FSTJ Revenue Jumps 15.9%, But Net Income Plummets 98.7%

Ticker: FSTJ · Form: 10-K · Filed: Apr 1, 2026 · CIK: 0001525306

Sentiment: bearish

Topics: IT Asset Disposition, Electronics Recycling, AI Infrastructure, Small Cap, Profitability Concerns, Revenue Growth, Operating Loss

TL;DR

**FSTJ's revenue growth is overshadowed by a near-total collapse in net income, making it a high-risk bet on future efficiency gains in a competitive market.**

AI Summary

First America Resources Corp (FSTJ) reported a 15.9% increase in revenues, reaching $18,790,946 for the fiscal year ended December 31, 2025, up from $16,206,752 in 2024. Despite this revenue growth, net income significantly declined by 98.7%, falling to $2,765 in 2025 from $211,112 in 2024. The company's gross profit increased to $10,345,098 in 2025 from $9,104,152 in 2024, but gross margin slightly decreased from 56.2% to 55.1%. Total operating expenses surged by 19.6%, from $8,807,883 in 2024 to $10,531,906 in 2025, leading to an operating loss of $186,808 compared to an operating income of $296,269 in the prior year. Key business changes include the full integration of METech Recycling, Inc. as a wholly-owned subsidiary, and the expansion into Artificial Intelligence Infrastructure Lifecycle Services. Risks include intense competition in the ITAD and electronics recycling industry and exposure to federal, state, and local environmental regulations. The strategic outlook focuses on leveraging data-driven processing systems and established enterprise customer relationships to drive growth in IT asset disposition and electronics recycling.

Why It Matters

First America Resources Corp's substantial revenue growth of 15.9% indicates strong demand for its IT asset disposition and electronics recycling services, particularly with its new focus on AI infrastructure lifecycle services. However, the alarming 98.7% drop in net income, coupled with a shift from operating income to an operating loss, signals significant cost control issues or increased investment that is not yet yielding proportional returns. For investors, this mixed performance suggests FSTJ is expanding but struggling with profitability, raising questions about its operational efficiency and competitive positioning against larger players in the ITAD market. Employees might face pressure to improve efficiency, while customers benefit from expanded services, especially in the growing AI sector.

Risk Assessment

Risk Level: high — The company's net income plummeted by 98.7% from $211,112 in 2024 to $2,765 in 2025, despite a 15.9% revenue increase to $18,790,946. This dramatic decline in profitability, coupled with a shift from an operating income of $296,269 in 2024 to an operating loss of $186,808 in 2025, indicates significant operational challenges and cost pressures.

Analyst Insight

Investors should exercise extreme caution and thoroughly investigate the drivers behind the massive decline in net income and the operating loss. Consider holding off on new investments until FSTJ demonstrates a clear path to sustainable profitability and improved cost management, despite its revenue growth.

Financial Highlights

revenue
$18.79M
operating Margin
-1.0%
net Income
$2,765
eps
$0.00
gross Margin
55.1%
revenue Growth
+15.9%

Revenue Breakdown

SegmentRevenueGrowth
IT asset disposition and electronics recycling$18.79M+15.9%

Key Numbers

Key Players & Entities

FAQ

What were First America Resources Corp's revenues for the fiscal year ended December 31, 2025?

First America Resources Corp reported revenues of $18,790,946 for the fiscal year ended December 31, 2025, marking a 15.9% increase from $16,206,752 in the prior year.

How did First America Resources Corp's net income change from 2024 to 2025?

First America Resources Corp's net income dramatically decreased by 98.7%, falling from $211,112 in 2024 to just $2,765 for the fiscal year ended December 31, 2025.

What is First America Resources Corp's primary business activity?

First America Resources Corp operates in the IT asset disposition (ITAD) and electronics recycling industry, offering services such as refurbishment and resale of IT equipment, secure data destruction, and material recovery.

Did First America Resources Corp experience an operating profit or loss in 2025?

For the fiscal year ended December 31, 2025, First America Resources Corp reported an operating loss of $186,808, a significant shift from the operating income of $296,269 recorded in 2024.

What new service line has First America Resources Corp introduced?

First America Resources Corp has introduced Artificial Intelligence Infrastructure Lifecycle Services, assisting customers with the removal, transportation, and processing of legacy servers and equipment during AI-related infrastructure upgrades.

What are the key risks for First America Resources Corp's business?

Key risks for First America Resources Corp include intense competition within the electronics recycling and IT asset disposition industry, and compliance with extensive federal, state, and local environmental and hazardous materials regulations.

How many employees does First America Resources Corp have?

As of the date of the report, First America Resources Corp employs approximately 60 full-time employees across various functions including executive management, operations, and sales.

What is the outstanding share count for First America Resources Corp?

As of March 31, 2026, the number of outstanding shares of First America Resources Corp's Common Stock, $0.001 par value, was 87,964,090 shares.

Where are First America Resources Corp's principal executive offices located?

First America Resources Corp's principal executive offices are located at 1000 East Armstrong Street, Morris, Illinois 60450.

Does First America Resources Corp pay dividends?

First America Resources Corp has never declared or paid any cash dividends on its common stock and intends to retain any earnings to finance business development and expansion for the foreseeable future.

Risk Factors

Industry Context

First America Resources Corp. operates in the IT asset disposition (ITAD) and electronics recycling industry. This sector involves services like refurbishment, resale, secure data destruction, and material recovery. The industry is characterized by intense competition and is subject to evolving environmental regulations.

Regulatory Implications

The company faces significant exposure to federal, state, and local environmental regulations. Compliance is critical, as any changes or failures to comply could result in substantial costs and operational disruptions, impacting financial performance.

What Investors Should Do

  1. Monitor operating expense trends closely.
  2. Analyze the impact of METech Recycling integration.
  3. Assess competitive pressures and pricing strategies.

Key Dates

Glossary

ITAD
IT Asset Disposition, a service that manages the disposal of information technology equipment. (This is a core business segment for First America Resources Corp.)
Weighted Avg. Shares Outstanding
The average number of a company's outstanding shares over a period, used to calculate earnings per share. (Remained constant at 87,964,090 for both 2024 and 2025, indicating no significant share issuance or buybacks impacting EPS calculations.)
Gross Margin
The percentage of revenue that exceeds the cost of goods sold. (Decreased slightly from 56.2% to 55.1%, indicating a slight increase in the cost of revenues relative to sales.)
Operating Expenses
Costs incurred by a business in its normal course of operations, excluding cost of goods sold. (Surged by 19.6% to $10.53M, contributing to the operating loss.)

Year-Over-Year Comparison

First America Resources Corp. reported a 15.9% increase in revenue to $18.79M for the fiscal year ended December 31, 2025, compared to $16.21M in 2024. However, this top-line growth was overshadowed by a dramatic 98.7% decline in net income, which fell to just $2,765 from $211,112. Gross margin saw a slight decrease from 56.2% to 55.1%, while total operating expenses surged by 19.6%, leading to an operating loss of $186,808 compared to an operating income of $296,269 in the prior year. New risks related to the integration of METech Recycling and expansion into AI services may also be present.

Filing Stats: 4,189 words · 17 min read · ~14 pages · Grade level 15 · Accepted 2026-04-01 09:26:55

Key Financial Figures

Filing Documents

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 7 Item 1B. Unresolved Staff Comments 7 Item 2.

Properties

Properties 7 Item 3.

Legal Proceedings

Legal Proceedings 7 Item 4. Mine Safety Disclosures 7 PART II Item 5. Market for Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities 8 Item 6. [Reserved] 8 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operation s

Management's Discussion and Analysis of Financial Condition and Results of Operation s 9 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 16 Item 8.

Financial Statements

Financial Statements 17 Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosures 18 Item 9A.

Controls and Procedures

Controls and Procedures 18 Item 9B. Other Information 19 PART III Item 10. Directors, Executive Officers and Corporate Governance 20 Item 11.

Executive Compensation

Executive Compensation 21 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 22 Item 13. Certain Relationships and Related Transactions, and Director Independence 23 Item 14. Principal Accountant Fees and Services 23 Item 15. Exhibits 24 2 Table of Contents USE OF PRONOUNS AND OTHER WORDS The pronouns "we", "us", "our" and the equivalent used in this offering circular mean First America Resources Corp. and our consolidated subsidiary METech Recycling, Inc. (METech), a Delaware corporation. In the footnotes to our financial statements, the "Company" means First America Resources Corp. and our consolidated subsidiary. The pronoun "you" means the reader of this annual report on Form 10-K. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION This Annual Report on Form 10-K, the other reports, statements, and information that we have previously filed or that we may subsequently file with the Securities and Exchange Commission ("SEC"), and public announcements that we have previously made or may subsequently make include, may include, incorporate by reference or may incorporate by reference certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to enjoy the benefits of that act. Unless the context is otherwise, the forward-looking statements included or incorporated by reference in this Form 10-K and those reports, statements, information and announcements address activities, events or developments that First America Resources Corporation (hereinafter referred to as "we," "us," "our," "Corporation," "the Company," "our Company" or "First America Resources Corporation") expects or anticipates, will or may occur in the future. Any statements in this document about expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and are forward-looking stat

Business

Item 1. Business Corporate History First America Resources Corporation (the "Company," "we," "us," or "our") was incorporated in the State of Nevada in 2010 under the name Golden Oasis New Energy Group, Inc. In 2014, the Company changed its name to First America Resources Corporation. The Company's principal executive offices are located at 1000 East Armstrong Street, Morris, Illinois 60450, and its telephone number is (815) 941-9888. METech Recycling, Inc. ("METech Recycling" or "METech"), our wholly owned subsidiary, is headquartered in Gilroy, California and has been engaged in recycling operations since 1968, with business origins dating back to 1875 in precious metal recovery and refining activities. Following the business combination described in the Company's Report on Form 8-K dated July 18, 2025, METech Recycling operates as a wholly owned subsidiary of the Company and represents the Company's operating business. Technology and DataDriven Processing The Company utilizes internally developed and commercially available software systems to support operational decisionmaking, asset tracking, and materials processing. These systems incorporate automated data analysis tools designed to assist with equipment identification, materials classification, inventory management, and pricing evaluation. The Company has implemented technologyassisted sorting and evaluation tools that use machine learning techniques to improve the identification and classification of incoming electronic equipment and components. These systems support operational workflows by assisting personnel in determining whether equipment is suitable for refurbishment, resale, or recycling. In addition, the Company utilizes data analytics and algorithmic pricing models to evaluate secondary market pricing for refurbished equipment and electronic components. These tools assist management in evaluating resale opportunities and optimizing recovery value from IT assets. The Company continues to

Risk Factors

Item 1A. Risk Factors Not required for Smaller Reporting Companies.

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments None.

Description of Property

Item 2. Description of Property Our corporate office address is at 1000 East Armstrong Street, Morris, IL 60450. Space is being provided at no charge by FAMCe (formerly known as First America Metal Corporation). The property is adequate for our current needs. We do not intend to renovate, improve, or develop properties. We are not subject to competitive conditions for property and currently have no property to insure. We have no policy with respect to investments in real estate or interests in real estate and no policy with respect to investments in real estate mortgages. Further, we have no policy with respect to investments in securities of or interests in persons primarily engaged in real estate activities. As described above, our operating subsidiary operates a number of leased facilities used for electronics processing, refurbishment, logistics, and administrative functions. The Company's principal processing facility and headquarters are located in Gilroy, California. Additional operational locations support logistics, asset management, and processing activities in several states including Utah, Colorado, Massachusetts, and North Carolina.

Legal Proceedings

Item 3. Legal Proceedings We are not a party to any material legal proceedings nor are we aware of any circumstance that may reasonably lead any third party to initiate material legal proceedings against us.

Mine Safety Disclosures

Item 4. Mine Safety Disclosures Not applicable. 7 Table of Contents PART II

Market for Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities Trading History Our common stock, $0.001 par value, is quoted on the Over-The-Counter Markets under the symbol "FSTJ." There are 500,000,000 shares authorized, 87,964,090 shares outstanding, 1,576,080 shares in the public float, and 47 shareholders of record. Bid Information* Financial Quarter Ended High Bid Low Bid December 31, 2025 $ 0.590 $ 0.250 September 30, 2025 $ 0.250 $ 0.005 June 30, 2025 $ 0.005 $ 0.005 March 31, 2025 $ 0.005 $ 0.005 December 31, 2024 $ 0.175 $ 0.005 September 30, 2024 $ 0.175 $ 0.175 June 30, 2024 $ 0.175 $ 0.175 March 31, 2024 $ 0.245 $ 0.175 ______________ * The quotation does not reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions. Dividends We have never declared or paid any cash dividends on our common stock. For the foreseeable future, we intend to retain any earnings to finance the development and expansion of our business, and we do not anticipate paying any cash dividends on our common stock. Any future determination to pay dividends will be at the discretion of the Board of Directors and will be dependent upon then existing conditions, including our financial condition and results of operations, capital requirements, contractual restrictions, business prospects and other factors that the Board of Directors considers relevant. Securities Authorized for Issuance Under Equity Compensation Plans None.

[Reserved]

Item 6. [Reserved] 8 Table of Contents

Management's Discussion and Analysis of Financial Condition and Results of Operation

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes, and other financial information included in this Form 10-K. Our Management's Discussion and Analysis contains not only statements that are historical facts, but also statements that are forward-looking. Forward-looking statements are, by their very nature, uncertain and risky. These risks and uncertainties include international, national, and local general economic and market conditions; our ability to sustain, manage, or forecast growth; our ability to successfully make and integrate acquisitions; new product development and introduction; existing government regulations and changes in, or the failure to comply with, government regulations; adverse publicity; competition; the loss of significant customers or suppliers; fluctuations and difficulty in forecasting operating results; change in business strategy or development plans; business disruptions; the ability to attract and retain qualified personnel; the ability to protect technology; the risk of foreign currency exchange rate; and other risks that might be detailed from time to time in our filings with the Securities and Exchange Commission. Although the forward-looking statements in this Report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by them. Consequently, and because forward-looking statements are inherently subject to risks and uncertainties, the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. You are urged to carefully review and consider the various disclosures made by us in this report as we attempt to advise interested parties of the risks and factors that may affect our business, financial cond

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