10-Q: Verde Resources Reports Q2 2025 Results, Highlights Biochar-Asphalt Technology Progress

Verde Resources' Q2 2025 report details financial results and highlights advancements in its Biochar-Asphalt technology, including successful demonstrations and strategic partnerships.

Summary

• Verde Resources, Inc. released its Form 10-Q for the quarterly period ended December 31, 2024.
• The company is focused on net-zero road construction and building materials, integrating biochar to reduce emissions and enhance sustainability.
• A key partnership with the National Center for Asphalt Technology (NCAT) is testing the company's Biochar-Asphalt technology.
• In December 2024, Verde Resources demonstrated its Biochar-Asphalt technology at the NCAT Test Track, sequestering approximately 8 tons of carbon.
• Carbon Removal Credits are currently being certified under Puro.earth.
• CRH Ventures selected Verde Resources to scale up its Biochar-Asphalt technology for commercialization.
• The company is engaging AUM to guide it through the uplisting process to Nasdaq.
• The company discontinued its mining business in March 2023 and its distribution of THC-free cannabinoid (CBD) products following the expiration of its supply agreement with MRX Xtractors, LLC on July 6, 2024.
• The company incurred a net loss of $2,694,329 for the three months ended December 31, 2024, and a net loss of $2,339,614 for the six months ended December 31, 2024.
• As of February 12, 2025, there were 1,249,080,892 shares of the issuer's Common Stock outstanding.

Sentiment

Score: 6

Explanation: The document presents a mixed sentiment. While the company is making progress in its Biochar-Asphalt technology and securing partnerships, it is also experiencing net losses and has material weaknesses in internal control over financial reporting.

Positives

• The company is focused on a growing market segment of net-zero road construction and building materials.
• The company's Biochar-Asphalt technology is being tested in partnership with NCAT.
• A successful demonstration of Biochar-Asphalt at the NCAT Test Track sequestered approximately 8 tons of carbon.
• Carbon Removal Credits are currently being certified under Puro.earth.
• CRH Ventures selected Verde Resources to scale up its Biochar-Asphalt technology.
• The company is engaging AUM to guide it through the uplisting process to Nasdaq.

Negatives

• The company incurred a net loss of $2,694,329 for the three months ended December 31, 2024, and a net loss of $2,339,614 for the six months ended December 31, 2024.
• The company discontinued its mining business in March 2023 and its distribution of THC-free cannabinoid (CBD) products following the expiration of its supply agreement with MRX Xtractors, LLC on July 6, 2024.
• The company's disclosure controls and procedures were not effective as of the Evaluation Date.
• The company has material weaknesses in internal control over financial reporting.

Risks

• The company's ability to continue as a going concern depends on the successful validation and certification of its net zero road construction blueprint.
• There can be no assurance that the company will be successful in its plans.
• The company's disclosure controls and procedures were not effective as of the Evaluation Date.
• The company has material weaknesses in internal control over financial reporting.
• The company's cash flow situation will not allow for operations in the coming next 12 months to continue by self-generated cash provided from operating activities.
• There is no guarantee that the company will be able to secure adequate financing.

Future Outlook

The company is confident that it will complete the upcoming CRH pilot project, resulting in a strategic licensing partnership. The company's goal is to uplist to Nasdaq at the earliest opportunity.

Industry Context

The company is operating in the growing market of sustainable infrastructure solutions, focusing on reducing emissions and promoting carbon sequestration in road construction and building materials.

Comparison to Industry Standards

• The company's focus on biochar-asphalt aligns with the broader industry trend towards sustainable building materials.
• The partnership with NCAT is similar to other companies that are working with universities to test and validate new technologies.
• The company's goal of generating Carbon Removal Credits is in line with the growing demand for carbon offsets.

Management Changes

Corporate Governance

Related Party Transactions

• Rental income from Mr. Jack Wong was $30,000 for the six months ended December 31, 2024.
• Sale of property to Mr. Jack Wong for $857,500.

Stakeholder Impact

• Shareholders: The company's net losses and material weaknesses in internal control over financial reporting may negatively impact shareholder value.
• Employees: The company's restructuring and focus on sustainable technologies may create new opportunities for employees.
• Customers: The company's Biochar-Asphalt technology may provide customers with more sustainable and cost-effective building materials.
• Suppliers: The company's focus on biochar may create new opportunities for suppliers of biomass waste.
• Creditors: The company's ability to repay its debts depends on its ability to generate revenue and secure financing.

Next Steps

• Complete the upcoming CRH pilot project.
• Secure a strategic licensing partnership.
• Continue the 3-year testing program with NCAT.
• Uplist to Nasdaq.
• Generate Carbon Removal Credits.

Key Dates