News Classic

SHOUGUANG, China, Nov. 19, 2024 (GLOBE NEWSWIRE) — Gulf Resources, Inc. GURE (“Gulf Resources”, “we,” or the “Company”), a leading manufacturer of bromine, crude salt and specialty chemical products in China today announced its unaudited financial results for the nine and three months ended September 30, 2024.

Three Months ended September 30, 2024:

• Revenues for the third quarter were $2,242,365, a decline of 61.8% compared to the same period of 2023.
• The net loss was $3,492,883, and the basic and diluted loss was $0.33 per share.
• During the third quarter, bromine revenues declined by 68% to $1,571,313 and crude salt revenues declined by 26% to $654,039.
• Bromine operation loss was $4,029,999, while crude salt operation loss was $102,657.
• The losses from operations from our currently inactive chemical and natural gas businesses were $339,038 and $39,072, respectively.

Nine Months ended September 30, 2024:

• For the nine months, revenues were $5,932,596, a decline of 74.4% compared to the same period of 2023.
• Losses from operations by segment were as follows: bromine – $13,475,400, crude salt – $47,725, chemicals – $993,116, and natural Gas -$140,554.
• The net loss was $40,582,933, and basic and diluted loss was $3.78 per share.
• We incurred a loss of $29,169,008 from the disposition of equipment and purchased $60,526,213 worth of new equipment.
• Our cash position declined to $11,237,493 from $72,223,894 as of December 31, 2023.
• Total assets at the end of the third quarter was $193,885,294.

Management Commentary

We regret that the changes in auditors caused delays in filing the 2023 10-K and 2024 10-Q reports on time. We acknowledge the importance of providing investors with information needed to understand our financial position and the decisions made by the management. Separate press releases will be issued to address several of these matters in the near future.

Mr. Liu Xiaobin, the Chief Executive Officer of Gulf Resources, stated, “We want investors to understand that we remain confident in China’s economic recovery, in our company’s return to profitability, and in the decisions that we are making to act in the best interests of our shareholders.”

“Over the past year,” Mr. Liu continued, “we have postponed the final delivery of equipment for our chemical factory, because we did not see a short-term path to profitability. We believe some of the chemical companies in our niche in China are currently losing money. By postponing, we wanted to have the opportunity to see which segments of the industry would recover most quickly and what new opportunities, such as those for electrical strong or flow batteries, would emerge. When the timing is right, we will move ahead with the development of our chemical factory.”

“We also decided to hold off on additional investments in our natural gas business,” Mr. Liu continued. “While we remain committed to this project, we are currently seeking the best strategy.”

“We also participated in a flood prevention program required by the government,” Mr. Liu stated, “that we believe will help prevent future flood damages and allow us to drill more wells. Additionally, we are in the process of securing additional land for salt fields and bromine wells from local groups. Based on our analysis, we believe these fields could yield strong returns in the coming years.

“As the Chinese economy has begun to recover and bromine prices have started to improve,” Mr. Liu concluded, “we are becoming increasingly optimistic about the opportunities for the future.”

Conference Call

Gulf Resources management will host a conference call on Wednesday, November 20, 2024 at 08:00 AM Eastern Time to discuss its unaudited financial results of nine and three months ended September 30, 2024.

Mr. Xiaobin Liu, CEO of Gulf Resources, will be hosting the call. The Company management team will be available for investor questions following the prepared remarks.

To participate in this live conference call, please dial Toll Free +1 (888) 506-0062 five to ten minutes prior to the scheduled conference call time. International callers should dial +1 (973) -528-0011, and please reference to “Gulf Resources” or Participant Access Code: 287986 while dial in.

The webcasting is also available then, just simply click on the link below:
http://www.gulfresourcesinc.com/news-28.html

A replay of the conference call will be available two hours after the call’s completion and will expire on Wednesday, November 27, 2024. To access the replay, call +1 (877) 481-4010. International callers should call +1 (919) 882-2331. The Replay Passcode is 51690.

About Gulf Resources, Inc.
Gulf Resources, Inc. operates through four wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited (“SCHC”), Shouguang Yuxin Chemical Industry Co., Limited (“SYCI”), Daying County Haoyuan Chemical Company Limited (“DCHC”) and Shouguang Hengde Salt Industry Co. Ltd. (“SHSI”). The Company believes that it is one of the largest producers of bromine in China. Elemental Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. Through SYCI, the Company manufactures chemical products utilized in a variety of applications, including oil and gas field explorations and papermaking chemical agents, and materials for human and animal antibiotics. Through SHSI, the Company manufactures and sells crude salt. DCHC was established to further explore and develop natural gas and brine resources (including bromine and crude salt) in China. For more information, visit www.gulfresourcesinc.com.

Forward-Looking Statements
Certain statements in this news release contain forward-looking information about Gulf Resources and its subsidiaries business and products within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. The actual results may differ materially depending on a number of risk factors including, but not limited to, the general economic and business conditions in the PRC, the risks associated with the COVID-19 pandemic outbreak, future product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from existing and new competitors for bromine and other oilfield and power production chemicals, changes in technology, the ability to make future bromine asset purchases, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company’s reports filed with the Securities and Exchange Commission. Gulf Resources undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

Contact Data
CONTACT: Gulf Resources, Inc.
Web: http://www.gulfresourcesinc.com
Director of Investor Relations
Helen Xu
beishengrong@vip.163.com

• Improved operating performance by reducing net loss by $52.5 million; reported net loss of $4.3 million and $56.8 million for the nine months ended September 30, for 2024 and 2023, respectively.
• Significantly improved financial position by eliminating nearly all of its liabilities; reported $10.5 million as of September 30, 2024, and $99.9 million as of December 31, 2023.
• $10 billion+, representing Tevogen’s IP and product assets based on internal discounted cash flow models, is not reflected on the company balance sheet. Similarly, Tevogen’s AI assets, a critical component of its innovation platform, remain unreported on company balance sheet.
• Sufficient available capital to fund operations for the next 33 months, supported by a loan agreement.
• Approximately 78% of equity retained by Tevogen officers.

WARREN, N.J., Nov. 19, 2024 (GLOBE NEWSWIRE) — Tevogen Bio (“Tevogen” or “Tevogen Bio Holdings Inc.”) TVGN, a clinical-stage specialty immunotherapy biotech developing off-the-shelf, genetically unmodified T cell therapeutics to treat infectious disease and cancers, has announced financial results for the fiscal quarter ending September 30, 2024, and filed its quarterly report on Form 10-Q with the Securities and Exchange Commission.

Tevogen’s internally developed intellectual property and product assets, valued internally at $10 billion+ using discounted cash flow models, are not reflected on the balance sheet. Due to US GAAP accounting rules, the company was unable to report the fair market value of its assets, including proprietary immunotherapy technologies and cutting-edge artificial intelligence platforms. The company believes that the inclusion of Tevogen’s IP assets on its balance sheet would significantly enhance its enterprise value.

Tevogen reiterated its confidence in its financial stability, confirming sufficient available capital to fund operations for at least the next 33 months, supported by a loan agreement, which Tevogen entered into in June. Additionally, Tevogen eliminated almost all of its liabilities which were $99.9 million as reported at December 31, 2023 and now are $10.5 million as reported at September 30, 2024.

Kirti Desai, CPA, Tevogen’s CFO, commented, “The company is in a unique position as it relates to reporting intangible assets on our balance sheet. Tevogen has multiple granted patents, which were developed internally, and as per US GAAP rules, these internally developed intangible assets are not reported on the balance sheet as they do not have an acquisition price. This is significantly different than IP obtained through acquisition which can be capitalized as a noncurrent asset on the balance sheet and subsequently amortized like an intangible asset.”

Dr. Ryan Saadi, Founder and CEO of Tevogen Bio added, “The lack of an established market price to assign fair value of our highly appraised internally developed assets on our balance sheet, marks a distinct difference from similar cell therapy companies, such as Gilead and Bristol-Myers Squibb, which are able to capitalize similar assets acquired through multibillion-dollar acquisitions.”

Commenting on the company’s performance and unique ownership structure, Dr. Saadi concluded, “Tevogen’s leadership stands apart in the biotech sector, with approximately 78% of equity retained by our officers, an extraordinary figure compared to the industry average of just 4%. In addition to our officers, our key employees have also been granted substantial restricted stock units in the company, reflecting our belief that our employees should also be owners of our success.”

About Tevogen Bio

Tevogen is a clinical-stage specialty immunotherapy company harnessing one of nature’s most powerful immunological weapons, CD8+ cytotoxic T lymphocytes, to develop off-the-shelf, genetically unmodified precision T cell therapies for the treatment of infectious diseases, cancers, and neurological disorders, aiming to address the significant unmet needs of large patient populations. Tevogen Leadership believes that sustainability and commercial success in the current era of healthcare rely on ensuring patient accessibility through advanced science and innovative business models. Tevogen has reported positive safety data from its proof-of-concept clinical trial, and its key intellectual property assets are wholly owned by the company, not subject to any third-party licensing agreements. These assets include three granted patents, nine pending US and twelve ex-US pending patents, two of which are related to artificial intelligence.

Tevogen is driven by a team of highly experienced industry leaders and distinguished scientists with drug development and global product launch experience. Tevogen’s leadership believes that accessible personalized therapeutics are the next frontier of medicine, and that disruptive business models are required to sustain medical innovation.

Forward Looking Statements

This press release contains certain forward-looking statements, including without limitation statements relating to: expectations regarding the healthcare and biopharmaceutical industries; Tevogen’s development of, the potential benefits of, and patient access to its product candidates for the treatment of infectious diseases, cancer and neurological disorders, including TVGN 489 for the treatment of COVID-19 and Long COVID; Tevogen’s ability to develop additional product candidates, including through use of Tevogen’s ExacTcell platform; the anticipated benefits of ExacTcell; expectations regarding Tevogen’s future clinical trials; and Tevogen’s ability to generate revenue in the future. Forward-looking statements can sometimes be identified by words such as “may,” “could,” “would,” “expect,” “anticipate,” “possible,” “potential,” “goal,” “opportunity,” “project,” “believe,” “future,” and similar words and expressions or their opposites. These statements are based on management’s expectations, assumptions, estimates, projections and beliefs as of the date of this press release and are subject to a number of factors that involve known and unknown risks, delays, uncertainties and other factors not under the company’s control that may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations expressed or implied by these forward-looking statements.

Factors that could cause actual results, performance, or achievements to differ from those expressed or implied by forward-looking statements include, but are not limited to: that Tevogen will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the effect of the recent business combination with Semper Paratus Acquisition Corporation (the “Business Combination”) on Tevogen’s business relationships, operating results, and business generally; the outcome of any legal proceedings that may be instituted against Tevogen; changes in the markets in which Tevogen competes, including with respect to its competitive landscape, technology evolution, or regulatory changes; changes in domestic and global general economic conditions; the risk that Tevogen may not be able to execute its growth strategies or may experience difficulties in managing its growth and expanding operations; the risk that Tevogen may not be able to develop and maintain effective internal controls; costs related to the Business Combination and the failure to realize anticipated benefits of the Business Combination; the failure to achieve Tevogen’s commercialization and development plans and identify and realize additional opportunities, which may be affected by, among other things, competition, the ability of Tevogen to grow and manage growth economically and hire and retain key employees; the risk that Tevogen may fail to keep pace with rapid technological developments to provide new and innovative products and services or make substantial investments in unsuccessful new products and services; the ability to develop, license or acquire new therapeutics; that Tevogen will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk of regulatory lawsuits or proceedings relating to Tevogen’s business; uncertainties inherent in the execution, cost, and completion of preclinical studies and clinical trials; risks related to regulatory review, approval and commercial development; risks associated with intellectual property protection; Tevogen’s limited operating history; and those factors discussed or incorporated by reference in Tevogen’s Annual Report on Form 10-K and subsequent filings with the SEC.

You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Tevogen undertakes no obligation to update any forward-looking statements, except as required by applicable law.

Contacts

Tevogen Bio Communications
T: 1 877 TEVOGEN, Ext 701
Communications@Tevogen.com