What changed in this filing

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Item 1. Financial Statements

2026-09-30 compared with 2026-09-30 · 1436 added, 760 removed, 705 unchanged (76% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

March 31, 2026

December 31, 2025

receivable, net

and deposits, net

due from related parties

Current Assets

Accounts receivable, net

Inventories, net

Prepayments and deposits

Amounts due from related parties

Other receivables

Total current assets

plant and equipment, net

lease right-of-use assets

land leases, net of current portion

tax assets, net

non-current assets

Property, plant and equipment, net

Finance lease right-of-use assets

Operating lease right-of-use assets

Prepaid land leases, net of current portion

Deferred tax assets, net

Total non-current assets

Liabilities and Stockholders’ Equity

and Stockholders’ Equity

payable and accrued expenses

payable-current

due to related parties

lease liabilities, current portion

Current Liabilities

Short-term bank borrowing

Accounts payable and accrued expenses

Accrued liabilities

Taxes payable-current

Amount due to related parties

Finance lease liabilities, current portion

Operating lease liabilities, current portion

Total current liabilities

lease liabilities, net of current portion

Non-Current Liabilities

Finance lease liabilities, net of current portion

Operating lease liabilities, net of current portion

Long-term bank borrowing

Total non-current liabilities

Total Liabilities

Stockholders’ Equity

PREFERRED STOCK;

and Loss Contingencies

Stockholders’

$ 0.001 par value;

1 unchanged sentence

none outstanding

COMMON STOCK;

$ 0.0005 par value;

80,000,000 shares authorized;

1,712,114 and 1,568,114 shares issued;

80,000,000 shares

1,382,114 and

1,120,145 shares

and 1,353,531 and

shares outstanding as of March 31, 2026 and December 31, 2025, respectively

1,091,562 shares

outstanding as of June 30, 2025 and December 31, 2024 (1)

Treasury stock;

28,583 shares as of March 31, 2026 and December 31, 2025 at cost

( 1,372,673 )

Additional paid-in capital

Retained earnings unappropriated

shares as of June 30, 2025 and December 31, 2024 at cost

( 1,372,673 )

Retained earnings appropriated

Accumulated other comprehensive loss

paid-in capital (1)

earnings unappropriated

earnings appropriated

other comprehensive loss

( 20,146,347 )

( 20,783,318 )

Total Stockholders’ Equity

Total Liabilities and Stockholders’ Equity

Stockholders’ Equity

Liabilities and Stockholders’ Equity

$ 162,988,342

$ 167,822,288

(1) The shares and

per share data are presented on a retroactive basis to reflect the stock split.

accompanying notes to the condensed consolidated financial statements.

RESOURCES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three-Month Period Ended March 31,

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

2025 (Restated)

2024 (Restated)

2025 (Restated)

2024 (Restated)

Period Ended June 30,

2025 (Restated)

2024 (Restated)

2025 (Restated)

2024 (Restated)

COSTS AND EXPENSE

Cost of revenue

( 7,366,702 )

( 5,112,058 )

( 8,964,166 )

( 7,231,903 )

and marketing expenses

labor and factory overheads incurred during plant shutdown

( 1,714,503 )

( 3,953,582 )

( 5,449,192 )

and administrative expenses

( 1,025,780 )

( 2,452,789 )

( 1,407,428 )

OPERATING COSTS AND EXPENSE

Cost of revenues

( 9,135,058 )

( 7,530,166 )

Sales and marketing expenses

Direct labor and factory overheads incurred during plant shutdown

( 15,390,392 )

( 14,106,647 )

General and administrative expenses

FROM OPERATIONS

( 5,146,997 )

( 5,442,160 )

TOTAL OPERATING COSTS AND EXPENSE

( 10,416,416 )

INCOME (EXPENSE)

on disposal of property, plant and equipment

( 29,169,008 )

LOSS FROM OPERATIONS

( 29,169,008 )

OTHER INCOME, NET

( 29,159,031 )

OTHER INCOME (EXPENSE)

Interest expense

Interest income

TOTAL OTHER INCOME, NET

LOSS BEFORE INCOME TAXES

( 29,151,804 )

BEFORE INCOME TAXES

( 34,306,028 )

INCOME TAX EXPENSE

( 5,484,544 )

( 39,568,220 )

COMPREHENSIVE LOSS:

TAX BENEFIT (EXPENSE)

$ ( 814,364 )

$ ( 33,097,918 )

OTHER COMPREHENSIVE INCOME

$ ( 5,484,544 )

$ ( 37,090,050 )

COMPREHENSIVE

$ ( 814,364 )

$ ( 33,097,918 )

$ ( 5,484,544 )

$ ( 37,090,050 )

Foreign currency translation adjustments

TOTAL COMPREHENSIVE LOSS

( 1,243,121 )

COMPREHENSIVE LOSS

$ ( 426,314 )

BASIC AND DILUTED LOSS PER SHARE(1)

BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES(1):

$ ( 33,947,172 )

$ ( 4,847,573 )

$ ( 38,333,171 )

AND DILUTED LOSS PER SHARE(1):

AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES(1):

(1) The shares and

2 unchanged sentences

RESOURCES, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

THREE-MONTH PERIOD ENDED MARCH 31, 2026

paid-in capital

earnings unappropriated

earnings appropriated

other comprehensive Income(loss)

paid-in capital

earnings unappropriated

earnings appropriated

other comprehensive Income(loss)

AT DECEMBER 31, 2025 (Audited)

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY SIX-MONTH PERIOD ENDED JUNE 30, 2025

outstanding(1)

of treasury stock(1)

unappropriated

comprehensive

outstanding(1)

of treasury stock(1)

unappropriated

comprehensive

BALANCE AT MARCH 31, 2025 (Unaudited)(Restated)

$ ( 1,372,673 )

2 unchanged sentences

$ 141,676,957

Currency translation adjustment

Net loss for three-month period ended June 30, 2025

BALANCE AT JUNE 30, 2025 (Unaudited)(Restated)

$ ( 1,372,673 )

shares issued for services

translation adjustment

of Private Placement Units

loss for three- month period ended March 31, 2026

$ 105,192,535

$ ( 20,146,347 )

AT MARCH 31, 2026 (Unaudited)

$ 141,250,643

outstanding((1)

Retained earnings

unappropriated

comprehensive

outstanding((1)

Retained earnings

unappropriated

comprehensive

BALANCE AT MARCH 31, 2024 (Unaudited)(Restated)

$ ( 1,372,673 )

2 unchanged sentences

$ 200,862,297

Currency translation adjustment

Net loss for three-month period ended June 30, 2024

( 33,097,918 )

BALANCE AT JUNE 30, 2024 (Unaudited) (Restated)

$ ( 1,372,673 )

$ 101,712,325

$ ( 19,296,390 )

$ 166,915,125

RESOURCES, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY SIX-MONTH PERIOD ENDED JUNE 30, 2025 (CONTINUED)

outstanding(1)

Treasury stock

Share to be issued

paid-in capital (1)

Retained earnings unappropriated

Retained earnings appropriated

Accumulated other comprehensive Income(loss)

of treasury stock(1)

unappropriated

comprehensive

outstanding(1)

Treasury stock

Share to be issued

Additional paid-in capital(1)

Retained earnings unappropriated

Retained earnings appropriated

Accumulated other comprehensive Income(loss)

of treasury stock(1)

unappropriated

comprehensive

BALANCE AT DECEMBER 31, 2024 (Audited)(Restated)

2 unchanged sentences

$ 142,812,575

Restricted shares issued for services

1 unchanged sentence

Currency translation adjustment

Net loss for three- month period ended March 31, 2025

Net loss for six-month period ended June 30, 2025

( 5,484,544 )

BALANCE AT JUNE 30, 2025 (Unaudited)(Restated)

$ ( 1,372,673 )

$ 105,192,535

BALANCE AT MARCH 31, 2025 (Unaudited)(Restated)

$ ( 20,146,347 )

$ 141,250,643

outstanding(1)

Retained earnings

unappropriated

comprehensive

outstanding(1)

Retained earnings

unappropriated

comprehensive

BALANCE AT DECEMBER 31, 2023 (Audited) (Restated)

$ ( 1,372,673 )

$ 101,712,325

$ ( 18,053,269 )

$ 205,248,296

Currency translation adjustment

( 1,243,121 )

Net loss for six- month period ended June 30, 2024

( 37,090,050 )

BALANCE AT JUNE 30, 2024 (Unaudited)(Restated)

$ ( 1,372,673 )

$ 101,712,325

$ ( 19,296,390 )

$ 166,915,125

(1) The shares and

2 unchanged sentences

RESOURCES, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three-Month Period Ended March 31,

2025(Restated)

CASH FLOWS FROM OPERATING ACTIVITIES

2024(Restated)

Period Ended June 30,

2025(Restated)

2024(Restated)

FLOWS FROM OPERATING ACTIVITIES

$ ( 5,484,544 )

$ ( 37,090,050 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

to reconcile net loss to net cash provided by (used in) operating activities:

Amortization on capital lease

Depreciation and amortization

Amortization of operating lease right-of-use assets

Amortization of finance lease right-of-use assets

Stock-based compensation expense

Bad debt expense

Accrued interest receivable

Changes in assets and liabilities:

Accounts receivable

and amortization

( 2,511,394 )

Prepayments and deposits

Other receivables

Accounts and other payable and accrued expenses

Taxes payable

Lease liabilities

Net cash provided by (used in) operating activities

compensation expense

of operating lease right-of-use assets

of finance lease right-of-use assets

on disposal of property, plant and equipment

in assets and liabilities:

( 2,574,907 )

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment

Repayments for loans to third parties

Net cash provided by (used in) investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from sale of private placement units

Proceeds from interest-free loan from a related party

Net cash provided by (used in) financing activities

EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

( 2,331,871 )

CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD

CASH AND CASH EQUIVALENTS - END OF PERIOD

Periods Ended March 31,

2025(Restated)

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash paid during the three-month period ended March 31, for:

Paid for taxes

Interest paid

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

See accompanying notes to the condensed consolidated financial statements.

from customers

and other payable and accrued expenses

( 2,583,610 )

cash used in operating activities

( 2,139,734 )

FLOWS FROM INVESTING ACTIVITIES

of property, plant and equipment

( 28,923,642 )

cash used in investing activities

( 28,923,642 )

FLOWS FROM FINANCING ACTIVITIES

of finance lease obligation

( 31,866,665 )

cash used in financing activities

( 31,866,665 )

OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

DECREASE IN CASH AND CASH EQUIVALENTS

( 2,339,081 )

( 61,856,355 )

AND CASH EQUIVALENTS - BEGINNING OF PERIOD

AND CASH EQUIVALENTS - END OF PERIOD

RESOURCES, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

Ended June 30,

DISCLOSURE OF CASH FLOW INFORMATION

paid during the six-month period ended June 30, 2025 for:

DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

accompanying notes to the condensed consolidated financial statements.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2026

1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

of Presentation and Consolidation

10 unchanged sentences

All material intercompany transactions have been eliminated on consolidation.

December 22, 2025, SYCI was sold.

Concern Consideration

consolidated financial statements are prepared on the going concern basis, meaning that the enterprise is expected to realize the assets

and settle the liabilities through normal business operations.

However, the going concern of the enterprise relies on many factors, such

as profitable operations, generating operating cash flows, obtaining financing, etc.

company assesses its liquidity by monitoring cash and cash equivalents, as well as operating and capital expenditure commitments.

of June 30, 2025, the Company had current assets of $ 20.28 million and current liabilities of $ 10.00 million.

As a result, the surplus

was $ 10.28 million, but it has suffered losses for the six months ended by June 30, 2025.

If it is unable to raise additional funds,

it may need to take measures such as cutting administrative and operational costs and saving funds.

there are significant doubts regarding the Company’s ability to continue operations, the Company is attempting to alleviate such

concerns through measures such as controlling operating expenses, shifting business focus to revenue-generating activities, obtaining

authorization from domestic banks and other financial institutions, and seeking equity or debt financing.

Additionally, the Company will

also obtain financial support commitments from related parties.

However, these situations still pose significant doubts regarding the

Company’s ability to continue operations.

The financial statements do not consider the potential impact on the recoverability of

assets, classification, and amounts and classification of liabilities if the Company is unable to continue operations.

Company manufactures and trades bromine through its wholly-owned subsidiary, Shouguang City Haoyuan Chemical Company Limited (“SCHC”);

5 unchanged sentences

explore and develop natural gas and brine resources (including bromine and crude salt) in the PRC.

DCHC’s business commenced trial

operation in January 2019 but suspended production temporarily in May 2019 as required by the government to obtain project approval (see

Note 1 (b)(iii)).

DCHC commenced trial operation in

January 2019 but temporarily suspended its production in May 2019, as required by the government to obtain project approval (see Note

and Crude Salt Segments

1 unchanged sentence

9 passed inspection and could resume operations.

In April 2019, Factory No.1, and Factory No.7 resumed operation.

In April 2019, Factory No.

1, and Factory No.

7 resumed operation.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

November 25, 2019, the government of Shouguang City issued a notice ordering all bromine facilities in Shouguang City, including the

9 unchanged sentences

from the Shouguang Yangkou People’s Government dated March 5, 2020 allowing the Company to resume production at its bromine factories

4, No.7 and No.

9 in order to meet the needs of bromide products for epidemic prevention and control (the “March 2020

8 unchanged sentences

in the fourth quarter of 2022.

Company is awaiting governmental approval for Factories No.

To our knowledge, the government is finalizing plans for all

mining areas, including flood prevention measures.

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.

to the notification from the government of Shouguang City, all bromine facilities in Shouguang City were temporarily closed from December

10, 2022 until February 1, 2023 8:00 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

Company is still waiting for governmental approval for Factories No.

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.

April 2022, Shouguang Hengde Salt Industry Co.

3 unchanged sentences

The creation of this subsidiary and the separation of bromine and crude salt do not impact sales or overall

However, the establishment of this subsidiary has resulted in a reallocation of costs between bromine and crude salt.

RESOURCES, INC.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

However, the establishment of this subsidiary has resulting in a reallocation of costs between bromine and crude salt.

(ii) Chemical

2 unchanged sentences

Park (“Bohai Park”).

This is because the two plants are located in a residential area and their production activities will

impact the living environment of the residents.

This is as a result of the country’s effort to improve the development of the chemical

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 do not comply with the requirements of the safety and environmental protection regulations

will be ordered to shut down.

December 2017, the Company secured from the government the land use rights for its chemical plants located at Bohai Park and in June

All chemical enterprises which did not comply with the requirements of the safety and environmental protection regulations

were ordered to shut down.

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.

7 unchanged sentences

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.

Company believes this relocation process will cost approximately $ 69 million in total.

discussions with the government have convinced management that the electricity restrictions were eased.

Accordingly, the Company contacted

its suppliers and expected to have the remainder of the equipment produced and delivered, so the Company can complete installation and

begin testing and trial production.

Company estimates this relocation process will cost approximately $ 69 million in total.

The Company incurred relocation costs comprising

prepaid land lease, professional fees related to the design of the new chemical factory, and progress payments and deposits for the construction

of the new factory building in the amount of $ 45,584,344 and $ 45,584,344 , which were recorded in the prepaid land leases, prepayments

and deposits and property, plant and equipment in the consolidated balance sheets as of March 31, 2026 and December 31, 2025.

December 10, 2025, SCHC entered into an equity transfer agreement with Shandong Rongyuan Pharmaceutical Co., Ltd.

to the agreement, Shandong Rongyuan Pharmaceutical Co., Ltd.

agreed to purchase 100 % of the equity interest in SYCI for an aggregate

consideration of RMB 21.2 million (US$ 2,999,304 ).

The transaction was completed on December 22, 2025.

prepaid land lease, professional fees related to the design of the new chemical factory, purchase of plant and equipment and construction

costs and installation costs incurred for the new chemical factory in the amount of $ 45,584,344 and $ 45,584,344 , which were recorded

in the property, plant and equipment in the consolidated balance sheets as of June 30, 2025 and December 31, 2024.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

Company suspended the construction in the chemical factory until it decide what products can be produced most profitably.

(iii) Natural

January 2017, the Company completed the first brine water and natural gas well field construction in Daying located in Sichuan Province,

January 2017, the Company completed the first brine water and natural gas well field construction in Daying located in SichuanProvince,

China, and commenced trial production in January 2019.

25 unchanged sentences

under different assumptions or conditions.

RESOURCES, INC.

AND SUBSIDIARIES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

and Cash Equivalents

1 unchanged sentence

of short maturity of these investments, the carrying amounts approximate their fair values.

receivable and Allowance for Doubtful Accounts

receivable is stated at cost, net of allowance for doubtful accounts.

The normal credit term extended to customers ranges between 90

and 180 days.

The company reviews all receivables that exceed the term.

The Company establishes an allowance for doubtful accounts based

on management’s assessment of the collectability of trade and other receivables.

A considerable amount of judgment is required

in assessing the amount of allowance and the Company considers the historical level of credit losses.

The Company makes judgments about

the credit worthiness of each customer based on ongoing credit evaluations, and monitors current economic trends that might impact the

level of credit losses in the future.

If the financial condition of the customer begins to deteriorate, resulting in their inability

to make payments within credit term provided, an allowance may be required.

of March 31, 2026 and December 31, 2025, the provision for doubtful debts was $ 13,440 and $ 16,430 , respectively.

The reversal for doubtful

accounts in the consolidated statements of comprehensive income (loss) for the period ended March 31, 2026 was $ 3,236 .

(f) Concentration

(f) Allowance

for Doubtful Accounts

make estimates of the uncollectibility of accounts receivable, especially analyzing accounts receivable and historical bad debts, customer

concentrations, customer credit-worthiness, current economic trends and changes in customer payment terms, when evaluating the adequacy

of the allowance for doubtful accounts.

Credit evaluations are undertaken for all major sale transactions before shipment is authorized.

On a quarterly basis, we evaluate aged items in the accounts receivable aging report and provide an allowance in an amount we deem adequate

for doubtful accounts.

If management were to make different judgments or utilize different estimates, material differences in the amount

of our reported operating expenses could result.

(g) Concentration

of Credit Risk

1 unchanged sentence

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, Sichuan Rural Credit Union, Bank of China Limited and Shandong

Shouguang Rural Commercial Bank Co., Ltd., which are not insured or otherwise protected.

The Company placed $ 6,537,505 and $ 3,793 with

these institutions as of March 31, 2026 and December 31, 2025, respectively.

The Company has not experienced any losses in such accounts

and Commercial Bank of China Limited, China Merchants Bank Company Limited and Sichuan Rural Credit Union, which are not insured or otherwise

The Company placed $ 7,736,081 and $ 10,075,162 with these institutions as of June 30, 2025 and December 31, 2024, respectively.

The Company has not experienced any losses in such accounts in the PRC.

Concentrations

3 unchanged sentences

financial condition and extends credit terms as and when appropriate.

(g) 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 reasonably predictable costs of completion, disposal, and transportation.

RESOURCES, INC.

1 unchanged sentence

1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

to suppliers, net

to suppliers are stated at the original amount less an allowance for doubtful account.

to suppliers primarily consist of prepayments for purchase of raw materials and equipment for production purposes.

The Company reviews

its advances to suppliers on a periodic basis and determines the adequacy of provision when amounts outstanding are not likely to be

collected in cash or utilized against receive of products.

An allowance for doubtful is recorded in the period in which the Company cash

collection or receipts of products is remote.

(i) Property,

(h) Property,

Plant and Equipment

12 unchanged sentences

process, are as follows:

OF PROPERTY PLANT AND EQUIPMENT

Useful life (in

Mineral rights

Leasehold improvements

Plant and machinery (including protective shells, transmission channels and ducts)

Motor vehicles

Furniture, fixtures and equipment

SCHEDULE OF PROPERTY PLANT AND EQUIPMENT

and machinery (including protective shells, transmission channels and ducts)

fixtures and equipment

oil and gas properties are depreciated on a unit-of-production basis over the proved developed reserves.

Common facilities that are built

specifically to service production directly attributed to designated oil and gas properties are depreciated based on the proved developed

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.

16 unchanged sentences

the liability and the amount of cash paid, a gain or loss upon settlement is recorded.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

there are no reclamation or abandonment obligations associated with the land being utilized for exploitation by the bromine and crude

2 unchanged sentences

its original condition.

(k) Recoverability

(j) Recoverability

of Long-lived Assets

accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10-

Impairment or Disposal of Long-lived Assets” , long-lived assets to be held and used are analyzed for impairment whenever events

or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable or that the useful lives of those

assets are no longer appropriate.

The Company evaluates at each balance sheet date whether events and circumstances have occurred that

indicate possible impairment.

Company determines the existence of such impairment by measuring the expected future cash flows (undiscounted and without interest charges)

35 ”Impairment or Disposal of Long-lived Assets” , long-lived assets to be held and used are analyzed for impairment

whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable or that the useful

lives of those assets are no longer appropriate.

The Company evaluates at each balance sheet date whether events and circumstances have

occurred that indicate possible impairment.

Company determines the existence of such impairment by measuring the expected future cash flow (undiscounted and without interest charges)

and comparing such amount to the carrying amount of the assets.

5 unchanged sentences

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.

the three-month periods ended March 31, 2026 and 2025, the Company recognized impairment of long-lived assets of nil .

(l) Retirement

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’

The required contributions under the retirement plans are charged to the consolidated statement of comprehensive income (loss)

on an accrual basis when they are due.

The Company’s contributions totaled $ 107,657 and $ 173,485 for the three-month periods ended

March 31, 2026 and 2025, respectively.

Charges for 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.

the three and six months periods ended June 30, 2025 and 2024, the Company determined that there were no events or circumstances indicating

possible impairment of its long-lived assets.

RESOURCES, INC.

1 unchanged sentence

1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

(k) Retirement

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’

The required contributions under the retirement plans are charged to the condensed consolidated statement of comprehensive

income (loss) on an accrual basis when they are due.

The Company’s contributions totaled $ 123,099 and $ 100,290 for the three- month

periods ended June 30, 2025 and 2024, respectively, and totaled $ 296,584 and $ 223,413 for the six-month periods ended June 30, 2025 and

2024, respectively.

Company follows FASB ASC 805 “Business Combinations” that certain mineral rights are considered tangible assets and that

15 unchanged sentences

Company has elected not to recognize operating lease ROU assets and liabilities arising from short-term lease.

leases are initially recorded at the net present value of future minimum lease payments, which include certain lease and non- lease

leases are initially recorded at the net present value of future minimum lease payments, which include certain lease and non- lease components.

Finance leases generally have one of these five attributes:

1) ownership of the underlying asset transfers to the Company

at the end of the lease term, 2) the lease agreement contains a purchase option that the Company is reasonably certain to exercise, 3)

the lease term represents the major part of the asset’s economic life, 4) the present value of lease payments over the lease term

equals or exceeds substantially all of the fair value of the asset, and 5) the underlying asset is so specialized in nature that it provides

1) ownership of the underlying asset transfers to the Company at the end

of the lease term, 2) the lease agreement contains a purchase option that the Company is reasonably certain to exercise, 3) the lease

term represents the major part of the asset’s economic life, 4) the present value of lease payments over the lease term equals

or exceeds substantially all of the fair value of the asset, and 5) the underlying asset is so specialized in nature that it provides

no alternative use to the lessor after the lease term.

Finance Lease Assets are presented separately on the Consolidated Balance Sheets.

and Diluted Earnings per Share of Common Stock

earnings per common stock 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 stocks plus dilutive common stock equivalents outstanding during the period.

Potential common stocks that would have the effect of increasing diluted earnings per stock 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 share for the three-month

periods ended March 31, 2026 and 2025.

These awards could be dilutived in the future if the market price of the common stock increases

and is greater than the exercise price of these awards.

(p) Reporting

(n) Reporting

Currency and Translation

2 unchanged sentences

whereas the functional currency and reporting currency of the Company is the United States dollar (“USD”

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

such, the Company uses the “current rate method” to translate its PRC operations from RMB into USD, as required under FASB

7 unchanged sentences

The statement of comprehensive income (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 as net loss for the reporting

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 expenses.

3 unchanged sentences

Revenue is recognized

at a point in time 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.

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.

Customers typically pay after the Company delivers

and transfers the products to them in accordance with terms set forth in their contract.

Revenue from contracts with customers is disaggregated

have no rights to return the goods upon acknowledgement of receipt of goods.

Revenue from contracts with customers is disaggregated in

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

and Diluted Earnings per Share of Common Stock

earnings per common stock 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 stocks plus dilutive common stock equivalents outstanding during the period.

Potential common stocks 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 and 0 shares for the

six-month periods ended June 30, 2025 and 2024, respectively.

the Company reported a net loss for the six-month periods ended June 30, 2025 and 2024, common stock equivalents including stock options

and warrants were anti-dilutive, therefore the amounts reported for basic and diluted loss per share were the same.

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.

(r) 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.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

(s) 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.

Company has elected to account for the forfeiture of stock-based awards as they occur.

Contingencies

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.

Company accounts for income taxes in accordance with the Income Taxes Topic of the FASB ASC, which requires the use of the liability

14 unchanged sentences

are included within the (benefit from) provision for income tax in the consolidated statement of comprehensive income (loss).

(s) Exploration

costs, which included the cost of researching for appropriate places to drill wells and the cost of well drilling in search of potential

natural brine or other resources, are charged to the income statement as incurred.

Once the commercial viability of a project has been

confirmed, all subsequent costs are capitalized.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

oil and gas properties, the successful efforts method of accounting is adopted.

The Company carries exploratory well costs as an asset

when the well has found a sufficient quantity of reserves to justify its completion as a producing well and where the Company is making

sufficient progress assessing the reserves and the economic and operating viability of the project.

Exploratory well costs not meeting

these criteria are charged to expenses.

Exploratory wells that discover potentially economic reserves in areas where major capital expenditure

will be required before production would begin and when the major capital expenditure depends upon the successful completion of further

exploratory work remain capitalized and are reviewed periodically for impairment.

Accounting Pronouncements

accounting pronouncements adopted

were no recent accounting pronouncements adopted during the six months ended June 30, 2025.

Recently Issued Accounting Pronouncements

Not Yet Adopted

were no recently issued accounting pronouncements not yet adopted during the six months ended June 30, 2025.

Value Measurement

12 unchanged sentences

3 inputs to the valuation methodology are unobservable and significant to the fair value.

carrying amounts of the Company’s financial instruments including cash, accounts receivable, other receivables, accounts payable,

other current payables, and amounts due to related parties approximate their fair values due to their short-term nature.

amounts of short-term borrowing and long-term borrowing also approximate their fair values as their interest rates approximate the current

market rates.

There were no material unrecognized financial instruments as of March 31, 2026 and December 31, 2025.

Contingencies

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 reasonably able to be estimated.

Such estimates may

be based on advice from third parties or on management’s judgment, as appropriate.

Revisions to accruals are reflected in income

(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.

(v) Stock-based

Company accounts for stock-based compensation under the provisions of FASB ASC 718, Compensation Stock Compensation, which requires

the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated

fair values on the grant date.

The Company estimates the fair value of stock-based awards on the date of grant using the Black- Scholes

The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service

periods using the straight-line method.

In June 2018, the FASB issued ASU No.

201807, Compensation - Stock Compensation (Topic

7 I8), Improvements to Nonemployee Share-Based Payment Accounting.

The amendments in this Update expand the scope of Topic

718 to include share-based payment transactions for acquiring goods and services from non-employees.

Prior to this Update, Topic 718

applied only to share-based transactions to employees.

Consistent with the accounting requirement for employee share-based payment awards,

nonemployee share-based payment awards within the scope of Topic 718 are measured at grant-date fair value of the equity instruments

that an entity 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.

New Accounting Pronouncements

Recent accounting pronouncements adopted

was no recent accounting pronouncements adopted for the three months ended March 31, 2026.

Recently Issued Accounting Pronouncements

Not Yet Adopted

November 2024, the FASB issued ASU No.

2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation

Disclosures (Subtopic 220-40), which requires disaggregated disclosure of income statement expenses for public business entities.

The objective of ASU 2024-03 is to “address requests from investors for more detailed information about the types of expenses .

in commonly presented expense captions (such as cost of sales, selling, general, and administrative expenses, and research and development).”

Investors advised the FASB that “disclosure of disaggregated information about expenses is critically important in understanding

an entity’s performance, assessing an entity’s prospects for future cash flows, and comparing an entity’s performance

over time and with that of other entities.” ASU 2024-03 adds ASC 220-40 to require a footnote disclosure about specific expenses

by requiring public entities to disaggregate, in a tabular presentation, each relevant expense caption on the face of the income statement

that includes any of the following natural expenses:

(1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible

asset amortization, and (5) depreciation, depletion, and amortization (DD&A) recognized as part of oil- and gas-producing activities

or other types of depletion expenses.

The tabular disclosure would also include certain other expenses, when applicable.

not change or remove existing expense disclosure requirements;

however, it may affect where that information appears in the footnotes

to the financial statements.

ASU 2024-03 is effective for all public entities for fiscal years beginning after December 15, 2026, and

interim periods within fiscal years beginning after December 15, 2027.

Early adoption is permitted.

The Company does not expect the adoption

to have a material impact on the consolidated financial statements.

July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses for Accounts

Receivable and Contract Assets.

The ASU addresses challenges encountered when applying the guidance in Topic 326, Financial Instruments—Credit

Losses, to current accounts receivable and current contract assets arising from transactions accounted for under Topic 606, Revenue from

Contracts with Customers.

The amendments will be effective for annual reporting periods beginning after December 15, 2025, and interim

reporting periods within those annual reporting periods.

Early adoption is permitted.

The Company is in the process of assessing the

impact of the amendments on the Company’s consolidated financial statements.

carrying amounts of the Company’s financial instruments approximate their fair values because of their short-term nature.

The Company’s

financial instruments include cash, accounts receivable, amounts due to related parties, other

receivables, accounts payable and other current payables.

There were no material unrecognized financial assets and liabilities as of

June 30, 2025 and 2024.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2026

2 – ACCOUNTS RECEIVABLE, NET

receivable net consist of:

OF ACCOUNTS RECEIVABLE, NET

Accounts receivable

Allowance for doubtful debt

Accounts receivable, net

overall accounts receivable balance as of March 31, 2026 decreased by $ 594,979 , as compared to those of December 31, 2025.

The decrease in accounts receivable is primarily due to collections of opening balances during the period, which

exceeded new credit sales generated.

We have policies in place to ensure that sales are made to customers

with an appropriate credit history.

We perform ongoing credit evaluations on the financial condition of our customers.

3 – INVENTORIES, NET

OF INVENTORIES

Raw materials

Finished goods

SCHEDULE OF ACCOUNTS RECEIVABLE, NET

for doubtful debt

receivable, net

overall accounts receivable balance as of June 30, 2025 increased by $ 2,586,327 compared to those of December 31, 2024.

We have policies

in place to ensure that sales are made to customers with an appropriate credit history.

We perform ongoing credit evaluation on the financial

condition of our customer.

3 – INVENTORIES, NET

Company recorded impairment charges for slow moving inventory in the amounts of nil for the three months ended March 31, 2026 and 2025.

4 – PREPAYMENTS AND DEPOSITS

SCHEDULE OF INVENTORIES

( 1,240,760 )

Company recorded impairment charges for slow moving inventory in the amounts of nil

for the six months ended June 30, 2025 and 2024.

4 – PREPAYMENTS AND DEPOSITS, NET

and deposits consisted of the following:

OF PREPAYMENTS AND DEPOSITS

SCHEDULE OF PREPAYMENTS AND DEPOSITS, NET

for impairment

( 1,655,327 )

( 1,648,454 )

and deposits, net

the three months ended March 31, 2026 and 2025, the Company recognized provision of nil for the prepayments and deposits.

5 – OTHER RECEIVABLES

receivables consisted of the following:

SCHEDULE OF OTHER RECEIVABLE

receivable (1)

receivable from sale of subsidiary (2)

the year ended December 31, 2025, the Company entered into five borrowing arrangements with

a third party for an aggregate principal amount of $ 14,383,955 , bearing interest at 9 % per

Certain borrowings were guaranteed by individuals or entities or secured by certain

As of March 31, 2026, the outstanding balance of these borrowings and the associated

interest were $ 8,815,666 and $ 204,964 , respectively.

date, all of the above borrowings, including the related accrued interest, have been fully repaid.

amount represents the receivable from the sale of SYCI, which is due in December, 2026 from

Shandong Rongyuan Pharmaceutical Co., Ltd.

of June 30, 2025, the total amount of advance payments and deposits recorded by the Company, net of impairment provisions was $ 8,743,324 .

5 – PREPAID LAND LEASES

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 10 to fifty years .

Some of the lease contracts were paid in one lump sum upfront and some are paid annually

at the beginning of each anniversary date.

These leases have no purchase option at the end of the lease term and were classified as operating

leases prior to and as of January 1, 2019 when the new lease standard was adopted.

Prior to January 2019, the prepaid land lease was

amortized on a straight line basis.

As of January 1, 2019, all the leases in which term has commenced and were in use were classified

as operating lease right-of-use assets (“ROU”).

December 2017, the Company paid a one lump sum upfront amount of $ 8,883,165 for a 50-year lease of a parcel of land at Bohai Marine Fine

Chemical Industrial Park (“Bohai”) for the new chemical factory under construction.

There is no purchase option at the end

of the lease term.

This was classified as an operating lease prior to and as of January 1, 2019.

The land use certificate was issued

on October 25, 2019.

The lease term expires on August 12, 2069 .

The amount paid was recorded as prepaid land leases, net of current portion

in the consolidated balance sheet as of June 30 2025 and December 31, 2024.

As of June 30, 2025, the prepaid land lease increased to

$ 9,242,933 due to an additional amount paid for stamp duty and related land use rights fees.

Amortization of this prepaid land lease

will commence when the chemical factory is completed and placed in service.

RESOURCES, INC.

1 unchanged sentence

6 – PROPERTY, PLANT AND EQUIPMENT, NET

plant and equipment, net consist of the following:

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT

4 unchanged sentences

( 65,569,186 )

( 6,772,500 )

( 6,744,380 )

rollforward of property, plant and equipment, net was as follows:

SCHEDULE OF ROLLFORWARD OF PROPERTY, PLANT AND EQUIPMENT

of Brine Well(a)

Remodel of Chlorine Gas Shed and

finished liquid

currency translation

and machinery

6 unchanged sentences

( 6,772,500 )

Company was undergoing renovation and upgrading work on the brine well, which remained incomplete

as of March 31, 2026.

Accordingly, the brine well’s original cost and related accumulated

depreciation were reclassified to construction in progress pending completion of the renovation

and upgrade work.

the first quarter of 2026, the Company completed the renovation and upgrade project for the chlorine gas shed and finished liquid pond, at a total cost of

the three-month period ended March 31, 2026, depreciation and amortization expense totaled $ 3,356,786 ,

which was recorded in direct labor and factory overheads incurred during plant shutdown, cost of revenue, and general &

administrative expenses.

the three-month period ended March 31, 2025, depreciation and amortization expense totaled $ 3,226,127 ,

which was recorded in direct labor and factory overheads incurred during plant shutdown, cost of revenue, and general &

administrative expenses.

Net book value

$ ( 6,444,107 )

the three and six months period ended June 30, 2025, depreciation and amortization expense

totaled $ 3,217,980 and $ 6,444,107 , respectively, which was recorded in direct labor and factory

overheads incurred during plant shutdown, cost of revenue, and general & administrative

the three and six months period ended June 30, 2024, depreciation and amortization expense totaled $ 4,417,023

and $ 8,833,284 , respectively, which was recorded in direct

labor and factory overheads incurred during plant shutdown, cost of revenue, and general & administrative expenses.

Note 22- Restatement, for discussion regarding the impact of the Restatement.

7 – FINANCE LEASE RIGHT-OF-USE ASSETS

plant and equipment under finance leases, net consist of the following:

OF PROPERTY PLANT AND EQUIPMENT

plant and equipment under finance leases consist of the following:

SCHEDULE OF PROPERTY PLANT AND EQUIPMENT

Accumulated depreciation and amortization

5 unchanged sentences

on the underlying parcels of land.

the three-month period ended March 31, 2026, depreciation and amortization expense totaled $ 733,298 ,

respectively, which was recorded in direct labor and factory overheads incurred during plant shutdown, cost of revenue, and general

& administrative expenses.

the three-month period ended March 31, 2025, depreciation and amortization expense totaled $ 775,702 ,

respectively, which was recorded in direct labor and factory overheads incurred during plant shutdown, cost of revenue, and general

& administrative expenses.

the three and six months period ended June 30, 2025, depreciation and amortization expense totaled $ 773,537 and $ 1,549,239 , respectively,

which was recorded in direct labor and factory overheads incurred during plant shutdown, cost of revenue, and general & administrative

the three and six months period ended June 30, 2024, depreciation and amortization expense totaled $ 313,541 and $ 627,482 , respectively,

which was recorded in direct labor and factory overheads incurred during plant shutdown, cost of revenue, and general & administrative

Note 22- Restatement, for discussion regarding the impact of the Restatement.

6 unchanged sentences

certificates.

of March 31, 2026, the total operating lease right-of-use assets was $ 5,621,918 .

total operating lease cost for the three-month periods ended March 31, 2026 and 2025 was $ 222,161 and $ 217,801 , respectively.

9– BORROWINGS

company entered into a loan agreement with Shandong Shouguang Industrial and Commercial Bank Co., Ltd.

for a principal amount of

$ 2,890,382 ,

bearing interest at 6.375 %

per annum, with a maturity date of December

The borrowing was guaranteed by Ming Yang, Wenxiang Yu, and Shouguang Broadcasting and Television Group Col, Ltd.

borrowing was also secured by land and buildings owned by Shandong Shouguang Vegetable Seed Industry Group Co., Ltd.

paid interest on a monthly basis, however, the principal balance became past due and remained unpaid as of March 31, 2026 due to

disputes between the Company and the bank.

Company entered into a loan agreement with Shandong Shouguang Rural Commercial Bank Co., Ltd.

for a principal amount of $ 2,381,675 ,

bearing interest at 6.350 %

per annum, with a maturity date of March

The borrowing was guaranteed by Ming Yang and Wenxiang Yu secured by the 15th and 16th floors of Meilin Building,

located in Shouguang, Shandong China, which are owned by Shandong Shouguang Hongye Economic and Trade Co., Ltd.

The Company pays

interest monthly and the principal is due at maturity.

The parcels of land of which the Company cannot obtain land use rights certificates covers a total of approximately 34.95

square kilometers at June 30, 2025.

of June 30, 2025, the total operating lease ROU assets was $ 5,937,515 .

total operating lease cost for the three-month periods ended June 30, 2025 and 2024 was $ 217,301 and $ 222,685 , respectively.

total operating lease cost for the six-month periods ended June 30, 2025 and 2024 was $ 435,102

and $ 440,030 ,

respectively.

9 – PAYABLE AND ACCRUED EXPENSES

and accrued expenses consist of the following:

OF PAYABLE AND ACCRUED EXPENSES

SCHEDULE OF PAYABLE AND ACCRUED EXPENSES

security insurance contribution payable

1 unchanged sentence

expense-others

(1) Accrued expense-others

mainly included accrued professional fees and accrued interest payable that is disputed by the Company in connection with its borrowing

from Shouguang Industrial and Commercial Bank Co., Ltd.

Note 22- Restatement, for discussion regarding the impact of the Restatement.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

10 – RELATED PARTY TRANSACTIONS

September 25, 2012, the Company purchased five floors of a commercial building in the PRC, through SYCI, from Shandong Shouguang Vegetable

Seed Industry Group Co., Ltd.

(the “Seller”) at a cost of approximately $ 5.7 million in cash, of which Mr.

Ming Yang, the

Chairman of the Company, had a 99 % equity interest in the Seller.

During the first quarter of 2018, the Company entered into an agreement

with the Seller, a related party, to provide property management services for an annual amount of approximately $ 86,911 for five years

from January 1, 2023 to December 31, 2027 .

The expense associated with this agreement for the three and six months ended June 30, 2025

was approximately $ 21,787 and $ 43,515 .

The expense associated with this agreement for the three and six months ended June 30, 2024 was

approximately $ 21,885 and $ 43,867 .

of related parties

4 unchanged sentences

with company officers

OF RELATED PARTY TRANSACTIONS

due to related parties:

SCHEDULE OF RELATED PARTY TRANSACTIONS

due to related parties:

due from related parties:

Amount due to related parties

from related party:

Dianjinshi Culture media Co., LTD

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Amount due from related parties

11 – TAXES PAYABLE

OF TAXES PAYABLE

SCHEDULE OF TAXES PAYABLE

use tax payable

added tax and other taxes payable

the remaining balance as of March 31, 2026, $ 263,269 was overdue, as notified by the Tax Bureau in a Tax Matters Notice.

amount was attributable to certain value-added tax invoices issued by the Company’s upstream suppliers during 2018 and 2019 that

were subsequently identified as abnormal deductions in the tax authorities’ system.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

12 – LEASE LIABILITIES-FINANCE AND OPERATING LEASE

components of finance lease liabilities were as follows:

OF FINANCE LEASE LIABILITIES

SCHEDULE OF FINANCE LEASE LIABILITIES

finance lease liabilities

Current portion

( 3,342,293 )

lease liabilities, net of current portion

2 unchanged sentences

All contracts have a non-cancellable lease period of 20 years, and the Company has the right

to preferentially renew the lease contract under the same conditions upon the contract expires.

to preferentially renew the lease contract under the same conditions upon the contact expires.

However, the Company will decide whether

to renew the lease based on the market operation situation upon the expiration.

components of operating lease liabilities are as follows:

OF OPERATING LEASE LIABILITIES

components of operating lease liabilities as follows:

SCHEDULE OF OPERATING LEASE LIABILITIES

operating lease liabilities

2 unchanged sentences

components of lease cost were as follows:

OF LEASE COST

Period Ended March 31,

SCHEDULE OF LEASE COST

2024(Restated)

Period Ended June 30,

Amortization of right-of-use assets

Interest on lease liabilities

of lease liabilities were as follows:

OF MATURITIES OF FINANCE AND OPERATING LEASE LIABILITIES

next 12 months

Maturities of lease liabilities were as follows:

SCHEDULE OF MATURITIES OF FINANCE AND OPERATING LEASE LIABILITIES

the next 12 months

next 13 to 24 months

6 unchanged sentences

summary of supplemental information related to leases is listed as follows:

OF SUPPLEMENTAL INFORMATION RELATED TO LEASES

average remaining lease term:

average discount rate:

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

13 – LEASE LIABILITIES - FINANCE AND OPERATING LEASE – Continued

cash flow information related to leases was as follows:

OF SUPPLEMENTAL CASH FLOW INFORMATION

Period Ended March 31,

SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES

Weighted average

remaining lease term:

Weighted average

discount rate:

Supplemental cash flow information related to leases were as follows:

SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION

Period Ended June 30,

paid for amounts included in measurement of lease liabilities:

1 unchanged sentence

cash flows from finance leases

information on lease liabilities arising from obtaining right-of-use assets:

information on lease liabilities arising from obtaining ROU assets:

Note 22- Restatement, for discussion regarding the impact of the Restatement.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Issued For The Acquisition

21 unchanged sentences

the fair market value of the restricted stock is determined based on the closing price of the Company’s common stock on the grant

Company granted an aggregate of 295,000 (post reverse share split 29,500 shares) restricted shares of common stock on January 25, 2025

to a consultant, the Company’s directors, officers, and an employee as compensation for services rendered in the year ended December

The restricted shares award was granted under the 2019 Omnibus Equity Incentive Plan (See Note 16) and vested immediately.

The fair value of the award on the date of grant was $ 194,700 which was expensed in full during the year ended December 31, 2024.

Company granted in the aggregate, 265,000 (post reverse share split 26,500 shares) restricted shares of common stock on March 21, 2025

to a consultant, the Company’s directors, officers and an employee as compensation for services rendered.

The restricted shares

award was granted under the 2019 Omnibus Equity Incentive Plan and vested immediately.

The fair value of the award on the date of grant

was $ 196,100 which was expensed in full during the year ended December 31, 2025.

Company granted in the aggregate, 186,000 restricted shares of common stock on November 21, 2025 to a consultant, the Company’s

directors, officers and an employee as compensation for services rendered.

The restricted shares award was granted under the 2025 Omnibus

Equity Incentive Plan and vested immediately.

The fair value of the award on the date of grant was $ 734,700 which was expensed in full

during the year ended December 31, 2025.

Company granted an aggregate of 295,000 (post reverse share split 29,500 shares) restricted shares of common stock in January 2025 to

a consultant, the Company’s directors, officers, and an employee as compensation for services rendered for the year ended December

The restricted shares award were granted under the 2019 Omnibus Equity Incentive Plan and vested immediately.

The fair value

of the award on the date of grant was $ 194,700 which was expensed in full during the year ended December 31, 2024.

the six months ended June 30, 2025, the Company granted in the aggregate, 265,000 (post reverse share split 26,500 shares) restricted

shares of common stock on March 21, 2025 to a consultant, the Company’s directors, officers and an employee as compensation for

services rendered for the current year.

The restricted shares award were granted under the 2019 Omnibus Equity Incentive Plan and vested

The fair value of the award on the date of grant was $ 196,100 which was expensed in full during the six months period ended

June 30, 2025.

Earnings – Appropriated

1 unchanged sentence

are required to allocate its profit after tax to the following reserve:

Company’s PRC subsidiaries 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 Reserve until the balance reaches 50% of the registered share capital.

can be used to make up for any loss incurred or to increase share capital.

Except for the reduction in losses incurred, any other

application should not result in this reserve balance falling below 25% of the registered capital.

As of March 31, 2026, the

Company’s statutory provident fund stood at $26.67 million.

Issued For Private Equity Financing

January 26, 2026, March 5, 2026, March 19, 2026 and March 28, 2026, respectively, the Company entered into equity financing agreements

(individually the “Private Placement Agreement”;

collectively the “Private Placement Agreements”), with four

individual investors (individually the “Private Placement Purchaser”;

collectively “Private Placement Purchasers”),

pursuant to which the Company agreed to issue new shares of common stock to such investors that in aggregate accounted for approximately

18% of the total shares issued and outstanding of the Company as of December 31, 2025.

The purchase price per share under the Private

Placement Agreement dated January 26, 2026, was set at 90% of the average closing price of the Company’s common stock for the five

trading days prior to the date of such agreement, while the purchase prices under the Private Placement Agreements executed in March

2026 were set at 85% of, or 15% off, the closing price of the Company’s common stock on the trading day immediately preceding the

respective agreement dates, as quoted on the Nasdaq Stock Market.

February 10, 2026, the Company issued 69,000

shares of its common stock to one individual investor at an agreed price of $ 3.57

per share for aggregate proceeds of $ 246,330 ,

pursuant to the private placement agreement dated January 26, 2026.

March 24, 2026, the Company issued 75,000

shares of its common stock to one individual investor at an agreed price of $ 3.57

per share for aggregate proceeds of $ 267,750 ,

pursuant to the private placement agreement dated March 5, 2026.

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.

As at June 30, 2025, GULF RESOURCES ‘statutory

provident fund stood at $26.67 million.

14 – TREASURY STOCK

of June 30, 2025 and December 31, 2024, the number of treasury stock of the Company was 28,583 and 28,583 , respectively.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

15 – TREASURY STOCK

of March 31, 2026 and December 31, 2025, the number of treasury stock of the Company was 28,583 and 28,583 , respectively.

NOTE 16 – STOCK-BASED COMPENSATION

15 – STOCK-BASED COMPENSATION

to the Company’s 2019 Omnibus Equity Incentive Plan adopted and approved in 2019 (“2019 Plan”), awards under the 2019

Plan are limited in the aggregate to 2,000,000 shares of our common stock, inclusive of the awards that were previously issued and outstanding

under the Company’s 2019 Omnibus Equity Incentive Plan,, as amended (the “2019 Plan”).

Upon adoption and approval of

the 2025 Plan, the 2019 Plan was frozen, no new awards will be granted under the 2019 Plan, and outstanding awards under the 2019 Plan

will continue to be governed by the terms and condition of the 2019 Plan and applicable award agreement.

As of March 31, 2026, the number

of shares of the Company’s common stock available for grant of stock options and issuance under the 2025 Plan is 14,000 shares.

Plan is limited in the aggregate to 2,068,398 shares of our common stock, inclusive of the awards that were previously issued and outstanding

under the Company’s 2007 Equity Incentive Plan, as amended (the “2007 Plan”).

Upon adoption and approval of the 2019

Plan, the 2007 Plan was frozen, no new awards will be granted under the 2007 Plan, and outstanding awards under the 2007 Plan will continue

to be governed by the terms and condition of the 2007 Plan and applicable award agreement.

As of June 30, 2025, the number of shares

of the Company’s common stock available for grant of awards under the 2019 Plan was 1,801 shares.

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.

the three months ended March 31, 2026 and 2025, total compensation costs for options issued recorded in the consolidated statement of

comprehensive income (loss) were nil .

There were no related tax benefits as a full valuation allowance was recorded in the three months

ended March 31, 2026 and 2025.

following table summarizes all Company stock option transactions between January 1, 2026 and March 31, 2026.

OF STOCK OPTION ACTIVITY

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.

the three and six months ended June 30, 2025 and 2024, total compensation costs for options issued recorded in the consolidated statement

of comprehensive income (loss) were $ 0 .

There were no related tax benefits as a full valuation allowance was recorded in the three and

six months ended June 30, 2025 and 2024.

following table summarizes all Company stock option transactions between January 1, 2025 and June 30, 2025.

SCHEDULE OF STOCK OPTION ACTIVITY

January 1, 2025

2 unchanged sentences

during the period

March 31, 2026

Options and Warrants Outstanding and Exercisable

June 30, 2025

Stock Options Outstanding and Exercisable

Average Remaining Contractual Life (Years)

and exercisable

options exercisable and outstanding as of March 31, 2026 are fully vested.

As of March 31, 2026 there was no unrecognized compensation

cost related to outstanding stock options.

aggregate intrinsic value of options outstanding and exercisable as of March 31, 2026, was nil .

the three months ended March 31, 2026 and 2025, there were no options exercised.

options exercisable and outstanding at June 30, 2025 are fully vested.

As of June 30, 2025 there was no unrecognized compensation cost

related to outstanding stock options,

aggregate intrinsic value of options outstanding and exercisable as of June 30, 2025 was $ 0 .

During the three and six months ended June

30, 2025 and 2024, there were no options exercised.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

17 – ACCRUED LIABILITIES

September 18, 2023, Shandong Shouguang Vegetable Industry Group Co., Ltd.

and Shandong Shouguang Vegetable Seed Group Co., Ltd.

into loan agreements with Shandong Deepin City Emergency Loan Fund Co., Ltd..

A total of nine companies and individuals providing guarantee

to these loans, including SCHC and SYCI.

As of July 2024, Shangdong Shouguang Vegetable Industry Group Co., Ltd.

and Shandong Shouguang

Vegetable Seed Group Co., Ltd.

owed a principal of $ 2,104,050 and RMB $ 1,402,700 to Shandong Deepin City Emergency Loan Fund Co., Ltd.,

respectively.

by the Local Arbitration Commission and documented in mediation documents No.

1358 and 1357, Shandong Shouguang Vegetable Industry Group

and Shandong Shouguang Vegetable Seed Industry Group Co., Ltd.

were to repay $ 2,104,050 and $ 1,402,700 to Shandong Deepin City

Emergency Loan Fund Co., Ltd.

before May 8, 2024, respectively.

In addition, they were required to pay interests every ten days starting

from January 1, 2024.

SCHC and SYCI are jointly and severally liable for both the principal and interests.

Deepin City Emergency Loan Fund Co., Ltd.

sought court action as Shandong Shouguang Vegetable Industry Group Co., Ltd.

and Shandong Shouguang

Vegetable Seed Industry Group Co., Ltd.

were unable to pay principal before deadline or interests as scheduled.

Pursuant to court orders

(2024) Lu 07 Exec 640 and (2024) Lu 07 Exec 641, SCHC and SYCI, as guarantors, are required to repay the principal and interests.

Shandong Weifang Intermediate People’s Court ruled to auction the land at Xiangjiang road, Yangkou town, Shouguang City and the

attached properties on it, and the auction proceeds would be used to repay Shandong Deepin City Emergency Loan Fund Co., Ltd.

court engaged a third-party valuer for evaluation of the land at Xiangjiang road, Yangkou town, Shouguang city and its attached properties.

The valuation report returned a fair value of $ 4,580,892 .

The Company recognized an impairment loss of $ 29,782,912 accordingly.

court imposed a forced auction of the land and its attached properties in July, 2025 however the auction was failed.

A second auction

was held on August 15, 2025.

The land and its attached properties were sold at $ 2,556,733 .

As the selling price was lower than the fair

value, the Company recognized a loss on disposal of long-lived assets of $ 2,008,853 .

of March 31, 2026, as SCHC were liable for a sum of principal and interests of $ 507,587 , net of auction proceeds, the Company recognized

accrued liabilities of $ 507,587 accordingly.

16 – INCOME TAXES

6 unchanged sentences

No provision for the US federal income

taxes has been made as the Company had no US taxable income for the three-month periods ended March 31, 2026 and 2025, and management

believes that its earnings are permanently invested in the PRC.

taxes has been made as the Company had no US taxable income for the three-month and six-month periods ended June 30, 2025 and 2024, and

management believes that its earnings are permanently invested in the PRC.

Virgin Islands (“BVI”)

2 unchanged sentences

Upper Class Group Limited did not generate assessable profit for the three-

month periods ended March 31, 2026 and 2025.

month and six-month periods ended June 30, 2025 and 2024.

a subsidiary of Upper Class Group Limited, was incorporated in Hong Kong and is subject to Hong Kong taxation on its activities conducted

1 unchanged sentence

No provision for income tax has been made as it has no taxable income for

the three-month periods ended March 31, 2026 and 2025.

The applicable statutory tax rates for the three- month periods ended March 31,

2026 and 2025 are 16.5 %.

the three-month and six-month periods ended June 30, 2025 and 2024.

The applicable statutory tax rates for the three-month and six-month

periods ended June 30, 2025 and 2024 are 16.5 %.

There is no dividend withholding tax in Hong Kong.

income tax (“EIT”) for the subsidiaries in the PRC is charged at 25 % of the assessable profits.

SYCI, DCHC, and SHSI are a wholly foreign-owned enterprises (“FIE”) incorporated in the PRC.

They are subject to the 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.

of the operating subsidiaries of the Company may be carried forward for five years.

income tax (“EIT”) for SCHC, SYCI, SHSI and DCHC in the PRC is charged at 25 % of the assessable profits.

operating subsidiaries SCHC, SYCI, and DCHC are wholly foreign-owned enterprises (“FIE”) and SHSI 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.

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.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

16 – INCOME TAXES – Continued

of June 30, 2025 and December 31, 2024, the accumulated distributable earnings under the Generally Accepted Accounting Principles (GAAP”)

of PRC that are subject to WHT were $ 70,523,755 and $ 40,524,183 , respectively.

Since the Company intends to reinvest its earnings to

further expand its businesses in mainland China, its foreign invested enterprises do not intend to declare dividends to their immediate

foreign holding companies in the foreseeable future.

Accordingly, as of June 30, 2025 and December 31, 2024, the Company has not recorded

any WHT on the cumulative amount of distributable retained earnings of its foreign invested enterprises that are subject to WHT in China.

As of June 30, 2025 and December 31, 2024, the unrecognized WHT were $ 4,477,604 and $ 1,078,743 , respectively.

Company’s income tax returns are subject to the various tax authorities’ examination.

2 unchanged sentences

The Company’s US income tax returns since 2016 are currently subject to examination.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

18 – INCOME TAXES – Continued

Revenue Department of Hong Kong (“IRD”) may examine the Company’s income tax returns filed in Hong Kong for seven years

9 unchanged sentences

SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE BENEFIT

Period Ended March 31,

tax – PRC entities

Income tax (expenses) benefits

components of the Company’s deferred tax assets and liabilities at March 31, 2026 and December 31, 2025 are as follows:

SCHEDULE OF DEFERRED

TAX ASSETS AND LIABILITIES

Three-Month Period Ended June 30,

Six-Month Period Ended June 30,

Current taxes – PRC

Deferred tax – PRC entities

( 1,241,334 )

( 2,511,394 )

Total Income tax benefits

$ ( 1,208,110 )

$ ( 2,478,170 )

components of the Company’s deferred tax assets and liabilities at June 30, 2025 and December 31, 2024 are as follows:

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES

tax liabilities

of long-lived assets

of property plant and equipment

federal net operating loss

5 unchanged sentences

deductible temporary differences.

As of March 31, 2026 and 2025, valuation allowances were mainly provided against deferred tax assets

As of June 30, 2025 and 2024, valuation allowances were mainly provided against deferred tax assets

caused by exploration costs and net operating loss where it was determined it was more likely than not that the benefits of the deferred

tax assets will not be realized due to their continuous losses.

increase in valuation allowance for the three-month period ended March 31, 2026 is $ 114,900 .

The increase in valuation allowance for

the three-month period ended March 31, 2025 is $ 1,083,817 .

were no unrecognized tax benefits and accrual for uncertain tax positions as of March 31, 2026 and December 31, 2025 and no amounts accrued

for penalties and interest for the three months ended March 31, 2026 and 2025.

increase in valuation allowance for the three-month period ended June 30, 2025 is $ 268,713 .

decrease in valuation allowance for the three-month period ended June 30, 2024 is $ 42,555 .

increase in valuation allowance for the six-month period ended June 30, 2025 is $ 1,352,530 .

decrease in valuation allowance for the six-month period ended June 30, 2024 is $ 57,028 .

were no unrecognized tax benefits and accrual for uncertain tax positions as of June 30, 2025 and December 31, 2024 and no amounts accrued

for penalties and interest for the three and six months ended June 30, 2025 and 2024.

RESOURCES, INC.

9 unchanged sentences

and to allocate resources to each of the segments.

The Company has organized operations into four

different business segments:

(1) bromine, (2) crude salt, (3)

chemical products, (4) natural gas.

OF SEGMENT REPORTING BY SEGMENT

Period Ended March 31, 2026 Operating Segment

Period Ended March 31, 2026

The Company has organized operations into four different business segments:

(2) crude salt, (3) chemical products, (4) natural gas.

SCHEDULE OF SEGMENT REPORTING BY SEGMENT

(Restated) Operating Segment

revenue (external customers)

revenue (intersegment)

from operations before income (expense) benefit

from operations before income tax benefit (expense)

tax benefit (expense)

from operations after income tax benefit (expense)

and amortization

revenue (external customers)

revenue (intersegment)

(loss) from operations before income tax benefit (expense)

( 4,662,586 )

1 unchanged sentence

( 5,146,997 )

tax (expense) benefit

from operations after income tax (expense) benefit

tax benefit (expense)

(loss) from operations after income tax benefit (expense)

( 3,500,334 )

2 unchanged sentences

and amortization

Period Ended March 31, 2025(Restated)

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

17 – BUSINESS SEGMENTS – Continued

revenue (external customers)

revenue (intersegment)

from operations before income expense

from operations before income tax benefit (expense)

( 3,508,547 )

1 unchanged sentence

( 5,442,160 )

tax (expense) benefit

from operations after income taxes expense

tax benefit (expense)

from operations after income tax benefit (expense)

( 3,508,547 )

2 unchanged sentences

and amortization

revenue (external customers)

revenue (intersegment)

(loss) from operations before income tax benefit (expense)

( 9,445,401 )

( 10,146,029 )

( 10,416,416 )

tax benefit (expense)

(loss) from operations after income tax benefit (expense)

( 7,085,078 )

( 7,667,859 )

( 7,938,246 )

and amortization

* 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 segments.

crude salt segments in SCHC were split by reference to the average selling price and production volume of the respective segment until

Commencing May 2022, costs were assigned to the two subsidiaries (SCHC and SHSI) by independent accounting.

RESOURCES, INC.

1 unchanged sentence

17 – BUSINESS SEGMENTS – Continued

OF SEGMENT COST

SCHEDULE OF SEGMENT COST

Reconciliations

Period Ended March 31,

Period Ended June 30,

Reconciliations

2 unchanged sentences

$ ( 4,945,589 )

gain (loss) on translation of intercompany balance

$ ( 5,075,710 )

$ ( 10,146,029 )

gain on translation of intercompany balance

from operations

2 unchanged sentences

( 10,416,416 )

income, net of expense

expenses, net

on disposal of property, plant and equipment

( 29,169,008 )

following table shows the major customers (10% or more) for the three-month period ended March 31, 2026.

BUSINESS SEGMENTS - SCHEDULE OF

REVENUE BY MAJOR CUSTOMERS

Shouguang Shenruifa Marine Chemical Company Limited

( 29,169,008 )

$ ( 814,364 )

$ ( 34,306,028 )

$ ( 5,484,544 )

$ ( 39,568,220 )

following table shows the major customer(s) (10% or more) for the three-month period ended June 30, 2025.

BUSINESS SEGMENTS - SCHEDULE OF REVENUE BY MAJOR CUSTOMERS

Revenue (000’s)

Morui Chemical Company Limited

Brother Technology Limited Shouguang Weidong Chemical Company

Shandong Shouguangshen Runfa Marine

Company Limited

following table shows the major customer(s) (10% or more) for the six-month period ended June 30, 2025.

Revenue (000’s)

Morui Chemical Company Limited

Brother Technology Limited

Weidong Chemical Company Limited

Shouguangshen Runfa MarineChemical Company Limited

following table shows the major customer(s) (10% or more) for the three-month period ended June 30, 2024.

Revenue (000’s)

Brother Technology Limited

Morui Chemical Company Limited

Weidong Chemical Company

Xuruixin Materials Company Limited

following table shows the major customers (10% or more) for the three-month period ended March 31, 2025.

Weidong Chemical Company Limited

following table shows the major customer(s) (10% or more) for the six-month period ended June 30, 2024.

Revenue (000’s)

Morui Chemical Company Limited

1 unchanged sentence

Weidong Chemical Company Limited

Shouguangshen Runfa Marine Chemical Company Limited

18 – CUSTOMER CONCENTRATION

the three-month period ended March 31, 2026, the Company sold 66 % of its products to its top five customers.

As of March 31, 2026, amounts

the six-month period ended June 30, 2025, the Company sold 65.2 % of its products to its top five customers.

As of June 30, 2025, amounts

due from these customers were $ 2,207,307 .

the three-month period ended March 31, 2025, the Company sold 62.4 % of its products to its top five customers.

As of March 31, 2025,

amounts due from these customers were $ 1,462,756 .

the six-month period ended June 30, 2024, the Company sold 60 % of its products to its top five customers.

As of June 30, 2024, amounts

due from these customers were $ 1,063,926 .

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

19 – MAJOR SUPPLIERS

the three-month period ended March 31, 2026 the Company purchased 100 % of its raw materials from its top three suppliers.

the six-month period ended June 30, 2025 the Company purchased 100 % of its raw materials from its top four suppliers.

As of June 30,

2025, amounts due to those suppliers were $ 380,812 .

the three-month period ended March 31, 2025, the Company purchased 100 % of its raw materials from its top three suppliers.

the six-month period ended June 30, 2024 the Company purchased 100 % of its raw materials from its top three suppliers.

As of June 30,

2024, amounts due to those suppliers were $ 132,606 .

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

20 – LOSS CONTINGENCIES

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.

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

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.

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.

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.

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.

393, and (2019) Lu 0783

Xing Shen No.

394, respectively (together, the “Court Rulings”) were made by the Court in favor of the Bureau.

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.

the last twenty years, to the Company’s knowledge, there were no government regulations requiring bromine manufacturers to obtain

20 unchanged sentences

case captioned (2019) Lu 0783 Xing Shen No.

Production of Factory No.

7 was allowed to resume in April 2019.

Production of Factory No.7 was allowed to resume in April 2019.

The Company received

13 unchanged sentences

view of the above facts and circumstances, the Company believes that it is not necessary to accrue for any estimated losses or impairment

as of March 31, 2026.

as of June 30, 2025.

21 - SUBSEQUENT EVENT

Company evaluated subsequent events through the date on which these condensed consolidated financial statements were available to be

July 3, 2025, the Company filed a shelf registration statement covering up to $ 10,000,000 of common stock, preferred stock, and

warrants, individually or in combination.

The registration statement provides that any future offerings will be made pursuant

to applicable prospectus supplements, which will set forth the specific terms of each offering and the manner of

on October 27, 2025, the Company completed a 1-for-10 reverse stock split of our common stock, such that for each ten 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 figures.

On October 27, 2025, our shares began trading on the NASDAQ Global

Select Market under the new CUSIP # 40251W507.

November 4, 2025, the Company received a delist determination letter from Nasdaq staff stating that the Company had not regained compliance

with the minimum bid price requirement by the November 3, 2025, deadline and that its securities would be scheduled for delisting

from The Nasdaq Capital Market on November 11, 2025.

The Company subsequently effected a one-for-ten reverse stock split on October 27, 2025, and

filed an appeal with the Nasdaq Hearings Panel on November 7, 2025, and expects that these actions will enable it to regain compliance

with Listing Rule 5550(a)(2) and continue trading on The Nasdaq Capital Market under the symbol “GURE” .

November 12, 2025, the Company issued a press release providing certain updates on its hearing process with the Nasdaq Hearings

The Company has received a hearing notification letter from Nasdaq scheduling an oral hearing for December 9, 2025.

As of Monday,

November 10, 2025, the Company’s common stock had maintained a closing bid price at or above $ 1.00 for more than ten

consecutive trading days.

In light of the above and in accordance with the instructions provided by the hearing notification

letter, the Company has submitted a request to cancel the hearing, subject to the Company’s Listing Analyst review and

confirmation.

December 1, 2025, the Company received a letter from The Nasdaq Stock Market, LLC stating that the Company had regained compliance with

the minimum bid price requirement for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2).

Consequently, the hearing before the Hearings Panel scheduled to take place on December 9, 2025, has been cancelled.

The Company’s

securities will continue to be listed and traded on The Nasdaq Stock Market.

December 2, 2025, the Company issued a press release announcing that it has regained compliance with the minimum bid price

requirement for continued listing on The Nasdaq Capital Market.

December 10, 2025, Shouguang City Haoyuan Chemical Company Limited (the “Seller”), a company incorporated in the PRC and

an indirect wholly owned subsidiary of the Company, entered into an equity transfer agreement (the “SPA”) with Shandong Rongyuan

Pharmaceutical Co., Ltd.

(the “Purchaser”) and Shouguang Yuxin Chemical Industry Co., Limited (the “Target Company”).Pursuant

to the SPA, the Seller agreed to sell, and the Purchaser agreed to purchase, 100 % of the equity interests in the Target Company for an

aggregate consideration of RMB 21.2 million (payable in instalments through 2028), subject to the terms and conditions set forth in the

SPA (“Sale”).

The Company’s board of directors (“Board”) reviewed the terms of the SPA, including the consideration,

conditions and payment arrangements.

The Board affirmed the Seller’s entry into the SPA and affirmed that the SPA and the transaction

thereunder are fair to, and in the best interests of, the Company and its shareholders as a whole.

December 18, 2025, the Company announced that it had received the notification from the Shouguang Municipal People’s

Government Office (the “Government of Shouguang City”) dated on December 15, 2025.

To comply with the

notice issued by the Government of Shouguang City, the Company expects to temporarily suspend the relevant operations in Shouguang City

during the aforementioned period.

On March 2, 2026, the Company announced that its relevant operations in Shouguang City had been

resumed in compliance with the Notice.

January 9, 2026, the Company filed a registration statement on Form S-8 (the “Registration Statement”) is filed by the Registrant

for the purpose of registering (i) 103,378 common stocks of the Company, par value 0.0005 per share (the “Common

Stocks”) issued under the Company’s 2019 Stock Incentive Plan (the “2019 Plan”), after giving effect of the 10-to-1

reserve stock split as previously announced on Form 8-K filed with SEC on October 22, 2025 and (ii) 200,000 Common Stocks

issuable pursuant to the Company’s 2025 Stock incentive plan (the “2025 Plan”).

Pursuant to Rule 416(a) under

the Securities Act of 1933, as amended (the “Securities Act”), this registration statement also covers an indeterminate number

of additional shares which may be offered and issued to prevent dilution from share splits, share dividends or similar transactions as

provided in the Plan.

Any common stocks covered by an award granted under the Plan (or portion of an award) that terminates, expires,

lapses or repurchased for any reason will be deemed not to have been issued for purposes of determining the maximum aggregate number

of common stocks that may be issued under the Plan.

January 26, 2026, March 5, 2026, March 19, 2026 and March 28, 2026, respectively, the Company entered into equity financing agreements

(individually the “Private Placement Agreement”;

collectively the “Private Placement Agreements”), with four

individual investors (individually the “Private Placement Purchaser”;

collectively “Private Placement Purchasers”),

pursuant to which the Company agreed to issue new shares of common stock to such investors that in aggregate accounted for approximately

18% of the total shares issued and outstanding of the Company as of December 31, 2025.

The purchase price per share under the Private

Placement Agreement dated January 26, 2026, was set at 90% of the average closing price of the Company’s common stock for the five

trading days prior to the date of such agreement, while the purchase prices under the Private Placement Agreements executed in March

2026 were set at 85% of, or 15% off, the closing price of the Company’s common stock on the trading day immediately preceding the

respective agreement dates, as quoted on the Nasdaq Stock Market .

June 25, 2026, Company received a written notice from Nasdaq (the “Extension Letter”) stating that it had accepted the Company’s

34 unchanged sentences

were no other subsequent events requiring recognition or disclosure in these condensed consolidated financial statements.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

22 – RESTATEMENT

Company restates its previously released unaudited condensed consolidated financial statements for the three months ended March 31,

Company restates its previously released unaudited condensed consolidated financial statements for the six months ended June 30, 2025,

and incorporate them into the 2025 Quarterly Report “10-Q Form Report” (the “Restatement”).

restatement is due to the discovery of errors related to the reclassification of buildings without property ownership certificates

in fixed assets.

This restatement

is due to the discovery of errors related to the reclassification of buildings without property ownership certificates in fixed assets .

the Company does not have property ownership certificates, the acquisition of the 20-year usage rights for this land, buildings, and

2 unchanged sentences

usage rights as leases in accordance with the provisions of ASC 842.

effects of the restatement on the consolidated statement of operations income (loss) for the three months ended March 31, 2025, are summarized

effects of the restatement on the consolidated balance sheet as of December 31, 2024, are summarized in the following table:

SCHEDULE OF RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

As Previously

December 31, 2024

As Previously

Current Assets

Accounts receivable, net

Inventories, net

Prepayments and deposits, net

Amount due from related parties

Other receivables

Total current assets

Non-Current Assets

Property, plant and equipment, net

( 46,712,127 )

Finance lease right-of-use assets

Operating lease right-of-use assets

Prepaid land leases, net of current portion

Deferred tax assets, net

Total non-current assets

( 1,633,707 )

Liabilities and Stockholders’ Equity

Current Liabilities

Short-term bank borrowing

Accounts payable and accrued expenses

( 7,878,181 )

Taxes payable-current

Amount due to related parties

Finance lease liabilities, current portion

Operating lease liabilities, current portion

Total current liabilities

( 4,753,631 )

Non-Current Liabilities

Finance lease liabilities, net of current portion

Operating lease liabilities, net of current portion

Long-term bank borrowing

Total non-current liabilities

Total Liabilities

Commitment and Contingencies

Stockholders’ Equity

PREFERRED STOCK;

$ 0.001 par value;

1,000,000 shares authorized;

none outstanding

COMMON STOCK;

$ 0.0005 par value;

80,000,000 shares authorized;

1,120,145 shares issued;

and 1,091,562 shares outstanding as of December 31, 2024

Treasury stock;

28,583 shares as of December 31, 2024 at

( 1,372,673 )

Additional paid-in capital

Share to be issued

Retained earnings unappropriated

Retained earnings appropriated

Accumulated other comprehensive loss

( 20,854,143 )

Total Stockholders’ Equity

Total Liabilities and Stockholders’ Equity

$ 169,455,995

( 1,633,707 )

effects of the restatement on the consolidated balance sheet as of June 30, 2025 are summarized in the following table:

As Previously

June 30, 2025

As Previously

Current Assets

Accounts receivable, net

Inventories, net

Prepayments and deposits, net

Amount due from related parties

Other receivables

Total current assets

Non-Current Assets

Property, plant and equipment, net

( 45,357,425 )

Finance lease right-of-use assets

Operating lease right-of-use assets

Prepaid land leases, net of current portion

Deferred tax assets, net

Total non-current assets

( 1,643,231 )

$ 162,988,342

Liabilities and Stockholders’ Equity

Current Liabilities

Accounts payable and accrued expenses

( 4,788,640 )

Taxes payable-current

Amount due to related parties

Finance lease liabilities, current portion

Operating lease liabilities, current portion

Total current liabilities

( 4,788,640 )

Non-Current Liabilities

Finance lease liabilities, net of current portion

Operating lease liabilities, net of current portion

Total non-current liabilities

Total Liabilities

Commitment and Contingencies

Stockholders’ Equity

PREFERRED STOCK;

shares authorized;

COMMON STOCK;

$ 0.0005 par value;

80,000,000 shares authorized;

1,382,114 shares

and 1,353,531 shares outstanding as of June 30, 2025

Treasury stock;

28,583 shares as of June 30, 2025 at cost

( 1,372,673 )

Additional paid-in capital

Retained earnings unappropriated

( 1,046,187 )

Retained earnings appropriated

Accumulated other comprehensive loss

( 20,228,352 )

( 20,146,347 )

Total Stockholders’ Equity

Total Liabilities and Stockholders’ Equity

$ 164,631,573

( 1,643,231 )

$ 162,988,342

following descriptions of the restatement adjustments to the balance sheet excludes a description of adjustments previously identified

and concluded as immaterial that were also corrected as part of the restatement.

(a) The change in common

stock and additional paid-in capital is due to the Company’s 1-for-10 reverse stock split on October 27, 2025.

(b) As of December

31, 2024, in the fixed assets, the original value of the buildings subject to reclassification amounted to $ 68,476,868 .

The Company reclassified

them based on their acquisition methods.

The self-built portion was reclassified as “leasehold improvements” in the property,

plant and equipment, with an original value of $ 3,507,367 .

The leased portion was reclassified as finance lease right-of-use assets,

with an original value of $ 64,189,590 , accumulated amortization of $ 19,111,170 , and a net value of $ 45,078,720 .

of June 30, 2025, in the fixed assets, the original value of the buildings and Construction in process subject to reclassification

amounted to $ 66,899,438 .

The Company reclassified them based on their acquisition methods.

The self-built portion was reclassified as “leasehold

improvements” in the property, plant and equipment, with an original value of $ 3,521,992 .

The leased portion was reclassified as finance lease right-of-use assets, with an original value of $ 64,457,219 ,

accumulated amortization of $ 20,743,025 ,

and a net value of $ 43,714,194 .

payable and accrued expenses was reclassified as finance lease liability relating to the salt pans.

(d) Regarding the decrease

in retained earnings unappropriated, the main reason was the increase in expenses.

The increase in expenses is mainly due to the reclassification

of the financial lease right-of-use asset.

Previously, depreciation was calculated after deducting 5% residual value from the fixed assets,

but now there is no residual value for amortization of finance lease right-of-use asset calculation.

(e) The change in the

accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.

effects of the restatement on the consolidated statement of operations income (loss) for the three months ended June 30, 2024, are summarized

in the following table:

OF STATEMENT OF OPERATIONS INCOME (LOSS)

COSTS AND EXPENSE

SCHEDULE OF STATEMENT OF OPERATIONS INCOME (LOSS)

As Previously

June 30, 2024

As Previously

OPERATING COSTS AND EXPENSE

Cost of revenues

( 5,112,058 )

and marketing expenses

labor and factory overheads incurred during plant shutdown

Sales and marketing expenses

Direct labor and factory overheads incurred during plant shutdown

( 1,714,503 )

and administrative expenses

General and administrative expenses

TOTAL OPERATING COSTS AND EXPENSE

( 7,530,166 )

LOSS FROM OPERATIONS

( 5,146,997 )

OTHER INCOME (EXPENSE)

Interest expense

Interest income

Other expense, net

Loss on disposal of property, plant and

( 29,169,008 )

TOTAL OTHER INCOME, NET

( 29,159,031 )

LOSS BEFORE INCOME TAXES

( 34,306,028 )

INCOME TAX EXPENSE

$ ( 33,097,918 )

COMPREHENSIVE LOSS:

$ ( 33,097,918 )

OTHER COMPREHENSIVE (LOSS) INCOME

- Foreign currency translation adjustments

TOTAL COMPREHENSIVE LOSS

$ ( 33,947,172 )

BASIC AND DILUTED LOSS PER SHARE:

BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES:

( 9,635,362 )

effects of the restatement on the consolidated statement of operations income (loss) for the three months ended June 30, 2025, are summarized

in the following table:

As Previously

June 30, 2025

As Previously

OPERATING COSTS AND EXPENSE

Cost of revenues

( 7,357,130 )

( 7,366,702 )

FROM OPERATIONS

Sales and marketing expenses

Direct labor and factory overheads incurred during plant shutdown

General and administrative expenses

( 1,025,780 )

TOTAL OPERATING COSTS AND EXPENSE

( 9,094,471 )

INCOME (EXPENSE)

OTHER INCOME, NET

BEFORE INCOME TAXES

( 9,135,058 )

LOSS FROM OPERATIONS

OTHER INCOME (EXPENSE)

Interest expense

Interest income

Other expenses, net

TOTAL OTHER INCOME, NET

LOSS BEFORE INCOME TAXES

INCOME TAX EXPENSE

$ ( 773,777 )

$ ( 814,364 )

COMPREHENSIVE LOSS:

$ ( 773,777 )

COMPREHENSIVE

$ ( 814,364 )

OTHER COMPREHENSIVE (LOSS) INCOME

- Foreign currency translation adjustments

TOTAL COMPREHENSIVE LOSS

$ ( 370,002 )

COMPREHENSIVE (LOSS) INCOME

$ ( 426,314 )

BASIC AND DILUTED LOSS PER SHARE

BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES:

( 11,993,087 )

following descriptions of the restatement adjustments to the statement of operations exclude a description of adjustments previously

identified and concluded as immaterial they were also corrected as part of the restatement.

(a) The increase in

cost of revenue and general and administrative expenses were due to the reclassification of finance lease right-of-use asset.

depreciation was calculated after deducting 5% residual value from the fixed assets, but now there is no residual value for amortization

of finance lease right-of-use asset calculation.

(b) The change in the

accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.

and diluted loss per share is due to the Company’s 1-for-10 reverse stock split on October 27, 2025.

effects of the restatement on the consolidated statement of operations income (loss) for the six months ended June 30, 2024, are summarized

in the following table:

As Previously

June 30, 2024

As Previously

OPERATING COSTS AND EXPENSE

Cost of revenues

( 7,231,903 )

Sales and marketing expenses

Direct labor and factory overheads incurred during plant shutdown

( 5,449,192 )

General and administrative expenses

( 1,407,428 )

TOTAL OPERATING COSTS AND EXPENSE

( 14,106,647 )

LOSS FROM OPERATIONS

( 10,416,416 )

OTHER INCOME (EXPENSE)

Interest expense

Interest income

Other expense, net

Loss on disposal of property, plant and

( 29,169,008 )

TOTAL OTHER INCOME, NET

( 29,151,804 )

LOSS BEFORE INCOME TAXES

( 39,568,220 )

INCOME TAX EXPENSE

$ ( 37,090,050 )

COMPREHENSIVE LOSS:

$ ( 37,090,050 )

OTHER COMPREHENSIVE (LOSS) INCOME

- Foreign currency translation adjustments

( 1,243,121 )

TOTAL COMPREHENSIVE LOSS

$ ( 38,333,171 )

BASIC AND DILUTED LOSS PER SHARE

BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES:

( 9,635,362 )

effects of the restatement on the consolidated statement of operations income (loss) for the six months ended June 30, 2025, are summarized

in the following table:

As Previously

June 30, 2025

As Previously

OPERATING COSTS AND EXPENSE

Cost of revenues

( 8,951,400 )

( 8,964,166 )

Sales and marketing expenses

Direct labor and factory overheads incurred during plant shutdown

( 3,953,582 )

General and administrative expenses

( 2,384,288 )

( 2,452,789 )

TOTAL OPERATING COSTS AND EXPENSE

( 15,309,125 )

( 15,390,392 )

LOSS FROM OPERATIONS

( 5,360,893 )

( 5,442,160 )

OTHER INCOME (EXPENSE)

Interest expense

Interest income

Other expenses, net

TOTAL OTHER INCOME, NET

LOSS BEFORE INCOME TAXES

( 5,403,277 )

( 5,484,544 )

INCOME TAX EXPENSE

$ ( 5,403,277 )

$ ( 5,484,544 )

COMPREHENSIVE LOSS:

1 unchanged sentence

$ ( 5,484,544 )

AND DILUTED LOSS PER SHARE

AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES:

following descriptions of the restatement adjustments to the statement of operations exclude a description of adjustments

previously identified and concluded as immaterial they were also corrected as part of the restatement.

OTHER COMPREHENSIVE (LOSS) INCOME

- Foreign currency translation adjustments

TOTAL COMPREHENSIVE LOSS

$ ( 4,777,486 )

$ ( 4,847,573 )

BASIC AND DILUTED LOSS PER SHARE:

BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES:

( 11,249,682 )

following descriptions of the restatement adjustments to the statement of operations exclude a description of adjustments previously

identified and concluded as immaterial they were also corrected as part of the restatement.

(a) The increase in

4 unchanged sentences

accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

24 –RESTATEMENT – Continued

effects of the restatement on the consolidated statement of stockholders’ deficit for the three

months ended March 31, 2025 are summarized in the following table:

OF CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT

unappropriated

comprehensive

unappropriated

MONTHS ENDED MARCH 31, 2025 (As Previously Reported)

AT December 31, 2024

and diluted loss per share is due to the Company’s 1-for-10 reverse stock split on October 27, 2025.

effects of the restatement on the consolidated statement of stockholders’ deficit for the three months ended June 30, 2024 are

summarized in the following table:

SCHEDULE OF CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT

Restatement Reference

Number of shares issued

Number of shares outstanding

Number of treasury stock

Treasury stock

Additional paid-in capital

Retained earnings unappropriated

Retained earnings appropriated

other comprehensive Income (loss)

Restatement Reference

Number of shares issued

Number of shares outstanding

Number of treasury stock

Treasury stock

Additional paid-in capital

Retained earnings unappropriated

Retained earnings appropriated

other comprehensive Income (loss)

THREE MONTHS ENDED JUNE 30, 2024 (As Previously Reported)

BALANCE AT MARCH 31, 2024

$ ( 1,372,673 ) -

2 unchanged sentences

$ 200,862,297

shares to be issued for service

translation adjustment

loss for three months ended March 31, 2025

Restricted shares to be issued for service

Acquisition of assets

Currency translation adjustment

Net loss for three months June 30, 2024

( 33,097,918 )

MARCH 31, 2025

BALANCE AT JUNE 30, 2024

$ ( 1,372,673 ) -

2 unchanged sentences

$ 166,915,125

MONTHS ENDED MARCH 31, 2025 (Restatement Impact)

AT December 31, 2024

shares to be issued for service

translation adjustment

loss for three months ended March 31, 2025

AT MARCH 31, 2025

MONTHS ENDED MARCH 31, 2025 (As Restated)

AT December 31, 2024

THREE MONTHS ENDED JUNE 30, 2024 (Restatement Impact)

BALANCE AT MARCH 31, 2024

( 9,892,609 )

( 9,635,362 )

Restricted shares to be issued for service

Currency translation adjustment

Net loss for three months June 30, 2024

BALANCE AT JUNE 30, 2024

( 9,892,609 )

( 9,635,362 )

shares to be issued for service

translation adjustment

loss for three months ended March 31, 2025

THREE MONTHS ENDED JUNE 30 , 2024 (As Restated)

BALANCE AT MARCH 31, 2024

$ ( 1,372,673 ) -

$ 101,712,325

AT MARCH 31, 2025

$ ( 18,447,136 )

$ 200,862,297

Restricted shares to be issued for service

Acquisition of assets

Currency translation adjustment

Net loss for three months June 30, 2024

( 33,097,918 )

BALANCE AT JUNE 30, 2024

$ ( 1,372,673 ) -

$ 101,712,325

$ ( 19,296,390 )

$ 166,915,125

effects of the restatement on the consolidated statement of stockholders’ deficit for the three months ended June 30, 2025 are

summarized in the following table:

Restatement Reference

Number of shares issued

Number of shares outstanding

Number of treasury stock

Treasury stock

Share to be issued

Additional paid-in capital

Retained earnings unappropriated

Retained earnings appropriated

Accumulated other comprehensive Income

Restatement Reference

Number of shares issued

Number of shares outstanding

Number of treasury stock

Treasury stock

Share to be issued

Additional paid-in capital

Retained earnings unappropriated

Retained earnings appropriated

Accumulated other comprehensive Income

THREE MONTHS ENDED JUNE 30, 2025 (As Previously Reported)

BALANCE AT MARCH 31, 2025

$ ( 1,372,673 )

$ 105,167,292

$ ( 20,632,127 )

$ 142,584,827

Restricted shares to be issued for service

Currency translation adjustment

Net loss for three months June 30, 2025

BALANCE AT JUNE 30, 2025

$ ( 1,372,673 )

$ 105,167,292

$ ( 20,228,352 )

$ 142,214,825

THREE MONTHS ENDED JUNE 30, 2025 (Restatement Impact)

BALANCE AT MARCH 31, 2025

( 12,250,334 )

( 11,993,087 )

$ ( 1,005,600 )

$ ( 907,870 )

Restricted shares to be issued for service

Currency translation adjustment

Net loss for three months June 30, 2025

BALANCE AT JUNE 30, 2025

( 12,250,334 )

( 11,993,087 )

$ ( 1,046,187 )

$ ( 964,182 )

THREE MONTHS ENDED JUNE 30, 2025 (As Restated)

BALANCE AT MARCH 31, 2025

$ ( 1,372,673 )

$ 105,192,535

$ ( 20,534,397 )

$ 141,676,957

Restricted shares to be issued for service

Currency translation adjustment

Net loss for three months June 30, 2025

BALANCE AT JUNE 30, 2025

$ ( 1,372,673 )

$ 105,192,535

$ ( 20,146,347 )

$ 141,250,643

following descriptions of the restatement adjustments to the consolidated statement of stockholders’ deficit excludes a description

of adjustments previously identified and concluded as immaterial the were also corrected as part of the restatement.

(a) The change in the accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.

(a) The change in common

stock and additional paid-in capital is due to the Company’s 1-for-10 reverse stock split on October 27, 2025.

(b) Regarding the decrease

4 unchanged sentences

asset calculation.

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

24 –RESTATEMENT – Continued

effects of the restatement on the consolidated statement of cash flows for the three months ended March 31, 2025, are summarized in the

accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.

effects of the restatement on the consolidated statement of stockholders’ deficit for the six months ended June 30, 2024 are summarized

in the following table:

Restatement Reference

Number of shares issued

Number of shares outstanding

Number of treasury stock

Treasury stock

Additional paid-in capital

Retained earnings unappropriated

Retained earnings appropriated

Accumulated other comprehensive Income

Restatement Reference

Number of shares issued

Number of shares outstanding

Number of treasury stock

Treasury stock

Additional paid-in capital

Retained earnings unappropriated

Retained earnings appropriated

Accumulated other comprehensive Income

SIX MONTHS ENDED

2024 (As Previously Reported)

BALANCE AT DECEMBER 31, 2023

$ ( 1,372,673 )

$ 101,688,262

$ ( 18,053,269 )

$ 205,248,296

Restricted shares to be issued for service

Currency translation adjustment

( 1,243,121 )

Net loss for six months June 30, 2024

( 37,090,050 )

BALANCE AT JUNE 30, 2024

$ ( 1,372,673 )

$ 101,688,262

$ ( 19,296,390 )

$ 166,915,125

SIX MONTHS ENDED JUNE 30, 2024 (Restatement Impact)

BALANCE AT DECEMBER 31, 2023

( 9,892,609 )

( 9,635,362 )

Restricted shares to be issued for service

Currency translation adjustment

Net loss for six months June 30, 2024

BALANCE AT JUNE 30, 2024

( 9,892,609 )

( 9,635,362 )

SIX MONTHS ENDED JUNE 30, 2024 (As Restated)

BALANCE AT DECEMBER 31, 2023

$ ( 1,372,673 )

$ 101,712,325

$ ( 18,053,269 )

$ 205,248,296

Restricted shares to be issued for service

Currency translation adjustment

( 1,243,121 )

Net loss for six months June 30, 2024

( 37,090,050 )

BALANCE AT JUNE 30, 2024

$ ( 1,372,673 )

$ 101,712,325

$ ( 19,296,390 )

$ 166,915,125

effects of the restatement on the consolidated statement of stockholders’ deficit for the six months ended June 30, 2025 are summarized

in the following table:

Restatement Reference

Number of shares issued

Number of shares outstanding

Number of treasury stock

Treasury stock

Share to be issued

Additional paid-in capital

Retained earnings unappropriated

Retained earnings appropriated

Accumulated other comprehensive Income

Restatement Reference

Number of shares issued

Number of shares outstanding

Number of treasury stock

Treasury stock

Share to be issued

Additional paid-in capital

Retained earnings unappropriated

Retained earnings appropriated

Accumulated other comprehensive Income

SIX MONTHS ENDED JUNE 30, 2025 (As Previously Reported)

BALANCE AT DECEMBER 31, 2024

$ ( 1,372,673 )

$ 101,688,262

$ ( 20,854,143 )

$ 143,706,670

Restricted shares to be issued for service

Acquisition of assets

Currency translation adjustment

Net loss for six months June 30, 2025

( 5,403,277 )

BALANCE AT JUNE 30, 2025

$ ( 1,372,673 )

$ 105,167,292

$ ( 20,228,352 )

$ 142,214,825

SIX MONTHS ENDED JUNE 30, 2025 (Restatement Impact)

BALANCE AT DECEMBER 31, 2024

( 9,892,609 )

( 9,635,362 )

$ ( 964,920 )

$ ( 894,095 )

Restricted shares to be issued for service

( 2,563,694 )

( 3,088,258 )

Acquisition of assets

Currency translation adjustment

Net loss for six months June 30, 2025

BALANCE AT JUNE 30, 2025

( 12,250,334 )

( 11,993,087 )

$ ( 1,046,187 )

$ ( 964,182 )

SIX MONTHS ENDED JUNE 30, 2025 (As Restated)

BALANCE AT DECEMBER 31, 2024

$ ( 1,372,673 )

$ 101,712,325

$ ( 20,783,318 )

$ 142,812,575

Restricted shares to be issued for service

Acquisition of assets

Currency translation adjustment

Net loss for six months June 30, 2025

( 5,484,544 )

BALANCE AT JUNE 30, 2025

$ ( 1,372,673 )

$ 105,192,535

$ ( 20,146,347 )

$ 141,250,643

following descriptions of the restatement adjustments to the consolidated statement of stockholders’ deficit excludes a description

of adjustments previously identified and concluded as immaterial the were also corrected as part of the restatement.

(a) The change in common

stock and additional paid-in capital is due to the Company’s 1-for-10 reverse stock split on October 27, 2025.

(b) Regarding the decrease

in retained earnings unappropriated, the main reason was that cost of revenue and general and administrative expenses increased.

increase of expenses was due to the reclassification of finance lease right-of-use asset.

Previously, depreciation was calculated after

deducting 5% residual value from the fixed assets, but now there is no residual value for amortization of finance lease right-of-use

asset calculation.

accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.

amount originally classified as restricted shares to be issued for service was reclassified to acquisition of assets, as the shares were

issued in connection with the asset acquisition.

effects of the restatement on the consolidated statement of cash flows for the six months ended June 30, 2024, are summarized in the

following table:

OF CONSOLIDATED STATEMENT OF CASH FLOWS

FLOWS FROM OPERATING ACTIVITIES

SCHEDULE OF CONSOLIDATED STATEMENT OF CASH FLOWS

As Previously

June 30, 2024

As Previously

CASH FLOWS FROM OPERATING ACTIVITIES

$ ( 37,090,050 )

to reconcile net income to net cash provided by (used in) operating activities:

on capital lease

and amortization

compensation expense

of operating lease right-of-use assets

of finance lease right-of-use assets

in assets and liabilities:

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Amortization on capital lease

Depreciation and amortization

Deferred tax asset

( 2,511,394 )

and other payable and accrued expenses

cash used in operating activities

Stock-based compensation expense

Amortization of operating lease right-of-use assets

Amortization of finance lease right-of-use assets

Loss on disposal of property, plant and equipment

Accrued interest receivable

Changes in assets and liabilities

Accounts receivable

Prepayment and deposits

Advance from customers

Other receivables

Accounts and other payable and accrued expenses

( 2,583,610 )

FLOWS FROM INVESTING ACTIVITIES

Taxes payable

Lease liabilities

Net cash used in operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment

( 60,526,213 )

( 28,923,642 )

Loans to third parties

Net cash used in investing activities

( 60,526,213 )

( 28,923,642 )

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of finance leases obligation

( 31,602,571 )

( 31,866,665 )

Proceeds from long-term borrowing

Proceeds from short-term borrowing

Net cash used in financing activities

OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

DECREASE IN CASH AND CASH EQUIVALENTS

( 31,866,665 )

EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

NET DECREASE IN CASH AND CASH EQUIVALENTS

( 61,856,355 )

AND CASH EQUIVALENTS - BEGINNING OF YEAR

AND CASH EQUIVALENTS - END OF YEAR

RESOURCES, INC.

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

24 –RESTATEMENT – Continued

DISCLOSURE OF CASH FLOW INFORMATION

paid during the year for:

( 61,856,355 )

CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR

CASH AND CASH EQUIVALENTS - END OF YEAR

June 30, 2024

As Previously Reported

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash paid during the year for:

Paid for taxes

Interest paid

effects of the restatement on the consolidated statement of cash flows for the six months ended June 30, 2025, are summarized in the

following table:

As Previously

June 30, 2025

As Previously

CASH FLOWS FROM OPERATING ACTIVITIES

$ ( 5,403,277 )

$ ( 5,484,544 )

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Amortization on capital lease

Depreciation and amortization

( 1,546,829 )

Stock-based compensation expense

Amortization of operating lease right-of-use assets

Amortization of finance lease right-of-use assets

Changes in assets and liabilities

Accounts receivable

( 2,574,907 )

Prepayment and deposits

( 2,331,871 )

Other receivables

Accounts and other payable and accrued expenses

Taxes payable

Lease liabilities

Net cash used in operating activities

( 2,139,435 )

( 2,139,734 )

CASH FLOWS FROM INVESTING ACTIVITIES

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of finance leases obligation

Net cash provided by (used in) financing activities

EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

NET DECREASE IN CASH AND CASH EQUIVALENTS

( 2,339,081 )

CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR

CASH AND CASH EQUIVALENTS - END OF YEAR

June 30, 2025

As Previously Reported

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash paid during the year for:

Paid for taxes

Interest paid

DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES

following descriptions of the restatement adjustments to the statement of cash flows excludes a description of adjustments

previously identified and concluded as immaterial that were also corrected as part of the restatement.

following descriptions of the restatement adjustments to the statement of cash flows excludes a description of adjustments previously

identified and concluded as immaterial that were also corrected as part of the restatement.

(a) This restatement

11 unchanged sentences

value from the fixed assets, but now there is no residual value for amortization of finance lease right-of-use asset calculation.

accumulated other comprehensive loss represents the foreign currency translation differences in the financial statements.

(d) Fixed assets without property ownership certificates have been reclassified as finance lease right-of-use assets,

resulting in an amount of $ 31,602,571 .

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-Q/A

Item 1. Financial Statements