What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2024-09-27 compared with 2023-03-31 · 203 added, 193 removed, 313 unchanged (56% of the section changed)

20 unchanged sentences

to explore and develop natural gas and brine resources (including bromine and crude salt) in Sichuan Province, China.

Bromine and Crude Salt

As disclosed in the Company’s Current Report

22 unchanged sentences

The Shouguang City Bromine Association, on behalf

of all the bromine plants in Shouguang, started discussions with the local government agencies.

The local governmental agencies confirmed

the facts that their initial requirements for the bromine industry did not include the project approval, the planning approval and the

land use rights approval and that those three additional approvals were new requirements of the provincial government.

The Company understood

from the local government that it has been coordinating with several government agencies to solve these three outstanding approval issues

in a timely manner and that all the affected bromine plants willnot be allowed to commence production prior to obtaining those approvals.

In February 2019, the Company received a notification from the local

government of Yangkou County that its Factory No.

9 had passed inspection and could resume operations.

2019, Factory No.

of all the bromine producers in Shouguang, initiated negotiations with the local government agencies.

The local governmental agencies

acknowledged the facts that their initial requirements for the bromine industry did not include the project, the planning and the land

use rights approvals, which were later introduced by the provincial government as new requirements.

The Company understood from the local

government that local government were coordinating with various government agencies to solve these three outstanding approval issues in

a timely manner and that all impacted bromine plants will not be allowed to commence production prior to obtaining those approvals.

February 2019, the Company received a notification from the local government of Yangkou County that its Factories No.

9 passed inspection and were allowed to resume operations.

In April 2019, Factory No.

7 resumed operations.

On February 28, 2020, the Company announced that

it received an approval from the government to resume bromine production after winter temporary closure.

Subsequently, it received another

approval from the Shouguang Yangkou People’s Government dated on March 5, 2020 to resume production at its bromine factories No.1,

Subsequently, the Company received an approval

dated on February 27, 2020 issued by the local governmental authority which allows us to resume production after the winter temporary

Further, the Company received another approval from the Shouguang Yangkou People’s Government dated on March 5, 2020 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.

With these two approvals, the

Company was allowed to resume production at all four bromine factories.

The Company received an oral notification from

the government for its Factory No.

8, which permitted Factory No.8 to resume production in August 2022.

Factory No.8 started to contribute

revenue in the fourth quarter 2022.

9 in order to meet the needs of bromide products for epidemic prevention

and control (the “March 2020 Approval”).

The Company’s factories No.7 and No.1 started trial production in middle-March,

2020, and commenced commercial production on April 3, 2020.

The Company received oral notification from the

government regarding Factory No.

8, allowing it to resume production in August 2022.

Factory No.8 began contributing revenue in the fourth

quarter 2022.

The Company is awaiting governmental approval

for Factories No.

To our knowledge, the government is finalizing plans for all mining areas, including flood prevention

As a result, we may be required to make certain modifications to our existing wells and aqueducts prior to commencement of

operations of these factories in order to satisfy the local government's requirements.

The Company completed its flood prevention project

in December 2023.

This project was implemented for safeguarding its bromine facilities.

Pursuant to the notification from the government

of Shouguang City, all bromine facilities in Shouguang City were temporarily closed from December 25, 2023 until February 20, 2024.

AM China Time.

To comply with such notification, the Company had temporarily stopped production at its bromine facilities during the aforesaid

period and reopened the operating bromine and crude salt factories in February, 2023 as planned.

The Company is still waiting for governmental

approval for factories No.2 and No.10.

To its knowledge, the government is currently completing its planning process for all mining areas

including that for prevention of flood.

As a result, the Company 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.

On November 24, 2017, Gulf Resources received

a letter from the People’s Government of Yangkou County, Shouguang City notifying the Company that due to the new standards and

regulations relating to safety production and environmental pollution, from certain local governmental departments, such as the municipal

environmental protection department, the security supervision department and the fire department, its chemical enterprises would have

to be relocated to a new industrial park called Bohai Marine Fine Chemical Industry Park.

Although our chemical companies

were in compliance with regulations, they were also close to a residential area.

As a result, the government determined we should relocate

to the Bohai park.

compliance with the notification, the Company ceased production at its bromine facilities during this period and resumed operations at

the bromine and crude salt factories as scheduled in February 2024.

Chemical Products

On November 24, 2017, the Company received a letter

from the People’s Government of Yangkou County, Shouguang City notifying the Company that due to the new standards and regulations

relating to safety production and environmental pollution, from certain local governmental departments, such as the municipal environmental

protection department, the security supervision department and the fire department, its chemical enterprises would have to be relocated

to a new industrial park called Bohai Marine Fine Chemical Industry Park.

Although our chemical companies were in compliance

with regulations, they were also close to a residential area.

As a result, the government determined we should relocate to the Bohai park.

Chemical companies that are not being asked to move into the park are being permanently closed.

Since our factories

closed, the Company has secured from the government the land use rights for its chemical plant.

On January 6, 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.

The construction was expected to take approximately one year and an additional six months to complete the equipment installation and

testing, however due to the COVID epidemic and electrical restrictions, the opening of the chemical factory has been delayed.

has received the refrigeration and air compressor units.

The rest equipment is expected to be delivered by the second quarter of

The Company intends to start installation of equipment and may start testing andtrial production by the end of 2023 or beginning

In January 2017, the Company completed the first

brine water and natural gas well field construction in Daying located in Sichuan Province and commenced trial production in January 2019.

On May 29, 2019, the Company received a verbal notice from the government of Tianbao Town ,Daying County, Sichuan Province, whereby the

Company is required to obtain project approval for its well located in Daying, including the whole natural gas and brine water project,

and approvals for safety production inspection, environmental protection assessment, and to solve the related land issue.

approvals have been received, the Company has to temporarily halt trial production at its natural gas well in Daying.

In compliance with

the Chinese government new policies, the Company is also required to obtain an exploration license and a mining license for bromine and

natural gas, respectively.

Pursuant to the Opinions of the Ministry of Natural Resources on Several Issues in Promoting the Reform of

Mineral Resources Management (Trial) promulgated by the Ministry of Natural Resources of PRC on January 9, 2020, which came into effect

on May 1, 2020, privately owned enterprises are allowed to participate in the natural gas production.

The Company plans to proceed with

its applications for the natural gas and brine project approvals with related government departments until after the governmental planning

has been finalized the land and resource planning for Sichuan Province.

Since our factories closed, the

Company has secured from the government the land use rights for its chemical plant.

On January 6, 2020, the Company received the environmental

protection approval by the government of Shouguang City, Shandong Province for the proposed Yuxin Chemical factory.

Construction of the

new chemical facilities at Bohai Marine Fine Chemical Industrial Park commenced in June 2020.

Initially, the construction was projected

to last around one year, with an additional six months for equipment installation and testing.

However, due to the COVID epidemic and

electrical restrictions, the opening of the chemical factory has been postponed.

The Company has received the refrigeration and air

compressor units.

Additionally, the procurement of the final equipment for our chemical factory has been postponed until we have

a better understanding of the potential for derivative bromine products.

We anticipate proceeding with the completion of its chemical

factory in due course.

However, in the event that the Chinese economy persists in its weakness and if we perceives this trend to be ongoing,

there is a possibility that the chemical factory could be repurposed for the production of Sodium-Ion batteries.

In January 2017, the Company completed the construction

of the first brine water and natural gas well field in Daying County, Sichuan Province, and commenced trial production in January 2019.

On May 29, 2019, the Company received verbal notice from the government of Tianbao Town, Daying County, Sichuan Province, mandating the

need for project approval for its Daying well, encompassing the entire natural gas and brine water project.

This also includes approvals

for safety production inspection, environmental protection assessment, and to solve the related land issue.

Until these approvals are

obtained, the Company must temporarily suspend trial production at its natural gas well in Daying.

Additionally, in compliance with the

Chinese government new policies, the Company is required to obtain an exploration license for bromine and a mining license for natural

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 is engaged in ongoing discussions with the government

of Daying County regarding the establishment of a joint venture for the exploration and production of natural gas and brine products in

As a result of our acquisitions of SCHC and SYCI,

2 unchanged sentences

following discussion should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in

On January 28, 2020 we completed a 1-for-5 reverse

stock split of our common stock, such that for each five shares outstanding prior to the stock split there was one share outstanding after

the reverse stock split.

All shares of common stock referenced in this report have been adjusted to reflect the stock split

Flood Prevention Project

In August 2023, the Company

initiated its preventive measures for safeguarding its bromine facilities.

Our strategy involves the renovation of the channels of four

major rivers within our mining area, encompassing the tributary of the Mihe River.

The aim is to prevent flooding that could harm the

wells, aqueducts and crude salt pans at our plant.

In December 2023, the Company completed this flood prevention project.

As of December

31, 2023, we incurred $ 46,510,856 in other expenses for the project.

The cost incurred for four

major rivers are:

(1) Liansigou Section for $8,057,722;(2) Mi River Section for $20,168,321;(3) Ta River Section $10,070,033 ;

Weitan River Section for $8,214,780 .

RESULTS OF OPERATIONS.

1 unchanged sentence

year ended December 31, 2022

December 31, 2022

December 31, 2021

Percent Change

Percent Change Increase/

Cost of Net Revenue

10 unchanged sentences

$ (2,850,059 )

(Loss)/Profit from Operations

$ (11,890,725 )

Profit from Operations

Other Income, Net

Income before Taxes

Expenditure on water pollution treatment

$ (46,510,856 )

(Loss) /Income before Taxes

$ (58,256,662 )

Income Tax Expense (Benefit)

1 unchanged sentence

$ (6,586,985 )

Net Income of $10,059,450 was mainly due to higher

sales, improved margins and lower compensation costs, and the compensation costs $668,000 for shares issued to company employees, officers

and consultant for year 2022 .

If we do not consider these unexpected nonrecurring

and non-operational factors, and the impairments and write-offs for total $5,319,707, our net income would

be adjusted back to $15,379,157 for fiscal year 2022.

Net Revenue The table below shows

the changes in net revenue in the respective segment of the Company for the fiscal year 2022 compared to the same period in 2021:

Net (Loss) /Income

$ (61,795,279 )

Net Loss of $61,795,279 was

mainly attributable to decreased sales, reduced margins.

Additionally, the compensation expenses amounted to $451,350

for shares issued to company employees, officers and consultant for the year 2023 .

The Company also incurred losses of $46,510,856

on a flood prevention project.

Net Revenue The table below

shows the changes in net revenue in the respective segment of the Company for the fiscal year 2023 compared to the same period in 2022:

Net Revenue by Segment

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Bromine segment

Net revenue from our bromine segment increased

by 21% to $58,964,941 for the year ended December 31, 2022, compared to $48,871,396 for the year ended December 31, 2021.

This increase

was due to the 6% increase in tonnes sold and a 14% increase in average selling price.

Crude salt segment

Net revenue from our crude salt segment increased

by 15% to $6,996,552 for the year ended December 31, 2022 compared $6,080,242 for the same period in 2021.

This increase was due to increases

in crude salt unit price of 13% and an increase in volume of 1.5%

Net revenue from our bromine segment decreased by

54.3% to $26,921,462 for the year ended December 31, 2023, compared to $58,964,941 for the year ended December 31, 2022.

decrease was due to a 55% decrease in average selling price.

Crude salt se g ment

Net revenue from our crude salt segment decreased by 57.5%

to $2,971,467 for the year ended December 31, 2023, compared to $6,996,552 for the last year.

This decrease was due to a decrease in crude

salt unit price of 19% and a decrease in volume of 47%.

Chemical products segment

12 unchanged sentences

Chemical Products

Cost of net revenue reflects mainly

the raw materials consumed and the direct salaries and benefits of staff engaged in the production process, electricity, depreciation

and amortization of manufacturing plant and machinery and other manufacturing costs.

Our cost of net revenue was $28,669,152 for the year

ended December 31, 2022, an increase of $1,536,780(or 6%) as compared to the same period in 2021 due to the increase of net revenue by

21% for the year ended December 31, 2022 as compared to the same period in 2021 .

of net revenue primarily includes costs of the raw materials consumed, the direct salaries and benefits for production staff, electricity

costs, depreciation and amortization of manufacturing plant and machinery, and other manufacturing-related costs.

Our cost of net revenue

was $28,089,953 for the year ended December 31, 2023, representing a $579,199 (or 2%) decrease compared to the preceding year.

In May 2022, we separated the bromine and the

crude salt business to conform with government regulations.

This separation required different allocation of costs.

The net impact was

to increase the cost allocations to bromine and decrease the cost allocations to crude salt.

crude salt business to comply with government regulations.

This separation required a reevaluation of cost allocations, resulting in increased

allocations to bromine and decreased allocations to crude salt.

Bromine production capacity and utilization

23 unchanged sentences

Gross Profit.

Gross profit was $37,425,334,

or 57%, of net revenue for the year ended December 31, 2022 compared to $27,898,214, or 51%, of net revenue for the same period in 2021.

was $1,953,837, or 7%, of net revenue for the year ended December 31, 2023, compared to $37,425,334, or 57%, of net revenue for the same

period in 2022.

Gross Profit (Loss) by Segment

8 unchanged sentences

Total Gross Profit

Bromine segment

For the year ended December 31, 2021, the gross

profit margin for our bromine segment was 58%, representing a 5% increase.

This increase was primarily attributable to the higher average

selling price of bromine of $7.543 per ton in the year ended December 31, 2022 compared to $6,623 per ton in the year ended December 31,

Offset by changes in accounting related to our new Salt subsidiary created in April 2022.

For the year ended December 31, 2023, gross

profit margin for our brom ine segment was 2% compared to 58% in the previous year.

This decrease was primarily attributable to the lower average selling price of bromine of $3,386 per ton in the year ended December 31,

2023, compared to $7,543 per ton in the year ended December 31, 2022.

For the year ended December 31, 2022, the gross

1 unchanged sentence

Crude salt segment

For the year ended December 31, 2022, the gross

profit margin for our crude salt segment was 49%, compared to 30% in the year ended December 31, 2021, representing a 19% increase.

increase was primarily attributable to the higher average selling price of crude salt of $38 per ton in the year ended December 31, 2022

compared to $34 per ton in the year ended December 31, 2021 as well as to the changes in accounting related to our new crude salt subsidiary.

Direct labor and factory overheads incurred

during plant shutdown.

On September 1, 2017, the Company received notification from the government of Yangkou County, Shouguang

City of PRC stating that production at all its bromine and crude salt and chemical factories should be halted with immediate effect in

order for the Company to perform rectification and improvement in accordance with the county’s new safety and environmental protection

requirements.

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 Plant to Bohai

As such, direct labor and factory overhead costs (including depreciation of plant and machinery) amounted $12,002,629 and $10,718,605

for fiscal years 2022 and 2021, which were presented as operating expenses instead of in cost of revenue.

The increase in direct

labor and factory overhead costs was primarily attributable to the factories operation status during the fiscal year 2022 and year 2021,

respectively.

These four factories (including No.1,No.4,No.7,No.8 and No.9)were in production during the year 2022.

General and Administrative Expenses.

and administrative expenses were $6,028,079 for the year ended December 31, 2022, representing a decrease of $3,497,156 (or 37%) as compared

to$9,525,235 for the same period in 2021, the major reason for this was due to the cost of approximately $3.1 million for stock grants

in the second quarter of year 2021 offset by a stock grant of approximately $668,000 in 2022.

Profit from Operations.

profits were $16,481,696 for the fiscal year 2022, compared to a loss of $5,210,870 in the same period in 2021.

For the year ended December

31, 2023, the gross profit margin for our crude salt segment was 47%, compared to 49% in the preceding year, representing a 2% decrease.

This decrease was primarily attributable to the lower average selling price of crude salt of $31 per ton in the year ended December 31,

2023 compared to $38 per ton in the year ended December 31, 2022 。

labor and factory overheads incurred during plant shutdown.

On September 1, 2017, the Company received notification from the

government of Yangkou County, Shouguang City of PRC stating that production at all its bromine and crude salt and chemical factories

should be halted with immediate effect in order for the Company to perform rectification and improvement in accordance with the county’s

new safety and environmental protection requirements.

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 Plant to Bohai Park.

As such, direct labor and factory overhead costs (including depreciation of plant and machinery)

amounted $9,544,675 and $12,002,629 for fiscal years 2023 and 2022, which were presented as operating expenses instead of in cost of

The increase in direct labor and factory overhead costs was primarily attributable to the factories operation status during

the fiscal year 2023 and year 2022, respectively.

These five factories (including No.1,No.4,No.7,No.8 and No.9)were in production during

the year 2023.

and Administrative Expenses.

General and administrative expenses were $4,240,832 for the year ended December 31, 2023, representing

a decrease of $1,787,247 (or 30%) as compared to$6,028,079 for the same period in 2022.

(Loss)/Profit from Operations.

Operating loss

was $11,890,725 for the fiscal year 2023, compared to a profit of $16,481,696 in the same period in 2022.

Income (loss) from Operations by Segment

1 unchanged sentence

Year ended December 31, 2022

$ (1,078,320 )

Chemical Products

$ (1,953,230 )

$ (2,550,561 )

Profit (Loss) from operations before corporate costs

Corporate costs

$ (1,060,405 )

$ (3,575,099 )

Unrealized gain (loss) on translation of intercompany balance

Profit (loss) from operations before taxes

Bromine segment

Income from operations from our bromine segment

was $17,905,181 for the fiscal year 2022, compared to an income of $13,364,649 in the same period in 2021.

The increase in income was

primarily due to a 14% increase in average selling price partially offset by additional cost allocations from the new divisional structure.

Crude salt segment

(Loss)/ Profit from operations before taxes

Loss from operations from our

bromine segment was $10,005,755 for the fiscal year 2023, compared to an income of $17,905,181 in the same period in 2022.

in income was primarily due to a 55% decrease in average selling price.

Crude salt se g ment

Income from operations from our crude salt segment

was $2,301,885 for fiscal year 2022, compared to a loss of $1,078,320 in the same period in 2021.

The improved income was due to a higher

price for crude salt and lower cost allocations from the new divisional structure.

Chemical products segment

Loss from operations from our chemical products

segment was $1,953,230 for the fiscal year 2022, compared to a loss of $2,550,561 in the same period in 2021.

Natural gas segment

Loss from operations from our natural gas segment

was $640,309 for fiscal year 2023, compared to an income of $2,301,885 in the same period in 2022.

The main reason for the decline in

crude salt in 2023 compared with 2022 is that the unit price of sales is down by 19%, and the sales volume is also down by 47%.

Chemical products

Loss from operations from our chemical products segment

was $1,653,349 for the fiscal year 2023, compared to a loss of $1,953,230 in the same period in 2022.

Other Income, Net .

Loss from operations from our natural gas segment was $86,284

for the fiscal year 2023, compared to a loss of $148,099 in the same period in 2022.

Other (Expense)/Income, Net .

Other income,

net, which represent bank interest income, net of finance lease interest expense was $164,739 for the fiscal year 2022, an increase of

$2,109 (or approximately 1%) as compared to the same period in 2021.

Net Income (loss).

Net income was

$10,059,450 for the fiscal year 2022, compared to net loss of $924,718 in the same period in 2021.

Net Income Per Share

For the fiscal year 2022, net income per share

was $1.00 compared to an income of $0.09 in the same period in 2021.

net, which represent bank interest income, net of finance lease interest expense was $144,919 for the fiscal year 2023, representing a

decrease of $19,820 (or approximately 12%) as compared to the preceding year.

Expenditure on water pollution treatment.

on water pollution treatment was $46,510,856 in the fiscal year 2023.

Net (Loss)/Income.

Net loss was $61,795,279

for the fiscal year 2023, compared to net income of $10,059,450 in the preceding year.

Net (Loss)/Income Per Share

For the fiscal year 2023, net loss per share was

$5.92 compared to net income of $1.00 in the preceding year.

There were 10,726,924 shares outstanding compared to 10,431,924 shares.

Foreign Currency Translation Adjustment

For the fiscal year 2022, the Company had a negative

foreign currency translation adjustment of $24,886,118 versus a positive adjustment of $7,405,582 in the previous year.

This adjustment

impacts all balance sheet translations into U.S.

For the fiscal year 2023,

the Company had a negative foreign currency translation adjustment of $5,025,980 versus a negative adjustment of $24,886,118 in the previous

This adjustment impacts all balance sheet translations into U.S.

LIQUIDITY AND CAPITAL RESOURCES

1 unchanged sentence

were $72,223,894 as compared to $108,226,214 as of December 31, 2022.

The components of this increase of $12,458,951 are reflected

The components of this decrease of $36,002,320 are reflected

Statement of Cash Flows

2 unchanged sentences

Net cash used in investing activities

$ (37,560,932 )

$ (30,093,140 )

Net cash used in financing activities

Effects of exchange rate changes on cash and cash equivalents

Net increase in cash and cash equipment

Net decrease in cash and cash equipment

For the fiscal years 2023 and 2022, we met our

working capital and capital investment requirements by using cash flows from operations and cash on hand.

Net Cash Provided by Operating Activities

During the year ended December 31, 2022, cash

flow provided by operating activities of approximately $51.1 million was mainly due to a net income of $10.06 million, a decrease in accounts

receivable of $8.2 million, a decrease in accounts payable of $0.8 million, an decrease in deferred taxes of $6.59 million, and a non-cash

adjustment related to depreciation and amortization of property, plant and equipment of $26.78 million, offset by increases in operating

leases, and prepayments.

During the year ended December 31, 2021, cash

flows provided by operating activities of approximately $23.3 million was mainly due to non-cash adjustments related to depreciation and

amortization of property, plant and equipment of $21 million, unrealized translation loss of $0.8 million and stock-based compensation

expense of $3.1 million reduced by net loss of $6.1 million.

Net Cash (Used in)/Provided

by Operating Activities

During the year ended December 31,

2023, cash flow used in operating activities of approximately $32.75 million was mainly due to a net loss of $61.8 million, offset by

a non-cash adjustment related to depreciation and amortization of property, plant and equipment of $27.13 million and an increase in accounts

and other payable and accrued expenses of $1.11 million.

year ended December 31, 2022, cash flow provided by operating activities of approximately $51.1 million was mainly due to a net income

of $10.06 million, a decrease in accounts receivable of $8.2 million, a decrease in accounts payable of $0.8 million, a decrease in deferred

taxes of $6.59 million, and a non-cash adjustment related to depreciation and amortization of property, plant and equipment of $26.78

million, offset by an increases in operating leases and prepayments.

Accounts receivable

14 unchanged sentences

The overall accounts receivable balance as of

December 31, 2022 decreased by $9,162,641, as compared to those of December 31, 2021.

December 31, 2023 decreased by $497,470, compared to those of December 31, 2022.

We have policies in place to ensure that sales are

6 unchanged sentences

Finished goods

The net inventory level as of December 31, 2022

increased by $907,461, as compared to the net inventory level as of December 31, 2021.

Raw materials decreased by $16,361 as of December

31, 2022 as compared to December 31, 2021.

Finished goods increased by $923,822 as of December

The net inventory

level as of December 31, 2023 decreased by $1,021,343, as compared to the net inventory level as of December 31, 2022, one of the main

reasons for the reduction in inventories was the decline in sales.

Raw materials increased by $6,648 as of December 31,

2023, as compared to December 31, 2022.

Finished goods decreased by $1,027,991 as of December 31, 2023, as compared to December 31, 2022.

Net Cash Used In Investing Activities

For the fiscal year 2022, we used approximately

$37.6 million for investing activities.

For the fiscal year 2023, we used $0 for investing activities.

For the fiscal year 2022, we used approximately

5 unchanged sentences

generated from operations will be sufficient to meet our anticipated ongoing operating needs for the next twelve months.

We had available cash of approximately $108 million

at December 31, 2022, all of which is in highly liquid current deposits which earn no or little interest.

We do not anticipate paying

cash dividends in the foreseeable future.

As of December 31, 2023, we had approximately

$72 million in available cash, all of which is in highly liquid current deposits yielding minimal or no interest.

We do not anticipate

paying cash dividends in the foreseeable future.

We intend to continue to focus our efforts on

11 unchanged sentences

Our inability to implement and manage our expansion strategy successfully may have a material adverse effect on our business and future

Going Concern Consideration

There is no significant uncertainty

about the continuing operations of the Company.

Contractual Obligations and Commitments

104 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis