Gulf Resources (GURE) 10-Q 17 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 17, 2021
Cover [Abstract]
Entity Registrant Name	GULF RESOURCES, INC.
Entity Central Index Key	0000885462
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	NV
Entity File Number	001-34499
Entity Common Stock, Shares Outstanding		10,469,477
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Current Assets
Cash	$ 96,699,324	$ 94,222,538
Accounts receivable	4,859,705	6,521,798
Inventories, net	576,607	419,609
Prepayments and deposits	2,449,526	6,146,461
Other receivable	559	559
Total Current Assets	104,585,721	107,310,965
Non-Current Assets
Property, plant and equipment, net	149,966,631	148,947,689
Finance lease right-of use assets	183,550	186,272
Operating lease right-of-use assets	8,662,972	8,868,661
Prepaid land leases, net of current portion	10,063,469	10,134,004
Deferred tax assets	19,131,925	18,590,227
Total Non-Current assets	188,008,547	186,726,853
Total Assets	292,594,268	294,037,818
Current Liabilities
Accounts and other payable and accrued expenses	8,549,889	5,081,701
Taxes payable-current	1,405,772	1,326,179
Finance lease liability, current portion	250,591	217,070
Operating lease liabilities, current portion	317,544	477,350
Total Current Liabilities	10,523,796	7,102,300
Non-Current Liabilities
Finance lease liability, net of current portion	1,875,592	1,888,903
Operating lease liabilities, net of current portion	7,857,421	8,022,342
Total Non-Current Liabilities	9,733,013	9,911,245
Total Liabilities	20,256,809	17,013,545
Commitment and Loss Contingencies
Stockholders Equity
PREFERRED STOCK; $0.001 par value; 1,000,000 shares authorized; none outstanding	0	0
COMMON STOCK; $0.0005 par value; 80,000,000 shares authorized; 10,043,307 shares issued; and 9,997,477 shares outstanding as of March 31, 2021 and December 31, 2020, respectively	24,139	24,139
Treasury stock; 45,830 shares as of March 31, 2021 and December 31, 2020 at cost	(510,329)	(510,329)
Additional paid-in capital	97,435,316	97,435,316
Retained earnings unappropriated	148,886,232	151,388,356
Retained earnings appropriated	24,233,544	24,233,544
Accumulated other comprehensive income	2,268,557	4,453,247
Total Stockholders' Equity	272,337,459	277,024,273
Total Liabilities and Stockholders' Equity	$ 292,594,268	$ 294,037,818

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
PREFERRED STOCK, par or stated value per share	$ .001	$ 0.001
PREFERRED STOCK, shares authorized	1,000,000	1,000,000
PREFERRED STOCK, shares outstanding	0	0
COMMON STOCK, par value per share	$ .0005	$ 0.0005
COMMON STOCK, shares authorized	80,000,000	80,000,000
COMMON STOCK, shares issued	10,043,307	9,997,477
COMMON STOCK, shares outstanding	10,043,307	9,997,477
Treasury stock, shares	45,830	45,830

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
NET REVENUE
Net revenue	$ 5,259,243	$ 557,670
OPERATING EXPENSE
Cost of net revenue	(4,181,389)	(921,320)
Sales, marketing and other operating expenses	(9,545)	(2,243)
Direct labor and factory overheads incurred during plant shutdown	(2,613,483)	(3,610,423)
General and administrative expenses	(1,736,250)	(843,337)
Other operating expense	0	(15,776)
Total Operating Expense	(8,540,667)	(5,393,099)
LOSS FROM OPERATIONS	(3,281,424)	(4,835,429)
OTHER INCOME (EXPENSE)
Interest expense	(36,862)	(35,428)
Interest income	72,453	74,656
LOSS BEFORE TAXES	(3,245,833)	(4,796,201)
INCOME TAX BENEFIT	743,709	1,256,443
NET LOSS	(2,502,124)	(3,539,758)
COMPREHENSIVE LOSS:
NET LOSS	(2,502,124)	(3,539,758)
OTHER COMPREHENSIVE LOSS
Foreign currency translation adjustments	(2,184,690)	(4,515,359)
COMPREHENSIVE LOSS	$ (4,686,814)	$ (8,055,117)
LOSS PER SHARE:
BASIC AND DILUTED	$ (.25)	$ (0.37)
WEIGHTED AVERAGE NUMBER OF SHARES:
BASIC AND DILUTED	9,997,477	9,517,427

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (Unaudited) - USD ($)	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings Unappropriated	Retained Earnings Appropriated	Accumulated Other Comprehensive Income (Loss)	Total
Shares issued at Dec. 31, 2019	9,563,257
Balance, shares at Dec. 31, 2019	9,517,427	45,830
Balance, amount at Dec. 31, 2019	$ 23,904	$ (510,329)	$ 95,043,388	$ 159,808,400	$ 24,233,544	$ (15,491,807)	$ 263,107,100
Translation adjustment						(4,515,359)	(4,515,359)
Net loss				(3,539,758)			(3,539,758)
Shares issued at Mar. 31, 2020	9,563,257
Balance, shares at Mar. 31, 2020	9,517,427	45,830
Balance, amount at Mar. 31, 2020	$ 23,904	$ (510,329)	95,043,388	156,268,642	24,233,544	(20,007,166)	255,051,983
Shares issued at Dec. 31, 2020	10,043,307
Balance, shares at Dec. 31, 2020	9,997,477	45,830
Balance, amount at Dec. 31, 2020	$ 24,139	$ (510,329)	97,435,316	151,388,356	24,233,544	4,453,247	277,024,273
Translation adjustment						(2,184,690)	(2,184,690)
Net loss				(2,502,124)			(2,502,124)
Shares issued at Mar. 31, 2021	10,043,307
Balance, shares at Mar. 31, 2021	9,997,477	45,830
Balance, amount at Mar. 31, 2021	$ 24,139	$ (510,329)	$ 97,435,316	$ 148,886,232	$ 24,233,544	$ 2,268,557	$ 272,337,459

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (2,502,124)	$ (3,539,758)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Interest on capital lease obligation	35,538	35,272
Depreciation and amortization	4,104,357	3,454,891
Unrealized exchange (gain) loss on translation of inter-company balances	104,812	(400,449)
Deferred tax asset	(743,709)	(1,256,443)
Common stock issued for services	0	0
Changes in assets and liabilities:
Accounts receivable	1,637,800	4,245,576
Inventories	(162,099)	523
Prepayments and deposits	(71,888)	54,350
Other receivables	0	0
Accounts and other payable and accrued expenses	830,751	(41,562)
Retention payable	0	0
Taxes payable	72,758	(18,999)
Prepaid land leases	0	(369,066)
Operating leases	35,199	38,022
Net cash provided by operating activities	3,341,395	2,202,357
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of property, plant and equipment	0	(7,416,211)
Net cash used in investing activities	0	(7,416,211)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(864,609)	(1,455,442)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	2,476,786	(6,669,296)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	94,222,538	100,301,986
CASH AND CASH EQUIVALENTS - END OF PERIOD	96,699,324	93,632,690
Cash paid during the period for:
Income taxes	0	0
Operating right-of-use assets obtained in exchange for lease obligations	0	0
SUPPLEMENTAL DISCLOSURE OF CASH NON-CASH INVESTING AND FINANCING ACTIVITIES
Increase in Property, plant and equipment transferred from Prepayment and deposits and included in Accounts and other payable and accrued expenses	$ 6,199,214	$ 0

1. BASIS OF PRESENTATION AND CO

1. BASIS OF PRESENTATION AND CONSOLIDATION	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	(a) Basis of Presentation and Consolidation The accompanying condensed financial statements have been prepared by Gulf Resources, Inc (“Gulf Resources”) a Nevada corporation and its subsidiaries (collectively, the “Company”), without audit, in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of its financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the United States (“US GAAP”). In the opinion of management, the unaudited financial information for the quarter ended March 31, 2021 presented reflects all adjustments, which are only normal and recurring, necessary for a fair statement of results of operations, financial position and cash flows. These condensed financial statements should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. Operating results for the interim periods are not necessarily indicative of operating results for an entire fiscal year. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the financial statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may be different from the estimates. The Company also exercises judgments in the preparation of these condensed financial statements in the areas including classification of leases and related party transactions. The consolidated financial statements include the accounts of Gulf Resources, Inc. and its wholly-owned subsidiary, Upper Class Group Limited, a company incorporated in the British Virgin Islands, which owns 100% of Hong Kong Jiaxing Industrial Limited, a company incorporated in Hong Kong (“HKJI”). HKJI owns 100% of Shouguang City Haoyuan Chemical Company Limited ("SCHC") which owns 100% of Shouguang Yuxin Chemical Industry Co., Limited (“SYCI”) and Daying County Haoyuan Chemical Company Limited (“DCHC”). All material intercompany transactions have been eliminated on consolidation. (b) Nature of the Business The Company manufactures and trades bromine and crude salt through its wholly-owned subsidiary, Shouguang City Haoyuan Chemical Company Limited ("SCHC") in the People’s Republic of China (“PRC”), which is also planning to engage in seawater desalination technology research and service and to handle the import and export of goods and technologies within the scope permitted by the State. The Company also manufactures chemical products for use in the oil industry, pesticides, paper manufacturing industry and for human and animal antibiotics through its wholly-owned subsidiary, Shouguang Yuxin Chemical Industry Co., Limited ("SYCI") in the PRC. DCHC was established to further explore and develop natural gas and brine resources (including bromine and crude salt) in the PRC. DCHC commenced trial operation in January 2019 but suspended production temporarily in May 2019 as required by the government to obtain project approval (see Note 1 (b)(iii) below). On March 11, 2020, the World Health Organization (WHO) officially declared COVID-19 a pandemic. The duration and intensity of the impact of the COVID-19 and resulting disruption to the Company’s operations and financial position is uncertain. While our operations are currently not materially affected, it is unknown whether or how they may be affected if such a pandemic persists for an extended period. While not yet quantifiable, the Company believes this situation did not have a material adverse impact on its operating results in the first quarter of 2021 and will continue to assess the financial impact. The virus outbreak slightly delayed the commencement of the operations for Factory No.1, No.4, No.7, No.9, and it may also delay the approval for the remaining three factories include No.2, No.8 and No.10. It is, however, still unclear how the pandemic will evolve going forward, and we cannot assure you whether the COVID-19 pandemic will bring about significant negative impact on our business operations, financial condition and operating results, including but not limited to negative impact to our total revenues. (i) Bromine and Crude Salt Segments In February 2019, the Company received a notification from the local government of Yangkou County that its Factory No. 1, No. 4, No. 7 and No. 9 passed inspection and could resume operations. In April 2019, Factory No.1, and Factory No.7 resumed operation. On November 25, 2019, the government of Shouguang City issued a notice ordering all bromine facilities in Shouguang City, including the Company’s bromine facilities, including Factory No.1 and Factory No. 7, to temporarily stop production from December 16, 2019 to February 10, 2020. Subsequently, due to the coronavirus outbreak in China, the local government ordered those bromine facilities to postpone the commencement of production. Subsequently, the Company received an approval dated February 27, 2020 issued by the local governmental authority which allowed the Company to resume production after the winter temporary closure. Further, the Company received another approval from the Shouguang Yangkou People’s Government dated March 5, 2020 allowing the Company to resume production at its bromine factories No.1, No. 4, No.7 and No. 9 in order to meet the needs of bromide products for epidemic prevention and control (the “March 2020 Approval”). The Company’s Factories No. 1 and No. 7 commenced trial production in mid-March 2020 and commercial production on April 3, 2020 and its Factories No. 4 and No. 9 commenced commercial production on May 6, 2020. Pursuant to the notification issued on November 24, 2020 from the government of Shouguang City, all bromine facilities in Shouguang City had to be temporarily closed from December 25, 2020 until February 19, 2021 8:00 AM China Time. To comply with such notification, the Company temporarily stopped production at its bromine facilities in factory No. 1, No. 4, No. 7 and No. 9 during the aforesaid period and commenced production as scheduled on February 19, 2021. (ii) Chemical Segment 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 to the Bohai Marine Fine Chemical Industrial Park (“Bohai Park”). This is because the two plants are located in a residential area and their production activities will impact the living environment of the residents. This is as a result of the country’s effort to improve the development of the chemical industry, manage safe production and curb environmental pollution accidents effectively, and ensure the quality of the living environment of residents. All chemical enterprises which do not comply with the requirements of the safety and environmental protection regulations will be ordered to shut down. In December 2017, the Company secured from the government the land use rights for its chemical plants located at the Bohai Park and in June 2018, the Company presented a completed construction design draft and other related docu15ments to the local authorities for approval. In January 2020, the Company obtained the environmental protection assessment approval performed by the government of Shouguang City, Shandong Province for the proposed new Yuxin chemical factory. With this approval, the Company is permitted to construct the new chemical factory and began the construction in the second quarter of 2020. The Company estimates this relocation process will cost approximately $64 million in total. The Company incurred relocation costs comprising prepaid land lease, professional fees related to the design of the new chemical factory, purchase of plant and equipment and construction costs and installation costs incurred for the new chemical factory in the amount of $35,635,297 and $33,496,295, which were recorded in the Property, plant and equipment in the consolidated balance sheets as of March 31, 2021 and December 31, 2020. (iii) Natural Gas Segment In January 2017, the Company completed the first brine water and natural gas well field construction in Daying located in Sichuan Province and commenced trial production in January 2019. On May 29, 2019, the Company received a verbal notice from the government of Tianbao Town ,Daying County, Sichuan Province, whereby the Company is required to obtain project approval for its well located in Daying, including the whole natural gas and brine water project, and approvals for safety production inspection, environmental protection assessment, and to solve the related land issue. Until these approvals have been received, the Company has to temporarily halt trial production at its natural gas well in Daying. In compliance with the Chinese government new policies, the Company is also required to obtain an exploration license and a mining license for bromine and natural gas, respectively. Pursuant to the Opinions of the Ministry of Natural Resources on Several Issues in Promoting the Reform of Mineral Resources Management (Trial) promulgated by the Ministry of Natural Resources of PRC on January 9, 2020, which came into effect on May 1, 2020, privately owned enterprises are allowed to participate in the natural gas production. The Company plans to proceed with its applications for the natural gas and brine project approvals with related government departments until after the governmental planning has been finalized the land and resource planning for Sichuan Province. (c) Allowance for Doubtful Accounts As of March 31, 2021 and December 31, 2020, there were no allowances for doubtful accounts. No allowances for doubtful accounts were charged to the condensed consolidated statements of loss for the three-month periods ended March 31, 2021 and 2020. The Company collected from its accounts receivable an amount of $3,396,688 in April 2021 through May 5, 2021. (d) Concentration of Credit Risk The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and cash and cash equivalents. Substantially all of the Company’s cash and cash equivalents are maintained with financial institutions in the PRC, namely, Industrial and Commercial Bank of China Limited, China Merchants Bank Company Limited and Sichuan Rural Credit Union, which are not insured or otherwise protected. The Company placed $96,699,324 and $94,222,538 with these institutions as of March 31, 2021 and December 31, 2020, respectively. The Company has not experienced any losses in such accounts in the PRC. (e) Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses. Expenditures for new facilities or equipment, and major expenditures for betterment of existing facilities or equipment are capitalized and depreciated using the straight-line method at rates sufficient to depreciate such costs less 5% residual value over the estimated productive lives. All other ordinary repair and maintenance costs are expensed as incurred. Mineral rights are recorded at cost less accumulated depreciation and any impairment losses. Mineral rights are amortized ratably over the term of the lease, or the equivalent term under the units of production method, whichever is shorter. Construction in process primarily represents direct costs of construction of property, plant and equipment. Costs incurred are capitalized and transferred to property, plant and equipment upon completion and depreciation will commence when the completed assets are placed in service. The Company’s depreciation and amortization policies on property, plant and equipment, other than mineral rights and construction in process, are as follows: Useful life (in years) Buildings (including salt pans) 8 - 20 Plant and machinery (including protective shells, transmission channels and ducts) 3 - 8 Motor vehicles 5 Furniture, fixtures and equipment 3-8 Property, plant and equipment under the capital lease are depreciated over their expected useful lives on the same basis as owned assets, or where shorter, the term of the lease. Producing oil and gas properties are depreciated on a unit-of-production basis over the proved developed reserves. Common facilities that are built specifically to service production directly attributed to designated oil and gas properties are depreciated based on the proved developed reserves of the respective oil and gas properties on a pro-rata basis. Common facilities that are not built specifically to service identified oil and gas properties are depreciated using the straight-line method over their estimated useful lives. Costs associated with significant development projects are not depreciated until commercial production commences and the reserves related to those costs are excluded from the calculation of depreciation. (f) Retirement Benefits Pursuant to the relevant laws and regulations in the PRC, the Company participates in a defined contribution retirement plan for its employees arranged by a governmental organization. The Company makes contributions to the retirement plan at the applicable rate based on the employees’ salaries. The required contributions under the retirement plans are charged to the condensed consolidated statement of income on an accrual basis when they are due. The Company’s contributions totaled $246,622 and $140,108 for the three-month periods ended March 31, 2021 and 2020, respectively. (g) Revenue Recognition Net revenue is net of discount and value added tax and comprises the sale of bromine, crude salt and chemical products. Revenue is recognized when the control of the promised goods is transferred to the customers in an amount that reflects the consideration that the Company expects to receive from the customers in exchange for those goods. The acknowledgement of receipt of goods by the customers is when control of the product is deemed to be transferred. Invoicing occurs upon acknowledgement of receipt of the goods by the customers. Customers have no rights to return the goods upon acknowledgement of receipt of goods. Revenue from contracts with customers is disaggregated in Note 14. (h) Recoverability of Long-lived Assets In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10-35 “Impairment or Disposal of Long-lived Assets” The Company determines the existence of such impairment by measuring the expected future cash flows (undiscounted and without interest charges) and comparing such amount to the carrying amount of the assets. An impairment loss, if one exists, is then measured as the amount by which the carrying amount of the asset exceeds the discounted estimated future cash flows. Assets to be disposed of are reported at the lower of the carrying amount or fair value of such assets less costs to sell. Asset impairment charges are recorded to reduce the carrying amount of the long-lived asset that will be sold or disposed of to their estimated fair values. Charges for the asset impairment reduce the carrying amount of the long-lived assets to their estimated salvage value in connection with the decision to dispose of such assets. For the three-month period ended March 31, 2021 and 2020, the Company determined that there were no events or circumstances indicating possible additional impairment of its long-lived assets. (i) Basic and Diluted Net Income per Share of Common Stock Basic earnings per common share are based on the weighted average number of shares outstanding during the periods presented. Diluted earnings per share are computed using weighted average number of common shares plus dilutive common share equivalents outstanding during the period. Potential common shares that would have the effect of increasing diluted earnings per share are considered to be anti-dilutive, i.e. the exercise prices of the outstanding stock options were greater than the market price of the common stock. Anti-dilutive common stock equivalents which were excluded from the calculation of number of dilutive common stock equivalents amounted to 62,704 and 113,370 shares for the three-month periods ended March 31, 2021 and 2020, respectively. Because the Company reported a net loss for the three-month periods ended March 31, 2021 and 2020, common stock equivalents including stock options and warrants were anti-dilutive, therefore the amounts reported for basic and diluted loss per share were the same. (j) Reporting Currency and Translation The financial statements of the Company’s foreign subsidiaries are measured using the local currency, Renminbi (“RMB”), as the functional currency; whereas the functional currency and reporting currency of the Company is the United States dollar (“USD” or “$”). As such, the Company uses the “current rate method” to translate its PRC operations from RMB into USD, as required under FASB ASC 830 “Foreign Currency Matters”. The assets and liabilities of its PRC operations are translated into USD using the rate of exchange prevailing at the balance sheet date. The capital accounts are translated at the historical rate. Adjustments resulting from the translation of the balance sheets of the Company’s PRC subsidiaries are recorded in stockholders’ equity as part of accumulated other comprehensive income. The statement of income and comprehensive income is translated at average rate during the reporting period. Gains or losses resulting from transactions in currencies other than the functional currencies are recognized in net income for the reporting periods as part of general and administrative expense. The statement of cash flows is translated at average rate during the reporting period, with the exception of the consideration paid for the acquisition of business which is translated at historical rates. (k) Foreign Operations All of the Company’s operations and assets are located in PRC. The Company may be adversely affected by possible political or economic events in this country. The effect of these factors cannot be accurately predicted. (l) Inventories. Inventories are stated at the lower of cost, determined on a first-in first-out cost basis, or net realizable value. Costs of work-in-progress and finished goods comprise direct materials, direct labor and an attributable portion of manufacturing overhead. Net realizable value is based on estimated selling price less costs to complete and selling expenses. (m) Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. Finance leases are included in finance lease ROU assets and finance lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease and finance lease ROU assets and liabilities are recognized at January 1, 2019 based on the present value of lease payments over the lease term discounted using the rate implicit in the lease. In cases where the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not recognize operating lease ROU assets and liabilities arising from lease arrangements with lease term of twelve months or less. (n) Stock-based Compensation Stock-based awards issued to employees are recorded at their fair values estimated at grant date using the Black-Scholes model and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period. Consistent with the accounting requirement for employee stock-based awards, nonemployee stock-based awards are measured at the grant-date fair value of the equity instruments that the Company is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. The Company has elected to account for the forfeiture of stock-based awards as they occur. (o) Loss Contingencies The Company accrues for loss contingencies relating to legal matters, including litigation defense costs, claims and other contingent matters, including liquidated damage liabilities, when such liabilities become probable and could be reasonably estimabled. Such estimates may be based on advice from third parties or on management’s judgment, as appropriate. Revisions to accruals are reflected in earnings (loss) in the period in which different facts or information become known or circumstances change that affect the Company’s previous assumptions with respect to the likelihood or amount of loss. Amounts paid upon the ultimate resolution of such liabilities may be materially different from previous estimates . (p) Income Tax The Company accounts for income taxes in accordance with the Income Taxes Topic of the FASB ASC, which requires the use of the liability method of accounting for deferred income taxes. Under this method, deferred income taxes are recorded to reflect the tax consequences on future years of temporary differences between the tax basis of assets and liabilities and their reported amounts at each period end. Deferred tax assets and liabilities are measured using tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The deferred income tax effects of a change in tax rates are recognized in the period of enactment. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. The guidance also provides criteria for the recognition, measurement, presentation and disclosures of uncertain tax positions. A tax benefit from an uncertain tax position may be recognized if it is “more likely than not” that the position is sustainable based solely on its technical merits. Interests and penalties associated with unrecognized tax benefits are included within the (benefit from) provision for income tax in the consolidated statement of profit (loss). (q) New Accounting Pronouncements Recent accounting pronouncements adopted There were no recent accounting pronouncements adopted during the three months ended March 31, 2021. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The amendments in this Update affect loans, debt securities, trade receivables, and any other financial assets that have the contractual right to receive cash. The ASU requires an entity to recognize expected credit losses rather than incurred losses for financial assets. For public entities, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For the Company which is a smaller reporting company, ASU No. 2019-10 extends the effective dates for two years. The Company is currently evaluating the effect of this on the condensed consolidated financial statements and related disclosure.

2. INVENTORIES

2. INVENTORIES	3 Months Ended
	Mar. 31, 2021
Inventory Disclosure [Abstract]
2. INVENTORIES	Inventories consist of: March 31, December 31, Raw materials $ 39,855 $ 21,484 Finished goods 536,752 398,125 $ 576,607 $ 419,609 There was no allowance for slow-moving inventories as of March 31, 2021 and 2020.

3. PREPAID LAND LEASES

3. PREPAID LAND LEASES	3 Months Ended
	Mar. 31, 2021
Prepaid Land Leases
3. PREPAID LAND LEASES	The Company has the rights to use certain parcels of land located in Shouguang, Shandong, PRC, through lease agreements signed with local townships or the government authority. The production facilities and warehouses of the Company are located on these parcels of land. The lease term ranges from ten to fifty years. Some of the lease contracts were paid in one lump sum upfront and some are paid annually at the beginning of each anniversary date. These leases have no purchase option at the end of the lease term and were classified as operating leases prior to and as of January 1, 2019 when the new lease standard was adopted. Prior to January 2019, the prepaid land lease was amortized on a straight line basis. As of January 1, 2019, all the leases in which term has commenced and were in use were classified as operating lease right-of-use assets (“ROU”). See Note 6. In December 2017, the Company paid a one lump sum upfront amount of $9,677,429 for a 50-year lease of a parcel of land at Bohai Marine Fine Chemical Industrial Park (“Bohai”) for the new chemical factory under construction. There is no purchase option at the end of the lease term. This was classified as an operating lease prior to and as of January 1, 2019. The land use certificate was issued on October 25, 2019. The lease term expires on August 12, 2069. The amount paid was recorded as prepaid land leases, net of current portion in the consolidated balance sheet as of March 31 2021 and December 31, 2020. As of March 31, 2021, the prepaid land lease increased to $10,063,469 due to an additional amount paid for stamp duty and related land use rights fees. Amortization of this prepaid land lease will commence when the chemical factory is built and placed in service. In June 2020, the construction of the new chemical factory commenced and is expected to complete around June 2021.

4. PROPERTY, PLANT AND EQUIPMEN

4. PROPERTY, PLANT AND EQUIPMENT, NET	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
4. PROPERTY, PLANT AND EQUIPMENT, NET	Property, plant and equipment, net consist of the following: March 31, December 31, At cost: Mineral rights $ 2,934,951 $ 2,955,780 Buildings 63,573,495 64,024,667 Plant and machinery 256,579,799 258,400,710 Motor vehicles 6,507 6,553 Furniture, fixtures and office equipment 3,295,179 3,318,564 Construction in process 18,127,541 12,095,565 Total 344,517,472 340,801,839 Less: Accumulated depreciation and amortization (176,040,608 ) (173,212,554 ) Impairment (18,510,233 ) (18,641,596 ) Net book value $ 149,966,631 $ 148,947,689 The Company has certain buildings and salt pans erected on parcels of land located in Shouguang, PRC, and such parcels of land are collectively owned by local townships or the government authority. The Company has not been able to obtain property ownership certificates over these buildings and salt pans. The aggregate carrying values of these properties situated on parcels of the land are $18,720,653 and $19,302,600 as at March 31, 2021 and December 31, 2020, respectively. During the three-month period ended March 31, 2021, depreciation and amortization expense totaled $4,102, 929, of which $1,816,782, $163,233 and $2,122,914 were recorded in direct labor and factory overheads incurred during plant shutdown, administrative expenses and cost of net revenue, respectively. During the three-month period ended March 31, 2020, depreciation and amortization expense totaled $3,453,563, of which $2,578,771, $201,406 and $673,386 were recorded in direct labor and factory overheads incurred during plant shutdown, administrative expenses and cost of net revenue, respectively.

5. FINANCE LEASE RIGHT-OF-USE A

5. FINANCE LEASE RIGHT-OF-USE ASSETS	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
5. FINANCE LEASE RIGHT-OF-USE ASSETS	Property, plant and equipment under finance lease, net consist of the following: March 31, December 31, At cost: Buildings $ 125,231 $ 126,120 Plant and machinery 2,290,926 2,307,184 Total 2,416,157 2,433,304 Less: Accumulated depreciation and amortization (2,232,607 ) (2,247,032 ) Net book value $ 183,550 $ 186,272 The above buildings erected on parcels of land located in Shouguang, PRC, are collectively owned by local townships. The Company has not been able to obtain property ownership certificates over these buildings as the Company could not obtain land use rights certificates on the underlying parcels of land. During the three-month period ended March 31, 2021, depreciation and amortization expense totaled $1,428, which was recorded in direct labor and factory overheads incurred during plant shutdown. During the three-month period ended March 31, 2020, depreciation and amortization expense totaled $1,327, which was recorded in direct labor and factory overheads incurred during plant shutdown.

6. OPERATING LEASE RIGHT-OF-USE

6. OPERATING LEASE RIGHT-OF-USE ASSETS	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
6. OPERATING LEASE RIGHT-OF-USE ASSETS	As of March 31, 2021, the total operating lease ROU assets was $8,662,972. The total operating lease cost for the three-month period ended March 31, 2021 and 2020 was $240,150 and $219,687, respectively. 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 38.6 square kilometers of aggregate carrying value of $8,155,820 as at March 31, 2021.

7. ACCOUNTS AND OTHER PAYABLE A

7. ACCOUNTS AND OTHER PAYABLE AND ACCRUED EXPENSES	3 Months Ended
	Mar. 31, 2021
Payables and Accruals [Abstract]
7. ACCOUNTS AND OTHER PAYABLE AND ACCRUED EXPENSES	Accounts and other payable and accrued expenses consist of the following: March 31, December 31, 2021 2020 Accounts payable $ 1,040,950 $ 479,958 Salary payable 318,291 320,549 Social security insurance contribution payable 101,446 49,167 Other payable-related party (see Note 8) 23,738 95,616 Deposit on subscription of a subsidiary’s share 152,180 153,260 Accrued expense-construction 6,296,071 3,537,644 Accrued expense-others 617,213 445,507 Total $ 8,549,889 $ 5,081,701 The deposit on subscription of a subsidiary's share of $152,180 as of March 31, 2021 relates to sale of non-controlling interests in DCHC.

8. RELATED PARTY TRANSACTIONS

8. RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
8. RELATED PARTY TRANSACTIONS	On September 25, 2012, the Company purchased five floors of a commercial building in the PRC, through SYCI, from Shandong Shouguang Vegetable Seed Industry Group Co., Ltd. (the “Seller”) at a cost of approximately $5.7 million in cash, of which Mr. Ming Yang, the Chairman of the Company, had a 99% equity interest in the Seller. During the first quarter of 2018, the Company entered into an agreement with the Seller, a related party, to provide property management services for an annual amount of approximately $94,940 for five years from January 1, 2018 to December 31, 2022. The expense associated with this agreement for the three months ended March 31, 2021 and 2020 was approximately $23,735 and $22,013. The amounting owing for the property management services as of March 31, 2021 and December 31, 2020 was $23,738 and $95,616 (Note 7). The amount owed as of March 31, 2021 is interest-free, unsecured and payable in January 2022.

9. TAXES PAYABLE

9. TAXES PAYABLE	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
9. TAXES PAYABLE	March 31, December 31, 2021 2020 Land use tax payable 827,702 833,576 Value added tax and other taxes payable 578,070 492,603 Land use tax payable $ 1,405,772 $ 1,326,179

10. LEASE LIABILITIES-FINANCE A

10. LEASE LIABILITIES-FINANCE AND OPERATING LEASE	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
10. LEASE LIABILITIES-FINANCE AND OPERATING LEASE	The components of finance lease liabilities were as follows: Imputed March 31, December 31, Interest rate 2020 2020 Total finance lease liability 6.7% $ 2,126,183 $ 2,105,973 Less: Current portion (250,591 ) (217,070 ) Finance lease liability, net of current portion $ 1,875,592 $ 1,888,903 Interest expenses from a finance lease liability amounted to $35,538 and $35,262 for the three-month periods ended March 31, 2021 and 2020, respectively, were charged to the condensed consolidated statement of loss. The remaining finance lease term at March 31, 2020 was 10 years. The components of operating lease liabilities as follows: Imputed March 31, December 31, Interest rate 2021 2020 Total Operating lease liabilities 4.89% $ 8,174,965 $ 8,499,692 Less: Current portion (317,544 ) (477,350 ) Operating lease liabilities, net of current portion $ 7,857,421 $ 8,022,342 The weighted average remaining operating lease term at March 31, 2021 was 21 years and the weighted average discounts rate was 4.89%. This discount rates used are based on the base rate quoted by the People's Bank of China and vary with the remaining term of the lease. Lease payment in the three-months ended March 31, 2021 and 2020 was $204,951 and $181,665. Maturities of lease liabilities were as follows: Financial lease Operating Lease Payable within: the next 12 months $ 285,642 $ 672,669 the next 13 to 24 months 285,642 678,258 the next 25 to 36 months 285,642 677,300 the next 37 to 48 months 285,642 683,280 the next 49 to 60 months 285,642 689,295 thereafter 1,428,210 11,421,886 Total 2,856,420 14,822,688 Less: Amount representing interest (730,237 ) (6,647,723 ) Present value of net minimum lease payments 2,126,183 $ 8,174,965

11. EQUITY

11. EQUITY	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
11. EQUITY	Restricted Shares A restricted stock award (“RSA”) is an award of common shares that is subject to certain restrictions during a specified period. Restricted stock awards are independent of option grants and are generally subject to forfeiture if employment terminates prior to the release of the restrictions. The grantee cannot transfer the shares before the restricted shares vest. Shares of nonvested restricted stock have the same voting rights as common stock, are entitled to receive dividends and other distributions thereon and are considered to be currently issued and outstanding. The Company expenses the cost of the restricted stock awards, which is determined to be the fair market value of the shares at the date of grant, straight-line over the period during which the restrictions lapse. For these purposes, the fair market value of the restricted stock is determined based on the closing price of the Company's common stock on the grant date. Retained Earnings – Appropriated In accordance with the relevant PRC regulations and the PRC subsidiaries’ Articles of Association, the Company’s PRC subsidiaries are required to allocate its profit after tax to the following reserve: Statutory Common Reserve Funds SCHC, SYCI and DCHC are required each year to transfer at least 10% of the profit after tax as reported under the PRC statutory financial statements to the Statutory Common Reserve Funds until the balance reaches 50% of the registered share capital. This reserve can be used to make up any loss incurred or to increase share capital. Except for the reduction of losses incurred, any other application should not result in this reserve balance falling below 25% of the registered capital. The Statutory Common Reserve Fund as of March 31, 2021 for SCHC, SYCI and DCHC is 16%, 14% and 0% of its registered capital respectively.

12. STOCK-BASED COMPENSATION

12. STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
12. STOCK-BASED COMPENSATION	Pursuant to the Company’s 2019 Omnibus Equity Incentive Plan adopted and approved in 2019 (“ 2019 Plan”), awards under the 2019 Plan is limited in the aggregate to 2,068,398 shares of our common stock, inclusive of the awards that were previously issued and outstanding under the Company’s 2007 Equity Incentive Plan, as amended (the “2007 Plan”). Upon adoption and approval of the 2019 Plan, the 2007 Plan was frozen, no new awards will be granted under the 2007 Plan, and outstanding awards under the 2007 Plan will continue to be governed by the terms and condition of the 2007 Plan and applicable award agreement. As of March 31, 2021, the number of shares of the Company’s common stock available for grant of stock options and issuance under the 2019 Plan is 515,648 shares. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. The risk free rate is based on the yield-to-maturity in continuous compounding of the US Government Bonds with the time-to-maturity similar to the expected tenor of the option granted, volatility is based on the annualized historical stock price volatility of the Company, and the expected life is based on the historical option exercise pattern. For the three months ended March 31, 2021 and 2020, total compensation costs for options issued recorded in the consolidated statement of loss were $0. During the three months ended March 31, 2021, there were no options issued to employees or non-employees. The following table summarizes all Company stock option transactions between January 1, 2021 and March 31, 2021. Number of Option Weighted- Average Exercise price of Option Range of Balance, January 1, 2021 121,600 $7.09 $3.57 - $7.27 Granted during the period — — — Exercised during the period — — — Expired during the period — $ — $ — Balance, March 31, 2021 121,600 $7.09 $3.57 - $7.27 Stock Options and Warrants Outstanding and Exercisable Weighted Average Remaining Outstanding at March 31, 2021 Range of Exercise Prices Contractual Life (Years) Outstanding and exercisable 121,600 $3.57 - $7.27 0.41 The aggregate intrinsic value of options outstanding and exercisable as of March 31, 2021 was $4,710. During the three months ended March 31, 2021 and 2020, there were no options exercised.

13. INCOME TAXES

13. INCOME TAXES	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
13. INCOME TAXES	The Company utilizes the asset and liability method of accounting for income taxes in accordance with FASB ASC 740-10. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. (a) United States (“US”) Gulf Resources, Inc. may be subject to the United States of America Tax laws at a tax rate of 21%. No provision for the US federal income taxes has been made as the Company had no US taxable income for the three-month periods ended March 31, 2021 and 2020, and management believes that its earnings are permanently invested in the PRC. (b) British Virgin Islands (“BVI”) Upper Class Group Limited, a subsidiary of Gulf Resources, Inc., was incorporated in the BVI and, under the current laws of the BVI, it is not subject to tax on income or capital gain in the BVI. Upper Class Group Limited did not generate assessable profit for the three-month periods ended March 31, 2021 and 2020. (c) Hong Kong HKJI, a subsidiary of Upper Class Group Limited, was incorporated in Hong Kong and is subject to Hong Kong taxation on its activities conducted in Hong Kong and income arising in or derived from Hong Kong. No provision for income tax has been made as it has no taxable income for the three-month periods ended March 31, 2021 and 2020. The applicable statutory tax rates for the three-month periods ended March 31, 2021 and 2020 are 16.5%. There is no dividend withholding tax in Hong Kong. (d) PRC Enterprise income tax (“EIT”) for SCHC, SYCI and DCHC in the PRC is charged at 25% of the assessable profits. The operating subsidiaries SCHC, SYCI and DCHC are wholly foreign-owned enterprises (“FIE”) incorporated in the PRC and are subject to PRC Local Income Tax Law. The PRC tax losses may be carried forward to be utilized against future taxable profit for ten years for High-tech enterprises and small and medium-sized enterprises of science and technology and for five years for other companies. Tax losses of the operating subsidiaries of the Company may be carried forward for five years. On February 22, 2008, the Ministry of Finance (“MOF”) and the State Administration of Taxation (“SAT”) jointly issued Cai Shui [2008] Circular 1 (“Circular 1”). According to Article 4 of Circular 1, distributions of accumulated profits earned by a FIE prior to January 1, 2008 to foreign investor(s) in 2008 will be exempted from withholding tax (“WHT”) while distribution of the profit earned by an FIE after January 1, 2008 to its foreign investor(s) shall be subject to WHT at 5% effective tax rate. As of March 31, 2021 and December 31, 2020, the accumulated distributable earnings under the Generally Accepted Accounting Principles (GAAP”) of PRC that are subject to WHT are $122,460,382 and $126,643,733, respectively. Since the Company intends to reinvest its earnings to further expand its businesses in mainland China, its foreign invested enterprises do not intend to declare dividends to their immediate foreign holding companies in the foreseeable future. Accordingly, as of March 31, 2021 and December 31, 2020, the Company has not recorded any WHT on the cumulative amount of distributable retained earnings of its foreign invested enterprises that are subject to WHT in China. As of March 31, 2021 and December 31, 2020, the unrecognized WHT are $5,086,534 and $5,288,346, respectively. The Company’s income tax returns are subject to the various tax authorities’ examination. The federal, state and local authorities of the United States may examine the Company’s income tax returns filed in the United States for three years from the date of filing. The Company’s US income tax returns since 2017 are currently subject to examination. Inland Revenue Department of Hong Kong (“IRD”) may examine the Company’s income tax returns filed in Hong Kong for seven years from date of filing. For the years 2012 through 2019, HKJI did not report any taxable income. It did not file any income tax returns during these years except for 2014 and 2018. For companies which do not have taxable income, IRD typically issues notification to companies requiring them to file income tax returns once in every four years. The tax returns for 2014 and 2018 are currently subject to examination. The components of the provision for income tax benefit (expense) from continuing operations are: Three-Month Period Ended March 31, 2021 2020 Current taxes – PRC $ — $ — Deferred tax – PRC entities 743,709 1,256,443 Deferred taxes –US entity 15,957 24,053 Change in valuation allowance (15,957 ) (24,053 ) $ 743,709 $ 1,256,443 The effective income tax benefit differ from the PRC statutory income tax rate of 25% from continuing operations in the PRC as follows: Three-Month Period Ended March 31, Reconciliations 2021 2020 Statutory income tax rate 25 % 25 % Non-taxable & Non-deductible items (1 %) 2 % Change in valuation allowance (1 %) (1 %) Effective income tax benefit (expense) rate 23 % 26 % Significant components of the Company’s deferred tax assets and liabilities at March 31, 2021 and December 31, 2020 are as follows: March 31, December 31, 2021 2020 Deferred tax liabilities $ — $ — Deferred tax assets: Impairment on property, plant and equipment $ 2,712,092 $ 2,907,548 Impairment on prepaid land lease 877,656 883,884 Exploration costs 1,894,641 1,908,087 Compensation costs of unexercised stock options 72,699 74,883 PRC tax losses 22,296,935 21,643,028 US federal net operating loss 1,063,644 1,045,503 Total deferred tax assets 28,917,667 28,462,933 Valuation allowance (9,785,742 ) (9,872,706 ) Net deferred tax asset $ 19,131,925 $ 18,590,227 The decrease in valuation allowance for the three-month period ended March 31, 2021 is $86,964. The increase in valuation allowance for the three-month period ended March 31, 2020 is $128,868. There were no unrecognized tax benefits and accrual for uncertain tax positions as of March 31, 2021 and December 31, 2020 and no amounts accrued for penalties and interest for the three months ended March 31, 2021 and 2020.

14. BUSINESS SEGMENTS

14. BUSINESS SEGMENTS	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
14. BUSINESS SEGMENTS	The Company has four reportable segments: bromine, crude salt, chemical products and natural gas. The reportable segments are consistent with how management views the markets served by the Company and the financial information that is reviewed by its chief operating decision maker. An operating segment’s performance is primarily evaluated based on segment operating income, which excludes share-based compensation expense, certain corporate costs and other income not associated with the operations of the segment. These corporate costs (income) are separately stated below and also include costs that are related to functional areas such as accounting, treasury, information technology, legal, human resources, and internal audit. The Company believes that segment operating income, as defined above, is an appropriate measure for evaluating the operating performance of its segments. All the customers are located in PRC. Three-Month Period Ended March 31, 2021 Bromine * Crude Salt * Chemical Products Natural Gas Segment Total Corporate Total Net revenue $ 4,810,990 $ 448,253 $ — $ — $ 5,259,243 $ — $ 5,259,243 Net revenue — — — — — — — Loss from operations before income benefit (1,279,565 ) (1,009,585 ) (746,469 ) (54,787 ) (3,090,406 ) (191,018 ) (3,281,424 ) Income tax benefit 318,868 252,396 172,445 — 743,709 — 743,709 Loss from operations after income taxes(benefit) (960,697 ) (757,189 ) (574,024 ) (54,787 ) (2,346,697 ) (191,018 ) (2,537,715 ) Total assets 144,744,423 24,170,863 121,760,637 1,875,459 292,551,382 42,886 292,594,268 Depreciation and amortization 2,920,689 1,077,460 68,607 37,601 4,104,357 — 4,104,357 Capital expenditures — — — — — — — Three-Month Period Ended March 31, 2020 Bromine * Crude Salt * Chemical Products Natural Gas Segment Total Corporate Total Net revenue $ 462,846 $ 94,824 $ — $ — $ 557,670 $ — $ 557,670 Net revenue — — — — — — — Income (loss) from operations before income taxes(benefit) (2,866,438 ) (1,513,582 ) (710,909 ) (48,846 ) (5,139,775 ) 304,346 (4,835,429 ) Income tax benefit 717,438 378,396 160,609 — 1,256,443 — 1,256,443 Income (loss) from operations after income taxes(benefit) (2,149,000 ) (1,135,186 ) (550,300 ) (48,846 ) (3,883,332 ) 304,346 (3,578,986 ) Total assets 117,061,540 39,066,713 109,222,446 1,657,769 267,008,468 105,430 267,113,898 Depreciation and amortization 2,197,844 1,108,443 113,484 35,120 3,454,891 — 3,454,891 Capital expenditures 3,157,669 646,752 3,611,790 — 7,416,211 — 7,416,211 * Certain common production overheads, operating and administrative expenses and asset items (mainly cash and certain office equipment) of bromine and crude salt segments in SCHC were split by reference to the average selling price and production volume of respective segment. Three-Month Period Ended March 31, Reconciliations 2021 2020 Total segment operating loss $ (3,090,406 ) $ (5,139,775 ) Corporate costs (86,206 ) (96,103 ) Unrealized gain (loss) on translation of intercompany balance (104,812 ) 400,449 Loss from operations (3,281,424 ) (4,835,429 ) Other income 35,591 39,228 Loss before income taxes $ (3,245,833 ) $ (4,796,201 ) The following table shows the major customers (10% or more) for the three-month period ended March 31, 2021. Number Customer Bromine (000’s) Crude Salt (000’s) Chemical Products (000’s) Total Revenue (000’s) Percentage of Total Revenue (%) 1 Shandong Morui Chemical Company Limited $ 896 $ 169 $ — $ 1,065 20.2 % 2 Shouguang Weidong Chemical Company Limited $ 703 $ 108 $ — $ 811 15.4 % 3 Shandong Brother Technology Limited $ 634 $ 172 $ — $ 806 15.3 % 4 Shandong Shouguang Shenrunfa Ocean Chemical Company Limited $ 672 $ — $ — $ 672 12.8 % 5 Dongying Bomeite Chemical Company Limited $ 565 $ — $ — $ 565 10.7 % The following table shows the major customers (10% or more) for the three-month period ended March 31, 2020. Number Customer Bromine (000’s) Crude Salt (000’s) Chemical Products (000’s) Total Revenue (000’s) Percentage of Total Revenue (%) 1 Shandong Morui Chemical Company Limited $ 70 $ 41 $ — $ 111 20 % 2 Shandong Brother Technology Limited $ 60 $ 36 $ — $ 96 17.1 % 3 Shouguang Weidong Chemical Company Limited $ 65 $ 18 $ — $ 83 14.9 % 4 Dongying Bomeite Chemical Company Limited $ 70 $ — $ — $ 70 12.5 % 5 Shandong Shouguang Shenrunfa Ocean Chemical Company Limited $ 57 $ — $ — $ 57 10.2 % 6 Shouguang JinWang Chemical Company Limited $ 56 $ — $ — $ 56 10 %

15. CUSTOMER CONCENTRATION

15. CUSTOMER CONCENTRATION	3 Months Ended
	Mar. 31, 2021
Risks and Uncertainties [Abstract]
15. CUSTOMER CONCENTRATION	During the three-month period ended March 31, 2021, the Company sold 74.5% of its products to its top five customers. As of March 31, 2021, amounts due from these customers were $3,571,150. During the three-month period ended March 31, 2020, the Company sold 84.8% of its products to its top six customers. As of March 31, 2020, amounts due from these customers were $526,288.

16. MAJOR SUPPLIERS

16. MAJOR SUPPLIERS	3 Months Ended
	Mar. 31, 2021
Major Suppliers
16. MAJOR SUPPLIERS	During the three-month period ended March 31, 2021, the Company purchased 100% of its raw materials from its top five suppliers. As of March 31, 2021, amounts due to those suppliers were $1,040,950. During the three-month period ended March 31, 2020, the Company purchased 100% of its raw materials from its top five suppliers. As of March 31, 2020, amounts due to those suppliers were $53,707.

17. FAIR VALUE OF FINANCIAL INS

17. FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
17. FAIR VALUE OF FINANCIAL INSTRUMENTS	The carrying values of financial instruments, which consist of cash, accounts receivable and accounts payable and other payables, approximate their fair values due to the short-term nature of these instruments. There were no material unrecognized financial assets and liabilities as of March 31, 2021 and December 31, 2020.

18. CAPITAL COMMITMENT AND OTHE

18. CAPITAL COMMITMENT AND OTHER SERVICE CONTRACTUAL OBLIGATIONS	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
18. CAPITAL COMMITMENT AND OTHER SERVICE CONTRACTUAL OBLIGATIONS	The Company has no purchase commitments as of March 31, 2021. The following table sets forth the Company’s contractual obligations as of March 31, 2021: Property Management Fees Capital Expenditure Payable within: the next 12 months $ 94,940 $ 12,391,563 the next 13 to 24 months 94,940 748,433 the next 25 to 36 months — — Total $ 189,880 $ 13,139,996

19. LOSS CONTINGENCIES

19. LOSS CONTINGENCIES	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
19. LOSS CONTINGENCIES	On or about August 3, 2018, written decisions of administration penalty captioned Shou Guo Tu Zi Fa Gao Zi [2018] No. 291, Shou Guo Tu Zi Fa Gao Zi [2018] No. 292, Shou Guo Tu Zi Fa Gao Zi [2018] No. 293, Shou Guo Tu Zi Fa Gao Zi [2018] No. 294, Shou Guo Tu Zi Fa Gao Zi [2018] No. 295 and Shou Guo Tu Zi Fa Gao Zi [2018] No. 296 (together, the “Written Decisions”) were served on Shouguang City Haoyuan Chemical Company Limited (“SCHC”) by Shouguang City Natural Resources and Planning Bureau (the “Bureau”), naming SCHC as respondent respectively thereof. The Decisions challenged the land use of Factory nos. 2, 9, 7, 4, 8 and 10, respectively, and alleged, among other things, that SCHC had illegally occupied and used the land in the total area of approximately 52,674 square meter, on which Factory nos. 2, 9, 7, 4, 8 and 10 were built, respectively. The Written Decisions ordered SCHC, among other things, to return the land subject to the Written Decisions to its respective legal owner, restore the land to its original state, and demolish or confiscate all the buildings and facilities thereon and pay monetary penalty of approximately RMB 1.3 million ($184,000) in the aggregate. Each of the Written Decisions shall be executed within 15 days upon serving on SCHC. Additional interest penalty shall be imposed at a daily rate of 3% in the event that SCHC does not make the monetary penalty payment in a timely manner. Subsequently, the Bureau filed enforcement actions to the People’s Court of Shouguang City, Shandong Province (the “Court”), naming SCHC as enforcement respondent and alleged, among other things, that SCHC failed to perform its obligations under each of the Written Decisions within the specified timeframe. The enforcement proceedings sought court orders to enforce the Written Decisions. On May 5, 2019, written decisions of administrative ruling captioned (2019) Lu 0783 Xing Shen No. 384, (2019) Lu 0783 Xing Shen No. 385, (2019) Lu 0783 Xing Shen No. 389, (2019) Lu 0783 Xing Shen No. 390, (2019) Lu 0783 Xing Shen No. 393, and (2019) Lu 0783 Xing Shen No. 394, respectively (together, the “Court Rulings”) were made by the Court in favor of the Bureau. The Court orders, among other relief, to enforce each of the Written Decisions, to return each subject land to its legal owners and demolish or confiscate the buildings and facilities thereon and restore the land to its original state within 10 days from the service of the Court Rulings on SCHC. The Court Rulings became enforceable immediately upon service on SCHC on May 5, 2019. In the last twenty years, to the Company’s knowledge, there were no government regulations requiring bromine manufacturers to obtain land use and planning approval document. As such, the Company believes most of the bromine manufacturers in Shouguang City do not have land use and planning approval documents and lease their land parcels from the village associations. They are facing the same issues in connection with land use and planning as the Company. To the Company’s knowledge, the local government has submitted its plan to solve the issues to higher authority and are waiting for approval from the higher authority. The Company is in the process of resolving the issues in connection with SCHC’s land use and planning diligently. The Company has been in discussions closely with the local government authorities with the help from Shouguang City Bromine Association to seek reliefs and, based on verbal confirmation by local government authorities, believes the administrative penalties imposed by the Bureau according to the Written Decisions are being re-assessed by local government authorities and may be revoked. Pursuant to a Written Application dated October 28, 2019 addressed to the Court by the Bureau, the Bureau withdrew its application for the enforcement proceedings regarding the administrative penalty imposed on Factory No. 7, Factory No. 8 and Factory No.10. Pursuant to a written decisions of administrative ruling captioned (2019) Lu 0783 Xing Shen No. 389 Zhi Yi, dated November 25, 2020, the Court orders to terminate the enforcement of the case captioned (2019) Lu 0783 Xing Shen No. 389. Production of Factory No. 7 was allowed to resume in April 2019. The Company received a notification from the Shouguang City Government in February 2019 informing the Company that Factory No. 1, No.4, No. 7 and No. 9 have passed inspection and were approved to resume operation. In addition, on August 28, 2019, the People’s Government of Shandong Province, issued a regulation titled “Investment Project Management Requirements of Chemical Companies in Shandong Province” permitting the construction of facilities on existing sites or infrastructure of bromine manufacturing and other chemical industry-related types of projects (clause 11 of section 3). The Company believes that the goal of the government is to standardize and regulate the industry and not to demolish the facilities or penalize the manufacturers. As of the date of this report, the Company has not been notified by the local government that it will take any measure to enforce the administrative penalties. Based on information known to date, the Company believes that it is remote that the Written Decisions or Court Rulings will be enforced within the expected timeframe and a material penalty or costs and expenses against the Company will result. However, there can be no assurance that there will not be any further enforcement action, the occurrence of which may result in further liabilities, penalties and operational disruption. In view of the above facts and circumstances, the Company believes that it is not necessary to accrue for any estimated losses or impairment as of March 31, 2021.

20. SUBSEQUENT EVENT

20. SUBSEQUENT EVENT	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
20. SUBSEQUENT EVENT	On April 26, 2021, the Company entered into an agreement with its officers and employees, pursuant to which the options to purchase 115,600 shares of our common stock granted on August 23, 2017 were cancelled. On May 10, 2021, the Company entered into restricted stock agreements with its consultant, officers, directors and employees, pursuant to which the Company issued a total of 472,000 restricted shares of common stock of the Company, par value $0.0005 per share under the Company’s 2019 Omnibus Equity Incentive Plan.

1. BASIS OF PRESENTATION AND _2

1. BASIS OF PRESENTATION AND CONSOLIDATION (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	The accompanying condensed financial statements have been prepared by Gulf Resources, Inc (“Gulf Resources”) a Nevada corporation and its subsidiaries (collectively, the “Company”), without audit, in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of its financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the United States (“US GAAP”). In the opinion of management, the unaudited financial information for the quarter ended March 31, 2021 presented reflects all adjustments, which are only normal and recurring, necessary for a fair statement of results of operations, financial position and cash flows. These condensed financial statements should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. Operating results for the interim periods are not necessarily indicative of operating results for an entire fiscal year. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the financial statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may be different from the estimates. The Company also exercises judgments in the preparation of these condensed financial statements in the areas including classification of leases and related party transactions. The consolidated financial statements include the accounts of Gulf Resources, Inc. and its wholly-owned subsidiary, Upper Class Group Limited, a company incorporated in the British Virgin Islands, which owns 100% of Hong Kong Jiaxing Industrial Limited, a company incorporated in Hong Kong (“HKJI”). HKJI owns 100% of Shouguang City Haoyuan Chemical Company Limited ("SCHC") which owns 100% of Shouguang Yuxin Chemical Industry Co., Limited (“SYCI”) and Daying County Haoyuan Chemical Company Limited (“DCHC”). All material intercompany transactions have been eliminated on consolidation.
Nature of the Business	The Company manufactures and trades bromine and crude salt through its wholly-owned subsidiary, Shouguang City Haoyuan Chemical Company Limited ("SCHC") in the People’s Republic of China (“PRC”), which is also planning to engage in seawater desalination technology research and service and to handle the import and export of goods and technologies within the scope permitted by the State. The Company also manufactures chemical products for use in the oil industry, pesticides, paper manufacturing industry and for human and animal antibiotics through its wholly-owned subsidiary, Shouguang Yuxin Chemical Industry Co., Limited ("SYCI") in the PRC. DCHC was established to further explore and develop natural gas and brine resources (including bromine and crude salt) in the PRC. DCHC commenced trial operation in January 2019 but suspended production temporarily in May 2019 as required by the government to obtain project approval (see Note 1 (b)(iii) below). On March 11, 2020, the World Health Organization (WHO) officially declared COVID-19 a pandemic. The duration and intensity of the impact of the COVID-19 and resulting disruption to the Company’s operations and financial position is uncertain. While our operations are currently not materially affected, it is unknown whether or how they may be affected if such a pandemic persists for an extended period. While not yet quantifiable, the Company believes this situation did not have a material adverse impact on its operating results in the first quarter of 2021 and will continue to assess the financial impact. The virus outbreak slightly delayed the commencement of the operations for Factory No.1, No.4, No.7, No.9, and it may also delay the approval for the remaining three factories include No.2, No.8 and No.10. It is, however, still unclear how the pandemic will evolve going forward, and we cannot assure you whether the COVID-19 pandemic will bring about significant negative impact on our business operations, financial condition and operating results, including but not limited to negative impact to our total revenues. (i) Bromine and Crude Salt Segments In February 2019, the Company received a notification from the local government of Yangkou County that its Factory No. 1, No. 4, No. 7 and No. 9 passed inspection and could resume operations. In April 2019, Factory No.1, and Factory No.7 resumed operation. On November 25, 2019, the government of Shouguang City issued a notice ordering all bromine facilities in Shouguang City, including the Company’s bromine facilities, including Factory No.1 and Factory No. 7, to temporarily stop production from December 16, 2019 to February 10, 2020. Subsequently, due to the coronavirus outbreak in China, the local government ordered those bromine facilities to postpone the commencement of production. Subsequently, the Company received an approval dated February 27, 2020 issued by the local governmental authority which allowed the Company to resume production after the winter temporary closure. Further, the Company received another approval from the Shouguang Yangkou People’s Government dated March 5, 2020 allowing the Company to resume production at its bromine factories No.1, No. 4, No.7 and No. 9 in order to meet the needs of bromide products for epidemic prevention and control (the “March 2020 Approval”). The Company’s Factories No. 1 and No. 7 commenced trial production in mid-March 2020 and commercial production on April 3, 2020 and its Factories No. 4 and No. 9 commenced commercial production on May 6, 2020. Pursuant to the notification issued on November 24, 2020 from the government of Shouguang City, all bromine facilities in Shouguang City had to be temporarily closed from December 25, 2020 until February 19, 2021 8:00 AM China Time. To comply with such notification, the Company temporarily stopped production at its bromine facilities in factory No. 1, No. 4, No. 7 and No. 9 during the aforesaid period and commenced production as scheduled on February 19, 2021. (ii) Chemical Segment 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 to the Bohai Marine Fine Chemical Industrial Park (“Bohai Park”). This is because the two plants are located in a residential area and their production activities will impact the living environment of the residents. This is as a result of the country’s effort to improve the development of the chemical industry, manage safe production and curb environmental pollution accidents effectively, and ensure the quality of the living environment of residents. All chemical enterprises which do not comply with the requirements of the safety and environmental protection regulations will be ordered to shut down. In December 2017, the Company secured from the government the land use rights for its chemical plants located at the Bohai Park and in June 2018, the Company presented a completed construction design draft and other related docu15ments to the local authorities for approval. In January 2020, the Company obtained the environmental protection assessment approval performed by the government of Shouguang City, Shandong Province for the proposed new Yuxin chemical factory. With this approval, the Company is permitted to construct the new chemical factory and began the construction in the second quarter of 2020. The Company estimates this relocation process will cost approximately $64 million in total. The Company incurred relocation costs comprising prepaid land lease, professional fees related to the design of the new chemical factory, purchase of plant and equipment and construction costs and installation costs incurred for the new chemical factory in the amount of $35,635,297 and $33,496,295, which were recorded in the Property, plant and equipment in the consolidated balance sheets as of March 31, 2021 and December 31, 2020. (iii) Natural Gas Segment In January 2017, the Company completed the first brine water and natural gas well field construction in Daying located in Sichuan Province and commenced trial production in January 2019. On May 29, 2019, the Company received a verbal notice from the government of Tianbao Town ,Daying County, Sichuan Province, whereby the Company is required to obtain project approval for its well located in Daying, including the whole natural gas and brine water project, and approvals for safety production inspection, environmental protection assessment, and to solve the related land issue. Until these approvals have been received, the Company has to temporarily halt trial production at its natural gas well in Daying. In compliance with the Chinese government new policies, the Company is also required to obtain an exploration license and a mining license for bromine and natural gas, respectively. Pursuant to the Opinions of the Ministry of Natural Resources on Several Issues in Promoting the Reform of Mineral Resources Management (Trial) promulgated by the Ministry of Natural Resources of PRC on January 9, 2020, which came into effect on May 1, 2020, privately owned enterprises are allowed to participate in the natural gas production. The Company plans to proceed with its applications for the natural gas and brine project approvals with related government departments until after the governmental planning has been finalized the land and resource planning for Sichuan Province.
Allowance for Doubtful Accounts	As of March 31, 2021 and December 31, 2020, there were no allowances for doubtful accounts. No allowances for doubtful accounts were charged to the condensed consolidated statements of loss for the three-month periods ended March 31, 2021 and 2020. The Company collected from its accounts receivable an amount of $3,396,688 in April 2021 through May 5, 2021.
Concentration of Credit Risk	The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and cash and cash equivalents. Substantially all of the Company’s cash and cash equivalents are maintained with financial institutions in the PRC, namely, Industrial and Commercial Bank of China Limited, China Merchants Bank Company Limited and Sichuan Rural Credit Union, which are not insured or otherwise protected. The Company placed $96,699,324 and $94,222,538 with these institutions as of March 31, 2021 and December 31, 2020, respectively. The Company has not experienced any losses in such accounts in the PRC.
Property, Plant and Equipment	Property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses. Expenditures for new facilities or equipment, and major expenditures for betterment of existing facilities or equipment are capitalized and depreciated using the straight-line method at rates sufficient to depreciate such costs less 5% residual value over the estimated productive lives. All other ordinary repair and maintenance costs are expensed as incurred. Mineral rights are recorded at cost less accumulated depreciation and any impairment losses. Mineral rights are amortized ratably over the term of the lease, or the equivalent term under the units of production method, whichever is shorter. Construction in process primarily represents direct costs of construction of property, plant and equipment. Costs incurred are capitalized and transferred to property, plant and equipment upon completion and depreciation will commence when the completed assets are placed in service. The Company’s depreciation and amortization policies on property, plant and equipment, other than mineral rights and construction in process, are as follows: Useful life (in years) Buildings (including salt pans) 8 - 20 Plant and machinery (including protective shells, transmission channels and ducts) 3 - 8 Motor vehicles 5 Furniture, fixtures and equipment 3-8 Property, plant and equipment under the capital lease are depreciated over their expected useful lives on the same basis as owned assets, or where shorter, the term of the lease. Producing oil and gas properties are depreciated on a unit-of-production basis over the proved developed reserves. Common facilities that are built specifically to service production directly attributed to designated oil and gas properties are depreciated based on the proved developed reserves of the respective oil and gas properties on a pro-rata basis. Common facilities that are not built specifically to service identified oil and gas properties are depreciated using the straight-line method over their estimated useful lives. Costs associated with significant development projects are not depreciated until commercial production commences and the reserves related to those costs are excluded from the calculation of depreciation.
Retirement Benefits	Pursuant to the relevant laws and regulations in the PRC, the Company participates in a defined contribution retirement plan for its employees arranged by a governmental organization. The Company makes contributions to the retirement plan at the applicable rate based on the employees’ salaries. The required contributions under the retirement plans are charged to the condensed consolidated statement of income on an accrual basis when they are due. The Company’s contributions totaled $246,622 and $140,108 for the three-month periods ended March 31, 2021 and 2020, respectively.
Revenue Recognition	Net revenue is net of discount and value added tax and comprises the sale of bromine, crude salt and chemical products. Revenue is recognized when the control of the promised goods is transferred to the customers in an amount that reflects the consideration that the Company expects to receive from the customers in exchange for those goods. The acknowledgement of receipt of goods by the customers is when control of the product is deemed to be transferred. Invoicing occurs upon acknowledgement of receipt of the goods by the customers. Customers have no rights to return the goods upon acknowledgement of receipt of goods. Revenue from contracts with customers is disaggregated in Note 14.
Recoverability of Long-lived Assets	In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10-35 “Impairment or Disposal of Long-lived Assets” The Company determines the existence of such impairment by measuring the expected future cash flows (undiscounted and without interest charges) and comparing such amount to the carrying amount of the assets. An impairment loss, if one exists, is then measured as the amount by which the carrying amount of the asset exceeds the discounted estimated future cash flows. Assets to be disposed of are reported at the lower of the carrying amount or fair value of such assets less costs to sell. Asset impairment charges are recorded to reduce the carrying amount of the long-lived asset that will be sold or disposed of to their estimated fair values. Charges for the asset impairment reduce the carrying amount of the long-lived assets to their estimated salvage value in connection with the decision to dispose of such assets. For the three-month period ended March 31, 2021 and 2020, the Company determined that there were no events or circumstances indicating possible additional impairment of its long-lived assets.
Basic and Diluted Earnings per Share of Common Stock	Basic earnings per common share are based on the weighted average number of shares outstanding during the periods presented. Diluted earnings per share are computed using weighted average number of common shares plus dilutive common share equivalents outstanding during the period. Potential common shares that would have the effect of increasing diluted earnings per share are considered to be anti-dilutive, i.e. the exercise prices of the outstanding stock options were greater than the market price of the common stock. Anti-dilutive common stock equivalents which were excluded from the calculation of number of dilutive common stock equivalents amounted to 62,704 and 113,370 shares for the three-month periods ended March 31, 2021 and 2020, respectively. Because the Company reported a net loss for the three-month periods ended March 31, 2021 and 2020, common stock equivalents including stock options and warrants were anti-dilutive, therefore the amounts reported for basic and diluted loss per share were the same.
Reporting Currency and Translation	The financial statements of the Company’s foreign subsidiaries are measured using the local currency, Renminbi (“RMB”), as the functional currency; whereas the functional currency and reporting currency of the Company is the United States dollar (“USD” or “$”). As such, the Company uses the “current rate method” to translate its PRC operations from RMB into USD, as required under FASB ASC 830 “Foreign Currency Matters”. The assets and liabilities of its PRC operations are translated into USD using the rate of exchange prevailing at the balance sheet date. The capital accounts are translated at the historical rate. Adjustments resulting from the translation of the balance sheets of the Company’s PRC subsidiaries are recorded in stockholders’ equity as part of accumulated other comprehensive income. The statement of income and comprehensive income is translated at average rate during the reporting period. Gains or losses resulting from transactions in currencies other than the functional currencies are recognized in net income for the reporting periods as part of general and administrative expense. The statement of cash flows is translated at average rate during the reporting period, with the exception of the consideration paid for the acquisition of business which is translated at historical rates.
Foreign Operations	All of the Company’s operations and assets are located in PRC. The Company may be adversely affected by possible political or economic events in this country. The effect of these factors cannot be accurately predicted.
Inventories	Inventories are stated at the lower of cost, determined on a first-in first-out cost basis, or net realizable value. Costs of work-in-progress and finished goods comprise direct materials, direct labor and an attributable portion of manufacturing overhead. Net realizable value is based on estimated selling price less costs to complete and selling expenses.
Leases	The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. Finance leases are included in finance lease ROU assets and finance lease liabilities in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease and finance lease ROU assets and liabilities are recognized at January 1, 2019 based on the present value of lease payments over the lease term discounted using the rate implicit in the lease. In cases where the implicit rate is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not recognize operating lease ROU assets and liabilities arising from lease arrangements with lease term of twelve months or less.
Stock-based Compensation	Stock-based awards issued to employees are recorded at their fair values estimated at grant date using the Black-Scholes model and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period. Consistent with the accounting requirement for employee stock-based awards, nonemployee stock-based awards are measured at the grant-date fair value of the equity instruments that the Company is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. The Company has elected to account for the forfeiture of stock-based awards as they occur.
Loss Contingencies	The Company accrues for loss contingencies relating to legal matters, including litigation defense costs, claims and other contingent matters, including liquidated damage liabilities, when such liabilities become probable and could be reasonably estimabled. Such estimates may be based on advice from third parties or on management’s judgment, as appropriate. Revisions to accruals are reflected in earnings (loss) in the period in which different facts or information become known or circumstances change that affect the Company’s previous assumptions with respect to the likelihood or amount of loss. Amounts paid upon the ultimate resolution of such liabilities may be materially different from previous estimates .
Income Tax	The Company accounts for income taxes in accordance with the Income Taxes Topic of the FASB ASC, which requires the use of the liability method of accounting for deferred income taxes. Under this method, deferred income taxes are recorded to reflect the tax consequences on future years of temporary differences between the tax basis of assets and liabilities and their reported amounts at each period end. Deferred tax assets and liabilities are measured using tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The deferred income tax effects of a change in tax rates are recognized in the period of enactment. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. The guidance also provides criteria for the recognition, measurement, presentation and disclosures of uncertain tax positions. A tax benefit from an uncertain tax position may be recognized if it is “more likely than not” that the position is sustainable based solely on its technical merits. Interests and penalties associated with unrecognized tax benefits are included within the (benefit from) provision for income tax in the consolidated statement of profit (loss).
New Accounting Pronouncements	Recent accounting pronouncements adopted There were no recent accounting pronouncements adopted during the three months ended March 31, 2021. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The amendments in this Update affect loans, debt securities, trade receivables, and any other financial assets that have the contractual right to receive cash. The ASU requires an entity to recognize expected credit losses rather than incurred losses for financial assets. For public entities, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For the Company which is a smaller reporting company, ASU No. 2019-10 extends the effective dates for two years. The Company is currently evaluating the effect of this on the condensed consolidated financial statements and related disclosure.

1. BASIS OF PRESENTATION AND _3

1. BASIS OF PRESENTATION AND CONSOLIDATION (Tables)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Property plant and equipment useful life	Useful life (in years) Buildings (including salt pans) 8 - 20 Plant and machinery (including protective shells, transmission channels and ducts) 3 - 8 Motor vehicles 5 Furniture, fixtures and equipment 3-8

2. INVENTORIES (Tables)

2. INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2021
Inventory Disclosure [Abstract]
Inventories	March 31, December 31, Raw materials $ 39,855 $ 21,484 Finished goods 536,752 398,125 $ 576,607 $ 419,609

4. PROPERTY, PLANT AND EQUIPM_2

4. PROPERTY, PLANT AND EQUIPMENT, NET (Tables)	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Property, plant and equipment	March 31, December 31, At cost: Mineral rights $ 2,934,951 $ 2,955,780 Buildings 63,573,495 64,024,667 Plant and machinery 256,579,799 258,400,710 Motor vehicles 6,507 6,553 Furniture, fixtures and office equipment 3,295,179 3,318,564 Construction in process 18,127,541 12,095,565 Total 344,517,472 340,801,839 Less: Accumulated depreciation and amortization (176,040,608 ) (173,212,554 ) Impairment (18,510,233 ) (18,641,596 ) Net book value $ 149,966,631 $ 148,947,689

5. FINANCE LEASE RIGHT-OF-USE_2

5. FINANCE LEASE RIGHT-OF-USE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
Property, plant and equipment under capital leases	March 31, December 31, At cost: Buildings $ 125,231 $ 126,120 Plant and machinery 2,290,926 2,307,184 Total 2,416,157 2,433,304 Less: Accumulated depreciation and amortization (2,232,607 ) (2,247,032 ) Net book value $ 183,550 $ 186,272

7. ACCOUNTS AND OTHER PAYABLE_2

7. ACCOUNTS AND OTHER PAYABLE AND ACCRUED EXPENSE (Tables)	3 Months Ended
	Mar. 31, 2021
Payables and Accruals [Abstract]
Accounts and other payable and accrued expenses	March 31, December 31, 2021 2020 Accounts payable $ 1,040,950 $ 479,958 Salary payable 318,291 320,549 Social security insurance contribution payable 101,446 49,167 Other payable-related party (see Note 8) 23,738 95,616 Deposit on subscription of a subsidiary’s share 152,180 153,260 Accrued expense-construction 6,296,071 3,537,644 Accrued expense-others 617,213 445,507 Total $ 8,549,889 $ 5,081,701

9. TAXES PAYABLE (Tables)

9. TAXES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Taxes payable	March 31, December 31, 2021 2020 Land use tax payable 827,702 833,576 Value added tax and other taxes payable 578,070 492,603 Land use tax payable $ 1,405,772 $ 1,326,179

10. LEASE LIABILITIES-FINANCE_2

10. LEASE LIABILITIES-FINANCE AND OPERATING LEASE (Tables)	3 Months Ended
	Mar. 31, 2021
Leases [Abstract]
Finance lease liabilities	Imputed March 31, December 31, Interest rate 2020 2020 Total finance lease liability 6.7% $ 2,126,183 $ 2,105,973 Less: Current portion (250,591 ) (217,070 ) Finance lease liability, net of current portion $ 1,875,592 $ 1,888,903
Operating lease liabilities	Imputed March 31, December 31, Interest rate 2021 2020 Total Operating lease liabilities 4.89% $ 8,174,965 $ 8,499,692 Less: Current portion (317,544 ) (477,350 ) Operating lease liabilities, net of current portion $ 7,857,421 $ 8,022,342
Maturities of lease liabilities	Financial lease Operating Lease Payable within: the next 12 months $ 285,642 $ 672,669 the next 13 to 24 months 285,642 678,258 the next 25 to 36 months 285,642 677,300 the next 37 to 48 months 285,642 683,280 the next 49 to 60 months 285,642 689,295 thereafter 1,428,210 11,421,886 Total 2,856,420 14,822,688 Less: Amount representing interest (730,237 ) (6,647,723 ) Present value of net minimum lease payments 2,126,183 $ 8,174,965

12. STOCK-BASED COMPENSATION (T

12. STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Stock option transactions	Number of Option Weighted- Average Exercise price of Option Range of Balance, January 1, 2021 121,600 $7.09 $3.57 - $7.27 Granted during the period — — — Exercised during the period — — — Expired during the period — $ — $ — Balance, March 31, 2021 121,600 $7.09 $3.57 - $7.27
Stock and warrants options outstanding	Stock Options and Warrants Outstanding and Exercisable Weighted Average Remaining Outstanding at March 31, 2021 Range of Exercise Prices Contractual Life (Years) Outstanding and exercisable 121,600 $3.57 - $7.27 0.41

13. INCOME TAXES (Tables)

13. INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Components of the provision for income taxes	Three-Month Period Ended March 31, 2021 2020 Current taxes – PRC $ — $ — Deferred tax – PRC entities 743,709 1,256,443 Deferred taxes –US entity 15,957 24,053 Change in valuation allowance (15,957 ) (24,053 ) $ 743,709 $ 1,256,443
Income tax expenses reconciliation	Three-Month Period Ended March 31, Reconciliations 2021 2020 Statutory income tax rate 25 % 25 % Non-taxable & Non-deductible items (1 %) 2 % Change in valuation allowance (1 %) (1 %) Effective income tax benefit (expense) rate 23 % 26 %
Deferred tax assets and liabilities	March 31, December 31, 2021 2020 Deferred tax liabilities $ — $ — Deferred tax assets: Impairment on property, plant and equipment $ 2,712,092 $ 2,907,548 Impairment on prepaid land lease 877,656 883,884 Exploration costs 1,894,641 1,908,087 Compensation costs of unexercised stock options 72,699 74,883 PRC tax losses 22,296,935 21,643,028 US federal net operating loss 1,063,644 1,045,503 Total deferred tax assets 28,917,667 28,462,933 Valuation allowance (9,785,742 ) (9,872,706 ) Net deferred tax asset $ 19,131,925 $ 18,590,227

14. BUSINESS SEGMENTS (Tables)

14. BUSINESS SEGMENTS (Tables)	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
Segment operating income	Three-Month Period Ended March 31, 2021 Bromine * Crude Salt * Chemical Products Natural Gas Segment Total Corporate Total Net revenue $ 4,810,990 $ 448,253 $ — $ — $ 5,259,243 $ — $ 5,259,243 Net revenue — — — — — — — Loss from operations before income benefit (1,279,565 ) (1,009,585 ) (746,469 ) (54,787 ) (3,090,406 ) (191,018 ) (3,281,424 ) Income tax benefit 318,868 252,396 172,445 — 743,709 — 743,709 Loss from operations after income taxes(benefit) (960,697 ) (757,189 ) (574,024 ) (54,787 ) (2,346,697 ) (191,018 ) (2,537,715 ) Total assets 144,744,423 24,170,863 121,760,637 1,875,459 292,551,382 42,886 292,594,268 Depreciation and amortization 2,920,689 1,077,460 68,607 37,601 4,104,357 — 4,104,357 Capital expenditures — — — — — — — Three-Month Period Ended March 31, 2020 Bromine * Crude Salt * Chemical Products Natural Gas Segment Total Corporate Total Net revenue $ 462,846 $ 94,824 $ — $ — $ 557,670 $ — $ 557,670 Net revenue — — — — — — — Income (loss) from operations before income taxes(benefit) (2,866,438 ) (1,513,582 ) (710,909 ) (48,846 ) (5,139,775 ) 304,346 (4,835,429 ) Income tax benefit 717,438 378,396 160,609 — 1,256,443 — 1,256,443 Income (loss) from operations after income taxes(benefit) (2,149,000 ) (1,135,186 ) (550,300 ) (48,846 ) (3,883,332 ) 304,346 (3,578,986 ) Total assets 117,061,540 39,066,713 109,222,446 1,657,769 267,008,468 105,430 267,113,898 Depreciation and amortization 2,197,844 1,108,443 113,484 35,120 3,454,891 — 3,454,891 Capital expenditures 3,157,669 646,752 3,611,790 — 7,416,211 — 7,416,211 * Certain common production overheads, operating and administrative expenses and asset items (mainly cash and certain office equipment) of bromine and crude salt segments in SCHC were split by reference to the average selling price and production volume of respective segment.
Segment costs	Three-Month Period Ended March 31, Reconciliations 2021 2020 Total segment operating loss $ (3,090,406 ) $ (5,139,775 ) Corporate costs (86,206 ) (96,103 ) Unrealized gain (loss) on translation of intercompany balance (104,812 ) 400,449 Loss from operations (3,281,424 ) (4,835,429 ) Other income 35,591 39,228 Loss before income taxes $ (3,245,833 ) $ (4,796,201 )
Major customers	The following table shows the major customers (10% or more) for the three-month period ended March 31, 2021. Number Customer Bromine (000’s) Crude Salt (000’s) Chemical Products (000’s) Total Revenue (000’s) Percentage of Total Revenue (%) 1 Shandong Morui Chemical Company Limited $ 896 $ 169 $ — $ 1,065 20.2 % 2 Shouguang Weidong Chemical Company Limited $ 703 $ 108 $ — $ 811 15.4 % 3 Shandong Brother Technology Limited $ 634 $ 172 $ — $ 806 15.3 % 4 Shandong Shouguang Shenrunfa Ocean Chemical Company Limited $ 672 $ — $ — $ 672 12.8 % 5 Dongying Bomeite Chemical Company Limited $ 565 $ — $ — $ 565 10.7 % The following table shows the major customers (10% or more) for the three-month period ended March 31, 2020. Number Customer Bromine (000’s) Crude Salt (000’s) Chemical Products (000’s) Total Revenue (000’s) Percentage of Total Revenue (%) 1 Shandong Morui Chemical Company Limited $ 70 $ 41 $ — $ 111 20 % 2 Shandong Brother Technology Limited $ 60 $ 36 $ — $ 96 17.1 % 3 Shouguang Weidong Chemical Company Limited $ 65 $ 18 $ — $ 83 14.9 % 4 Dongying Bomeite Chemical Company Limited $ 70 $ — $ — $ 70 12.5 % 5 Shandong Shouguang Shenrunfa Ocean Chemical Company Limited $ 57 $ — $ — $ 57 10.2 % 6 Shouguang JinWang Chemical Company Limited $ 56 $ — $ — $ 56 10 %

18. CAPITAL COMMITMENT AND OT_2

18. CAPITAL COMMITMENT AND OTHER SERVICE CONTRACTUAL OBLIGATIONS (Tables)	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Contractual obligations	Property Management Fees Capital Expenditure Payable within: the next 12 months $ 94,940 $ 12,391,563 the next 13 to 24 months 94,940 748,433 the next 25 to 36 months — — Total $ 189,880 $ 13,139,996

1. BASIS OF PRESENTATION AND SU

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended
	Mar. 31, 2021
Building (Including Salt Pans) | Minimum
Property, plant and equipment, useful life	8 years
Building (Including Salt Pans) | Maximum
Property, plant and equipment, useful life	20 years
Plant and Machinery (Including Protective Shells, Transmission Channels and Ducts) | Minimum
Property, plant and equipment, useful life	3 years
Plant and Machinery (Including Protective Shells, Transmission Channels and Ducts) | Maximum
Property, plant and equipment, useful life	8 years
Motor Vehicles
Property, plant and equipment, useful life	5 years
Furniture, Fixtures and Equipment | Minimum
Property, plant and equipment, useful life	3 years
Furniture, Fixtures and Equipment | Maximum
Property, plant and equipment, useful life	8 years

1. BASIS OF PRESENTATION AND _4

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Accounting Policies [Abstract]
Allowances for doubtful accounts	$ 0		$ 0
Contributions to the retirement plan	$ 246,622	$ 140,108
Anti-dilutive common stock equivalents which were excluded	62,704	113,370

2. INVENTORIES (Details)

2. INVENTORIES (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 39,855	$ 21,484
Finished goods	536,752	398,125
Inventories	$ 576,607	$ 419,609

3. PREPAID LAND LEASE (Details

3. PREPAID LAND LEASE (Details Narrative)	Mar. 31, 2021USD ($)
Prepaid Land Leases
Prepaid land lease increase	$ 10,063,469

4. PROPERTY, PLANT AND EQUIPM_3

4. PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Mineral rights	$ 2,934,951	$ 2,955,780
Buildings	63,573,495	64,024,667
Plant and machinery	256,579,799	258,400,710
Motor vehicles	6,507	6,553
Furniture, fixtures and office equipment	3,295,179	3,318,564
Construction in progress	18,127,541	12,095,565
Total	344,517,472	340,801,839
Less: accumulated depreciation and amortization	(176,040,608)	(173,212,554)
Impairment	(18,510,233)	(18,641,596)
Net book value	$ 149,966,631	$ 148,947,689

4. PROPERTY, PLANT AND EQUIPM_4

4. PROPERTY, PLANT AND EQUIPMENT, NET (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Land	$ 18,720,653		$ 19,302,600
Depreciation and amortization expense	4,102,929	$ 3,453,563
Direct labor and factory overheads incurred during plant shutdown	1,816,782	2,578,771
Cost of administrative expenses	163,233	201,406
Cost of net revenue	$ 2,122,914	$ 673,386

5. FINANCE LEASE RIGHT-OF-USE_3

5. FINANCE LEASE RIGHT-OF-USE ASSETS (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
At cost	$ 2,416,157	$ 2,433,304
Less: accumulated depreciation and amortization	(2,232,607)	(2,247,032)
Net book value	183,550	186,272
Buildings
At cost	125,231	126,120
Plant and Machinery
At cost	$ 2,290,926	$ 2,307,184

5. FINANCE LEASE RIGHT-OF-USE_4

5. FINANCE LEASE RIGHT-OF-USE ASSETS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Depreciation and amortization expense	$ 1,428	$ 1,327

6. OPERATING LEASE RIGHT-OF-U_2

6. OPERATING LEASE RIGHT-OF-USE ASSETS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Leases [Abstract]
Operating lease ROU assets	$ 8,662,972		$ 8,868,661
Operating lease cost	$ 240,150	$ 219,687

7. ACCOUNTS AND OTHER PAYABLE_3

7. ACCOUNTS AND OTHER PAYABLE AND ACCRUED EXPENSE (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Accounts payable	$ 1,040,950	$ 479,958
Salary payable	318,291	320,549
Social security insurance contribution payable	101,446	49,167
Other payable-related party (see Note 8)	23,738	95,616
Deposit on subscription of a subsidiary's share	152,180	153,260
Accrued expense-construction	6,296,071	3,537,644
Accrued expense-others	617,213	445,507
Total	$ 8,549,889	$ 5,081,701

8. RELATED PARTY TRANSACTIONS (

8. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Related Party Transactions [Abstract]
Expense associated with agreement	$ 23,735	$ 22,013

9. TAXES PAYABLE (Details)

9. TAXES PAYABLE (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Land use right tax payable	$ 827,702	$ 833,576
Value added tax and other taxes payable	578,070	492,603
Taxes payable	$ 1,405,772	$ 1,326,179

10. LEASE LIABILITIES-FINANCE_3

10. LEASE LIABILITIES-FINANCE AND OPERATING LEASE (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Imputed interest rate on capital lease obligations	6.70%	6.70%
Total finance lease liability	$ 2,126,183	$ 2,105,973
Less: current portion	(250,591)	(217,070)
Finance lease liability, net of current portion	$ 1,875,592	$ 1,888,903

10. LEASE LIABILITIES-FINANCE_4

10. LEASE LIABILITIES-FINANCE AND OPERATING LEASE (Details 1)	Mar. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Leases [Abstract]
Imputed interest rate on operating lease liabilities	.0489	.0489
Total operating lease liabilities	$ 8,174,965	$ 8,499,692
Less: current portion	(317,544)	(477,350)
Operating lease liabilities, net of current portion	$ 7,857,421	$ 8,022,342

10. LEASE LIABILITIES-FINANCE_5

10. LEASE LIABILITIES-FINANCE AND OPERATING LEASE (Details 2) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Finance Lease Obligations
the next 12 months	$ 285,642
the next 13 to 24 months	285,642
the next 25 to 36 months	285,642
the next 37 to 48 months	285,642
the next 49 to 60 months	285,642
thereafter	1,428,210
Total	2,856,420
Less amount representing interest	(730,237)
Present value of net minimum lease payments	2,126,183	$ 2,105,973
Operating Lease Obligations
the next 12 months	672,669
the next 13 to 24 months	678,258
the next 25 to 36 months	677,300
the next 37 to 48 months	683,280
the next 49 to 60 months	689,295
thereafter	11,421,886
Total	14,822,688
Less amount representing interest	(6,647,723)
Present value of net minimum lease payments	$ 8,174,965	$ 8,499,692

10. LEASE LIABILITIES-FINANCE_6

10. LEASE LIABILITIES-FINANCE AND OPERATING LEASE (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Interest expense from capital lease obligations	$ 35,538	$ 35,262
Remaining finance lease term	10 years
Weighted average remaining operating lease term	21 years
Weighted average discounts rate	4.89%
Lease payments	$ 204,951	$ 181,665

11. EQUITY (Details Narrative)

11. EQUITY (Details Narrative)	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Statutory common reserve funds description	The Statutory Common Reserve Fund as of March 31, 2021 for SCHC, SYCI and DCHC is 16%, 14% and 0% of its registered capital respectively.

12. STOCK-BASED COMPENSATION (D

12. STOCK-BASED COMPENSATION (Details)	3 Months Ended
	Mar. 31, 2021$ / sharesshares
Share-based Payment Arrangement [Abstract]
Number of option and warrants outstanding, beginning balance | shares	121,600
Number of option and warrants granted | shares	0
Number of option and warrants exercised | shares	0
Number of option and warrants expired | shares	0
Number of option and warrants outstanding, ending balance | shares	121,600
Weighted-average exercise price of option and warrants, beginning balance | $ / shares	$ 7.09
Weighted-average exercise price of option and warrants granted | $ / shares	.00
Weighted-average exercise price of option and warrants exercised | $ / shares	.00
Weighted-average exercise price of option and warrants expired | $ / shares	.00
Weighted-average exercise price of option and warrants, ending balance | $ / shares	$ 7.09
Range of exercise price per common share, beginning balance	$3.57 - $7.27
Range of exercise price per common share granted	$0.00
Range of exercise price per common share exercised	$0.00
Range of exercise price per common share expired	$0.00
Range of exercise price per common share, ending balance	$3.57 - $7.27

12. STOCK-BASED COMPENSATION _2

12. STOCK-BASED COMPENSATION (Details 1) - $ / shares	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Outstanding	121,600	121,600
Range of exercise prices, lower limit	$ 3.57
Range of exercise prices, upper limit	$ 7.27
Weighted average remaining contractual life (years)	4 months 28 days

12. STOCK-BASED COMPENSATION _3

12. STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Common stock available for grant	515,648
Compensation costs for options granted	$ 0	$ 0
Aggregate intrinsic value of options outstanding and exercisable	4,710
Aggregate intrinsic value of options exercised	$ 0	$ 0

13. INCOME TAXES (Details)

13. INCOME TAXES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Current taxes - PRC	$ 0	$ 0
Deferred taxes - PRC entities	743,709	1,256,443
Deferred taxes - PRC	15,957	24,053
Change in valuation allowance	(15,957)	(24,053)
Income taxes	$ 743,709	$ 1,256,443

13. INCOME TAXES (Details 1)

13. INCOME TAXES (Details 1)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Statutory income tax rate	25.00%	25.00%
Non-taxable & non deductible items	(1.00%)	2.00%
Change in valuation allowance	(1.00%)	(1.00%)
Effective tax rate	23.00%	26.00%

13. INCOME TAXES (Details 2)

13. INCOME TAXES (Details 2) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Deferred tax liabilities	$ 0	$ 0
Deferred tax assets:
Impairment on property, plant and equipment	2,712,092	2,907,548
Impairment on prepaid land lease	877,656	883,884
Exploration costs	1,894,641	1,908,087
Compensation costs of unexercised stock options	72,699	74,883
PRC tax losses	22,296,935	21,643,028
US federal net operating loss	1,063,644	1,045,503
Total deferred tax assets	28,917,667	28,462,933
Valuation allowance	(9,785,742)	(9,872,706)
Net deferred tax asset	$ 19,131,925	$ 18,590,227

13. INCOME TAXES (Details Narra

13. INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Increase/(decrease) in valuation allowance	$ (15,957)	$ (24,053)

14. BUSINESS SEGMENTS (Details)

14. BUSINESS SEGMENTS (Details) - USD ($)		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Net revenue (external customers)		$ 5,259,243	$ 557,670
Net revenue (intersegment)		0	0
Income (loss) from operations before income taxes (benefit)		(3,281,424)	(4,835,429)
Income tax benefit		743,709	1,256,443
Income (loss) from operations after income taxes (benefit)		(2,537,715)	(3,578,986)
Total assets		292,594,268	267,113,898
Depreciation and amortization		4,104,357	3,454,891
Capital expenditures		0	7,416,211
Bromine Segment
Net revenue (external customers)		4,810,990	462,846
Net revenue (intersegment)		0	0
Income (loss) from operations before income taxes (benefit)		(1,279,565)	(2,866,438)
Income tax benefit		318,868	717,438
Income (loss) from operations after income taxes (benefit)		(960,697)	(2,149,000)
Total assets		144,744,423	117,061,540
Depreciation and amortization		2,920,689	2,197,844
Capital expenditures		0	3,157,669
Crude Salt Segment
Net revenue (external customers)	[1]	448,253	94,824
Net revenue (intersegment)	[1]	0	0
Income (loss) from operations before income taxes (benefit)	[1]	(1,009,585)	(1,513,582)
Income tax benefit	[1]	252,396	378,396
Income (loss) from operations after income taxes (benefit)	[1]	(757,189)	(1,135,186)
Total assets	[1]	24,170,863	39,066,713
Depreciation and amortization	[1]	1,077,460	1,108,443
Capital expenditures	[1]	0	646,752
Chemical Products Segment
Net revenue (external customers)		0	0
Net revenue (intersegment)		0	0
Income (loss) from operations before income taxes (benefit)		(746,469)	(710,909)
Income tax benefit		172,445	160,609
Income (loss) from operations after income taxes (benefit)		(574,024)	(550,300)
Total assets		121,760,637	109,222,446
Depreciation and amortization		68,607	113,484
Capital expenditures		0	3,611,790
Natural Gas
Net revenue (external customers)		0	0
Net revenue (intersegment)		0	0
Income (loss) from operations before income taxes (benefit)		(54,787)	(48,846)
Income tax benefit		0	0
Income (loss) from operations after income taxes (benefit)		(54,787)	(48,846)
Total assets		1,875,459	1,657,769
Depreciation and amortization		37,601	35,120
Capital expenditures		0	0
Segment Total
Net revenue (external customers)		5,259,243	557,670
Net revenue (intersegment)		0	0
Income (loss) from operations before income taxes (benefit)		(3,090,406)	(5,139,775)
Income tax benefit		743,709	1,256,443
Income (loss) from operations after income taxes (benefit)		(2,346,697)	(3,883,332)
Total assets		292,551,382	267,008,468
Depreciation and amortization		4,104,357	3,454,891
Capital expenditures		0	7,416,211
Corporate
Net revenue (external customers)		0	0
Net revenue (intersegment)		0	0
Income (loss) from operations before income taxes (benefit)		(191,018)	304,346
Income tax benefit		0	0
Income (loss) from operations after income taxes (benefit)		(191,018)	304,346
Total assets		42,886	105,430
Depreciation and amortization		0	0
Capital expenditures		$ 0	$ 0
[1]	Certain common production overheads, operating and administrative expenses and asset items (mainly cash and certain office equipment) of bromine and crude salt segments in SCHC were split by reference to the average selling price and production volume of respective segment.

14. BUSINESS SEGMENTS (Details

14. BUSINESS SEGMENTS (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting [Abstract]
Total segment operating loss	$ (3,090,406)	$ (5,139,775)
Corporate costs	(86,206)	(96,103)
Unrealized gain (loss) on translation of intercompany balance	(104,812)	400,449
Loss from operations	(3,281,424)	(4,835,429)
Other income, net of expense	35,591	39,228
Loss before income taxes	$ (3,245,833)	$ (4,796,201)

14. BUSINESS SEGMENTS (Detail_2

14. BUSINESS SEGMENTS (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues	$ 5,259,243	$ 557,670
Shandong Morui Chemical Company Limited
Revenues	$ 1,065,000	$ 111,000
Percentage of total revenue (%)	20.20%	20.00%
Shandong Morui Chemical Company Limited | Bromine Segment
Revenues	$ 896,000	$ 70,000
Shandong Morui Chemical Company Limited | Crude Salt Segment
Revenues	169,000	41,000
Shandong Morui Chemical Company Limited | Chemical Products Segment
Revenues	0	0
Shouguang Weidong Chemical Company Limited
Revenues	$ 811,000	$ 83,000
Percentage of total revenue (%)	15.40%	14.90%
Shouguang Weidong Chemical Company Limited | Bromine Segment
Revenues	$ 703,000	$ 65,000
Shouguang Weidong Chemical Company Limited | Crude Salt Segment
Revenues	108,000	18,000
Shouguang Weidong Chemical Company Limited | Chemical Products Segment
Revenues	0	0
Shandong Brother Technology Limited
Revenues	$ 806,000	$ 96,000
Percentage of total revenue (%)	15.30%	17.10%
Shandong Brother Technology Limited | Bromine Segment
Revenues	$ 637,000	$ 60,000
Shandong Brother Technology Limited | Crude Salt Segment
Revenues	172,000	36,000
Shandong Brother Technology Limited | Chemical Products Segment
Revenues	0	0
Shandong Shouguang Shenrunfa Ocean Chemical Company
Revenues	$ 672,000	$ 57,000
Percentage of total revenue (%)	12.80%	10.20%
Shandong Shouguang Shenrunfa Ocean Chemical Company | Bromine Segment
Revenues	$ 672,000	$ 57,000
Shandong Shouguang Shenrunfa Ocean Chemical Company | Crude Salt Segment
Revenues	0	0
Shandong Shouguang Shenrunfa Ocean Chemical Company | Chemical Products Segment
Revenues	0	0
Dongying Bomeite Chemical Company Limited
Revenues	$ 565,000	$ 70,000
Percentage of total revenue (%)	10.70%	12.50%
Dongying Bomeite Chemical Company Limited | Bromine Segment
Revenues	$ 565,000	$ 70,000
Dongying Bomeite Chemical Company Limited | Crude Salt Segment
Revenues	0	0
Dongying Bomeite Chemical Company Limited | Chemical Products Segment
Revenues	$ 0	0
Shouguang JinWang Chemical Company Limited
Revenues		$ 56,000
Percentage of total revenue (%)		10.00%
Shouguang JinWang Chemical Company Limited | Bromine Segment
Revenues		$ 56,000
Shouguang JinWang Chemical Company Limited | Crude Salt Segment
Revenues		0
Shouguang JinWang Chemical Company Limited | Chemical Products Segment
Revenues		$ 0

15. CUSTOMER CONCENTRATION (Det

15. CUSTOMER CONCENTRATION (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Amounts due from major customers	$ 3,571,150	$ 526,288
Top 5 Customers
Percent products sold to top five customers	74.50%	84.80%

16. MAJOR SUPPLIERS (Details Na

16. MAJOR SUPPLIERS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Amount due to major suppliers	$ 1,040,950	$ 53,707
Top 5 Suppliers
Percent of materials purchased	100.00%	100.00%

18. CAPITAL COMMITMENT AND OT_3

18. CAPITAL COMMITMENT AND OTHER SERVICE CONTRACTUAL OBLIGATIONS (Details)	Mar. 31, 2021USD ($)
Property Management Fees
the next 12 months	$ 94,940
the next 13 to 24 months	94,940
the next 25 to 36 months	0
Total	189,880
Capital Expenditure
the next 12 months	12,391,563
the next 13 to 24 months	748,433
the next 25 to 36 months	0
Total	$ 13,139,996