Gulf Resources, Inc. (GURE) Social Stream

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$GURE a few questions I have
1) The Q1 earnings call management predicted Q2 revenues between $12-$14M and net income $2M-$2.4M without considering “non-operational factors”. They missed on revenue which I’m sympathetic to but earnings was a major whiff, primarily because of that $5.2M SG&A sucker punch. That’s an operational cost line item and no way around it, it is literally in the Operating Income line item. How did they miss spectacularly this on guidance? It wasn’t like they didn’t know these grants weren’t coming.
2) What was the huge increase in the SG&A rising to $5.2M from? Saw it mentioned it was grants from 2017, was hard to figure out in the 10Q (and any upcoming dilution). The previous accounting firm explained the increases in SG&A.
3) Would still want to know why revenue came in below their range.

Still holding despite management enriching themselves. I like how they cancel their options if they’re underwater and issue themselves more stock, well played!