Gulf Resources, Inc. (GURE) confirmed that it has regained compliance with Nasdaq’s Listing Rule 5550(a)(2), a requirement that listed securities maintain a minimum bid price of $1.00 per share. The company’s compliance status was restored after a 1‑for‑10 reverse stock split that took effect on October 27 2025, and the Nasdaq Hearings Panel cancelled the hearing that had been scheduled for December 9 2025.
The reverse split lifted the company’s share price above the $1.00 threshold, and by November 10 the stock had traded at $1.02 for ten consecutive trading days, satisfying the rule’s ten‑day test. The Nasdaq panel’s decision to cancel the hearing confirms that Gulf Resources has met the bid‑price requirement and can continue trading on the Nasdaq Capital Market under the ticker GURE.
Financially, Gulf Resources reported a third‑quarter revenue of $9.04 million, a 303% year‑over‑year increase from $2.24 million in Q3 2024. However, the company posted a net loss of $35.66 million, largely driven by a $31 million asset‑impairment and disposal charge. In the second quarter, revenue rose 250% to $8.34 million and the net loss narrowed to $0.77 million, reflecting a significant reduction in impairment expenses.
Management emphasized that the compliance milestone demonstrates operational discipline, but cautioned that the company remains in a “going‑concern” situation. The CFO noted that while the reverse split and subsequent trading performance addressed the bid‑price issue, the company must continue to manage its high operating costs and asset write‑downs to achieve profitability.
On the day the compliance announcement was made, the market reacted positively, with the stock price rising sharply. The rally reflected investors’ relief that the delisting risk had been eliminated, but analysts and investors remain focused on the company’s ongoing financial challenges and the need for a sustainable turnaround.
The compliance win secures Gulf Resources’ listing and preserves access to capital markets, but the company’s substantial losses and asset impairment charges underscore the urgency of improving operational efficiency and generating sustainable earnings. The event is a critical operational milestone, yet it does not resolve the underlying financial headwinds that could impact long‑term investor confidence.
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