GULF RESOURCES, INC. Leases Disclosure
NOTE 8 – OPERATING LEASE RIGHT–OF-USE ASSETS
The Company has the rights to use certain parcels of land located in Shouguang, the PRC, through lease agreements signed with local townships or the government authority. For parcels of land that are collectively owned by local townships, the Company cannot obtain land use rights certificates. The parcels of land of which the Company cannot obtain land use rights certificates covers a total of approximately 34.95 square kilometers with an aggregate operating lease right-of-use assets amount of $7,318,031 as at December 31, 2024.
As of December 31, 2024, the total operating lease ROU assets was $6,169,855.
The total operating lease cost for the years ended December 31, 2024 and 2023 was $877,809 and $887,603.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Apr 11, 2025 | Showing above |
| 2023 | Sep 27, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Apr 12, 2022 | |
| 2020 | Apr 8, 2021 | |
| 2019 | Apr 14, 2020 | |
| 2018 | Mar 15, 2019 | |
| 2017 | Mar 16, 2018 | |
| 2016 | Mar 17, 2017 | |
| 2015 | Mar 15, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.