical products plant. As a result of the closure, there were no chemical products for sale for the nine-month period ended September 30, 2025.
Previous wording
Direct labor and factory overheads incurred during plant shutdownOn September 1, 2017, the Company received notification from the government of Yangkou County, Shouguang City of PRC that stated that production at all its bromine and crude salt and chemical factories should be halted with immediate effect in order for the Company to perform rectification and improvement in accordance with the county’s new safety and environmental protection requirements. On November 24, 2017, the Company received a letter from the Government of Yangkou County, Shouguang City notifying the Company to relocate its two chemical production plants located in the second living area of the Qinghe Oil Extraction Plant to Bohai Park. As a result, direct labor and factory overhead costs (including depreciation of plant and machinery) in the amount of $3,953,582 and $5,449,192 incurred for the three-month periods ended June 30, 2025 and 2024, respectively, for the factories that have not resumed production were presented as part of the operating expense.
Current wording
Direct labor and factory overheads incurred during plant shutdownOn September 1, 2017, the Company received notification from the government of Yangkou County, Shouguang City of PRC that stated that production at all its bromine and crude salt and chemical factories should be halted with immediate effect in order for the Company to perform rectification and improvement in accordance with the county’s new safety and environmental protection requirements. On November 24, 2017, the Company received a letter from the Government of Yangkou County, Shouguang City notifying the Company to relocate its two chemical production plants located in the second living area of the Qinghe Oil Extraction Plant to Bohai Park. As a result, direct labor and factory overhead costs (including depreciation of plant and machinery) in the amount of $4,533,760 and $7,185,537 incurred for the nine-month periods ended September 30, 2025 and 2024, respectively, for the factories that have not resumed production were presented as part of the operating expense.
Previous wording
General and Administrative Expenses. General and administrative expenses were $2,384,288 for the six-month period ended June 30, 2025, a increase of $976,860 (or 69%) as compared to $1,407,428 for the same period in 2024.
Current wording
General and Administrative Expenses. General and administrative expenses were $3,169,821 for the nine-month period ended September 30, 2025, an increase of $759,864 (or 32%) as compared to $2,409,957 for the same period in 2024. The increase in administrative expenses is mainly due to the increase in depreciation.
Previous wording
***Loss from Operations.***Loss from operations was $5,360,893 for the six-month period ended June 30, 2025, compared to loss from operations of $10,416,416 in the same period in 2024.
Current wording
***Loss from Operations.***Loss from operations was $5,694,821 for the nine-month period ended September 30, 2025, compared to a loss of $14,998,025 in the same period in 2024.
Previous wording
Loss from operations from our crude salt segment was $701,551 for the six-month period ended June 30, 2025, compared to an income from operations of $54,932 in the same period in 2024. The increase in operating losses was mainly due to the depreciation resulting from the new acquisition of crude salt assets in 2024.
Current wording
Loss from operations from our crude salt segment was $247,727 for the nine-month period ended September 30, 2025, compared to a loss of $47,725 in the same period in 2024. The increase in operating losses is mainly due to the increase in administrative expenses.
Previous wording
Loss from operations from our natural gas segment was $88,099 for the six-month period ended June 30, 2025, compared to a loss from operations of $101,482 in the same period in 2024.
Current wording
Loss from operations from our natural gas segment was $127,880 for the nine-month period ended September 30, 2025, compared to a loss of $140,554 in the same period in 2024.
Previous wording
Interest Income (Loss), Net Other loss, net of 19,879 represented bank interest income, net of finance lease interest expense for the three-month period ended June 30, 2025, a decrease of $29,856 as compared to the same period in 2024.
Current wording
Interest Income (Loss), Net. interest income, net of $56,378 represented bank interest income, net of finance lease interest expense for the nine -month period ended September 30, 2025, a decrease of $62,614 as compared to the same period in 2024.
Previous wording
As of June 30, 2025, cash and cash equivalents were $7,736,081 as compared to $10,075,162 as of December 31, 2024. The components of this decrease of $2,339,081 are reflected below.
Current wording
As of September 30, 2025, cash and cash equivalents were $5,820,083 as compared to $10,075,162 as of December 31, 2024. The components of this decrease of $4,255,079 are reflected below.
Previous wording
For the six-month period ended June 30, 2025, we met our working capital and capital investment requirements by using cash on hand.
Current wording
For the nine-month period ended September 30, 2025, we met our working capital and capital investment requirements by using cash on hand.
Previous wording
During the six-month period ended June 30, 2025, cash flow used in operating activities of approximately $2.14 million was mainly due to a net loss of $5.4 million, a decrease in accounts receivable of $2.58 million, and offset by a non-cash adjustment related to depreciation and amortization of property, plant and equipment of $8 million, adecreases in prepayment and deposits of $2.33 million.
Current wording
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.
Previous wording
During the six-month period ended June 30, 2024, cash flow used in operating activities of approximately $0.8 million was mainly due to a net loss of $37.09 million, offset by depreciation and amortization expenses of $9.47 million and loss on disposal of equipment of $29.17 million.
Current wording
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.
Previous wording
The overall accounts receivable balance as of June 30, 2025 increased by $2,586,327, as compared to those of December 31, 2024. We have policies in place to ensure that sales are made to customers with an appropriate credit history. We perform ongoing credit evaluation on the financial condition of our customers.
Current wording
The overall accounts receivable balance as of September 30, 2025 increased by $2,858,041, as compared to those of December 31, 2024. We have policies in place to ensure that sales are made to customers with an appropriate credit history. We perform ongoing credit evaluation on the financial condition of our customers.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
On October 27, 2025, we completed a 1-for-10 reverse stock split of our common stock, such that for each ten shares outstanding prior to the stock split there was one share outstanding after the reverse stock split. All shares of common stock referenced in this report have been adjusted to reflect the stock split figures.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Cost of net revenue for our natural gas segment for the three-month period ended June 30, 2025 and 2024 was $0.