GULF RESOURCES, INC.
For the period ended Jun 30, 2026. Filed Sep 30, 2026.
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.
Jun 30, 2026 · Filed Sep 30, 2026
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 2026-03-31; filed 2026-08-28.
0001193805-26-001157
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-09-30.
0001493152-26-045127
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 76 previous paragraphs and 157 current paragraphs.
36 unchanged; 27 reworded; 78 added; 10 removed; 3 previous and 16 current paragraphs rearranged.
Tables are not compared: 9 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 (78)
Current report
The Notice has no immediate effect on the listing or trading of the Company’s common stock on the Nasdaq Capital Market. As previously disclosed in the current report on Form 8-K filed by the Company on April 27, the Company must submit a plan to regain compliance with respect to these delinquent reports no later than June 22, 2026. If the plan is accepted by Nasdaq, then Nasdaq would grant the Company up to 180 calendar days from the due date of the Initial Delinquent Filing, or until October 12, 2026, to regain compliance.
Current report
On June 1, 2026, the Company, following the Company’s ongoing dialogue with the staff of the United States Securities and Exchange Commission, concluded that the Company will amend its fiscal year 2024 Form 10-K (the “FY2024 Form 10-K”) and Form 10-Qs for the first, second and third quarters of 2025 (collectively, the “Q1, Q2 and Q3 2025 Form 10-Qs”) to restate the disclosures (Note 6, Note 7 and Note 12 included in the FY2024 Form 10-K and the Q1, Q2 and Q3 2025 Form 10-Qs) to revise the previous recognition of buildings without ownership certificates as fixed assets in the balance sheets and to reclassify such buildings as right-of-use (ROU) assets based on lease agreements and ASC 842 Leases, for each of the periods included in those filing, including fiscal years 2023 and 2024 in the FY2024 Form 10-K and each of the quarterly and year-to-date periods included in the Q1, Q2 and Q3 FY2025 Form 10-Qs (collectively, the “Prior Filings”). The Prior Filings should no longer be relied upon because of errors identified in such financial statements, as described above.
Current report
On June 17, 2026, the Company submitted a plan to Nasdaq to regain compliance with the Rule. On June 25, 2026, Nasdaq accepted the Company’s compliance plan and granted the Company an exception period to file the delinquent periodic reports.
Current report
The Company filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 on August 17, 2026, and filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 on August 28, 2026.
Current report
On June 25, 2026, the Company received a written notice from Nasdaq (the “Extension Letter”) stating that it had accepted the Company’s plan to regain compliance with Nasdaq Listing Rule 5250(c)(1) (the “Rule”). Nasdaq granted the Company a plan period to regain compliance with the Rule.
Current report
On August 28, 2026, Nasdaq notified the Company that the Company had incurred an additional delinquency because it had not filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. Nasdaq requested that the Company submit an update to its compliance plan. On August 28, 2026, the Company submitted an updated compliance plan to Nasdaq requesting additional time to file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.
Current report
On September 1, 2026, the Company received a written notice from Nasdaq (the “Extension Letter”) granting the Company an additional exception to regain compliance with Nasdaq Listing Rule 5250(c)(1) (the “Rule”).
Current report
On September 2, 2026, Nasdaq granted the Company an additional exception period and required the Company to file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 on or before October 12, 2026. Nasdaq stated that, if the Company failed to file the Quarterly Report by that date, Nasdaq Staff may provide written notification that the Company’s securities are subject to delisting. The Company may have the right to appeal a delisting determination to a Nasdaq Hearings Panel.
Current report
The Nasdaq notifications and exception periods do not have an immediate effect on the listing or trading of the Company’s common stock on Nasdaq, subject to the Company’s continued compliance with the other applicable Nasdaq listing requirements.
Current report
The Company filed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 on September 30, 2026. As of the date of this Quarterly Report, the Company has filed the delinquent periodic reports identified in the Nasdaq notifications and is awaiting Nasdaq’s determination regarding whether the Company has regained compliance with Nasdaq Listing Rule 5250(c)(1).
Current report
There can be no assurance that Nasdaq will determine that the Company has regained compliance with the Rule, that the Company will satisfy all other applicable Nasdaq listing requirements, or that the Company’s common stock will continue to be listed on Nasdaq.
Current report
Net income for the three-month period ended June 30, 2026 increased to $1,143,193 from net loss of $814,364 in the same period in 2025, mainly due to the net revenue increased to $12,886,977 for the three-month period ended June 30, 2026 as compared to $8,343,785 in the same period in 2025.
Current report
Net Revenue
Current report
For the three-month periods ended June 30, 2026 and 2025, the net revenue for the natural gas segment was nil.
Current report
For the three-month periods ended June 30, 2026 and 2025, the cost of revenue for the crude salt segment was $519,226 and $349,586, respectively. The increase in costs is mainly due to the rise in amortization of the salt pans.
Current report
Gross Profit
Current report
For the three-month period ended June 30, 2026, the gross profit margin for our crude salt segment was 19%, compared to 48% in the same period in 2025. The decrease in gross profit margin was mainly attributable to the rise in amortization of the salt pans.
Current report
Sales and Marketing Expenses
Current report
Sales and marketing expenses were $18,174 for the three-month period ended June 30, 2026, an increase of $3,372 (or 23%) as compared for the same period in 2025.
Current report
General and Administrative Expenses
Current report
Income (loss) from Operations
Current report
Income from operations was $1,252,167 for the three-month period ended June 30, 2026, compared to loss from operations of $791,273 in the same period in 2025.
Current report
Income from operations from our bromine segment was $1,409,472 for the three-month period ended June 30, 2026, compared to loss from operations of $134,041 in the same period in 2025. This increase was due to the 17% increase in tonnes sold and a 37% increase in average selling price.
Current report
Loss from operations from our crude salt segment was $97,230 for the three-month period ended June 30, 2026, compared to loss from operations of $181,160 in the same period in 2025.
Current report
Loss from operations from our natural gas segment was $40,116 for the three-month period ended June 30, 2026, compared to loss from operations of $43,255 in the same period in 2025.
Current report
Interest income of $18,816 mainly represented interest income from loans to third parties for the three-month period ended June 30, 2026, an increase of $17,021 as compared to the same period in 2025.
Current report
Other Expense, Net
Current report
For the three-month period ended June 30, 2026, other expense, net decreased from $3,212 to $3,117 compared with the same period of 2025, reflecting a 3% reduction.
Current report
Net Income (loss)
Current report
Net income was $1,143,193 for the three-month period ended June 30, 2026, compared to a net loss of $814,364 in the same period in 2025.
Current report
Comparison of the Six-Month Periods Ended June 30, 2026 and 2025
Current report
Net Revenue
Current report
For the six-month periods ended June 30, 2026 and 2025, the net revenue for the bromine segment was $14,494,223 and $9,158,243, respectively. The increase of the net revenue of bromine was due to the 16% increase in tonnes sold and the 37% increase in average selling price of bromine for the six-month period ended June 30, 2026.
Current report
For the six-month periods ended June 30, 2026 and 2025, the net revenue for the natural gas segment was nil.
Current report
Cost of Revenue
Current report
For the six-month periods ended June 30, 2026 and 2025, the cost of revenue for the bromine segment was $12,329,784 and $8,550,340, respectively. The increase in costs is mainly due to the increase in sales volume.
Current report
For the six-month periods ended June 30, 2026 and 2025, the cost of revenue for the crude salt segment was $589,312 and $413,826, respectively. The increase in costs is mainly due to the rise in amortization of the salt pans.
Current report
Cost of revenue for our chemical products segment for the six-month periods ended June 30, 2026 and 2025 was nil.
Current report
Cost of revenue for our natural gas segment for the six-month periods ended June 30, 2026 and 2025 was nil.
Showing the first 40 of 78 passages. Open the source sections for the rest.
Removed paragraphs (10)
Previous report
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 report
Issuers listed on The Nasdaq Global Select Market are not eligible for a second 180-day grace period under the Nasdaq Listing Rules. However, based upon the Company’s compliance with the various criteria required under Nasdaq Listing Rule 5810(c)(3)(A)(ii) to obtain a second 180-day grace period applicable to issuers listed on The Nasdaq Capital Market, the Company applied to transfer the listing of its Common Shares to The Nasdaq Capital Market.
Previous report
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 report
For the three-month periods ended March 31, 2026 and 2025, the net revenue was nil.
Previous report
For the three-month period ended March 31, 2026 and 2025 the cost of revenue for the bromine segment was $2,283,326 and $1,533,128, respectively.
Previous report
For the three-month period ended March 31, 2026 and 2025 the cost of revenue for the crude salt segment was $70,086 and $61,142, respectively.
Previous report
For the three-month period ended March 31, 2026, the gross profit margin for our crude salt segment was 41%, compared to 50% in the same period in 2025, representing a 9% decrease.
Previous report
Loss from OperationsLoss from operations was $4,056,597 the three-month period ended March 31, 2026, compared to loss from operations of $4,610,207 in the same period in 2025.
Previous report
Loss from operations from our natural gas segment was $31,809 for the three-month period ended March 31, 2026, compared to loss from operations of $44,844 in the same period in 2025.
Previous report
Net loss was $3,926,381 for the three-month period ended March 31, 2026, compared to a net loss of $4,629,500 in the same period in 2025.
Reworded paragraphs (27)
Previous wording
Cautionary Note Regarding Forward-Looking Statements
Current wording
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Cautionary Note Regarding Forward-Looking Statements
Previous wording
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, 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 May Notice states that the Company has until June 17, 2024 to submit to Nasdaq a plan to regain compliance with the Rule.
Current wording
On May 26, 2026, the Company received a notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”), indicating that, as a result of not having timely filed its quarterly report on Form 10-Q for the quarter ended March 31, 2026 (the “Form 10-Q”), and the Company remains delinquent in filing its annual report on Form 10-K for the year ended December 31, 2025 (the “Initial Delinquent Filing”), the Company is in non-compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing all required periodic financial reports with the Securities Exchange Commission.
Previous wording
On November 12, 2025, the Company issued a press release providing certain updates on its hearing scheduling process with the Nasdaq Hearings Panel. The hearing did not take place because the Company subsequently regained compliance with the applicable Nasdaq listing requirement.
Current wording
On May 29, 2026, the Company issued a press release announcing its receipt of the Notice.
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 period ended March 31, 2026 and 2025.
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 six-month periods ended June 30, 2026 and 2025.
Previous wording
***Net revenue.***The table below shows the changes in net revenue in the respective segments of the Company for the three-month period ended March 31, 2026 as compared to the same period in 2025:
Current wording
The table below shows the changes in net revenue in the respective segments of the Company for the three-month period ended June 30, 2026 as compared to the same period in 2025:
Previous wording
For the three-month periods ended March 31, 2026 and 2025, the net revenue for the bromine segment was $2,249,950 and $1,481,869, respectively. The increase of the net revenue of bromine was due to the 13% increase in tonnes sold and the 34% increase in average selling price of bromine.
Current wording
For the three-month periods ended June 30, 2026 and 2025, the net revenue for the bromine segment was $12,244,273 and $7,676,374, respectively. The increase of the net revenue of bromine was due to the 17% increase in tonnes sold and the 37% increase in average selling price of bromine for the three-month period ended June 30, 2026.
Previous wording
For the three-month periods ended March 31, 2026 and 2025, the net revenue for the crude salt was $118,676 and $122,578, respectively. The decrease of net revenue of crude salt was mainly due to the 2% decrease in tonnes sold and the 2% decrease in average selling price of crude salt for the three-month period ended March 31, 2026.
Current wording
For the three-month periods ended June 30, 2026 and 2025, the net revenue for the crude salt segment was $642,704 and $667,411, respectively. The decrease of net revenue of crude salt was mainly due to the 4% decrease in average selling price of crude salt for the three-month period ended June 30, 2026.
Previous wording
Cost of 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 plants and machinery and other manufacturing costs. Our cost of revenue was $2,353,412 for the three-month period ended March 31, 2026, an increase of $759,142 (or 48%) as compared to the same period in 2025 due to the increase of net revenue by 48% for the three-month period ended March 31, 2026 as compared to the same period in 2025.
Current wording
Cost of 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 plants and machinery and other manufacturing costs. Our cost of revenue was $10,565,684 for the three-month period ended June 30, 2026, an increase of $3,198,982 (or 43%) as compared to the same period in 2025 due to the increase of net revenue by 54% for the three-month period ended June 30, 2026 as compared to the same period in 2025.
Previous wording
The increase in costs is mainly due to the increase in sales volume.
Current wording
For the three-month periods ended June 30, 2026 and 2025, the cost of revenue for the bromine segment was $10,046,458 and $7,017,116, respectively. The increase in costs is mainly due to the increase in sales volume.
Previous wording
Cost of revenue for our chemical products segment for the three-month period ended March 31, 2026 and 2025 was nil.
Current wording
Cost of revenue for our chemical products segment for the three-month periods ended June 30, 2026 and 2025 was nil.
Previous wording
Cost of revenue for our natural gas segment for the three-month period ended March 31, 2026 and 2025 was nil.
Current wording
Cost of revenue for our natural gas segment for the three-month periods ended June 30, 2026 and 2025 was nil.
Previous wording
Gross Profit (Loss). Gross profit was $15,214, or 0.6% of net revenue for three-month period ended March 31, 2026, representing an increase of $5,037, as compared to a gross profit of $10,177, or 0.6% of net revenue for the same period in 2025.
Current wording
Gross profit was $2,321,293, or 18% of net revenue for three-month period ended June 30, 2026, representing an increase of $1,344,210, as compared to a gross profit of $977,083, or 12% of net revenue for the same period in 2025.
Previous wording
For the three-month period ended March 31, 2026, the gross loss margin for our bromine segment was 1.5%, compared to 3.5% in the three-month period ended March 31, 2025. The decrease in gross loss margin was primarily attributable to the higher average selling price of bromine of $4,948 per ton in the three-month period ended March 31, 2026 compared to $3,684 per ton in the three-month period ended March 31, 2025. Bromine tonnes sales also increased from 402 tonnes for the three-month period ended March 31, 2025 to 455 tonnes for the three-month period ended March 31, 2026.
Current wording
For the three-month period ended June 30, 2026, the gross profit margin for our bromine segment was 18%, compared to 9% in the three-month period ended June 30, 2025. The increase in gross profit margin was primarily attributable to the higher average selling price of bromine of $5,328 per ton in the three-month period ended June 30, 2026 compared to $3,892 per ton in the three-month period ended June 30, 2025. Bromine tonnes sales also increased from 1,972 tonnes for the three-month period ended June 30, 2025 to 2,298 tonnes for the three-month period ended June 30, 2026.
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 $2,743,262 and $3,225,808 incurred for the three-month periods ended March 31, 2026 and 2025, respectively, of factories that have not resumed production were presented as part of the operating expense.
Current wording
On 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 $452,949 and $727,774 incurred for the three-month periods ended June 30, 2026 and 2025, respectively, of factories that have not resumed production were presented as part of the operating expense.
Previous wording
General and Administrative ExpensesGeneral and administrative expenses were $1,323,101 for the three-month period ended March 31, 2026, a decrease of $66,422 (or 5%) as compared to $1,389,523 for the same period in 2025.
Current wording
General and administrative expenses were $598,003 for the three-month period ended June 30, 2026, a decrease of $427,777 (or 42%) as compared to $1,025,780 for the same period in 2025. The decrease was mainly due to SYCI was sold in 2025.
Previous wording
Loss from operations from our chemical products segment was $0 for the three-month period ended March 31, 2026, compared to loss from operations of $358,629 in the same period in 2025. The reason for the reduction was due to the sale of SYCI completed by December, 2025.
Current wording
Loss from operations from our chemical products segment was $0 for the three-month period ended June 30, 2026, compared to loss from operations of $348,203 in the same period in 2025. The reason for the reduction was due to the sale of SYCI completed in December 2025.
Previous wording
Interest expense of $123,444 represented bank interest expense for the three-month period ended March 31, 2026, an increase of $101,722 as compared to the same period in 2025.
Current wording
Interest expense of $124,673 represented bank interest expense and interest on finance lease for the three-month period ended June 30, 2026, an increase of $102,999 as compared to the same period in 2025.
Previous wording
Net Loss for the three-month period ended March 31, 2026 decreased to $3,926,381 from $4,629,500 in the same period in 2025, mainly due to the net revenue increased to $2,368,626 for the three-month period ended March 31, 2026 as compared to $1,604,447 in the same period in 2025.
Current wording
Net loss for the six-month period ended June 30, 2026 decreased to $2,783,188 from $5,432,824 in the same period in 2025, mainly due to the net revenue increased to $15,255,603 for the six-month period ended June 30, 2026 as compared to $9,948,232 in the same period in 2025.
Previous wording
Loss from operations from our bromine segment was $3,067,778 for the three-month period ended March 31, 2026, compared to loss from operations of $3,370,836 in the same period in 2025. This decrease was due to the 13% increase in tonnes sold and a 34% increase in average selling price.
Current wording
Loss from operations from our bromine segment was $1,658,306 for the six-month period ended June 30, 2026, compared to loss from operations of $3,508,547 in the same period in 2025. This decrease was due to the 16% increase in tonnes sold and a 37% increase in average selling price.
Previous wording
Loss from operations from our crude salt segment was $727,679 for the three-month period ended March 31, 2026, compared to loss from operations of $554,062 in the same period in 2025. The main reason was due to the rise in amortization of the salt pans.
Current wording
Loss from operations from our crude salt segment was $824,909 for the six-month period ended June 30, 2026, compared to loss from operations of $768,969 in the same period in 2025. The main reason was due to the rise in amortization of the salt pans.
Previous wording
Interest income of $253,660 represented interest income from bank and loans made to third parties for the three-month period ended March 31, 2026, an increase of $251,231 as compared to the same period in 2025.
Current wording
Interest income of $272,476 mainly represented interest income from bank and loans to third parties for the six-month period ended June 30, 2026 an increase of $268,252 as compared to the same period in 2025.
Previous wording
As of March 31, 2026, cash and cash equivalents were $6,537,505 as compared to $3,793 as of December 31, 2025. The components of this increase of $6,533,712 are reflected below.
Current wording
As of June 30, 2026, cash and cash equivalents were $9,189,231 as compared to $3,793 as of December 31, 2025. The components of this increase of $9,185,438 are reflected below.
Previous wording
For the three-month period ended March 31, 2026, we met our working capital and capital investment requirements by using cash on hand.
Current wording
For the six-month period ended June 30, 2026, we met our working capital and capital investment requirements by using cash on hand.
Previous wording
During the three-month period ended March 31, 2025, cash flow used in operating activities of approximately $1.58 million was mainly due to a net loss of $4.62 million, a decrease in accounts receivable of $1.5 million, offset by a non-cash adjustment related to depreciation and amortization of property, plant and equipment of $4 million.
Current wording
During the six-month period ended June 30, 2026, cash flow used in operating activities of approximately $4.24 million was mainly due to a net loss of $2.78 million, an increase in accounts receivable of $12.02 million, offset by a non-cash adjustment related to depreciation and amortization of property, plant and equipment of $6.80 million, amortization of finance lease right-of-use asset of $1.48 million, an increase in accounts payable and accrued expenses of $1.35 million and a decrease in prepayment and deposits of $1.08 million.
Previous wording
During the three-month period ended March 31, 2026, cash flow provided by operating activities of approximately $1.09 million was mainly due to a non-cash adjustment related to depreciation and amortization of property, plant and equipment of $3.36 million, amortization of finance lease right-of-use asset of $0.73 million, an increase in accounts receivable of $0.65 million, offset by a net loss of $3.93 million.
Current 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 $5.48 million, an increase in accounts receivable of $2.58 million, an increases in prepayment and deposits of $2.33 million, and offset by a non-cash adjustment related to depreciation and amortization of property, plant and equipment of $6.45 million, amortization of finance lease right-of-use asset of $1.55 million.
Previous wording
The overall accounts receivable balance as of March 31, 2026 decreased by $594,979, as compared to those of December 31, 2025. 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 June 30, 2026 increased by $12,205,707, as compared to those of December 31, 2025. 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.
Previous wording
Net Cash provided by (used in) Operating Activities
Current wording
Net Cash Provided By / (Used In) Investing Activities
Rearranged current paragraphs (16)
Current report — wording carried from elsewhere
On April 23, 2026 and May 26, 2026, the Company received notifications from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) stating that the Company was not in compliance with the Rule, which requires the timely filing of periodic financial reports with the Securities and Exchange Commission.
Current report — wording carried from elsewhere
The April 23, 2026 notification related to the Company’s failure to timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and the May 26, 2026 notification related to the Company’s failure to timely file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.
Current report — wording carried from elsewhere
For the three-month periods ended June 30, 2026 and 2025, the gross profit margin for our chemical products segment was 0%.
Current report — wording carried from elsewhere
For the three-month periods ended June 30, 2026 and 2025, the gross profit margin for our natural gas segment was 0%.
Current report — wording carried from elsewhere
Direct labor and factory overheads incurred during plant shutdown
Current report — wording carried from elsewhere
The table below shows the changes in net revenue in the respective segments of the Company for the six-month period ended June 30, 2026 as compared to the same period in 2025:
Current report — wording carried from elsewhere
For the six-month periods ended June 30, 2026 and 2025, the net revenue for the crude salt segment was $761,380 and $789,989, respectively. The decrease of net revenue of crude salt was mainly due to the 4% decrease in average selling price of crude salt for the six-month period ended June 30, 2026.
Current report — wording carried from elsewhere
For the six-month periods ended June 30, 2026 and 2025, the net revenue for the chemical products segment was nil due to the closure of our chemical factories since September 1, 2017.
Current report — wording carried from elsewhere
Cost of 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 plants and machinery and other manufacturing costs. Our cost of revenue was $12,919,096 for the six-month period ended June 30, 2026, an increase of $3,954,930 (or 44%) as compared to the same period in 2025 due to the increase of net revenue by 53% for the six-month period ended June 30, 2026 as compared to the same period in 2025.
Current report — wording carried from elsewhere
Bromine production capacity and utilization of our factories
Current report — wording carried from elsewhere
The table below represents the annual capacity and utilization ratios for all of our bromine producing properties:
Current report — wording carried from elsewhere
(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 report — wording carried from elsewhere
Direct labor and factory overheads incurred during plant shutdown
Current report — wording carried from elsewhere
On 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 $3,196,211 and $3,953,582 incurred for the six-month periods ended June 30, 2026 and 2025, respectively, of factories that have not resumed production were presented as part of the operating expense.
Current report — wording carried from elsewhere
Loss from operations from our chemical products segment was $0 for the six-month period ended June 30, 2026, compared to loss from operations of $710,095 in the same period in 2025. The reason for the reduction was due to the sale of SYCI completed in December 2025.
Current report — wording carried from elsewhere
Net Cash Provided By/ (Used In) Financing Activities
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
The increase in costs is mainly due to the rise in amortization of the salt pans.
Previous report — wording carried elsewhere
For the three-month period ended March 31, 2026 and 2025, the gross profit margin for our chemical products segment was 0%.
Previous report — wording carried elsewhere
For the three-month period ended March 31, 2026 and 2025, the gross profit margin for our natural gas segment was 0%.