UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act 1934
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Item 8.01 Other Events.
As previously reported, on December 10, 2025, pursuant to and subject to the terms of the previously announced equity transfer agreement, dated as of December 10, 2025 (the “SPA”), by and among Shouguang City Haoyuan Chemical Company Limited (the “Seller”), a company incorporated in the PRC and an indirect wholly owned subsidiary of Gulf Resources, Inc. (the “Company”), Shandong Rongyuan Pharmaceutical Co., Ltd. (the “Purchaser”) and Shouguang Yuxin Chemical Industry Co., Limited (the “Target Company”), the Purchaser agreed to purchase from the Seller 100% equity interest in the Target Company (“Transaction”). The Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on December 15, 2025, contains a description of the Transaction and related matters.
The relevant governmental body, AMR (as defined in the SPA) completed the industrial and commercial change registration of the Target Company on December 22, 2025, indicating the Purchaser as the sole shareholder of the Target Company. As such, and pursuant to the SPA, the Transaction closed on December 22, 2025.
The Company is filing this Current Report on Form 8-K to provide, in connection with the closing of the Transaction:
| - | the financial statements of the Company as of and for the year ended December 31, 2024 and nine months ended September 30, 2025, the accompanying notes thereto, are incorporated herein by reference; and |
| - | pro forma financial information as of and for the year ended December 31, 2024 and nine months ended September 30, 2025, are filed as Exhibit 99.1. |
Statements contained herein relating to the Company or its management’s intentions, hopes, beliefs, expectations or predictions of the future, constitute forward looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on April 11, 2025, the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, filed with the SEC on November 19, 2025, and in the Company’s other filings and submissions with the SEC. The Company disclaims any intention or obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Item 9.01 Financial Statements and Exhibits.
Exhibits
The following exhibit are filed herewith:
| Exhibit No. | Exhibit Description | |
| 99.1 | Gulf Resources Inc. Unaudited Pro Forma Condensed Combined Financial Statements as of December 31, 2024 and September 30, 2025. | |
| 104 | Cover Page Interactive Data File (embedded within the XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| GULF RESOURCES, INC. | ||
| By: | /s/ Min Li | |
| Name: | Min Li | |
| Title: | Chief Financial Officer | |
Dated: December 29, 2025
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following unaudited pro form condensed combines financial statements present financial information to reflect the transaction completed on December 22, 2025 pursuant to the agreement (the “SPA”) between Shouguang City Haoyuan Chemical Company Limited (the “Seller”), an indirect wholly owned subsidiary of Gulf Resources, Inc. (the “Company”) and Shandong Rongyuan Pharmaceutical Co., Ltd. (the “Purchaser”) for the disposal of Shouguang Yuxin Chemical Industry Co., Limited (“SYCI” or the “Target Company”) in exchange for a gross consideration of RMB21,228,000 (US $3,002,716). We refer to the foregoing transaction contemplated by the SPA collectively as the “Disposition”.
GULF RESOURCES, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS
As of September 30, 2025
(Expressed in U.S. dollars)
| GULF RESOURCES, INC. | SYCI Disposition | Pro Forma Adjustments | Notes | Pro Forma Consolidated | ||||||||||||||
| (a) | ||||||||||||||||||
| Assets | ||||||||||||||||||
| Current assets | ||||||||||||||||||
| Cash and cash equivalents | 5,820,083 | (606,214 | ) | — | 5,213,869 | |||||||||||||
| Accounts receivable, net | 3,422,564 | — | — | 3,422,564 | ||||||||||||||
| Inventories, net | 482,712 | — | — | 482,712 | ||||||||||||||
| Prepayments and deposits | 5,916,171 | (1,481,496 | ) | — | 4,434,675 | |||||||||||||
| Amount due from related parties | 25,333 | (132,014 | ) | 132,014 | (c) | 25,333 | ||||||||||||
| Other receivable | 2,222 | (1,142 | ) | 3,708,523 | (c)(d) | 3,709,603 | ||||||||||||
| Total Current Assets | 15,669,085 | (2,220,866 | ) | 3,840,537 | 17,288,756 | |||||||||||||
| Non-Current Assets | ||||||||||||||||||
| Property, plant and equipment, net | 109,911,438 | (2,084,136 | ) | — | 107,827,302 | |||||||||||||
| Finance lease right-of use assets | 73,959 | — | — | 73,959 | ||||||||||||||
| Operating lease right-of-use assets | 5,847,348 | (103,758 | ) | — | 5,743,590 | |||||||||||||
| Prepaid land leases, net of current portion | 405,717 | — | — | 405,717 | ||||||||||||||
| Deferred tax assets, net | — | — | — | — | ||||||||||||||
| Total non-current assets | 116,238,462 | (2,187,894 | ) | — | 114,050,568 | |||||||||||||
| Total Assets | 131,907,547 | (4,408,760 | ) | 3,840,537 | 131,339,324 | |||||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||
| Current Liabilities | ||||||||||||||||||
| Accounts payable and accrued expenses | 12,183,011 | (5,611,287 | ) | 132,014 | (c) | 6,703,738 | ||||||||||||
| Accrued liabilities | 968,113 | (968,113 | ) | — | — | |||||||||||||
| Taxes payable-current | 635,558 | (56,640 | ) | — | 578,918 | |||||||||||||
| Amount due to related parties | 2,597,963 | (705,807 | ) | 705,807 | (c) | 2,597,963 | ||||||||||||
| Finance lease liability, current portion | 208,212 | — | — | 208,212 | ||||||||||||||
| Operating lease liabilities, current portion | 518,214 | (6,160 | ) | — | 512,054 | |||||||||||||
| Total current liabilities | 17,111,071 | (7,348,007 | ) | 837,821 | 10,600,885 | |||||||||||||
| Non-Current Liabilities | ||||||||||||||||||
| Finance lease liability, net of current portion | 898,504 | — | — | 898,504 | ||||||||||||||
| Operating lease liabilities, net of current portion | 6,436,276 | (91,320 | ) | — | 6,344,956 | |||||||||||||
| Total Non-Current Liabilities | 7,334,780 | (91,320 | ) | — | 7,243,460 | |||||||||||||
| Total Liabilities | 24,445,851 | (7,439,327 | ) | 837,821 | 17,844,345 | |||||||||||||
| Commitment and Loss 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; 1,382,114 shares issued; and 1,353,531 shares outstanding as of September 30, 2025 (1) | 691 | — | — | 691 | ||||||||||||||
| Treasury stock; 28,583 shares as of September 30, 2025 | (1,372,673 | ) | — | — | (1,372,673 | ) | ||||||||||||
| Additional paid-in capital | 105,192,535 | (45,290,390 | ) | 45,290,390 | (d) | 105,192,535 | ||||||||||||
| Statutory reserve | — | (5,586,726 | ) | 5,586,726 | (d) | — | ||||||||||||
| Retained earnings unappropriated | (3,708,985 | ) | 38,756,530 | (47,874,400 | ) | (d) | (12,826,855 | ) | ||||||||||
| Retained earnings appropriated | 26,667,097 | — | — | 26,667,097 | ||||||||||||||
| Accumulated other comprehensive loss | (19,316,969 | ) | 15,151,153 | — | (4,165,816 | ) | ||||||||||||
| Total Stockholders’ Equity | 107,461,696 | 3,030,567 | 3,002,716 | 113,494,979 | ||||||||||||||
| Total Liabilities and Stockholders’ Equity | 131,907,547 | (4,408,760 | ) | 3,840,537 | 131,339,324 | |||||||||||||
(1) The shares and per share data are presented on a retroactive basis to reflect the stock split.
GULF RESOURCES, INC.
UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) / INCOME
For the nine months ended September 30, 2025
(Expressed in U.S. dollars)
| GULF RESOURCES, INC. | SYCI Less: Disposition | Pro Forma Adjustments | Notes | Pro Forma Consolidated | ||||||||||||||
| (b) | ||||||||||||||||||
| NET REVENUE | 18,992,813 | — | — | 18,992,813 | ||||||||||||||
| OPERATING COSTS AND EXPENSES | ||||||||||||||||||
| Cost of net revenue | (16,948,185 | ) | — | — | (16,948,185 | ) | ||||||||||||
| Sales and marketing expenses | (35,868 | ) | — | — | (35,868 | ) | ||||||||||||
| Direct labor and factory overheads incurred during plant shutdown | (4,533,760 | ) | 457,316 | — | (4,076,444 | ) | ||||||||||||
| General and administrative expenses | (3,169,821 | ) | 598,631 | — | (2,571,190 | ) | ||||||||||||
| TOTAL OPERATING COSTS AND EXPENSE | (24,687,634 | ) | 1,055,947 | — | (23,631,687 | ) | ||||||||||||
| LOSS FROM OPERATIONS | (5,694,821 | ) | 1,055,947 | — | (4,638,874 | ) | ||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||||
| Interest expense | (61,580 | ) | — | — | (61,580 | ) | ||||||||||||
| Interest income | 5,202 | (359 | ) | — | 4,843 | |||||||||||||
| Other expense, net | (3,524,825 | ) | 3,521,613 | — | (3,212 | ) | ||||||||||||
| Gain on disposal of subsidiaries | — | — | 6,033,283 | (d) | 6,033,283 | |||||||||||||
| Loss on disposal of long-lived assets | (2,008,853 | ) | 2,008,853 | — | — | |||||||||||||
| Impairment of long-lived assets | (29,782,912 | ) | 29,782,912 | — | — | |||||||||||||
| LOSS BEFORE TAXES | (41,067,789 | ) | 36,368,966 | 6,033,283 | 1,334,460 | |||||||||||||
| INCOME TAX BENEFIT (EXPENSE) | — | — | — | — | ||||||||||||||
| NET (LOSS) / INCOME | (41,067,789 | ) | 36,368,966 | 6,033,283 | 1,334,460 | |||||||||||||
| COMPREHENSIVE (LOSS) / INCOME | ||||||||||||||||||
| NET (LOSS) / INCOME | (41,067,789 | ) | 36,368,966 | 6,033,283 | 1,334,460 | |||||||||||||
| OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||||||||||||
| - Foreign currency translation adjustments | 1,537,174 | (243,255 | ) | — | 1,293,919 | |||||||||||||
| TOTAL COMPREHENSIVE (LOSS) / INCOME | (39,530,615 | ) | 36,125,711 | 6,033,283 | 2,628,379 | |||||||||||||
| BASIC AND DILUTED LOSS PER SHARE(1): | (31.62 | ) | (1.03 | ) | ||||||||||||||
| BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES(1): | 1,298,766 | 1,298,766 | ||||||||||||||||
(1) The shares and per share data are presented on a retroactive basis to reflect the stock split.
GULF RESOURCES, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31, 2024
(Expressed in U.S. dollars)
| GULF RESOURCES, INC. | SYCI Disposition | Pro Forma Adjustments | Notes | Pro Forma Consolidated | ||||||||||||||
| (a) | ||||||||||||||||||
| Assets | ||||||||||||||||||
| Current assets | ||||||||||||||||||
| Cash and cash equivalents | 10,075,162 | (874,297 | ) | — | 9,200,865 | |||||||||||||
| Accounts receivable, net | 564,523 | — | — | 564,523 | ||||||||||||||
| Inventories, net | 315,371 | — | — | 315,371 | ||||||||||||||
| Prepayments and deposits | 6,376,656 | (1,463,092 | ) | — | 4,913,564 | |||||||||||||
| Amount due from related parties | 25,040 | (80,396,955 | ) | 80,396,955 | (c) | 25,040 | ||||||||||||
| Other receivable | 94,074 | — | 3,700,348 | (c)(d) | 3,794,422 | |||||||||||||
| Total Current Assets | 17,450,826 | (82,734,344 | ) | 84,097,303 | 18,813,785 | |||||||||||||
| Non-Current Assets | ||||||||||||||||||
| Property, plant and equipment, net | 136,143,177 | (27,118,747 | ) | — | 109,024,430 | |||||||||||||
| Finance lease right-of use assets | 76,868 | — | — | 76,868 | ||||||||||||||
| Operating lease right-of-use assets | 6,169,855 | (106,930 | ) | — | 6,062,925 | |||||||||||||
| Prepaid land leases, net of current portion | 9,615,269 | (9,204,548 | ) | — | 410,721 | |||||||||||||
| Deferred tax assets, net | — | — | — | — | ||||||||||||||
| Total non-current assets | 152,005,169 | (36,430,225 | ) | — | 115,574,944 | |||||||||||||
| Total Assets | 169,455,995 | (119,164,569 | ) | 84,097,303 | 134,388,729 | |||||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||
| Current Liabilities | ||||||||||||||||||
| Accounts payable and accrued expenses | 14,323,458 | (5,541,437 | ) | 80,396,955 | (c) | 89,178,976 | ||||||||||||
| Taxes payable-current | 113,999 | (34,028 | ) | — | 79,971 | |||||||||||||
| Amount due to related parties | 2,584,808 | (697,632 | ) | 697,632 | (c) | 2,584,808 | ||||||||||||
| Finance lease liability, current portion | 217,743 | — | — | 217,743 | ||||||||||||||
| Operating lease liabilities, current portion | 491,850 | (5,874 | ) | — | 485,976 | |||||||||||||
| Total current liabilities | 17,731,858 | (6,278,971 | ) | 81,094,587 | 92,547,474 | |||||||||||||
| Non-Current Liabilities | ||||||||||||||||||
| Finance lease liability, net of current portion | 1,075,865 | — | — | 1,075,865 | ||||||||||||||
| Operating lease liabilities, net of current portion | 6,941,602 | (97,510 | ) | — | 6,844,092 | |||||||||||||
| Total Non-Current Liabilities | 8,017,467 | (97,510 | ) | — | 7,919,957 | |||||||||||||
| Total Liabilities | 25,749,325 | (6,376,481 | ) | 81,094,587 | 100,467,431 | |||||||||||||
| Commitment and Loss 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 (1) | 560 | — | — | 560 | ||||||||||||||
| Treasury stock; 28,583 shares as of December 31, 2024 | (1,372,673 | ) | — | — | (1,372,673 | ) | ||||||||||||
| Additional paid-in capital | 101,712,325 | (45,290,390 | ) | 45,290,390 | (d) | 101,712,325 | ||||||||||||
| Share to be issued | 194,700 | — | — | 194,700 | ||||||||||||||
| Statutory reserve | — | (5,586,726 | ) | 5,586,726 | (d) | — | ||||||||||||
| Retained earnings unappropriated | 37,358,804 | (77,305,380 | ) | (47,874,400 | ) | (d) | (87,820,976 | ) | ||||||||||
| Retained earnings appropriated | 26,667,097 | — | — | 26,667,097 | ||||||||||||||
| Accumulated other comprehensive loss | (20,854,143 | ) | 15,394,408 | — | (5,459,735 | ) | ||||||||||||
| Total Stockholders’ Equity | 143,706,670 | (112,788,088 | ) | 3,002,716 | 33,921,298 | |||||||||||||
| Total Liabilities and Stockholders’ Equity | 169,455,995 | (119,164,569 | ) | 84,097,303 | 134,388,729 | |||||||||||||
(1) The shares and per share data are presented on a retroactive basis to reflect the stock split.
GULF RESOURCES, INC.
UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the years ended December 31, 2024
(Expressed in U.S. dollars)
| GULF RESOURCES, INC. | SYCI Disposition | Pro Forma Adjustments | Notes | Pro Forma Consolidated | ||||||||||||||
| (b) | ||||||||||||||||||
| NET REVENUE | 7,661,010 | — | — | 7,661,010 | ||||||||||||||
| OPERATING COSTS AND EXPENSES | ||||||||||||||||||
| Cost of net revenue | (14,746,741 | ) | — | — | (14,746,741 | ) | ||||||||||||
| Sales and marketing expenses | (46,264 | ) | — | — | (46,264 | ) | ||||||||||||
| Direct labor and factory overheads incurred during plant shutdown | (8,880,643 | ) | 584,185 | — | (8,296,458 | ) | ||||||||||||
| General and administrative expenses | (5,271,011 | ) | 2,444,293 | — | (2,826,718 | ) | ||||||||||||
| TOTAL OPERATING COSTS AND EXPENSE | (28,944,659 | ) | 3,028,478 | — | (25,916,181 | ) | ||||||||||||
| LOSS FROM OPERATIONS | (21,283,649 | ) | 3,028,478 | — | (18,255,171 | ) | ||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||||
| Interest expense | (91,901 | ) | — | — | (91,901 | ) | ||||||||||||
| Interest income | 80,258 | (51,417 | ) | — | 28,841 | |||||||||||||
| Other expense, net | (50,470 | ) | — | — | (50,470 | ) | ||||||||||||
| Gain on disposal of subsidiaries | — | — | 6,033,283 | (d) | 6,033,283 | |||||||||||||
| Loss on disposal of long-lived assets | (29,169,008 | ) | 967 | — | (29,168,041 | ) | ||||||||||||
| Impairment of long-lived assets | (6,772,500 | ) | 6,772,500 | — | — | |||||||||||||
| LOSS BEFORE TAXES | (57,287,270 | ) | 9,750,528 | 6,033,283 | (41,503,459 | ) | ||||||||||||
| INCOME TAX BENEFIT (EXPENSE) | (1,648,182 | ) | — | — | (1,648,182 | ) | ||||||||||||
| NET LOSS | (58,935,452 | ) | 9,750,528 | 6,033,283 | (43,151,641 | ) | ||||||||||||
| COMPREHENSIVE LOSS | ||||||||||||||||||
| NET LOSS | (58,935,452 | ) | 9,750,528 | 6,033,283 | (43,151,641 | ) | ||||||||||||
| OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||||||||||||
| - Foreign currency translation adjustments | (2,800,874 | ) | 1,871,760 | — | (929,114 | ) | ||||||||||||
| TOTAL COMPREHENSIVE LOSS | (61,736,326 | ) | 11,622,288 | 6,033,283 | (44,080,755 | ) | ||||||||||||
| BASIC AND DILUTED LOSS PER SHARE(1): | (53.99 | ) | (39.53 | ) | ||||||||||||||
| BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES(1): | 1,091,562 | 1,091,562 | ||||||||||||||||
(1) The shares and per share data are presented on a retroactive basis to reflect the stock split.
NOTE 1 –INTRODUCTION
On December 22, 2025, the Seller completed the Disposition of the Target Company for a gross consideration of RMB21,228,000 (US $3,002,716). Consideration will be received in instalments through 2028.
Basis of Presentation
The unaudited pro forma condensed consolidated financial statements were prepared in accordance with Article 11 of Regulation S-X, using the assumptions set forth to in the notes to the unaudited pro forma condensed consolidated financial statements. The unaudited pro forma condensed consolidated financial statements presented above are derived from the historical financial statements of the Gulf Resources, Inc. (the “Company”), adjusted to give effect to the Disposition. The unaudited pro forma condensed consolidated financial statements should be read in conjunction with the accompanying notes and the respective history financial information from which it was derived, including:
(1) The historical financial statements and the accompanying notes of the Company as of and for the nine months ended September 30, 2025, included in the Company’s Report on Form 10-Q for the nine months ended September 30, 2025 filed with the SEC on November 19, 2025.
(2) The historical financial statements and the accompanying notes of the Company as of and for the year ended December 31, 2024, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on April 11, 2025.
The pro forma adjustments are preliminary and have been made solely for informational purposes. The unaudited pro forma condensed consolidated financial statements are not intended to represent and does not purport to be indicative of what the combined financial condition or results of operations of the Company would have been had the Disposition been completed on the applicable dates. In addition, the pro forma financial statements do not purport to project the future financial condition and results of operations of the Company. In the opinion of management, all necessary adjustments to the unaudited pro forma condensed consolidated financial statements have been made.
NOTE 2 – PRO FORMA RECLASSIFICATION AND ADJUSTMENTS
The historical consolidated financial statements have been adjusted in the Pro Forma, as detailed below, to give effect to pro forma events that are: (i) directly attributable to the Disposition, (ii) factually supportable, and (iii) with respect to the statements of operations, expected to have a continuing impact on the disposal results of Disposition. The Pro Forma do not reflect the non-recurring cost of any integration activities or benefits from the Disposition including potential synergies that may be generated in future periods.
The unaudited pro forma consolidated balance sheet as of September 30, 2025 and December 31, 2024 reflects the following transaction accounting adjustments related to the Disposition:
(a) The removal of the assets and liabilities under SYCI from the historical information presented.
(b) The removal of revenues and expenses from the assets sold in connection with the SYCI Disposition from the historical information presented.
(c) Represents the recovery of elimination between the Company and SYCI.
(d) The pro forma net gain on disposal of assets is based on the Company’s historical balance sheet information as of September 30, 2025 and December 31, 2024 and is subject to change based upon, among other things, the actual balance sheet on the closing date of the Disposition and the finalization of the Company’s financial closing procedures and may differ significantly from the actual net gain on disposal of assets that the Company will recognize. The pro forma net gain on disposal of assets presented below is reflected in the unaudited pro forma condensed consolidated balance sheet as if the Disposition was consummated as of September 30, 2025, and in the unaudited pro forma condensed statements of operation as if the Disposition was consummated on January 1, 2024.