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Gulf Resources, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing shows a decrease in net revenue to $2,242,365 from $5,865,615 in the same quarter the previous year. This decrease is attributed to a reduction in the sales of bromine and crude salt.
The cost of net revenue for the quarter was $4,071,616, representing 182% of sales, compared to 109% in the same quarter of the previous year. This increase in cost ratio is due to decreased production volume and lower selling prices.
The company reported a gross loss of $1,829,251 for the quarter, compared to a gross profit of $508,287 in the previous year, with the decline attributed to lower sales and higher cost of sales.
General and administrative expenses increased to $1,002,529 from $762,884, primarily due to increased costs related to unrealized foreign currency transactions.
Net loss for the quarter was $3,492,883, compared to a net loss of $1,775,797 in the previous year. The increase in net loss is primarily due to the decreased revenue and increased costs.
Cash used in operating activities was $293,463, while cash used in investing and financing activities was $60,526,213 and $264,094, respectively.
Gulf Resources had cash and cash equivalents of $11,237,493 as of September 30, 2024, compared to $72,223,894 as of December 31, 2023.
The filing also details various operational challenges, including the temporary suspension of production at some of its facilities due to government regulations and environmental compliance issues.
The company does not anticipate cash dividend payments to common stockholders in the near future.
Gulf Resources continues to focus on resolving operational issues and improving production efficiency in its bromine and crude salt segments.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Gulf Resources Inc. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.