Gulf Resources (GURE) 10-Q 14 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 14, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	001-34499
Entity Registrant Name	GULF RESOURCES, INC.
Entity Central Index Key	0000885462
Entity Tax Identification Number	13-3637458
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	Level 11, Vegetable Building
Entity Address, Address Line Two	Industrial Park of the East City
Entity Address, City or Town	Shouguang City
Entity Address, State or Province	SD
Entity Address, Country	CN
Entity Address, Postal Zip Code	262700
City Area Code	+86 (536)
Local Phone Number	567-0008
Title of 12(b) Security	Common Stock, $0.0005 par value
Trading Symbol	GURE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,671,924

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Current Assets
Cash	$ 92,638,278	$ 95,767,263
Accounts receivable	9,995,651	14,525,807
Inventories, net	603,961	691,111
Prepayments and deposits	3,920,177	4,450,037
Other receivable	635	644
Total Current Assets	107,158,702	115,434,862
Non-Current Assets
Property, plant and equipment, net	158,607,644	162,657,546
Finance lease right-of use assets	162,057	184,824
Operating lease right-of-use assets	8,208,368	8,311,127
Prepaid land leases, net of current portion	9,329,586	10,368,469
Deferred tax assets	7,078,024	12,900,034
Total non-current assets	183,385,679	194,422,000
Total Assets	290,544,381	309,856,862
Current Liabilities
Payable and accrued expenses	10,058,811	10,530,776
Taxes payable-current	657,001	775,708
Amount due to a related party	1,721,606	1,849,044
Finance lease liability, current portion	182,639	227,429
Operating lease liabilities, current portion	425,199	506,579
Total Current Liabilities	13,045,256	13,889,536
Non-Current Liabilities
Finance lease liability, net of current portion	1,433,928	1,770,526
Operating lease liabilities, net of current portion	7,451,438	7,557,583
Total Non-Current Liabilities	8,885,366	9,328,109
Total Liabilities	21,930,622	23,217,645
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; 10,517,754 shares issued; and 10,471,924 shares outstanding as of September 30, 2022 and December 31, 2021, respectively	24,376	24,376
Treasury stock; 45,830 and 45,830  shares as of September 30, 2022 and December 31, 2021 at cost	(510,329)	(510,329)
Additional paid-in capital	100,569,159	100,569,159
Retained earnings unappropriated	163,212,866	150,463,638
Retained earnings appropriated	24,233,544	24,233,544
Accumulated other comprehensive loss	(18,915,857)	11,858,829
Total Stockholders’ Equity	268,613,759	286,639,217
Total Liabilities and Stockholders’ Equity	$ 290,544,381	$ 309,856,862

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0005	$ 0.0005
Common stock, shares authorized	80,000,000	80,000,000
Common stock, shares issued	10,517,754	10,517,754
Common stock, shares outstanding	10,471,924	10,471,924
Treasury stock, shares	45,830	45,830

Condensed Consolidated Statemen

Condensed Consolidated Statements of Loss and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
NET REVENUE
Net revenue	$ 22,862,795	$ 17,753,669	$ 47,505,246	$ 34,160,920
OPERATING INCOME (EXPENSE)
Cost of net revenue	(8,405,694)	(8,197,697)	(21,056,782)	(19,294,860)
Sales, marketing and other operating expenses	(19,681)	(19,035)	(47,086)	(44,205)
Direct labor and factory overheads incurred during plant shutdown	(1,910,318)	(1,229,058)	(6,022,206)	(5,237,258)
General and administrative expenses	(584,473)	(1,209,818)	(3,384,063)	(8,150,769)
Other operating income (loss)	(37)	(86)	(8,441)	(86)
Total operating income (expense)	(10,920,203)	(10,655,694)	(30,518,578)	(32,727,178)
INCOME(LOSS) FROM OPERATIONS	11,942,592	7,097,975	16,986,668	1,433,742
OTHER INCOME (EXPENSE)
Interest expense	(27,715)	(32,420)	(94,703)	(108,650)
Interest income	63,470	73,707	213,546	221,597
Other (income) expenses		4,636		4,636
INCOME(LOSS) BEFORE TAXES	11,978,347	7,143,898	17,105,511	1,551,325
INCOME TAX EXPENSE	(3,010,967)	(1,750,283)	(4,356,283)	(1,363,054)
NET INCOME(LOSS)	8,967,380	5,393,615	12,749,228	188,271
OTHER COMPREHENSIVE LOSS
- Foreign currency translation adjustments	(15,930,276)	(1,272,449)	(30,774,686)	1,877,097
COMPREHENSIVE INCOME(LOSS)	$ (6,962,896)	$ 4,121,166	$ (18,025,458)	$ 2,065,368
INCOME(LOSS) PER SHARE:
BASIC AND DILUTED	$ 0.86	$ 0.52	$ 1.22	$ 0.02
WEIGHTED AVERAGE NUMBER OF SHARES:
BASIC AND DILUTED	10,471,924	10,469,477	10,471,924	10,469,477

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Stockholders' Equity - USD ($)	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings Unappropriated	Retained Earnings Appropriated	Accumulated Other Comprehensive Income (Loss)	Total
Beginning balance, value at Dec. 31, 2020	$ 24,139	$ (510,329)	$ 97,435,316	$ 151,388,356	$ 24,233,544	$ 4,453,247	$ 277,024,273
Number of shares issued at Dec. 31, 2020	10,043,307
Number of treasury stock at Dec. 31, 2020	9,997,477	45,830
Restricted shares	$ 236	$ 0	3,133,844	0	0	0	3,134,080
Translation adjustment	0	0	0	0	0	1,877,097	1,877,097
Net income for nine-month period ended September 30, 2021	$ 0	0	0	188,271	0	0	188,271
Restricted shares issued	472,000
Restricted shares outstanding	472,000
Ending balance, value at Sep. 30, 2021	$ 24,375	$ (510,329)	100,569,160	151,576,627	24,233,544	6,330,344	282,223,721
Number of shares issued at Sep. 30, 2021	10,515,307
Number of treasury stock at Sep. 30, 2021	10,469,477	45,830
Beginning balance, value at Jun. 30, 2021	$ 24,375	$ (510,329)	100,569,160	146,183,012	24,233,544	7,602,793	278,102,555
Number of shares issued at Jun. 30, 2021	10,515,307
Number of treasury stock at Jun. 30, 2021	10,469,477	45,830
Restricted shares	$ 0	$ 0	0	0	0	0	0
Translation adjustment	0	0	0	0	0	(1,272,449)	(1,272,449)
Net income for nine-month period ended September 30, 2021	0	0	0	5,393,615	0	0	5,393,615
Ending balance, value at Sep. 30, 2021	$ 24,375	$ (510,329)	100,569,160	151,576,627	24,233,544	6,330,344	282,223,721
Number of shares issued at Sep. 30, 2021	10,515,307
Number of treasury stock at Sep. 30, 2021	10,469,477	45,830
Beginning balance, value at Dec. 31, 2021	$ 24,376	$ (510,329)	100,569,159	150,463,638	24,233,544	11,858,829	286,639,217
Number of shares issued at Dec. 31, 2021	10,517,754
Number of treasury stock at Dec. 31, 2021	10,471,924	45,830
Restricted shares	$ 0	$ 0	0	0	0	0	0
Translation adjustment	0	0	0	0	0	(30,774,686)	(30,774,686)
Net income for nine-month period ended September 30, 2021	0	0	0	12,749,228	0	0	12,749,228
Ending balance, value at Sep. 30, 2022	$ 24,376	$ (510,329)	100,569,159	163,212,866	24,233,544	(18,915,857)	268,613,759
Number of shares issued at Sep. 30, 2022	10,517,754
Number of treasury stock at Sep. 30, 2022	10,471,924	45,830
Beginning balance, value at Jun. 30, 2022	$ 24,376	$ (510,329)	100,569,159	154,245,486	24,233,544	(2,985,581)	275,576,655
Number of shares issued at Jun. 30, 2022	10,517,754
Number of treasury stock at Jun. 30, 2022	10,471,924	45,830
Restricted shares	$ 0	$ 0	0	0	0	0	0
Translation adjustment	0	0	0	0	0	(15,930,276)	(15,930,276)
Net income for nine-month period ended September 30, 2021	0	0	0	8,967,380	0	0	8,967,380
Ending balance, value at Sep. 30, 2022	$ 24,376	$ (510,329)	$ 100,569,159	$ 163,212,866	$ 24,233,544	$ (18,915,857)	$ 268,613,759
Number of shares issued at Sep. 30, 2022	10,517,754
Number of treasury stock at Sep. 30, 2022	10,471,924	45,830

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income(loss)	$ 12,749,228	$ 188,271
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	16,352,915	12,419,851
Unrealized exchange gain on translation of inter-company balances	45,195	283,287
Deferred tax asset	3,809,038	1,363,055
Common stock issued for services	0	3,134,080
Changes in assets and liabilities:
Accounts receivable	3,451,924	(6,890,373)
Inventories	27,073	(67,328)
Prepayments and deposits	324,685	(2,744,904)
Other receivables	0	0
Accounts and Other payable and accrued expenses	1,553,583	2,598,030
Retention payable	0	0
Taxes payable	(365,255)	905,230
Operating lease	(847,362)	(126,655)
Net cash provided by (used in) by operating activities	37,101,024	11,062,544
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of property, plant and equipment	(33,217,987)	(8,560,152)
Net cash used in investing activities	(33,217,987)	(8,560,152)
CASH FLOWS USED IN FINANCING ACTIVITIES
Repayment of finance lease obligation	(283,915)	(290,597)
Net cash used in financing activities	(283,915)	(290,597)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(6,728,107)	2,446,493
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(3,128,985)	4,658,288
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	95,767,263	94,222,538
CASH AND CASH EQUIVALENTS - END OF PERIOD	92,638,278	98,880,826
Cash paid during the periods for:
Cash paid for income taxes	72,573	0
Cash paid for interest

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements have been prepared by Gulf Resources, Inc. (“Gulf Resources”), a Nevada corporation and its subsidiaries (collectively, the “Company”). 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”) ,Daying County Haoyuan Chemical Company Limited (“DCHC”) and Shouguang Hengde Salt Industry Co. Ltd. (“SHSI”) (b) Nature of Business The Company manufactures and trades bromine through its wholly-owned subsidiary, Shouguang City Haoyuan Chemical Company Limited (“SCHC”) ;manufactures and trades crude salt through its wholly-owned subsidiary, SHSI; 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 not fully quantifiable, the Company believes this situation did not have a material adverse impact on its operating results in the year of 2021. In 2022, COVID may have a slightly larger impact. The government is conducting frequent unannounced inspections, somewhat disrupting production. In addition, the Company believes the focus on COVID may have slightly delayed the approval process for one or more of the closed factories. The virus outbreak and resulting supply chain issues has impacted the overall Chinese economy and thus impacted demand from end customers. It has delayed the delivery of machinery and other equipment for the Yuxin Chemical factory causing a postponement in its completion and opening. The Company believes the virus outbreak has delayed the finalization of the Sichuan Province environmental plan, causing a further delay for the Company’s project in Sichuan Province. (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 allowing 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. The Company received an oral notification from the government for its Factory No. 8, which permits the Factory No. 8 to resume production in August 2022. The Company expects that the Factory No. 8 will generate revenue in the fourth quarter 2022. The Company is still waiting for governmental approval for Factories No. 2 and No. 10. To our knowledge, the government is currently completing its planning process for all mining areas including that for prevention of flood. As a result, we may be required to make some modifications to our current wells and aqueducts prior to commencement of operations of these factories to satisfy the local government's requirements. Pursuant to the notification issued from the government of Shouguang City, all bromine facilities in Shouguang City were temporarily closed from December 28, 2021 to February 21, 2022. To comply with such notification, the Company had temporarily stopped production at its bromine facilities during the aforesaid period and resumed production as scheduled on February 21, 2022. In April 2022, Shouguang Hengde Salt Industry Co. Ltd, our subsidiary, was incorporated in Shandong Province, China, for crude salt production and trading. This subsidiary was created in response to a new government policy that required bromine and crude salt companies to have separate registrations. The creation of this subsidiary and the separation of bromine and crude salt will not impact sales or overall profits. However, there are likely to be minor adjustments cost allocations between the two businesses. (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 was because the two plants were located in a residential area and their production activities impacted the living environment of the residents. This was 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 did not comply with the requirements of the safety and environmental protection regulations were 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 documents to the local authorities for approval. In January 2020, the Company received the environmental protection approval by the government of Shouguang City, Shandong Province for the proposed Yuxin Chemical factory. The Company began the construction on its new chemical facilities located at Bohai Marine Fine Chemical Industrial Park in June 2020 and basically completed the civil works by the end of June 2021. On November 15, 2021, the Company announced that due to the supply chain issues as well as the electric restrictions in China, the delivery of some equipment, the equipment installation and testing and beginning trial production at the chemical factory had been delayed. On February 22, 2022, the Company announced that discussions with the government have convinced management that the electricity restrictions are being eased. Accordingly, the Company has contacted its suppliers and will have the remainder of the equipment produced and delivered, so the Company can complete installation and begin testing and trial production. The COVID restrictions and resulting national and international supply chain issues as well as permitting issues have caused delays in receiving some previously ordered machinery and equipment. The Company is working with its existing suppliers and may identify new suppliers so that it can complete construction of its factory based on accelerated delivery. Currently, the Company can not estimate when construction will be completed and production can begin. The Company believes this relocation process will cost approximately $ 69 45,584,344 45,584,344 (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, China, 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 the governmental planning has been finalized. (c) Allowance for Doubtful Accounts As of September 30, 2022 and December 31, 2021, 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 and nine-month periods ended September 30, 2022 and 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 $ 92,638,278 95,767,263 (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, when available for intended use, 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: Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment Useful Life Minimum Maximum Useful life Buildings (including salt pans) 8 20 Plant and machinery (including protective shells, transmission channels and ducts) 3 8 Motor vehicles Motor Vehicles 5 Furniture, fixtures and equipment 3 8 Property, plant and equipment under the finance lease are depreciated over their expected useful lives on the same basis as owned assets, or where shorter, the term of the lease, which is 20 years. 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 designate 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 loss on an accrual basis when they are due. The Company’s contributions totaled $ 141,996 186,074 488,773 653,664 (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 and nine months period ended September 30, 2022 and 2021, the Company determined that there were no events or circumstances indicating possible impairment of its long-lived assets. (i) 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 0 0 0 20,901 (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 loss. The statement of loss and comprehensive loss 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 loss 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 estimable. 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 income (loss). (q) New Accounting Pronouncements Recent accounting pronouncements adopted There were no recent accounting pronouncements adopted during the nine months ended September 30, 2022. 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.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 2 – INVENTORIES Inventories consist of: Inventories - Schedule of Inventories, Current September 30, December 31, Raw materials $ 22,092 $ 42,553 Finished goods 581,869 648,558 $ 603,961 $ 691,111 There was no allowance for slow-moving inventories as of September 30, 2022 and 2021.

PREPAID LAND LEASES

PREPAID LAND LEASES	9 Months Ended
	Sep. 30, 2022
Prepaid Land Leases
PREPAID LAND LEASES	NOTE 3 – PREPAID LAND LEASES Minimum Maximum 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 fifty In December 2017, the Company paid a one lump sum upfront amount of $ 8,956,932 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. 9,329,586

PROPERTY, PLANT AND EQUIPMENT,

PROPERTY, PLANT AND EQUIPMENT, NET	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT, NET	NOTE 4 – PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consist of the following: Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment September 30, December 31, At cost: Mineral rights $ 2,716,440 $ 3,025,017 Buildings 31,510,475 34,906,137 Plant and machinery 223,768,681 201,012,254 Motor vehicles 125,326 139,563 Furniture, fixtures and office equipment 2,239,248 2,494,400 Construction in process 24,002,439 44,310,149 Total 284,362,609 285,887,520 Less: Accumulated depreciation and amortization (125,754,965 ) (123,229,974 ) Impairment — — Net book value $ 158,607,644 $ 162,657,546 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 $ 14,943,968 17,911,910 During the three-month period ended September 30, 2022, depreciation and amortization expense totaled $ 5,982,055 1,523,855 165,992 4,292,208 , . 4,090,343 730,729 167,761 3,191,853 , . During the nine-month period ended September 30, 2022 , 16,255,069 4,817,711 1,534,387 9,902,971 , . 12,312,345 3,305,955 494,862 8,511,528 , .

FINANCE LEASE RIGHT-OF-USE ASSE

FINANCE LEASE RIGHT-OF-USE ASSETS	9 Months Ended
	Sep. 30, 2022
Finance Lease Right-of-use Assets
FINANCE LEASE RIGHT-OF-USE ASSETS	NOTE 5 – FINANCE LEASE RIGHT-OF-USE ASSETS Property, plant and equipment under finance leases, net consist of the following: Finance Lease Right-Of-Use Assets - Schedule of Property, Plant and Equipment Under Finance Leases September 30, December 31, At cost: Buildings Buildings $ 115,908 $ 129,074 Plant and machinery Plant and Machinery 2,120,363 2,361,228 Total 2,236,271 2,490,302 Less: Accumulated depreciation and amortization (2,074,214 ) (2,305,478 ) Net book value $ 162,057 $ 184,824 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 and nine months period ended September 30, 2022, depreciation and amortization expense totaled $ 1,356 4,216 During the three and nine months period ended September 30, 2021, depreciation and amortization expense totaled $ 1,431 4,293

OPERATING LEASE RIGHT _ OF USE

OPERATING LEASE RIGHT – OF USE ASSETS	9 Months Ended
	Sep. 30, 2022
Operating Lease Right Of Use Assets
OPERATING LEASE RIGHT – OF USE ASSETS	NOTE 6 – OPERATING LEASE RIGHT – OF USE ASSETS As of September 30, 2022, the total operating lease ROU assets was $ 8,208,368 The total operating lease cost for the nine-month period ended September 30, 2022 and 2021 was $ 746,731 721,994 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 (See Note 3). 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 9,103,495

ACCOUNTS PAYABLE, OTHER PAYABLE

ACCOUNTS PAYABLE, OTHER PAYABLE AND ACCRUED EXPENSES	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE, OTHER PAYABLE AND ACCRUED EXPENSES	NOTE 7 – ACCOUNTS PAYABLE, OTHER PAYABLE AND ACCRUED EXPENSES Accounts payable, other payable and accrued expenses consist of the following: Accounts and Other Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Liabilities September 30, December 31, 2022 2021 Accounts payable $ 219,646 $ 202,289 Salary payable 246,346 267,215 Other payable 65,906 97,856 Accrued expense for construction 8,715,153 8,944,367 Accrued expense-others 811,760 1,019,049 Total $ 10,058,811 $ 10,530,776

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 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 99 87,871 five years from January 1, 2018 to December 31, 2022 21,968 69,775 24,048 71,926 a) Related parties Name of related parties Position Yang Ming Chairman Of the Board Liu XiaoBin Chief Executive Officer Li Min Chief Financial Officer Miao NaiHui Chief Operating Officer b) September 30, December 31, 2022 2021 Amount due to related parties: Yang Ming $ 415,482 $ 462,680 Liu Xiao Bin 599,766 599,766 Li Min 353,179 393,299 Miao Nai Hui 353,179 393,299 Total $ 1,721,606 $ 1,849,044 Considering that the Company has not performed well in recent years, the Company and its executive officers mutually agreed and to returned all, or a portion of their cash compensation earned for their services with the Company, which may be considered for future compensation should the Company improve its results of operations.

TAXES PAYABLE

TAXES PAYABLE	9 Months Ended
	Sep. 30, 2022
Taxes Payable
TAXES PAYABLE	NOTE 9 – TAXES PAYABLE September 30, December 31, 2022 2021 Land use tax payable $ 24,630 $ 27,427 Value added tax and other taxes payable 632,371 748,281 Land use tax payable $ 657,001 $ 775,708

LEASE LIABILITIES _ FINANCE AND

LEASE LIABILITIES – FINANCE AND OPERATING LEASE	9 Months Ended
	Sep. 30, 2022
Lease Liabilities Finance And Operating Lease
LEASE LIABILITIES – FINANCE AND OPERATING LEASE	NOTE 10 – LEASE LIABILITIES – FINANCE AND OPERATING LEASE The components of finance lease liabilities were as follows: Lease Liabilities - Finance and Operating Lease - Schedule of Finance Leased Liabilities Imputed September 30, December 31, Interest rate 2022 2021 Total finance lease liability 6.7 $ 1,616,567 $ 1,997,955 Less: Current portion (182,639 ) (227,429 ) Finance lease liability, net of current portion $ 1,433,928 $ 1,770,526 Interest expenses from capital lease obligations amounted to $ 23,934 32,015 93,630 103,212 The components of operating lease liabilities as follows: Lease Liabilities - Finance and Operating Lease - Schedule of Operating Leased Liabilities Imputed September 30, December 31, Interest rate 2022 2021 Total Operating lease liabilities 4.89 $ 7,876,637 $ 8,064,162 Less: Current portion (425,199 ) (506,579 ) Operating lease liabilities, net of current portion $ 7,451,438 $ 7,557,583 The weighted average remaining operating lease term at September 3 0 20 4.89 64,896 68,467 888,692 848,660 Maturities of lease liabilities were as follows: Lease Liabilities - Finance and Operating Lease - Schedule of Financing and Operating Lease Maturities Financial lease Operating Lease Payable within: the next 12 months $ 264,376 $ 826,770 the next 13 to 24 months 264,376 824,606 the next 25 to 36 months 264,376 831,788 the next 37 to 48 months 264,376 836,018 the next 49 to 60 months 264,376 843,679 thereafter 793,124 10,088,594 Total 2,115,004 14,251,455 Less: Amount representing interest (498,437 ) (6,374,818 ) Present value of net minimum lease payments $ 1,616,567 $ 7,876,637

EQUITY

EQUITY	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
EQUITY	NOTE 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, SHSI 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 September 30, 2022 for SCHC, SYCI, SHSI, and DCHC is 16%, 14%, 0% and 0% of its registered capital, respectively.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2022
Compensation Related Costs [Abstract]
STOCK-BASED COMPENSATION	NOTE 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 1,056,801 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 September 30, 2022 and 2021, total compensation costs for options issued recorded in the consolidated statement of loss were $ 0 During the three and nine months ended September 30, 2022, there were no options granted to employees or non-employees. The following table summarizes all Company stock option transactions between January 1, 2022 and September 30, 2022. Stock-Based Compensation - Schedule of Stock Option Activity Number of Option Weighted- Average Exercise price of Option Range of Balance, January 1, 2022 — $ — — Granted during the period — — — Exercised during the period — — — Expired during the period — $ — $ — Balance, September 30, 2022 — $ — — Stock Options and Warrants Outstanding and Exercisable Weighted Average Remaining Outstanding at September 30, 2022 Range of Exercise Prices Contractual Life (Years) Outstanding and exercisable — — — The aggregate intrinsic value of options outstanding and exercisable as of September 30, 2022 was $ 0 During the three and nine months ended September 30, 2022 and 2021, there were no options exercised.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 13 – INCOME TAXES The Company utilizes the asset and liability method of accounting for income taxes in accordance with FASB ASC 740-10. (a) United States (“US”) United States Gulf Resources, Inc. may be subject to the United States of America Tax laws at a tax rate of 21 (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 and nine-month periods ended September 30, 2022 and 2021. (c) Hong Kong 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 and nine-month periods ended September 30, 2022 and 2021. The applicable statutory tax rates for the three-month and nine-month periods ended September 30, 2022 and 2021 are 16.5 (d) PRC PRC Enterprise income tax (“EIT”) for SCHC, SYCI, SHSI and DCHC in the PRC is charged at 25 The operating subsidiaries SCHC is a wholly foreign-owned enterprises (“FIE”), SYCI, DCHC, and SHSI are 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 September 30, 2022 and December 31, 2021, the accumulated distributable earnings under the Generally Accepted Accounting Principles (GAAP”) of PRC that are subject to WHT are $ 141,095,736 140,006,862 6,095,470 5,932,051 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 2016 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 have been examined, and there is no Hong Kong Profits Tax was charged. The components of the income tax benefit from continuing operations are: Income Taxes - Schedule of Components of Income Tax Expense Benefit Three-Month Period Ended September 30, Nine-Month Period Ended September 30, 2022 2021 2022 2021 Current taxes – PRC $ — $ — $ — $ — Deferred taxes (3,010,967 ) (1,750,283 ) (4,356,283 ) (1,363,054 ) Tax Expense Benefit $ (3,010,967 ) $ (1,750,283 ) $ (4,356,283 ) $ (1,363,054 ) Significant components of the Company’s deferred tax assets and liabilities at September 30, 2022 and December 31, 2021 are as follows: Income Taxes - Schedule of Deferred Tax Assets and Liabilities September 30, December 31, 2022 2021 Deferred tax liabilities $ — $ — Deferred tax assets: Exploration costs 1,753,583 1,952,783 PRC tax losses 14,004,970 19,621,674 US federal net operating loss 1,336,405 1,308,335 Total deferred tax assets 17,094,958 22,882,792 Valuation allowance (10,016,934 ) (9,982,758 ) Net deferred tax asset $ 7,078,024 $ 12,900,034 The increase in valuation allowance for the three-month period ended September 30, 2022 is $ 0 The increase in valuation allowance for the three-month period ended September 30, 2021 is $ 13,366 The increase in valuation allowance for the nine-month period ended September 30, 2022 is $ 34,176 The increase in valuation allowance for the nine-month period ended September 30, 2021 is $ 71,292 There were no unrecognized tax benefits and accrual for uncertain tax positions as of September 30, 2022 and December 31, 2021 and no amounts accrued for penalties and interest for the three and nine months ended September 30, 2022 and 2021.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
BUSINESS SEGMENTS	NOTE 14 – BUSINESS SEGMENTS 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 September 30, 2022 Bromine* Crude Salt* Chemical Products Natural Gas Segment Total Corporate Total Net revenue (external customers) $ 19,845,773 $ 2,934,707 $ — $ 82,315 $ 22,862,795 $ — $ 22,862,795 Net revenue (intersegment) — — — — — — — Income(loss) from operations before income tax benefit (expense) 10,552,343 1,876,161 (447,960 ) 19,500 12,000,044 (57,452 ) 11,942,592 Income tax benefit(expense) (2,642,167 ) (469,197 ) 100,397 — (3,010,967 ) — (3,010,967 ) Income (loss) from operations after income tax benefit (expense) 7,910,176 1,406,964 (347,563 ) 19,500 8,989,077 (57,452 ) 8,931,625 Total assets 168,912,333 11,286,079 108,653,553 1,389,190 290,241,155 303,226 290,544,381 Depreciation and amortization 5,055,864 821,269 71,120 35,158 5,983,411 — 5,983,411 Capital expenditures — — — — — — Three-Month Period Ended September 30, 2021 Bromine* Crude Salt* Chemical Products Natural Gas Segment Total Corporate Total Net revenue (external customers) $ 14,913,004 $ 2,840,665 $ — $ — $ 17,753,669 $ — $ 17,753,669 Net revenue (intersegment) — — — — — — — Income(loss) from operations before income tax benefit (expense) 6,909,542 561,373 (535,047 ) (49,295 ) 6,886,573 211,402 7,097,975 Income tax benefit(expense) (1,730,425 ) (140,590 ) 120,732 — (1,750,283 ) — (1,750,283 ) Income (loss) from operations after income tax benefit (expense) 5,179,117 420,783 (414,315 ) (49,295 ) 5,136,290 211,402 5,347,692 Total assets 144,690,423 33,983,687 123,734,291 1,641,720 304,050,121 389,000 304,439,121 Depreciation and amortization 2,652,509 1,354,811 72,939 11,516 4,091,775 — 4,091,775 Capital expenditures 188,529 — 2,565,188 — — 2,753,717 * 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 the respective segment until April 2022. Commencing May 2022, costs were assigned to the two subsidiaries (SCHC and SHSI) by independent accounting. Nine-Month Period Ended September 30, 2022 Bromine* Crude Salt* Chemical Products Natural Gas Segment Total Corporate Total Net revenue (external customers) $ 41,865,598 $ 5,506,655 $ — $ 132,993 $ — $ — $ 47,505,246 Net revenue (intersegment) — — — — — — — Income(loss) from operations before income tax benefit (expense) 17,226,718 1,497,208 (1,436,443 ) (68,938 ) 17,218,545 (231,877 ) 16,986,668 Income tax benefit(expense) (4,304,623 ) (374,822 ) 323,162 — (4,356,283 ) — (4,356,283 ) Income (loss) from operations after income tax benefit (expense) 12,922,095 1,122,386 (1,113,281 ) (68,938 ) 12,862,262 (231,877 ) 12,630,385 Total assets 168,912,333 11,286,079 108,653,553 1,389,190 290,241,155 303,226 290,544,381 Depreciation and amortization 12,761,421 3,261,180 221,017 109,297 16,352,915 — 16,352,915 Capital expenditures 33,217,987 — — 33,217,987 — 33,217,987 Nine-Month Period Ended September 30, 2021 Bromine* Crude Salt* Chemical Products Natural Gas Segment Total Corporate Total Net revenue (external customers) $ 29,749,432 $ 4,411,488 $ — $ — $ 34,160,920 $ — $ 34,160,920 Net revenue (intersegment) — — — — — — — Income(loss) from operations before income tax benefit (expense) 8,312,210 (1,026,647 ) (2,022,828 ) (166,932 ) 5,095,803 (3,662,061 ) 1,433,742 Income tax benefit(expense) (2,084,253 ) 256,876 464,323 — (1,363,054 ) — (1,363,054 ) Income (loss) from operations after income tax benefit (expense) 6,227,957 (769,771 ) (1,558,505 ) (166,932 ) 3,732,749 (3,662,061 ) 70,688 Total assets 144,690,423 33,983,687 123,734,291 1,641,720 304,050,121 389,000 304,439,121 Depreciation and amortization 8,286,852 3,835,533 210,420 87,046 12,419,851 — 12,419,851 Capital expenditures 188,529 — 8,371,623 — 8,560,152 — 8,560,152 * 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 each respective segment through April 2022. Commencing May 2022, costs were assigned to the two subsidiaries (SCHC and SHSI) by independent accounting. Three-Month Period Ended Nine-Month Period Ended Reconciliations 2022 2021 2022 2021 Total segment operating Income (loss) $ 12,000,044 $ 6,886,573 $ 17,218,545 $ 5,095,803 Corporate costs (50,505 ) (99,461 ) (186,682 ) (3,378,774 ) Unrealized gain on translation of intercompany balance (6,947 ) 310,863 (45,195 ) (283,287 ) Income (loss) from operations 11,942,592 7,097,975 16,986,668 1,433,742 Other income, net of expense 35,755 45,923 118,843 117,583 Income (loss) before taxes $ 11,978,347 $ 7,143,898 $ 17,105,511 $ 1,551,325 The following table shows the major customer(s) (10% or more) for the three-month period ended September 30, 2022. Business Segments - Schedule of Revenue by Major Customers 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 $ 2,190 $ 1,123 $ — $ 3,313 14.8 % 2 Shouguang Weidong Chemical Company Limited $ 2,041 $ 885 $ — $ 2,926 12.8 % 3 Shandong Brother Technology Limited $ 2,339 $ 927 $ — $ 3,266 14 % The following table shows the major customer(s) (10% or more) for the nine-month period ended September 30, 2022. 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 $ 4,942 $ 2,088 $ — $ 7,030 14.8 % 2 Shouguang Weidong Chemical Company Limited $ 4,169 $ 1,583 $ — $ 5,752 12.1 % 3 Shandong Brother Technology Limited $ 4,782 $ 1,836 $ — $ 6,618 14 % The following table shows the major customer(s) (10% or more) for the three-month period ended September 30, 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 $ 3,233 $ 1,010 $ — $ 4,243 23.9 % 2 Shouguang Weidong Chemical Company Limited $ 2,801 $ 783 $ — $ 3,584 20.2 % 3 Shandong Brother Technology Limited $ 2,757 $ 1,048 $ — $ 3,805 21.4 % The following table shows the major customer(s) (10% or more) for the nine-month period ended September 30, 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 $ 5,881 $ 1,599 $ — $ 7,480 21.9 % 2 Shouguang Weidong Chemical Company Limited $ 4,726 $ 1,281 $ — $ 6,007 17.6 % 3 Shandong Brother Technology Limited $ 4,587 $ 1,533 $ — $ 6,120 17.9 %

CUSTOMER CONCENTRATION

CUSTOMER CONCENTRATION	9 Months Ended
	Sep. 30, 2022
Risks and Uncertainties [Abstract]
CUSTOMER CONCENTRATION	NOTE 15 – CUSTOMER CONCENTRATION During the nine-month period ended September 30, 2022, the Company sold 52.9 6,095,578 During the nine-month period ended September 30, 2021, the Company sold 76.9 11,280,670

MAJOR SUPPLIERS

MAJOR SUPPLIERS	9 Months Ended
	Sep. 30, 2022
Disclosure Major Suppliers Abstract
MAJOR SUPPLIERS	NOTE 16 – MAJOR SUPPLIERS During the nine-month period ended September 30, 2022 the Company purchased 100 219,646 During the nine-month period ended September 30, 2021 the Company purchased 100 653,102

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 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 September 30, 2022 and December 31, 2021.

CAPITAL COMMITMENT AND OTHER SE

CAPITAL COMMITMENT AND OTHER SERVICE CONTRACTUAL OBLIGATIONS	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
CAPITAL COMMITMENT AND OTHER SERVICE CONTRACTUAL OBLIGATIONS	NOTE 18 – CAPITAL COMMITMENT AND OTHER SERVICE CONTRACTUAL OBLIGATIONS The following table sets forth the Company’s contractual obligations as of September 30, 2022: Capital Commitment and Other Service Contractual Obligations - Schedule of Contractual Obligations Property Management Fees Capital Expenditure Payable within: the next 12 months $ 87,871 $ 16,702,745 the next 13 to 24 months — 970,890 the next 25 to 36 months — — Total $ 87,871 $ 17,673,635

LOSS CONTINGENCIES

LOSS CONTINGENCIES	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
LOSS CONTINGENCIES	NOTE 19 – LOSS CONTINGENCIES Settled Litigation 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 September 30, 2022.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENT	NOTE 20 – SUBSEQUENT EVENT Subsequent Event On October 7, 2022. The Company issued a total of 200,000

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	(a) Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements have been prepared by Gulf Resources, Inc. (“Gulf Resources”), a Nevada corporation and its subsidiaries (collectively, the “Company”). 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”) ,Daying County Haoyuan Chemical Company Limited (“DCHC”) and Shouguang Hengde Salt Industry Co. Ltd. (“SHSI”)
Nature of Business	(b) Nature of Business The Company manufactures and trades bromine through its wholly-owned subsidiary, Shouguang City Haoyuan Chemical Company Limited (“SCHC”) ;manufactures and trades crude salt through its wholly-owned subsidiary, SHSI; 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 not fully quantifiable, the Company believes this situation did not have a material adverse impact on its operating results in the year of 2021. In 2022, COVID may have a slightly larger impact. The government is conducting frequent unannounced inspections, somewhat disrupting production. In addition, the Company believes the focus on COVID may have slightly delayed the approval process for one or more of the closed factories. The virus outbreak and resulting supply chain issues has impacted the overall Chinese economy and thus impacted demand from end customers. It has delayed the delivery of machinery and other equipment for the Yuxin Chemical factory causing a postponement in its completion and opening. The Company believes the virus outbreak has delayed the finalization of the Sichuan Province environmental plan, causing a further delay for the Company’s project in Sichuan Province. (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 allowing 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. The Company received an oral notification from the government for its Factory No. 8, which permits the Factory No. 8 to resume production in August 2022. The Company expects that the Factory No. 8 will generate revenue in the fourth quarter 2022. The Company is still waiting for governmental approval for Factories No. 2 and No. 10. To our knowledge, the government is currently completing its planning process for all mining areas including that for prevention of flood. As a result, we may be required to make some modifications to our current wells and aqueducts prior to commencement of operations of these factories to satisfy the local government's requirements. Pursuant to the notification issued from the government of Shouguang City, all bromine facilities in Shouguang City were temporarily closed from December 28, 2021 to February 21, 2022. To comply with such notification, the Company had temporarily stopped production at its bromine facilities during the aforesaid period and resumed production as scheduled on February 21, 2022. In April 2022, Shouguang Hengde Salt Industry Co. Ltd, our subsidiary, was incorporated in Shandong Province, China, for crude salt production and trading. This subsidiary was created in response to a new government policy that required bromine and crude salt companies to have separate registrations. The creation of this subsidiary and the separation of bromine and crude salt will not impact sales or overall profits. However, there are likely to be minor adjustments cost allocations between the two businesses. (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 was because the two plants were located in a residential area and their production activities impacted the living environment of the residents. This was 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 did not comply with the requirements of the safety and environmental protection regulations were 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 documents to the local authorities for approval. In January 2020, the Company received the environmental protection approval by the government of Shouguang City, Shandong Province for the proposed Yuxin Chemical factory. The Company began the construction on its new chemical facilities located at Bohai Marine Fine Chemical Industrial Park in June 2020 and basically completed the civil works by the end of June 2021. On November 15, 2021, the Company announced that due to the supply chain issues as well as the electric restrictions in China, the delivery of some equipment, the equipment installation and testing and beginning trial production at the chemical factory had been delayed. On February 22, 2022, the Company announced that discussions with the government have convinced management that the electricity restrictions are being eased. Accordingly, the Company has contacted its suppliers and will have the remainder of the equipment produced and delivered, so the Company can complete installation and begin testing and trial production. The COVID restrictions and resulting national and international supply chain issues as well as permitting issues have caused delays in receiving some previously ordered machinery and equipment. The Company is working with its existing suppliers and may identify new suppliers so that it can complete construction of its factory based on accelerated delivery. Currently, the Company can not estimate when construction will be completed and production can begin. The Company believes this relocation process will cost approximately $ 69 45,584,344 45,584,344 (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, China, 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 the governmental planning has been finalized.
Allowance for Doubtful Accounts	(c) Allowance for Doubtful Accounts As of September 30, 2022 and December 31, 2021, 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 and nine-month periods ended September 30, 2022 and 2021.
Concentration of Credit Risk	(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 $ 92,638,278 95,767,263
Property, Plant and Equipment	(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, when available for intended use, 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: Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment Useful Life Minimum Maximum Useful life Buildings (including salt pans) 8 20 Plant and machinery (including protective shells, transmission channels and ducts) 3 8 Motor vehicles Motor Vehicles 5 Furniture, fixtures and equipment 3 8 Property, plant and equipment under the finance lease are depreciated over their expected useful lives on the same basis as owned assets, or where shorter, the term of the lease, which is 20 years. 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 designate 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	(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 loss on an accrual basis when they are due. The Company’s contributions totaled $ 141,996 186,074 488,773 653,664
Revenue Recognition	(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.
Recoverability of Long-lived Assets	(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 and nine months period ended September 30, 2022 and 2021, the Company determined that there were no events or circumstances indicating possible impairment of its long-lived assets.
Basic and Diluted Earnings per Share of Common Stock	(i) 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 0 0 0 20,901
Reporting Currency and Translation	(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 loss. The statement of loss and comprehensive loss 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 loss 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	(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.
Inventories	(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.
Leases	(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.
Stock-based Compensation	(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.
Loss Contingencies	(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 estimable. 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	(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 income (loss).
New Accounting Pronouncements	(q) New Accounting Pronouncements Recent accounting pronouncements adopted There were no recent accounting pronouncements adopted during the nine months ended September 30, 2022. 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.

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment Useful Life	The Company’s depreciation and amortization policies on property, plant and equipment, other than mineral rights and construction in process, are as follows: Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment Useful Life Minimum Maximum Useful life Buildings (including salt pans) 8 20 Plant and machinery (including protective shells, transmission channels and ducts) 3 8 Motor vehicles Motor Vehicles 5 Furniture, fixtures and equipment 3 8

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
Inventories - Schedule of Inventories, Current	Inventories consist of: Inventories - Schedule of Inventories, Current September 30, December 31, Raw materials $ 22,092 $ 42,553 Finished goods 581,869 648,558 $ 603,961 $ 691,111

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT, NET (Tables)	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment	Property, plant and equipment, net consist of the following: Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment September 30, December 31, At cost: Mineral rights $ 2,716,440 $ 3,025,017 Buildings 31,510,475 34,906,137 Plant and machinery 223,768,681 201,012,254 Motor vehicles 125,326 139,563 Furniture, fixtures and office equipment 2,239,248 2,494,400 Construction in process 24,002,439 44,310,149 Total 284,362,609 285,887,520 Less: Accumulated depreciation and amortization (125,754,965 ) (123,229,974 ) Impairment — — Net book value $ 158,607,644 $ 162,657,546

FINANCE LEASE RIGHT-OF-USE AS_2

FINANCE LEASE RIGHT-OF-USE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2022
Finance Lease Right-of-use Assets
Finance Lease Right-Of-Use Assets - Schedule of Property, Plant and Equipment Under Finance Leases	Property, plant and equipment under finance leases, net consist of the following: Finance Lease Right-Of-Use Assets - Schedule of Property, Plant and Equipment Under Finance Leases September 30, December 31, At cost: Buildings Buildings $ 115,908 $ 129,074 Plant and machinery Plant and Machinery 2,120,363 2,361,228 Total 2,236,271 2,490,302 Less: Accumulated depreciation and amortization (2,074,214 ) (2,305,478 ) Net book value $ 162,057 $ 184,824

ACCOUNTS PAYABLE, OTHER PAYAB_2

ACCOUNTS PAYABLE, OTHER PAYABLE AND ACCRUED EXPENSES (Tables)	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
Accounts and Other Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Liabilities	Accounts payable, other payable and accrued expenses consist of the following: Accounts and Other Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Liabilities September 30, December 31, 2022 2021 Accounts payable $ 219,646 $ 202,289 Salary payable 246,346 267,215 Other payable 65,906 97,856 Accrued expense for construction 8,715,153 8,944,367 Accrued expense-others 811,760 1,019,049 Total $ 10,058,811 $ 10,530,776

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Related Party Transactions - Schedule of Related Party Transactions	September 30, December 31, 2022 2021 Amount due to related parties: Yang Ming $ 415,482 $ 462,680 Liu Xiao Bin 599,766 599,766 Li Min 353,179 393,299 Miao Nai Hui 353,179 393,299 Total $ 1,721,606 $ 1,849,044

TAXES PAYABLE (Tables)

TAXES PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2022
Taxes Payable
Taxes Payable - Schedule of Taxes Payable	September 30, December 31, 2022 2021 Land use tax payable $ 24,630 $ 27,427 Value added tax and other taxes payable 632,371 748,281 Land use tax payable $ 657,001 $ 775,708

LEASE LIABILITIES _ FINANCE A_2

LEASE LIABILITIES – FINANCE AND OPERATING LEASE (Tables)	9 Months Ended
	Sep. 30, 2022
Lease Liabilities Finance And Operating Lease
Lease Liabilities - Finance and Operating Lease - Schedule of Finance Leased Liabilities	The components of finance lease liabilities were as follows: Lease Liabilities - Finance and Operating Lease - Schedule of Finance Leased Liabilities Imputed September 30, December 31, Interest rate 2022 2021 Total finance lease liability 6.7 $ 1,616,567 $ 1,997,955 Less: Current portion (182,639 ) (227,429 ) Finance lease liability, net of current portion $ 1,433,928 $ 1,770,526
Lease Liabilities - Finance and Operating Lease - Schedule of Operating Leased Liabilities	The components of operating lease liabilities as follows: Lease Liabilities - Finance and Operating Lease - Schedule of Operating Leased Liabilities Imputed September 30, December 31, Interest rate 2022 2021 Total Operating lease liabilities 4.89 $ 7,876,637 $ 8,064,162 Less: Current portion (425,199 ) (506,579 ) Operating lease liabilities, net of current portion $ 7,451,438 $ 7,557,583
Lease Liabilities - Finance and Operating Lease - Schedule of Financing and Operating Lease Maturities	Maturities of lease liabilities were as follows: Lease Liabilities - Finance and Operating Lease - Schedule of Financing and Operating Lease Maturities Financial lease Operating Lease Payable within: the next 12 months $ 264,376 $ 826,770 the next 13 to 24 months 264,376 824,606 the next 25 to 36 months 264,376 831,788 the next 37 to 48 months 264,376 836,018 the next 49 to 60 months 264,376 843,679 thereafter 793,124 10,088,594 Total 2,115,004 14,251,455 Less: Amount representing interest (498,437 ) (6,374,818 ) Present value of net minimum lease payments $ 1,616,567 $ 7,876,637

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2022
Compensation Related Costs [Abstract]
Stock-Based Compensation - Schedule of Stock Option Activity	The following table summarizes all Company stock option transactions between January 1, 2022 and September 30, 2022. Stock-Based Compensation - Schedule of Stock Option Activity Number of Option Weighted- Average Exercise price of Option Range of Balance, January 1, 2022 — $ — — Granted during the period — — — Exercised during the period — — — Expired during the period — $ — $ — Balance, September 30, 2022 — $ — —
Stock-Based Compensation - Schedule of Stock Options Outstanding and Exercisable	Stock Options and Warrants Outstanding and Exercisable Weighted Average Remaining Outstanding at September 30, 2022 Range of Exercise Prices Contractual Life (Years) Outstanding and exercisable — — —

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes - Schedule of Components of Income Tax Expense Benefit	The components of the income tax benefit from continuing operations are: Income Taxes - Schedule of Components of Income Tax Expense Benefit Three-Month Period Ended September 30, Nine-Month Period Ended September 30, 2022 2021 2022 2021 Current taxes – PRC $ — $ — $ — $ — Deferred taxes (3,010,967 ) (1,750,283 ) (4,356,283 ) (1,363,054 ) Tax Expense Benefit $ (3,010,967 ) $ (1,750,283 ) $ (4,356,283 ) $ (1,363,054 )
Income Taxes - Schedule of Deferred Tax Assets and Liabilities	Significant components of the Company’s deferred tax assets and liabilities at September 30, 2022 and December 31, 2021 are as follows: Income Taxes - Schedule of Deferred Tax Assets and Liabilities September 30, December 31, 2022 2021 Deferred tax liabilities $ — $ — Deferred tax assets: Exploration costs 1,753,583 1,952,783 PRC tax losses 14,004,970 19,621,674 US federal net operating loss 1,336,405 1,308,335 Total deferred tax assets 17,094,958 22,882,792 Valuation allowance (10,016,934 ) (9,982,758 ) Net deferred tax asset $ 7,078,024 $ 12,900,034

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three-Month Period Ended September 30, 2022 Bromine* Crude Salt* Chemical Products Natural Gas Segment Total Corporate Total Net revenue (external customers) $ 19,845,773 $ 2,934,707 $ — $ 82,315 $ 22,862,795 $ — $ 22,862,795 Net revenue (intersegment) — — — — — — — Income(loss) from operations before income tax benefit (expense) 10,552,343 1,876,161 (447,960 ) 19,500 12,000,044 (57,452 ) 11,942,592 Income tax benefit(expense) (2,642,167 ) (469,197 ) 100,397 — (3,010,967 ) — (3,010,967 ) Income (loss) from operations after income tax benefit (expense) 7,910,176 1,406,964 (347,563 ) 19,500 8,989,077 (57,452 ) 8,931,625 Total assets 168,912,333 11,286,079 108,653,553 1,389,190 290,241,155 303,226 290,544,381 Depreciation and amortization 5,055,864 821,269 71,120 35,158 5,983,411 — 5,983,411 Capital expenditures — — — — — — Three-Month Period Ended September 30, 2021 Bromine* Crude Salt* Chemical Products Natural Gas Segment Total Corporate Total Net revenue (external customers) $ 14,913,004 $ 2,840,665 $ — $ — $ 17,753,669 $ — $ 17,753,669 Net revenue (intersegment) — — — — — — — Income(loss) from operations before income tax benefit (expense) 6,909,542 561,373 (535,047 ) (49,295 ) 6,886,573 211,402 7,097,975 Income tax benefit(expense) (1,730,425 ) (140,590 ) 120,732 — (1,750,283 ) — (1,750,283 ) Income (loss) from operations after income tax benefit (expense) 5,179,117 420,783 (414,315 ) (49,295 ) 5,136,290 211,402 5,347,692 Total assets 144,690,423 33,983,687 123,734,291 1,641,720 304,050,121 389,000 304,439,121 Depreciation and amortization 2,652,509 1,354,811 72,939 11,516 4,091,775 — 4,091,775 Capital expenditures 188,529 — 2,565,188 — — 2,753,717 * 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 the respective segment until April 2022. Commencing May 2022, costs were assigned to the two subsidiaries (SCHC and SHSI) by independent accounting. Nine-Month Period Ended September 30, 2022 Bromine* Crude Salt* Chemical Products Natural Gas Segment Total Corporate Total Net revenue (external customers) $ 41,865,598 $ 5,506,655 $ — $ 132,993 $ — $ — $ 47,505,246 Net revenue (intersegment) — — — — — — — Income(loss) from operations before income tax benefit (expense) 17,226,718 1,497,208 (1,436,443 ) (68,938 ) 17,218,545 (231,877 ) 16,986,668 Income tax benefit(expense) (4,304,623 ) (374,822 ) 323,162 — (4,356,283 ) — (4,356,283 ) Income (loss) from operations after income tax benefit (expense) 12,922,095 1,122,386 (1,113,281 ) (68,938 ) 12,862,262 (231,877 ) 12,630,385 Total assets 168,912,333 11,286,079 108,653,553 1,389,190 290,241,155 303,226 290,544,381 Depreciation and amortization 12,761,421 3,261,180 221,017 109,297 16,352,915 — 16,352,915 Capital expenditures 33,217,987 — — 33,217,987 — 33,217,987 Nine-Month Period Ended September 30, 2021 Bromine* Crude Salt* Chemical Products Natural Gas Segment Total Corporate Total Net revenue (external customers) $ 29,749,432 $ 4,411,488 $ — $ — $ 34,160,920 $ — $ 34,160,920 Net revenue (intersegment) — — — — — — — Income(loss) from operations before income tax benefit (expense) 8,312,210 (1,026,647 ) (2,022,828 ) (166,932 ) 5,095,803 (3,662,061 ) 1,433,742 Income tax benefit(expense) (2,084,253 ) 256,876 464,323 — (1,363,054 ) — (1,363,054 ) Income (loss) from operations after income tax benefit (expense) 6,227,957 (769,771 ) (1,558,505 ) (166,932 ) 3,732,749 (3,662,061 ) 70,688 Total assets 144,690,423 33,983,687 123,734,291 1,641,720 304,050,121 389,000 304,439,121 Depreciation and amortization 8,286,852 3,835,533 210,420 87,046 12,419,851 — 12,419,851 Capital expenditures 188,529 — 8,371,623 — 8,560,152 — 8,560,152 * 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 each respective segment through April 2022. Commencing May 2022, costs were assigned to the two subsidiaries (SCHC and SHSI) by independent accounting.
Business Segments - Schedule of Segment Reconciliations	Three-Month Period Ended Nine-Month Period Ended Reconciliations 2022 2021 2022 2021 Total segment operating Income (loss) $ 12,000,044 $ 6,886,573 $ 17,218,545 $ 5,095,803 Corporate costs (50,505 ) (99,461 ) (186,682 ) (3,378,774 ) Unrealized gain on translation of intercompany balance (6,947 ) 310,863 (45,195 ) (283,287 ) Income (loss) from operations 11,942,592 7,097,975 16,986,668 1,433,742 Other income, net of expense 35,755 45,923 118,843 117,583 Income (loss) before taxes $ 11,978,347 $ 7,143,898 $ 17,105,511 $ 1,551,325
Business Segments - Schedule of Revenue by Major Customers	The following table shows the major customer(s) (10% or more) for the three-month period ended September 30, 2022. Business Segments - Schedule of Revenue by Major Customers 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 $ 2,190 $ 1,123 $ — $ 3,313 14.8 % 2 Shouguang Weidong Chemical Company Limited $ 2,041 $ 885 $ — $ 2,926 12.8 % 3 Shandong Brother Technology Limited $ 2,339 $ 927 $ — $ 3,266 14 % The following table shows the major customer(s) (10% or more) for the nine-month period ended September 30, 2022. 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 $ 4,942 $ 2,088 $ — $ 7,030 14.8 % 2 Shouguang Weidong Chemical Company Limited $ 4,169 $ 1,583 $ — $ 5,752 12.1 % 3 Shandong Brother Technology Limited $ 4,782 $ 1,836 $ — $ 6,618 14 % The following table shows the major customer(s) (10% or more) for the three-month period ended September 30, 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 $ 3,233 $ 1,010 $ — $ 4,243 23.9 % 2 Shouguang Weidong Chemical Company Limited $ 2,801 $ 783 $ — $ 3,584 20.2 % 3 Shandong Brother Technology Limited $ 2,757 $ 1,048 $ — $ 3,805 21.4 % The following table shows the major customer(s) (10% or more) for the nine-month period ended September 30, 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 $ 5,881 $ 1,599 $ — $ 7,480 21.9 % 2 Shouguang Weidong Chemical Company Limited $ 4,726 $ 1,281 $ — $ 6,007 17.6 % 3 Shandong Brother Technology Limited $ 4,587 $ 1,533 $ — $ 6,120 17.9 %

CAPITAL COMMITMENT AND OTHER _2

CAPITAL COMMITMENT AND OTHER SERVICE CONTRACTUAL OBLIGATIONS (Tables)	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Capital Commitment and Other Service Contractual Obligations - Schedule of Contractual Obligations	The following table sets forth the Company’s contractual obligations as of September 30, 2022: Capital Commitment and Other Service Contractual Obligations - Schedule of Contractual Obligations Property Management Fees Capital Expenditure Payable within: the next 12 months $ 87,871 $ 16,702,745 the next 13 to 24 months — 970,890 the next 25 to 36 months — — Total $ 87,871 $ 17,673,635

Basis of Presentation and Sum_4

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment Useful Life (Details)	9 Months Ended
	Sep. 30, 2022
Buildings (including salt pans) | Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	8 years
Buildings (including salt pans) | Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	20 years
Plant and Machinery (including protective shells, transmission channels and ducts) | Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	3 years
Plant and Machinery (including protective shells, transmission channels and ducts) | Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	8 years
Motor Vehicles
Property, Plant and Equipment [Line Items]
Useful life (in years)	5 years
Furniture, Fixtures and Equipment | Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	3 years
Furniture, Fixtures and Equipment | Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	8 years

BASIS OF PRESENTATION AND SUM_5

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Cash, uninsured amount	$ 92,638,278		$ 92,638,278		$ 95,767,263
Property, plant and equipment, expected useful lives			Property, plant and equipment under the finance lease are depreciated over their expected useful lives on the same basis as owned assets, or where shorter, the term of the lease, which is 20 years.
Company's contributions to the retirement plan	$ 141,996	$ 186,074	$ 488,773	$ 653,664
Anti-dilutive common stock equivalents excluded from calculation	0	0	0	20,901
Chemical Products
Approximate cost of relocation process	$ 69,000,000		$ 69,000,000
Property, plant and equipment, capitalized costs	$ 45,584,344		$ 45,584,344		$ 45,584,344

Inventories - Schedule of Inven

Inventories - Schedule of Inventories, Current (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 22,092	$ 42,553
Finished goods	$ 581,869	$ 648,558

PREPAID LAND LEASES (Details Na

PREPAID LAND LEASES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2022	Dec. 31, 2021
Prepaid 50-year lease for parcel of land	$ 8,956,932
Operating lease, description	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.
Prepaid land leases, net of current portion		$ 9,329,586	$ 10,368,469
Minimum
Lease term of contract		10 years
Maximum
Lease term of contract		50 years

Property, Plant and Equipment_3

Property, Plant and Equipment, Net - Schedule of Property, Plant and Equipment (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
At cost:
Mineral rights	$ 2,716,440	$ 3,025,017
Buildings	31,510,475	34,906,137
Plant and machinery	223,768,681	201,012,254
Motor vehicles	125,326	139,563
Furniture, fixtures and office equipment	2,239,248	2,494,400
Construction in process	24,002,439	44,310,149
Total	284,362,609	285,887,520
Less: Accumulated depreciation and amortization	(125,754,965)	(123,229,974)
Impairment	0	0
Net book value	$ 158,607,644	$ 162,657,546

PROPERTY, PLANT AND EQUIPMENT_4

PROPERTY, PLANT AND EQUIPMENT, NET (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Land	$ 14,943,968		$ 14,943,968		$ 17,911,910
Depreciation and amortization expense	5,982,055	$ 4,090,343	16,255,069	$ 12,312,345
Direct labor and factory overheads incurred during plant shutdown	1,523,855	730,729	4,817,711	3,305,955
Administrative expenses	165,992	167,761	1,534,387	494,862
Cost of net revenue	$ 4,292,208	$ 3,191,853	$ 9,902,971	$ 8,511,528

Finance Lease Right-Of-Use As_3

Finance Lease Right-Of-Use Assets - Schedule of Property, Plant and Equipment Under Finance Leases (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
At cost:
Total	$ 2,236,271	$ 2,490,302
Less: Accumulated depreciation and amortization	(2,074,214)	(2,305,478)
Net book value	162,057	184,824
Buildings
At cost:
Total	115,908	129,074
Plant and Machinery
At cost:
Total	$ 2,120,363	$ 2,361,228

FINANCE LEASE RIGHT-OF-USE AS_4

FINANCE LEASE RIGHT-OF-USE ASSETS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Finance Lease Right-of-use Assets
Depreciation and amortization expense	$ 1,356	$ 1,431	$ 4,216	$ 4,293

OPERATING LEASE RIGHT _ OF US_2

OPERATING LEASE RIGHT – OF USE ASSETS (Details Narrative)	9 Months Ended
	Sep. 30, 2022 USD ($) km²	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Operating Lease Right Of Use Assets
Operating lease, right of use assets	$ 8,208,368		$ 8,311,127
Operating lease cost	$ 746,731	$ 721,994
Rights to use parcels of land through lease agreements, area | km²	38.6
Capitalized lease, carrying value	$ 9,103,495

Accounts and Other Payable and

Accounts and Other Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accounts payable	$ 219,646	$ 202,289
Salary payable	246,346	267,215
Other payable	65,906	97,856
Accrued expense for construction	8,715,153	8,944,367
Accrued expense-others	811,760	1,019,049
Total	$ 10,058,811	$ 10,530,776

Related Party Transactions - Sc

Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Total	$ 1,721,606	$ 1,849,044
Yang Ming
Related Party Transaction [Line Items]
Total	415,482	462,680
Liu Xiao Bin
Related Party Transaction [Line Items]
Total	599,766	599,766
Li Min
Related Party Transaction [Line Items]
Total	353,179	393,299
Miao Nai Hui
Related Party Transaction [Line Items]
Total	$ 353,179	$ 393,299

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)		3 Months Ended			9 Months Ended
	Sep. 25, 2012	Sep. 30, 2022	Sep. 30, 2021	Mar. 31, 2018	Sep. 30, 2022	Sep. 30, 2021
Chairman of the Company
Related Party Transaction [Line Items]
Acquisition of five floors of commercial building	$ 5,700,000
Equity interest	99%
Seller
Related Party Transaction [Line Items]
Property management services				$ 87,871
Term of property management services, description				five years from January 1, 2018 to December 31, 2022
Expense associated with agreement		$ 21,968	$ 24,048		$ 69,775	$ 71,926

Taxes Payable - Schedule of Tax

Taxes Payable - Schedule of Taxes Payable (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Taxes Payable
Land use tax payable	$ 24,630	$ 27,427
Value added tax and other taxes payable	632,371	748,281
Land use tax payable	$ 657,001	$ 775,708

Lease Liabilities - Finance and

Lease Liabilities - Finance and Operating Lease - Schedule of Finance Leased Liabilities (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Lease Liabilities Finance And Operating Lease
Total finance lease liability	$ 1,616,567	$ 1,997,955
Imputed interest rate	6.70%
Less: Current portion	$ (182,639)	(227,429)
Finance lease liability, net of current portion	$ 1,433,928	$ 1,770,526

Lease Liabilities - Finance a_2

Lease Liabilities - Finance and Operating Lease - Schedule of Operating Leased Liabilities (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Lease Liabilities Finance And Operating Lease
Total Operating lease liabilities	$ 7,876,637	$ 8,064,162
Imputed interest rate	4.89%
Less: Current portion	$ (425,199)	(506,579)
Operating lease liabilities, net of current portion	$ 7,451,438	$ 7,557,583

Lease Liabilities - Finance a_3

Lease Liabilities - Finance and Operating Lease - Schedule of Financing and Operating Lease Maturities (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Lease Liabilities Finance And Operating Lease
Finance lease - the next 12 months	$ 264,376
Operating lease - the next 12 months	826,770
Finance lease - the next 13 to 24 months	264,376
Operating lease - the next 13 to 24 months	824,606
Finance lease - the next 25 to 36 months	264,376
Operating lease - the next 25 to 36 months	831,788
Finance lease - the next 37 to 48 months	264,376
Operating lease - the next 37 to 48 months	836,018
Finance lease - the next 49 to 60 months	264,376
Operating lease - the next 49 to 60 months	843,679
Finance lease - thereafter	793,124
Operating lease - thereafter	10,088,594
Finance lease - Total	2,115,004
Operating lease - Total	14,251,455
Finance lease - Less: Amount representing interest	(498,437)
Operating lease - Less: Amount representing interest	(6,374,818)
Financial lease - Present value of net minimum lease payments	1,616,567	$ 1,997,955
Operating lease - Present value of net minimum lease payments	$ 7,876,637	$ 8,064,162

LEASE LIABILITIES _ FINANCE A_3

LEASE LIABILITIES – FINANCE AND OPERATING LEASE (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Lease Liabilities Finance And Operating Lease
Capital lease, interest expense	$ 23,934	$ 32,015	$ 93,630	$ 103,212
Weighted average remaining operating lease term	20 years		20 years
Weighted average discounts rate	4.89%		4.89%
Lease payments	$ 64,896	$ 68,467	$ 888,692	$ 848,660

EQUITY (Details Narrative)

EQUITY (Details Narrative)	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Statutory common reserve fund, description	The Statutory Common Reserve Fund as of September 30, 2022 for SCHC, SYCI, SHSI, and DCHC is 16%, 14%, 0% and 0% of its registered capital, respectively.

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock Option Activity (Details)	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Compensation Related Costs [Abstract]
Number of option and warrants outstanding and exercisable | shares	0
Weighted-average exercise price of options and warrants | $ / shares	$ 0
Range of exercise price per common share, beginning balance
Number of options and warrants, granted | shares	0
Weighted-average exercise price of options and warrants, granted | $ / shares	$ 0
Range of exercise price per common share, granted
Number of options and warrants, exercised | shares	0
Weighted-average exercise price of option and warrants, exercised | $ / shares	$ 0
Range of exercise price per common share exercised
Number of options and warrants, expired | shares	0
Weighted-average exercise price of option and warrants, expired | $ / shares	$ 0
Range of exercise price per common share, expired
Number of option and warrants outstanding and exercisable | shares	0
Weighted-average exercise price of options and warrants | $ / shares	$ 0
Range of exercise price per common share

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of Stock Options Outstanding and Exercisable (Details) - $ / shares	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Compensation Related Costs [Abstract]
Outstanding and exercisable	0	0
Range of exercise prices, outstanding and exercisable	$ 0	$ 0
Weighted average remaining contractual life (years), outstanding and exercisable

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2019
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation costs for options issued	$ 0	$ 0
Aggregate intrinsic value of options outstanding and exercisable	$ 0
2019 Omnibus Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Awards, number of shares authorized			2,068,398
Shares available for grant	1,056,801

Income Taxes - Schedule of Comp

Income Taxes - Schedule of Components of Income Tax Expense Benefit (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Current taxes – PRC	$ 0	$ 0	$ 0	$ 0
Deferred taxes	(3,010,967)	(1,750,283)	(4,356,283)	(1,363,054)
Tax Expense Benefit	$ (3,010,967)	$ (1,750,283)	$ (4,356,283)	$ (1,363,054)

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Deferred tax liabilities	$ 0	$ 0
Deferred tax assets:
Exploration costs	1,753,583	1,952,783
PRC tax losses	14,004,970	19,621,674
US federal net operating loss	1,336,405	1,308,335
Total deferred tax assets	17,094,958	22,882,792
Valuation allowance	(10,016,934)	(9,982,758)
Net deferred tax asset	$ 7,078,024	$ 12,900,034

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Increase/(decrease) in valuation allowance	$ 0	$ 13,366	$ 34,176	$ 71,292
United States
Tax rate			21%
Hong Kong
Tax rate			16.50%
PRC
Tax rate			25%
Accumulated undistributed earnings subject to withholding tax	141,095,736		$ 141,095,736		$ 140,006,862
Recognized withholding tax	$ 6,095,470		$ 6,095,470		$ 5,932,051

Business Segments - Schedule of

Business Segments - Schedule of Segment Reporting Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Net revenue (external customers)	$ 22,862,795	$ 17,753,669	$ 47,505,246	$ 34,160,920
Net revenue (intersegment)	0	0	0	0
Income(loss) from operations before income tax benefit (expense)	11,942,592	7,097,975	16,986,668	1,433,742
Income tax benefit(expense)	(3,010,967)	(1,750,283)	(4,356,283)	(1,363,054)
Income (loss) from operations after income tax benefit (expense)	8,931,625	5,347,692	12,630,385	70,688
Total assets	290,544,381	304,439,121	290,544,381	304,439,121	$ 309,856,862
Depreciation and amortization	5,983,411	4,091,775	16,352,915	12,419,851
Capital expenditures	0	2,753,717	33,217,987	8,560,152
Bromine
Segment Reporting Information [Line Items]
Net revenue (external customers)	19,845,773	14,913,004	41,865,598	29,749,432
Net revenue (intersegment)	0	0	0	0
Income(loss) from operations before income tax benefit (expense)	10,552,343	6,909,542	17,226,718	8,312,210
Income tax benefit(expense)	(2,642,167)	(1,730,425)	(4,304,623)	(2,084,253)
Income (loss) from operations after income tax benefit (expense)	7,910,176	5,179,117	12,922,095	6,227,957
Total assets	168,912,333	144,690,423	168,912,333	144,690,423
Depreciation and amortization	5,055,864	2,652,509	12,761,421	8,286,852
Capital expenditures	0	188,529	33,217,987	188,529
Crude Salt
Segment Reporting Information [Line Items]
Net revenue (external customers)	2,934,707	2,840,665	5,506,655	4,411,488
Net revenue (intersegment)	0	0	0	0
Income(loss) from operations before income tax benefit (expense)	1,876,161	561,373	1,497,208	(1,026,647)
Income tax benefit(expense)	(469,197)	(140,590)	(374,822)	256,876
Income (loss) from operations after income tax benefit (expense)	1,406,964	420,783	1,122,386	(769,771)
Total assets	11,286,079	33,983,687	11,286,079	33,983,687
Depreciation and amortization	821,269	1,354,811	3,261,180	3,835,533
Capital expenditures	0	0	0	0
Chemical Products
Segment Reporting Information [Line Items]
Net revenue (external customers)	0	0	0	0
Net revenue (intersegment)	0	0	0	0
Income(loss) from operations before income tax benefit (expense)	(447,960)	(535,047)	(1,436,443)	(2,022,828)
Income tax benefit(expense)	100,397	120,732	323,162	464,323
Income (loss) from operations after income tax benefit (expense)	(347,563)	(414,315)	(1,113,281)	(1,558,505)
Total assets	108,653,553	123,734,291	108,653,553	123,734,291
Depreciation and amortization	71,120	72,939	221,017	210,420
Capital expenditures	0	2,565,188		8,371,623
Natural Gas
Segment Reporting Information [Line Items]
Net revenue (external customers)	82,315	0	132,993	0
Net revenue (intersegment)	0	0	0	0
Income(loss) from operations before income tax benefit (expense)	19,500	(49,295)	(68,938)	(166,932)
Income tax benefit(expense)	0	0	0	0
Income (loss) from operations after income tax benefit (expense)	19,500	(49,295)	(68,938)	(166,932)
Total assets	1,389,190	1,641,720	1,389,190	1,641,720
Depreciation and amortization	35,158	11,516	109,297	87,046
Capital expenditures	0	0	0	0
Segment Total
Segment Reporting Information [Line Items]
Net revenue (external customers)	22,862,795	17,753,669	0	34,160,920
Net revenue (intersegment)	0	0	0	0
Income(loss) from operations before income tax benefit (expense)	12,000,044	6,886,573	17,218,545	5,095,803
Income tax benefit(expense)	(3,010,967)	(1,750,283)	(4,356,283)	(1,363,054)
Income (loss) from operations after income tax benefit (expense)	8,989,077	5,136,290	12,862,262	3,732,749
Total assets	290,241,155	304,050,121	290,241,155	304,050,121
Depreciation and amortization	5,983,411	4,091,775	16,352,915	12,419,851
Capital expenditures			33,217,987	8,560,152
Corporate
Segment Reporting Information [Line Items]
Net revenue (external customers)	0	0	0	0
Net revenue (intersegment)	0	0	0	0
Income(loss) from operations before income tax benefit (expense)	(57,452)	211,402	(231,877)	(3,662,061)
Income tax benefit(expense)	0	0	0	0
Income (loss) from operations after income tax benefit (expense)	(57,452)	211,402	(231,877)	(3,662,061)
Total assets	303,226	389,000	303,226	389,000
Depreciation and amortization	0	0	0	0
Capital expenditures	$ 0	$ 0	$ 0	$ 0

Business Segments - Schedule _2

Business Segments - Schedule of Segment Reconciliations (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting [Abstract]
Total segment operating Income (loss)	$ 12,000,044	$ 6,886,573	$ 17,218,545	$ 5,095,803
Corporate costs	(50,505)	(99,461)	(186,682)	(3,378,774)
Unrealized gain on translation of intercompany balance	(6,947)	310,863	(45,195)	(283,287)
Income (loss) from operations	11,942,592	7,097,975	16,986,668	1,433,742
Other income, net of expense	35,755	45,923	118,843	117,583
Income (loss) before taxes	$ 11,978,347	$ 7,143,898	$ 17,105,511	$ 1,551,325

Business Segments - Schedule _3

Business Segments - Schedule of Revenue by Major Customers (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting Information [Line Items]
Revenues	$ 22,862,795	$ 17,753,669	$ 47,505,246	$ 34,160,920
Shandong Morui Chemical Company Limited
Segment Reporting Information [Line Items]
Percentage of total revenues	14.80%	23.90%	14.80%	21.90%
Shouguang Weidong Chemical Company Limited
Segment Reporting Information [Line Items]
Percentage of total revenues	12.80%	20.20%	12.10%	17.60%
Shandong Brother Technology Limited
Segment Reporting Information [Line Items]
Percentage of total revenues	14%	21.40%	14%	17.90%
Bromine
Segment Reporting Information [Line Items]
Revenues	$ 19,845,773	$ 14,913,004	$ 41,865,598	$ 29,749,432
Bromine | Shandong Morui Chemical Company Limited
Segment Reporting Information [Line Items]
Revenues	2,190,000	3,233,000	4,942,000	5,881,000
Bromine | Shouguang Weidong Chemical Company Limited
Segment Reporting Information [Line Items]
Revenues	2,041,000	2,801,000	4,169,000	4,726,000
Bromine | Shandong Brother Technology Limited
Segment Reporting Information [Line Items]
Revenues	2,339,000	2,757,000	4,782,000	4,587,000
Crude Salt
Segment Reporting Information [Line Items]
Revenues	2,934,707	2,840,665	5,506,655	4,411,488
Crude Salt | Shandong Morui Chemical Company Limited
Segment Reporting Information [Line Items]
Revenues	1,123,000	1,010,000	2,088,000	1,599,000
Crude Salt | Shouguang Weidong Chemical Company Limited
Segment Reporting Information [Line Items]
Revenues	885,000	783,000	1,583,000	1,281,000
Crude Salt | Shandong Brother Technology Limited
Segment Reporting Information [Line Items]
Revenues	927,000	1,048,000	1,836,000	1,533,000
Chemical Products
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Chemical Products | Shandong Morui Chemical Company Limited
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Chemical Products | Shouguang Weidong Chemical Company Limited
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Chemical Products | Shandong Brother Technology Limited
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Total Revenue | Shandong Morui Chemical Company Limited
Segment Reporting Information [Line Items]
Revenues	3,313,000	4,243,000	7,030,000	7,480,000
Total Revenue | Shouguang Weidong Chemical Company Limited
Segment Reporting Information [Line Items]
Revenues	2,926,000	3,584,000	5,752,000	6,007,000
Total Revenue | Shandong Brother Technology Limited
Segment Reporting Information [Line Items]
Revenues	$ 3,266,000	$ 3,805,000	$ 6,618,000	$ 6,120,000

CUSTOMER CONCENTRATION (Details

CUSTOMER CONCENTRATION (Details Narrative) - Customer Concentration Risk [Member] - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Concentration Risk [Line Items]
Percent of products sold to top five customers	52.90%	76.90%
Amounts due from major customers	$ 6,095,578	$ 11,280,670

MAJOR SUPPLIERS (Details Narrat

MAJOR SUPPLIERS (Details Narrative) - Major Suppliers - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Product Information [Line Items]
Percent of materials purchased	100%	100%
Amount due to major suppliers	$ 219,646	$ 653,102

Capital Commitment and Other _3

Capital Commitment and Other Service Contractual Obligations - Schedule of Contractual Obligations (Details)	Sep. 30, 2022 USD ($)
Property Management Fees
Other Commitments [Line Items]
Payable within: the next 12 months	$ 87,871
Payable within: the next 13 to 24 months	0
Payable within: the next 25 to 36 months	0
Total	87,871
Capital Expenditure
Other Commitments [Line Items]
Payable within: the next 12 months	16,702,745
Payable within: the next 13 to 24 months	970,890
Payable within: the next 25 to 36 months	0
Total	$ 17,673,635

LOSS CONTINGENCIES (Details Nar

LOSS CONTINGENCIES (Details Narrative)	1 Months Ended
	Aug. 31, 2018
Settled Litigation
Loss Contingencies [Line Items]
Loss Contingency, Settlement Agreement, Terms	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.

SUBSEQUENT EVENT (Details Narra

SUBSEQUENT EVENT (Details Narrative)	Oct. 07, 2022 shares
Subsequent Event | 2019 Omnibus Equity Incentive Plan
Subsequent Event [Line Items]
Number of shares issued under equity incentive plan	200,000