Verde Resources' Q3 Loss Widens Amidst Revenue Collapse

TL;DR

**VRDR is burning cash with almost no revenue, making its biochar dreams a high-risk bet for now.**

AI Summary

Verde Resources, Inc. (VRDR) reported a significant net loss of $919,555 for the three months ended September 30, 2025, a stark contrast to the net income of $354,715 in the same period of 2024. Revenue plummeted from $125,570 in Q3 2024 to just $2,269 in Q3 2025, representing a 98.2% decrease. Gross profit also fell dramatically from $75,974 to $934. Operating expenses increased by 8.9% to $944,872, primarily driven by higher selling, general, and administrative expenses of $888,976. The company's cash and cash equivalents increased to $1,175,539 as of September 30, 2025, from $1,021,112 at June 30, 2025, largely due to a $500,000 withdrawal of deposit with a bank and $448,000 from the issuance of common stock. Strategic outlook focuses on commercializing its biochar-asphalt technology in North America, including a licensing model with Ergon Asphalt & Emulsions, Inc., and generating carbon removal credits (CORCs) through Puro.earth registration. Risks include the ability to generate revenue from its business plan and effectively scale operations.

Why It Matters

Verde Resources' substantial revenue decline of 98.2% and widening net loss of $919,555 signal significant operational challenges for investors, despite its innovative biochar-asphalt technology. The company's reliance on future commercialization and carbon credit generation, particularly through its partnership with Ergon Asphalt & Emulsions, Inc., means current financial performance offers little competitive context. Employees and customers might face uncertainty if the commercialization efforts in North America and Malaysia, including discussions with PLUS Malaysia, do not materialize into substantial revenue streams. The broader market for sustainable road construction materials and carbon removal credits is nascent, making VRDR's success critical for validating this niche.

Risk Assessment

Risk Level: high — The company reported a net loss of $919,555 for the three months ended September 30, 2025, a significant deterioration from a net income of $354,715 in the prior year. Revenue plummeted by 98.2% from $125,570 in Q3 2024 to $2,269 in Q3 2025, indicating a severe lack of operational income. Furthermore, total current assets decreased from $3,292,215 to $2,775,852, while total liabilities decreased only slightly from $1,726,621 to $1,483,970, highlighting ongoing financial strain.

Analyst Insight

Investors should exercise extreme caution and consider this a highly speculative investment. Monitor closely for concrete evidence of successful commercialization, significant revenue generation from the Ergon partnership, and substantial sales of carbon removal credits, as the current financial performance shows severe operational weakness.

Financial Highlights

debt To Equity

0.04

revenue

$2,269

operating Margin

N/A

total Assets

$38,498,514

total Debt

$1,483,970

net Income

-$919,555

eps

N/A

gross Margin

41.2%

cash Position

$1,175,539

revenue Growth

-98.2%

Revenue Breakdown

Key Numbers

• $919,555 — Net Loss (for the three months ended September 30, 2025, compared to net income of $354,715 in Q3 2024)
• $2,269 — Revenue (for the three months ended September 30, 2025, a 98.2% decrease from $125,570 in Q3 2024)
• $944,872 — Total Operating Expenses (for the three months ended September 30, 2025, an 8.9% increase from $867,681 in Q3 2024)
• $1,175,539 — Cash and Cash Equivalents (as of September 30, 2025, an increase from $1,021,112 at June 30, 2025)
• 1,294,224,767 — Common Stock Outstanding (as of November 17, 2025)
• 8 tons — Carbon Sequestered (during the December 2024 biochar-asphalt demonstration at NCAT)
• 50% — Installation Efficiency Increase (estimated for cold-mix biochar asphalt compared to conventional methods)

Key Players & Entities

• Verde Resources, Inc. (company) — registrant
• Ergon Asphalt & Emulsions, Inc. (company) — key commercial partner
• Puro.earth (company) — carbon crediting platform
• National Center for Asphalt Technology (NCAT) (company) — testing partner for biochar asphalt technology
• C-Twelve Pty Ltd (company) — collaborator in biochar-asphalt demonstration
• Oregon Biochar Solutions (company) — related party for carbon verification
• Karl Strahl (person) — Chief Operating Officer of Oregon Biochar Solutions and Verde Resources director
• PLUS Malaysia (company) — largest highway operator in Malaysia, potential client
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Revenue Generation Uncertainty [high — financial]: The company faces significant risk in its ability to establish and implement its business plan to generate revenue. This is evidenced by the drastic 98.2% decrease in revenue from $125,570 in Q3 2024 to $2,269 in Q3 2025.
• Scaling Operations Challenges [high — operational]: Verde Resources faces the risk of not being able to effectively scale its operations. This is a critical factor for commercializing its biochar-asphalt technology and generating carbon removal credits.
• Competitive Landscape [medium — market]: The company must effectively compete within its industry. Success depends on executing its business plan, which includes leveraging its proprietary road construction materials and licensing models.
• Regulatory Compliance [medium — regulatory]: Changes in governmental laws and regulations pose a risk, as does the company's ability to comply with new requirements affecting its business, particularly concerning carbon credit generation and environmental standards.
• Dependence on Key Partnerships [medium — financial]: The company's business plan relies heavily on strategic partnerships, such as the licensing model with Ergon Asphalt & Emulsions, Inc. Any disruption or failure in these relationships could materially impact revenue and operations.

Industry Context

The road construction materials industry is increasingly focused on sustainability and environmental impact. Companies are exploring innovative materials and processes to reduce carbon footprints and enhance performance. The development of carbon removal credits (CORCs) presents a new avenue for revenue generation within this sector, driven by global climate initiatives and corporate sustainability goals.

Regulatory Implications

Verde Resources' business model, particularly its focus on carbon removal credits, is subject to evolving environmental regulations and verification standards. Compliance with bodies like Puro.earth and adherence to governmental policies on carbon accounting and environmental impact are critical for revenue generation and market acceptance.

What Investors Should Do

1. Monitor revenue trends closely.
2. Evaluate the success of the Ergon partnership.
3. Assess the viability of carbon credit generation.
4. Analyze operating expense management.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported a net loss of $919,555 and revenue of $2,269, a sharp decline from the previous year, highlighting significant operational and financial challenges.
• 2025-06-30: End of Q2 2025 — Cash and cash equivalents stood at $1,021,112, prior to the increase seen by the end of Q3 2025.
• 2024-09-30: End of Q3 2024 — Reported net income of $354,715 and revenue of $125,570, providing a stark contrast to the current period's performance.
• 2024-12-01: Biochar-asphalt demonstration at NCAT — Demonstrated the technology by sequestering 8 tons of carbon, showcasing potential environmental benefits and technological capability.

Glossary

CORCs

Carbon Removal Certificates, which represent verified units of carbon dioxide removed from the atmosphere. (Verde Resources aims to generate and monetize these credits through its biochar technology, representing a key potential revenue stream.)

Biochar-asphalt

A road construction material that incorporates biochar, a charcoal-like substance produced from biomass, potentially offering environmental benefits like carbon sequestration. (This is Verde Resources' core technology and product focus, with a licensing model involving partners like Ergon.)

Puro.earth

A marketplace for carbon removal credits, providing a platform for companies to register and sell their carbon sequestration projects. (Verde Resources' registration with Puro.earth is crucial for its strategy to generate and monetize carbon removal credits.)

Cold-mix biochar asphalt

A type of asphalt mixture that can be produced and applied at lower temperatures compared to traditional hot-mix asphalt, potentially offering energy savings and reduced emissions. (Verde Resources has licensed its emulsifying agent for this type of asphalt to Ergon, indicating a specific application of their technology.)

Year-Over-Year Comparison

Compared to the prior year's third quarter, Verde Resources has experienced a dramatic downturn. Revenue has fallen by 98.2% from $125,570 to $2,269, and the company has shifted from a net income of $354,715 to a net loss of $919,555. While cash reserves have increased due to financing activities, the core business operations appear to be struggling significantly, with operating expenses rising by 8.9% despite the revenue collapse.

Key Financial Figures

• $0.001 — o the Company's common stock, par value $0.001 per share. iii Table of Contents P

Filing Documents

• vrdr_10q.htm (10-Q) — 1330KB
• vrdr_ex32.htm (EX-3.2) — 71KB
• vrdr_ex311.htm (EX-31.1) — 13KB
• vrdr_ex312.htm (EX-31.2) — 13KB
• vrdr_ex321.htm (EX-32.1) — 4KB
• vrdr_ex322.htm (EX-32.2) — 5KB
• vrdr_10qimg2.jpg (GRAPHIC) — 16KB
• 0001640334-25-002180.txt ( ) — 7846KB
• vrdr-20250930.xsd (EX-101.SCH) — 84KB
• vrdr-20250930_lab.xml (EX-101.LAB) — 395KB
• vrdr-20250930_cal.xml (EX-101.CAL) — 70KB
• vrdr-20250930_pre.xml (EX-101.PRE) — 372KB
• vrdr-20250930_def.xml (EX-101.DEF) — 225KB
• vrdr_10q_htm.xml (XML) — 1463KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements F-1 Unaudited Condensed Consolidated Balance Sheets as of September 30, 2025 and June 30, 2025 (audited) F-1 Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended September 30, 2025 and 2024 F-2 Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended September 30, 2025 and 2024 F-3 Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity for the three months ended September 30, 2025 and 2024 F-4 Notes to Unaudited Condensed Consolidated Financial Statements F-5 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 1 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 10 Item 4.

Controls and Procedures

Controls and Procedures 10

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 11 Item 1A.

Risk Factors

Risk Factors 11 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 11 Item 3. Defaults upon Senior Securities 11 Item 4. Mine and Safety Disclosure 11 Item 5. Other Information 11 Item 6. Exhibits 12 i Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q (the "Quarterly Report"), and any documents we incorporate by reference, contain, or may contain, certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable rules and regulations. Such forward-looking statements involve significant risks and uncertainties. All statements contained in this Quarterly Report and any documents we incorporate by reference, other than statements of historical facts, are forward-looking statements including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management and expected market growth. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The words "may," "will," "could," "would," "should," "believe," "expect," "anticipate," "estimate," "intend," "plan," "potential," "seek," "goal" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements include statements regarding, and important factors that could cause actual outcomes to differ materially from those stated or implied in the forward-looking statements include, but are not limited to, the matters summarized below: our ability to establish and implement our busi

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

- Financial Statements

ITEM 1 - Financial Statements VERDE RESOURCES, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Currency expressed in United States Dollars ("US

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