VERDE RESOURCES, INC. 10-K/A

ITEM 9A. Controls and Procedures Evaluation of Disclosure Controls and Procedures Under the supervision and with the participation of our senior management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on this evaluation, our principal executive officer and principal financial officer concluded that, while improved, our disclosure controls and procedures were not effective due to the material weaknesses in internal controls over financial reporting noted below. Management ’ s Responsibility for Internal Controls over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a -15(f) under the Exchange Act. Our internal control was designed to provide reasonable assurance to our management and board of directors regarding the preparation and fair presentation of published financial statements. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements for external reporting purposes in accordance with GAAP. Our internal control over financial reporting includes those policies and procedures that: (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of our company, (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors, and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the consolidated financial statements. Inherent Limitations of Internal Control over Financial Reporting Because of its inherent limitations, internal control over financial reporting may not prevent or detect all errors or misstatements in our financial statements. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree or compliance with the policies or procedures may deteriorate. Because of the inherent limitations in all control systems, no evaluation of internal controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. 45 Table of Contents Management’s Annual Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States. With the participation of our principal executive and principal financial Officer, our management conducted an evaluation of the effectiveness of our internal control over financial reporting as of June 30, 2025, based on the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control - Integrated Framework, along with applicable SEC guidance. Based upon such evaluation, our management concluded that, while we have improved upon our internal control over financial reporting as of June 30, 2025, based on the COSO framework, our disclosure controls and procedures were not effective due to the material weaknesses in internal controls over financial reporting noted below. This Annual Report on Form 10-K does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to an exemption for non-accelerated filers from the internal control audit requirements of Section 404(b) of the Sarbanes-Oxley Act of 2002. Material Weaknesses We identified the following material weaknesses in our internal control over financial reporting as of June 30, 2025. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the issuing company’s annual or interim financial statements will not be prevented or detected on a timely basis. 1) Segregation of duties – Certain key duties and responsibilities were not adequately segregated due to the lean structure of our finance function, which relied on a limited number of individuals. While this structure enabled agility during our transition to a sustainability-focused enterprise, it increased the risk of error or fraud. 2) Formalized processes and documentation – Although effective practices were in place, we lacked sufficiently formalized and documented policies, procedures, and controls related to the preparation, review, and approval of financial reporting, including management review controls. 3) Regulatory Reporting – Lack of financial personnel with sufficient knowledge and experience with SEC regulations and reporting. 4) Internal audit function – We did not maintain a dedicated internal audit function to independently assess and monitor the effectiveness of internal controls. The absence of such a function limited our ability to perform ongoing, independent evaluations of the control environment. 5) Audit Committee – lack of a functioning audit committee. Therefore, management determined that we did not maintain effective internal control over financial reporting as of June 30, 2025. Remediation Plan for the Material Weaknesses In order to cure the foregoing material weakness, we have taken or intend to take the following remediation measures: 1) We have been working on recruitment of more management talents and professional staff to fill in the gap of shortage of personnel, including by the hiring of our chief financial officer, Sherina Chui, on May 1, 2025. With our anticipated expansion of operations, management intends to continuously evaluate the adequacy and skillset of our human capital resources. 2) We have regularly offered our financial personnel trainings on internal control and risk management. Also, we have regularly provided trainings to our financial personnel, including our financial consultants, on U.S. GAAP accounting guidelines. We plan to continue to provide trainings to our financial team and our other relevant personnel on the U.S. GAAP accounting guidelines applicable to our financial reporting requirements. 3) We have engaged with an external consultant to help facilitate our compliance with regulatory reporting requirements. We utilize this third-party independent contractor for the preparation of our financial statements. Although the financial statements and footnotes are reviewed by our management, we do not have a formal policy to review significant accounting transactions and the accounting treatment of such transactions. The third-party independent contractor is not involved in our day-to-day operations and may not be provided information from management on a timely basis to allow for adequate reporting/consideration of certain transactions 4) We have appointed an independent non-employee director in July 2025, and we intend to appoint additional independent directors to assist in the corporate governance process, assessment of our processes relating to our risks and control environment, oversight of our financial reporting, evaluation of our internal and independent audit processes and establishment of a functioning audit committee. 46 Table of Contents We intend to pursue the courses of action discussed above as soon as practicable, but we can give no assurance that we will be able to do so. Designing and implementing an effective disclosure controls and procedures is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to devote significant resources towards maintaining a financial reporting system that adequately satisfies our reporting obligations. The remedial measures that we have taken and intend to take may not fully address the material weakness that we have identified, and material weaknesses in our disclosure controls and procedures may be identified in the future. Should we discover such conditions, we intend to remediate them as soon as practicable. We are committed to taking appropriate steps for remediation, as needed. Officers’ Certifications Appearing as exhibits to this Annual Report are “Certifications” of our Chief Executive Officer and Chief Financial Officer. The Certifications are required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (the “Section 302 Certifications”). This section of the Annual Report contains information concerning the Controls Evaluation referred to in the Section 302 Certification. This information should be read in conjunction with the Section 302 Certifications for a more complete understanding of the topics presented. Changes in Internal Control Over Financial Reporting There have been no changes in our internal controls over financial reporting identified in connection with the evaluation required by paragraph (d) of Securities Exchange Act Rule 13a-15 or Rule 15d-15 that occurred in the year ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. ITEM 9B. Other Information. No t applicable. ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not applicable. 47 Table of Contents PART III ITEM 10. Directors, Executive Officers and Corporate Governance All Directors of the Company hold office until the next annual meeting of the security holders or until their successors have been elected and qualified. The officers of the Company are appointed by the Board of Directors and hold office until their death, resignation or removal from office. The Directors and executive officers, their ages, positions held, and duration as such, are as follows: Name Position Held with the Company Age Date First Elected or Appointed Jack Wong Chief Executive Officer and Director 42 October 1, 2022 Sherina Chui Chief Financial Officer 49 May 1, 2025 Eric Bava Chief Operating Officer and Director 45 October 1, 2023 Jeremy P. Concannon Chief Growth Officer 48 August 1, 2024 Karl Strahl Director 33 May 1, 2025 Raymond Lee “Buzz” Powell Director 60 July 3, 2025 Jack Wong, age 42, has served as our Chief Executive Officer and director since October 1, 2022. Prior to that, he was CEO of The Wision Project Sdn Bhd, a subsidiary of the Company, since December 2020. Under his leadership, the division played an instrumental role in the Company’s strategic transition into the carbon sector. Between October 2013 and March 2020, he founded, developed, and operated Scuba Tiger, a dive resort near Sipadan Island in Sabah, Borneo—one of the world’s premier scuba diving destinations. During this period, he also independently engaged in commodities trading as a sole proprietor. From July 2008 to July 2013, Mr. Wong served as Head of Operations – Disney Department at TCT Trading S/B where he led the collaboration with Fun Characters International Pte Ltd., then the master licensee for Disney Consumer Products, Inc. in Southeast Asia, covering Singapore, Malaysia, Indonesia, and Thailand. TCT Trading S/B was granted third-party rights to reproduce and use selected Disney characters, materials, and trademarks in connection with the manufacturing, distribution, and sale of Disney consumer products throughout the region. Mr. Wong received his bachelor’s degree in business administration from Wichita State University in 2007. He also received a certificate in Life Cycle Assessment: Quantifying Environmental Impacts from the Massachusetts Institute of Technology in 2022. Sherina Chui , age 49, brings over two decades of financial leadership experience spanning construction, industrial investments, and fast-moving consumer goods (FMCG). Ms. Chui has served as our Chief Financial Officer since May 2025. From March 2018 to March 2025, she served as a senior financial executive at Singbuild Construction Co., Ltd, a multinational company, where she led key initiatives in corporate restructuring, internal controls, and financial risk management. During her tenure, she was instrumental in driving financial stability, regulatory compliance, and operational improvements across multiple business units. Sherina has deep expertise in both International Financial Reporting Standards (IFRS) and U.S. GAAP, which will be critical as the Company scales its Net Zero Blueprint, expands U.S. operations, and licenses its technologies globally. Her strategic financial acumen and operational discipline will help reinforce the Company’s financial framework, ensure SEC compliance, and support long-term growth in an increasingly complex regulatory and market environment. Ms. Chui received her bachelor’s degree in accounting from RMIT University in 1998. Eric Bava , age 45, is a highly accomplished business leader with a proven track record across multiple industries. Mr. Bava has served as our Chief Operating Officer and director since October 2023. Prior to that, Mr. Bava served as Co-Founder and Chief Operating Officer of Plantwise from July 2020 to September 2023, where he applied his deep expertise in manufacturing and distribution to streamline operations and elevate customer service standards, preserving the integrity and reputation of the Plantwise product line. Earlier in his career, Mr. Bava worked as a legal consultant before channeling his entrepreneurial drive into launching a wine distribution business in 2010. There, he successfully managed large-scale operations, optimized logistics, and led strategic sales and marketing initiatives with a focus on profitability, product quality, and customer satisfaction. In 2013, he founded King Extracts, an innovative cannabis brand that initially served California’s medical market and later expanded into the adult-use sector. As founder and CEO, he oversaw all aspects of the business—from manufacturing and operations to distribution and sales. Under his leadership, King Extracts grew rapidly and was eventually acquired by a Canadian corporation, cementing Mr. Bava’s reputation as a respected figure in the cannabis industry. Mr. Bava received his bachelor’s degree in business management from Ball State University in 2002. 48 Table of Contents Jeremy P. Concannon , age 48, began his career in his family’s business, where he progressed from entry-level positions to leadership roles in both inside and outside sales. Mr. Concannon has served as our Chief Growth Officer since August 2024. He was instrumental in driving significant growth, ultimately contributing to the company’s acquisition by a major strategic buyer. From 2012 to 2021, Jeremy served as President of Innovative Packaging Co., where he led a high-performing sales organization, recruited and onboarded top-tier talent, and implemented data-driven sales strategies that consistently delivered year-over-year growth and profitability. Following the acquisition, Jeremy took on the role of Executive Vice President of Sales & Marketing at 360 Pack from 2021 to 2024. There, he continued to demonstrate his expertise in scaling cohesive, results-driven teams and positioning businesses for sustained success. His leadership has consistently helped companies establish themselves as industry leaders through strategic growth and operational excellence. Mr. Concannon received his bachelor’s degree in business management from Loyola Marymount University in 2001. Karl Strahl , age 33, has served on our Board since May 1, 2025, and is a respected executive in the biochar and carbon removal industry. He began his career at Tesla Solar in Albany, New York in 2016, where he developed a high-conversion passive sales strategy and earned multiple top sales awards. Since joining Oregon Biochar Solutions in 2018, Mr. Strahl has played a leading role in advancing the commercialization of biochar-based carbon credits in the United States. As Vice President of Sales & Marketing, he helped expand the company’s market reach across agriculture, environmental remediation, and sustainable building materials from 2018 to 2023. In 2023, he was promoted to Chief Operating Officer of Oregon Biochar Solutions, where he continues to drive strategic growth and innovation. Most recently, Mr. Strahl was instrumental in launching the world’s first insured biochar carbon removal credits in partnership with Oka, The Carbon Insurance Company, establishing a new benchmark for transparency and buyer assurance in the voluntary carbon market. Mr. Strahl also serves as a Board Member, Treasurer, and Standards Committee Member of the U.S. Biochar Coalition, a Washington, D.C.-based registered lobbying entity focused on policy advocacy, industry standards, and the promotion of pragmatic, biochar-based climate solutions nationwide. He received his bachelor’s degree in in Environmental Science from St. Lawrence University in 2016. Dr. Raymond Lee “Buzz” Powell , age 60, has been a consultant to the Company regarding its national implementation since April 2024 and has been serving as a director since June 2025. He has worked in asphalt technology, construction, and research for more than 35 years. Since November 2023, Mr. Powell has been the Technical Director of the Asphalt Pavement Alliance where he is responsible for guiding research, technical initiatives, and industry collaboration. Mr. Powell has also held various positions at the National Center for Asphalt Technology (NCAT) at Auburn University, of which he has been a member since 1999, including Research Engineer, Assistant Director and Test Track Manager. Earlier in his career, Dr. Powell held various engineering roles at the Alabama Department of Transportation and worked as Principal Engineer at REGIS Engineering Solutions, Inc. Mr. Powell received a bachelor’s degree (1990), a master’s degree (1996) and a PhD (2006) in civil engineering from Auburn University. We believe that Dr. Powell is well qualified to serve as a member of our board of directors because of his extensive experience in asphalt pavement research, innovation, and industry collaboration. 49 Table of Contents Family Relationships There are no family relationships between any of our directors, executive officers and proposed directors or executive officers. Involvement in Certain Legal Proceedings No executive officer or director is a party in a legal proceeding adverse to us or any of our subsidiaries or has a material interest adverse to us or any of our subsidiaries. No executive officer or director has been involved in the last ten years in any of the following: ● Any bankruptcy petition filed by or against any business or property of such person, or of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; ● Any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); ● Being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; ● Being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated; ● Being the subject of or a party to any judicial or administrative order, judgment, decree or finding, not subsequently reversed, suspended or vacated relating to an alleged violation of any federal or state securities or commodities law or regulation, or any law or regulation respecting financial institutions or insurance companies, including but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail, fraud, wire fraud or fraud in connection with any business entity; or ● Being the subject of or a party to any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act, any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member. 50 Table of Contents Delinquent Section 16(a) Reports Section 16(a) of the Exchange Act requires our executive officers, directors and persons who beneficially own more than 10% of a registered class of our equity securities to file with the SEC initial reports of ownership and reports of changes in ownership of our Common Stock and other equity securities. These executive officers, directors, and greater than 10% beneficial owners are required by SEC regulation to furnish us with copies of all Section 16(a) forms filed by such reporting persons. Based solely on our review of such forms furnished to us and written representations from certain reporting persons, we believe that during the fiscal year ended June 30, 2025, all reports applicable to our executive officers, directors and greater than 10% beneficial owners were filed in a timely manner in accordance with Section 16(a) of the Exchange Act, except as set forth below: ● Mr. Jack Wong filed a late Form 5 reporting his initial statement of beneficial ownership and five subsequent transactions. ● Mr. Eric Bava filed a late Form 5 reporting his initial statement of beneficial ownership and three subsequent transactions. ● Ms. Sherina Chui filed a late Form 5 reporting her initial statement of beneficial ownership. ● Mr. Jeremy P. Concannon filed a late Form 5 reporting his initial statement of beneficial ownership and one subsequent transaction. ● Dr. Raymond Lee Powell filed a late Form 3. ● Mr. Karl Strahl filed a late Form 5 reporting his initial statement of beneficial ownership and one subsequent transaction. Code of Ethics We have adopted a corporate code of ethics applicable to all of our employees. We believe our code of ethics is reasonably designed to deter wrongdoing and promote honest and ethical conduct; provide full, fair, accurate, timely and understandable disclosure in public reports; comply with applicable laws; ensure prompt internal reporting of code violations; and provide accountability for adherence to the code. The Company will provide to any person, without charge and upon request, a copy of the code of ethics. Any such request must be made in writing to the Company at 8112 Maryland Ave, Suite 400, St. Louis, Missouri 63105. Insider Trading Policy Our board of directors adopted our Insider Trading Policy on October 23, 2025. A copy of our Insider Trading Policy is filed herewith as Exhibit 19.1 and is incorporated by reference herein. Board Committees Our Board of Directors currently consists of four members, Jack Wong, Eric Bava, Dr. Raymond Lee Powell and Karl Strahl. The Board held four formal meetings during the year ended June 30, 2025, and executed a total of twenty (20) unanimous written consents in lieu of meetings. We have not yet established Compensation, Audit, and Nominations and Corporate Governance committees nor do we have an Audit Committee financial expert as defined in Item 407(d)(5) of Regulation S-K promulgated under the Securities Act. Currently, the functions of these committees are performed by our entire Board of Directors. We hope to establish these committees and appoint an Audit Committee financial expert as our business develops. Nomination Process As of June 30, 2025, we did not effect any material changes to the procedures by which our shareholders may recommend nominees to our Board of Directors. Our Board of Directors does not have a policy with regards to the consideration of any Director candidates recommended by our shareholders. Our Board of Directors has determined that it is in the best position to evaluate our company’s requirements as well as the qualifications of each candidate when the Board considers a nominee for a position on our Board of Directors. If shareholders wish to recommend candidates directly to our Board, they may do so by sending communications to the CEO of our company at the address on the cover of this annual report. 51 Table of Contents ITEM 11. Executive Compensation. Summary Compensation Table The following summary compensation table sets forth the aggregate compensation we paid or accrued during the fiscal years ended June 30, 2025 and 2024 to our named executive officers. . SUMMARY COMPENSATION TABLE Name and Principal Position Year Salary ($) Bonus ($) Stock Awards ($) Option Awards ($) Non-Equity Incentive Plan Compensation ($) Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) All Other Compensation ($) Total ($) Jack Wong (1) CEO, and Director 2025 357,075 1,250,000 0 0 0 0 0 1,607,075 President, CEO, and Director 2024 287,650 0 0 0 0 0 0 287,650 Eric Bava (2) COO, and Director 2025 167,554 0 90,433 0 0 0 0 257,987 COO 2024 90,923 0 135,679 0 0 0 0 226,602 Jeremy P. Concannon (3) Chief Growth Officer 2025 53,538 0 334,160 0 0 0 0 387,698 — 2024 0 0 0 0 0 0 0 0 (1) Mr. Jack Wong was appointed President and Chief Executive Officer on October 1, 2022, and resigned as President on September 12, 2023. He was also appointed as Director on March 30, 2023, and Chairman of the Board of Directors on September 12, 2023. Subsequently, on January 23, 2024, Jack Wong stepped down from his position as Chairman of the Board. By Waiver and Consent of Shareholders, Jack Wong was re-elected Director of the Company, effective March 30, 2024. Mr. Wong was paid a total salary of $357,075 and $287,650 for the years ended June 30, 2025, and 2024 respectively. A special bonus of $1.25 million was awarded in fiscal year 2025 in recognition of Mr. Jack Wong’s contributions in transforming the Company into a pioneer in the Net Zero building materials and carbon removal industry. Although the Company previously agreed to provide Mr. Wong with employee stock options, no stock options were granted to him during fiscal year 2025 or fiscal year 2024. As such, no amounts are reported in the “Option Awards” column for those years. Mr. Wong does not receive compensation for his service as a member of the Board. (2) Mr. Eric Bava was appointed Chief Operating Officer of the Company on October 1, 2023. Mr. Bava was appointed as a member of the Board effective December 26, 2024. Mr. Bava was paid a total salary of $167,554 and $90,923 for the years ended June 30, 2025, and 2024 respectively. On August 30, 2024, the Company issued 670,000 of the Company’s restricted shares of Common Stock to Mr. Bava as part of his compensation pursuant to the Bava Agreement (discussed below) for his first year’s service to the Company. The fair value of 670,000 shares was $181,235 which calculated based on stock price of $0.2705 per share on August 30, 2024 (date of final board approval and grant date) and is being amortized over the service period from October 1, 2023 to September 30, 2024. During the year ended June 30, 2025, and 2024 the Company charged $90,433 and $135,679 respectively to selling, general and administrative expenses as salary expenses, respectively. Mr. Bava does not receive compensation for his service as a member of the Board. See the section entitled “Employment Agreements” below for additional details. (3) Mr. Jeremy P. Concannon was appointed as Chief Growth Officer (“CGO”) of the Company on August 1, 2024. Mr. Jeremy P. Concannon was paid a total salary of $53,538 and $0 for the years ended June 30, 2025, and 2024 respectively. On August 30, 2024, the Company issued 1,350,000 of the Company’s restricted shares of Common Stock to Mr. Jeremy P. Concanon, as part of the compensation package in the Concannon Agreement (described below) that the Company entered into with Mr. Jeremy P. Concanon on July 31, 2024. The fair value of the first 1,350,000 shares was $365,175, calculated based on stock price of $0.2705 per share on August 30, 2024 (date of final board approval and grant date), and is being amortized over the requisite service period. During the year ended June 30, 2025, the Company charged $334,160 to selling, general and administrative expenses as salary expenses. The second tranche of 1,350,000 shares of our Common Stock due to be issued to Mr. Concannon on August 31, 2025, under the terms of his services agreement (discussed below), has not been issued as of the date of this Annual Report. 52 Table of Contents Employment Agreements Jack Wong On September 30, 2022, we entered in an offer letter with Mr. Jack Wong (the “Wong Offer Letter”) to serve as the Company’s Chief Executive Officer and President, beginning on October 1, 2022 for a period of five years, subject to further extension by the Company. We agreed to pay Mr. Wong an annual base salary of $287,650 as well as to provide Mr. Wong with the use of an executive vehicle, employee stock options, and reimbursement of all expenses incurred by Mr. Wong while performing work for the Company. The Wong Offer Letter further provides for Mr. Wong to be entitled to personal accident and medical insurance and thirty days of annual leave after one full year of service to the Company, and subjects Mr. Wong to confidentiality and non-compete covenants. Either the Company or Mr. Wong may terminate the agreement upon three months’ prior written notice or three months’ pay in lieu of notice. Sherina Chui On April 30, 2025, we entered into an Independent Employment Agreement with Ms. Sherina Chui (the “Chui Agreement”) to serve as the Company’s Chief Financial Officer, beginning on May 1, 2025. We agreed to pay Ms. Chui at an annual rate of $120,000, payable monthly. As an independent contractor, Ms. Chui is solely responsible for all federal, state, and local taxes and any applicable insurance or retirement contributions. Ms. Chui is not entitled to workers’ compensation, health, or other employment-related benefits. The Chui Agreement shall expire on April 30, 2028, unless terminated earlier by Ms. Chui and the Company. Upon expiration, Ms. Chui and the Company may mutually agree to extend the relationship by renewal of the Chui Agreement or execution of a new agreement. Eric Bava On October 1, 2023, we entered into an Employment Agreement with Mr. Eric Bava (the “Bava Agreement”) to serve as the Company’s Chief Operating Officer, beginning on the same date. We agreed to pay Mr. Bava an initial annual base salary of $120,000, payable monthly, and subject to increase in accordance with the following schedule: Annual Base Salary Time Period $120,000 ($10,000 per month) October 2023—June 2024 $150,000 ($12,500 per month) July 2024—March 2025 $180,000 ($15,000 per month) April 2025—March 2026 $210,000 ($17,500 per month) April 2026—October 2027 Mr. Bava is additionally eligible to receive additional annual compensation in the form of 670,000 shares of our Common Stock, subject to approval by the Company’s Board, as well as fifteen days of annual leave beginning after once a full year of service to the Company has been completed. The Bava Agreement further provides that Mr. Bava may take up other forms of employment during the term of the Bava Agreement, provided that such other employment is not involved in any commercial interests or businesses that may constitute a conflict of interest with his employment by the Company. The Bava Agreement shall terminate on September 30, 2027, subject to renewal by Mr. Bava and the Company. Either Mr. Bava or the Company may terminate the Bava Agreement upon sixty days’ prior notice. On May 1, 2025, we entered into an addendum to the Bava Agreement with Mr. Bava (the “Bava Addendum”), effective as of October 1, 2024. Under the terms of the Bava Addendum, Mr. Bava’s equity compensation was adjusted from the issuance of 670,000 shares of our Common Stock annually to the issuance of $60,000 worth of shares of our Common Stock annually, with the number of shares to be determined based upon the fair market value of our Common Stock on the grant date each year. Jeremy P. Concannon On July 29, 2024, we entered into an Employment Agreement with Mr. Jeremy P. Concannon (the “Concannon Agreement”) to serve as the Company’s Chief Growth Officer, beginning on the August 1, 2024. We agreed to pay Mr. Concannon an annual base salary of $60,000, payable monthly, as well as to reimburse Mr. Concannon for any reasonable travel expenses incurred in the course of his service to the Company, subject to prior written approval. The Concannon Agreement further provides that Mr. Concannon may take up other forms of employment during the term of the Concannon Agreement, provided that such other employment is not involved in any commercial interests or businesses that may constitute a conflict of interest with his employment by the Company. The Concannon Agreement shall terminate on September 30, 2027, subject to renewal by Mr. Concannon and the Company. Either Mr. Concannon or the Company may terminate the Concannon Agreement upon sixty days’ prior notice. The Concannon Agreement was terminated by mutual agreement between the parties on August 31, 2025. On July 31, 2024, we entered into a Services Agreement with Mr. Concannon (the “Second Concannon Agreement”) related to his service as the Company’s Chief Growth Officer. In exchange for the services provided under the Second Concannon Agreement, we agreed to issue Mr. Concannon three tranches of 1,350,000 shares of our Common Stock each, with the first tranche issued on August 31, 2024, the second tranche on August 31, 2025, and the final tranche on August 31, 2026. The Second Concannon Agreement further provides that Mr. Concannon is prohibited from engaging in any commercial interests or businesses that may constitute a conflict of interest or be detrimental to our interests, and that Mr. Concannon shall be entitled to reimbursement of reasonable travel expenses. The Second Concannon Agreement shall terminate on September 30, 2027, subject to renewal by Mr. Concannon and the Company. Either Mr. Concannon or the Company may terminate the Second Concannon Agreement upon sixty days’ prior notice. On September 27, 2024, the Company and Mr. Concannon entered into an addendum to the Second Concannon Agreement to clarify the periods of service for which each tranche of shares would be issued as compensation. 53 Table of Contents Equity Incentive Plans There are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers. We have no material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that stock may be granted at the discretion of the Board of Directors or a committee thereof. Director Compensation The following table sets forth the aggregate compensation paid to our non-employee director for the fiscal years ended June 30, 2025 and 2024. Name and Principal Position Year Fees earned or paid in cash ($) Stock awards ($) Option Awards ($) Non-Equity Incentive Plan Compensation ($) Nonqualified Deferred Compensation Earnings ($) All Other Compensation ($) Total ($) Karl Strahl (1) 2025 - 5,534 - - - - 5,534 Director 2024 - - - - - - - (1) Mr. Strahl was appointed as a member of the Board on May 1, 2025. On June 1, 2025, the Company issued 350,000 of the Company’s restricted shares of Common Stock to Karl Strahl, as part of the compensation package in the Director Appointment Agreement that the Company entered into with Karl Strahl on May 1, 2025. The fair value of 350,000 shares was $33,110 which was calculated based on stock price of $0.0946 per share on June 1, 2025 (date of final board approval and grant date), and is being amortized over the requisite service period from May 1, 2025 to April 30, 2026. During the year ended June 30, 2025, the Company charged $5,534 to selling, general and administrative expenses as Director’s fee. Director Compensation Agreements Karl Strahl Mr. Strahl was appointed as a member of the Board on May 1, 2025. On the day of his appointment, we entered into a formal Agreement with Mr. Strahl for his service as a member of our Board. We agreed to pay Mr. Strahl pro-rated annual compensation of $35,000 payable in shares of our Common Stock, with such issuance to occur within 60 days of May 1, 2025. Dr. Raymond Powell For his services to the Company as a consultant, we entered into a services agreement with Dr. Powell on April 20, 2024(the “Powell Agreement”), pursuant to which Dr. Powell provides technical guidance on the development, validation, and large-scale implementation of our biochar-integrated asphalt technologies, helping our innovations meet rigorous performance and sustainability standards. Under the Powell Agreement, Dr. Powell receives compensation for the services provided in the form of shares of our Common Stock, to be issued in three tranches of one million shares each, with the first tranche issued on July 31, 2024, the second tranche on October 31, 2025, and the final tranche on October 31, 2026. The Powell Agreement additionally provides for reimbursement of certain travel expenses and a minimum time commitment of 32 hours per month to fulfill the agreed to services. The Powell Agreement terminates on the earlier of sixty (60) days’ advanced notice by either party and April 30, 2027, and additionally contains customary provisions regarding non-competition and non-disclosure. Dr. Powell does not receive any compensation for his service to the Company as an independent director. Outstanding Awards Fiscal Year End None. Compensation Recovery Policy On October 23, 2025, our Board of Directors adopted a policy (commonly known as a “clawback” policy) which provides for the recovery of erroneously awarded incentive compensation to certain of our officers in the event that we are required to prepare an accounting restatement due to material noncompliance by us with any financial reporting requirements under the federal securities laws. This policy is designed to comply with Section 10D of the Securities Exchange Act of 1934, as amended, related rules and the listing standards of Nasdaq Stock Market or any other securities exchange on which our shares are listed in the future. The policy is administered by Board of Directors or, if so designated by the Board of Directors, a committee thereof. Any determinations made by the shall be final and binding on all affected individuals. Policies and Practices Related to the Grant of Certain Equity Awards Close in Time to the Release of Material Nonpublic Information We currently grant equity awards to our employees at the discretion of the Board. We do not have a written policy regarding the timing of equity awards, but we do not grant equity awards in anticipation of the release of material nonpublic information, nor do we time the release of material nonpublic information based on equity award grant dates. 54 Table of Contents ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. As of October 20, 2025, we had 1,269,280,891 shares of Common Stock issued and outstanding. Holders of Common Stock are entitled to one vote per share. The following table sets forth information with respect to the beneficial ownership of our Common Stock as of October 20, 2025: ● each person, or group of affiliated persons, who is the beneficial owner of more than 5% of the outstanding Common Stock of the Company; ● each executive officer and director of the Company; and ● all of the Company’s executive officers and directors as a group. Beneficial ownership is determined according to the rules of the SEC and generally means that a person has beneficial ownership of a security if he, she or it possesses sole or shared voting or investment power of that security, including securities that are exercisable or convertible, as the case may be, within 60 days of October 20, 2025. Shares of Common Stock issuable pursuant to such securities are deemed outstanding for computing the percentage of the person holding such securities and the percentage of any group of which the person is a member but are not deemed outstanding for computing the percentage of any other person. Except as indicated by the footnotes below, the combined Company believes, based on the information furnished to it, that the persons named in the table below have sole voting and investment power with respect to all shares of Common Stock shown that they beneficially own, subject to community property laws where applicable. The information does not necessarily indicate beneficial ownership for any other purpose, including for purposes of Section 13(d) and 13(g) of the Securities Act. Shares Beneficially Owned Name and Address of Beneficial Owner (1) Number Percentage Directors and officers Jack Wong (2) 221,108,334 17.42 % Sherina Chui - - Eric Bava (3) 115,612,717 9.11 % Jeremy P. Concannon (4) 3,845,011 * Karl Strahl (5) 350,000 * Raymond Lee Powell (6) 2,000,000 * All directors and officers as a group (5 persons named above) 342,916,062 27.02 % 5% or greater shareholders BW Capital Ventures LLC (7) 330,813,912 26.06 % Taipan International Limited (8) 100,900,000 7.95 % Borneo Oil Berhad (9) 168,775,944 13.30 % * Less than 1%. (1) Applicable percentage ownership is based on 1,269,280,891 shares of Common Stock outstanding as of October 20, 2025. Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect to securities. Unless otherwise stated, the address of each noted person is 8112 Maryland Avenue, Suite 400, St. Louis, Missouri, 63105. (2) Jack Wong, our Chief Executive Officer and director, directly owns 5,237,139 shares of our Common Stock. Mr. Wong additionally has shared voting and dispositive power over the shares of our Common Stock owned by BW Capital Ventures LLC, an entity in which he owns a 65.25% equity interest. Mr. Wong disclaims beneficial ownership of the shares of our Common Stock owned by BW Capital Ventures LLC, other than to the extent he holds a pecuniary interest therein. (3) Eric Bava, our Chief Operating Officer and director, directly owns 670,000 shares of our Common Stock. Mr. Bava additionally has shared voting and dispositive power over the shares of our Common Stock owned by BW Capital Ventures LLC, an entity in which he owns a 34.75% equity interest. Mr. Bava disclaims beneficial ownership of the shares of our Common Stock owned by BW Capital Ventures LLC, other than to the extent he holds a pecuniary interest therein. (4) Jeremy P. Concannon, our Chief Growth Officer, directly owns 3,845,011 shares of our Common Stock. (5) Karl Strahl, our director, directly owns 350,000 shares of our Common Stock. (6) Dr. Raymond Lee Powell, our director, directly owns 2,000,000 shares of our Common Stock. (7) BW Capital Ventures LLC, an entity owned 65.25% by Mr. Wong and 34.75% by Mr. Bava, directly owns 330,813,912 shares of our Common Stock. (8) Taipan International Limited directly owns 100,900,000 shares of our Common Stock. Its address is Level 1, Lot 7, Block F, Sauking Commercial Building, Jalan Patau-Patau Labuan F.T. 87000, Malaysia. The control person of Taipan International Limited is Khoo Yong Ai. (9) Borneo Oil Berhad directly owns 168,775,944 shares of our Common Stock. Its address is 1st & 2nd Floor, Victoria Point Jalan Okk Awang Besar W.P. Labuan 87007, Malaysia. The control person of Borneo Oil Berhad is Joseph Lee Yok Min. Securities Authorized for Issuance Under Equity Compensation Plans None. 55 Table of Contents ITEM 13. Certain Relationships and Related Transactions, and Director Independence. Director Independence Of our directors, we have determined that Dr. Raymond Lee Powell is an “independent” director under the Nasdaq listing standards, while Jack Wong, Eric Bava, and Karl Strahl are not independent under such standards. Transactions with Related Persons Except as set forth below, there are no transactions during our two most recent fiscal years ended June 30, 2025, and 2024, or any currently proposed transaction, in which our Company was or to be participant and the amount exceeds the lesser of $120,000 or one percent of the average of our Company’s total assets at year end for our last two completed years, and in which any of our Directors, officers or principal stockholders, or any other related person as defined in Item 404 of Regulation S-K, had or have any direct or indirect material interest. For the Years ended June 30, 2025 2024 Related party transactions: Sale of property: Mr. Jack Wong (1) $ 857,500 $ - Settlement of debt by shares BOC (2) $ 675,888 $ - Related party balances: June 30, 2025 2024 Amount due to director Mr. Jack Wong (1) $ 209,640 $ 4,188 Promissory notes issued to related party BOC (2) $ - $ 591,170 56 Table of Contents (1) Mr. Jack Wong is the Chief Executive Officer of the Company effective October 1, 2022. Further, Jack Wong was re-elected Director of the Company by Waiver and Consent of Shareholders, effective March 30, 2024. This represents sale of the property located at 1138 Wildhorse Parkway Drive, Chesterfield, Missouri 63005 (“Property”) owned by Verde Renewables Inc (“VRI”), for a current market value of $857,500. A gain on disposal of $161,156 was recognized as a result of this transaction. (2) Borneo Oil Corporation Sdn. Bhd. (“BOC”) is a wholly owned subsidiary of Borneo Oil Berhad (“BOB”) (holding 13.4% of the Company’s issued and outstanding Common Stock as of June 30, 2025). On March 13, 2023, the Company and its former indirect wholly-owned subsidiary Champmark Sdn Bhd (“CSB”) entered into a Settlement of Debts Agreement (the “SDA Agreement”) for the settlement in full of CSB’s account payable to a related party, BOC by way of the issuance of a two year term promissory note with the principal amount of $675,888, and bearing 2% coupon interest. This promissory note was repayable by May 12, 2025, either in cash or by the issuance of the Company’s restricted Common Stock at a price of $0.07 per share at the discretion of the holder. A total of 9,655,542 shares of the Company’s restricted Common Stock were issued on August 16, 2024, to BOB, the appointed nominee of the creditor, to settle in full the total of $675,888 of CSB’s account payable to the creditor. Policy Regarding Related Party Transactions All future transactions between us and our officers, directors or five percent stockholders, and respective affiliates will be on terms no less favorable than could be obtained from unaffiliated third parties and will be approved by a majority of our independent directors who do not have an interest in the transactions and who had access, at our expense, to our legal counsel or independent legal counsel. As a general rule, conducting corporate business with a relative or significant other, or with a business in which a relative or significant other is associated in any significant role, should be avoided. Relatives include spouse, sister, brother, daughter, son, mother, father, grandparents, aunts, uncles, nieces, nephews, cousins, step relationships, and in-laws. Significant others include persons living in a spousal (including same sex) or familial fashion with an employee. We must report all such material related party transactions under applicable accounting rules, federal securities laws, SEC rules and regulations, and securities market rules. Any dealings with a related party must be conducted in such a way that no preferential treatment is given to such business. Indemnification Under Articles of Incorporation and Bylaws Our directors and officers are indemnified as provided by Nevada corporate law and our bylaws. We have agreed to indemnify each of our directors and certain officers against certain liabilities, including liabilities under the Securities Act. ITEM 14. Principal Accounting Fees and Services. The aggregate fees billed for the most recently completed fiscal year ended June 30, 2025, and 2024 for professional services rendered by the principal accountant for the audit of our annual financial statements on Form 10-K, and review of the financial statements included in our quarterly reports on Form 10-Q and services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for these fiscal periods were as follows: Year Ended June 30, 2025 Year Ended June 30, 2024 Audit Fees (1) $ 67,742 $ 49,382 Audit Related Fees (2) $ 35,000 $ - Tax Fees (3) $ - $ - All Other Fees (4) $ - $ - Total $ 102,742 $ 49,382 (1) Audit fees consist of fees incurred for professional services rendered for the audit of our financial statements, for reviews of our interim financial statements included in our quarterly reports on Form 10-Q and for services that are normally provided in connection with statutory or regulatory filings or engagements. (2) Audit-related fees consist of fees billed for professional services that are reasonably related to the performance of the audit or review of our financial statements but are not reported under “Audit fees.” (3) Tax fees consist of fees billed for professional services relating to tax compliance only. (4) All other fees consist of fees billed for all other services. Our board of directors pre-approves all services provided by our independent auditors. All of the above services and fees were reviewed and approved by the board of directors either before or after the respective services were rendered. Our board of directors has considered the nature and amount of fees billed by our independent auditors and believes that the provision of services for activities unrelated to the audit is compatible with maintaining our independent auditors’ independence. 57 Table of Contents PART IV ITEM 15. Exhibits, Financial Statement Schedules Exhibits 1. Consolidated Financial Statements Our financial statements and the notes thereto, together with the report of our independent registered public accounting firm on those financial statements, are hereby filed as part of this Annual Report beginning on page F-1. 2. Financial Statement Schedules All financial statement schedules have been omitted since the required information is not applicable or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements and notes thereto. 3. Exhibits The following is a complete list of exhibits filed as part of this Form 10-K. Exhibit numbers correspond to the numbers in the Exhibit Table of Item 601 of Regulation S-K. 58 Table of Contents The following exhibits are included as part of this report: Exhibit No. Exhibit Description 2.1 Share Sale Agreement dated March 13, 2023, by and between Verde Resources Asia Pacific Limited and Jusra Mining Merapoh Sdn Bhd (incorporated by reference to Exhibit 10 of the Registrant’s Current Report on Form 8-K, filed with the SEC on March 13, 2023). 2.2 Shares Sale Agreement dated March 23, 2023, by and between Verde Resources (Malaysia) Sdn Bhd and Murugesu A/L M. Narasimha and Deivamalar A/P Kandiah (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed with the SEC on April 24, 2023). 3.1 Amended Articles of Incorporation of the Registrant. (incorporated by reference to Exhibit 3.1 of the Registrant’s Annual Report on Form 10-K, filed with the SEC on October 23, 2025). 3.2 Amended and Revised Bylaws of the Registrant (incorporated by reference to Exhibit 3.2 of the Registrant’s Current Report on Form 8-K, filed with the SEC on January 29, 2024). 4.1 Description of Securities (incorporated by reference to Exhibit 4.1 of the Registrant’s Annual Report on Form 10-K, filed with the SEC on October 23, 2025). 10.1#+ License Agreement, dated October 10, 2025, by and between Verde Renewables, Inc. and Ergon Asphalt & Emulsions, Inc. (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed with the SEC on October 14, 2025). 10.2 Joint Development Agreement between Verde Resources, Inc. and C-Twelve Pty Ltd dated May 19, 2025 (incorporated by reference to Exhibit 10.1 of the Registrant’s Second Amendment to its Current Report on Form 8-K, filed with the SEC on May 22, 2025). 10.3+ Addendum to Joint Development Agreement, Effective October 8, 2025, by and between Verde Resources, Inc. and C-Twelve Pty Ltd. (incorporated by reference to Exhibit 10.2 of the Registrant’s Current Report on Form 8-K, filed with the SEC on October 14, 2025). 10.4 Purchase and Sale Agreement dated January 17, 2025, by and between Verde Estates LLC and TAFleer Properties LLC (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed with the SEC on January 24, 2025). 10.5 Consulting Services Agreement dated November 29, 2024, by and between Verde Renewables, Inc. and AUM Media Inc. (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed with the SEC on December 5, 2024). 10.6 Service Agreement dated October 22, 2024, by and between Verde Resources, Inc. and GECA Environnement (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed with the SEC on October 23, 2024). 10.7 Settlement of Debts Agreement dated March 13, 2023, by and between Verde Resources, Inc., Champmark Sdn Bhd, and Borneo Oil Corporation Sdn Bhd. (incorporated by reference to Exhibit 10 of the Registrant’s Current Report on Form 8-K, filed with the SEC on March 16, 2023). 10.8 Promissory Note of Verde Resources, Inc. dated March 13, 2023 (incorporated by reference to Exhibit 10 of the Registrant’s Current Report on Form 8-K, filed with the SEC on March 16, 2023). 10.9 Supplementary Agreement dated August 16, 2024, to that certain Settlement of Debts Agreement dated March 13, 2023, by and between Verde Resources, Inc. and Borneo Oil Corporation Sdn Bhd (incorporated by reference to Exhibit 10 of the Registrant’s First Amendment to its Current Report on Form 8-K, filed with the SEC on August 19, 2024). 10.10 Fixed Price Research Agreement dated June 27, 2024, by and between Verde Renewables, Inc. and Auburn University (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed with the SEC on July 1, 2024). 10.11† Services Agreements dated April 20, 2024, by and between Verde Resources, Inc. and Dr. Nam Tran and Dr. Raymond Powell (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed with the SEC on April 24, 2024). 59 Table of Contents 10.12 Services Agreement dated October 23, 2023, by and between Verde Renewables, Inc. and Donald R. Fosnacht (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed with the SEC on October 26, 2023). 10.13 Services Agreement dated December 15, 2022, by and between Verde Resources, Inc. and Looi Pei See (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed with the SEC on December 19, 2022). 10.14 Product Distribution Agreement dated November 22, 2022, by and between Verde Life Inc. and Country Farms Sdn Bhd (incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed with the SEC on November 25, 2022). 10.15†+ Employment Agreement dated October 1, 2023, by and between Verde Renewables, Inc. and Eric Joseph Brava (incorporated by reference to Exhibit 10.15 of the Registrant’s Annual Report on Form 10-K, filed with the SEC on October 23, 2025). 10.16† Offer Letter dated September 30, 2022, by and between Verde Resources, Inc. and Jack Wong (incorporated by reference to Exhibit 99.1 of the Registrant’s Current Report on Form 8-K, filed with the SEC on October 6, 2022). 10.17†+ Employment Agreement dated July 29 th , 2024, by and between Verde Renewables Inc. and Jeremy P. Concannon. (incorporated by reference to Exhibit 10.17 of the Registrant’s Annual Report on Form 10-K, filed with the SEC on October 23, 2025). 10.18†+ Addendum to Employment Agreement dated September 27, 2024, by and between Verde Renewables Inc. and Jeremy P. Concannon (incorporated by reference to Exhibit 10.18 of the Registrant’s Annual Report on Form 10-K, filed with the SEC on October 23, 2025). 10.19†+ Employment Agreement dated April 30, 2025, by and between Verde Renewables Inc. and Sherina Chui. (incorporated by reference to Exhibit 10.19 of the Registrant’s Annual Report on Form 10-K, filed with the SEC on October 23, 2025). 10.20† Director Appointment Agreement dated May 1, 2025, by and between the Registrant and Karl Strahl. (incorporated by reference to Exhibit 10.20 of the Registrant’s Annual Report on Form 10-K, filed with the SEC on October 23, 2025). 10.21†+ Services Agreement dated July 31, 2024, by and between the Registrant and Jeremy P. Concannon. (incorporated by reference to Exhibit 10.21 of the Registrant’s Annual Report on Form 10-K, filed with the SEC on October 23, 2025). 10.22† Addendum to Employment Agreement dated May 1, 2025, by and between the Registrant and Eric Joseph Bava. (incorporated by reference to Exhibit 10.22 of the Registrant’s Annual Report on Form 10-K, filed with the SEC on October 23, 2025). 14.1 Code of Business Conduct and Ethics (incorporated by reference to Exhibit 14.1 of the Registrant’s Annual Report on Form 10-K, filed with the SEC on October 23, 2025). 19.1 Insider Trading Policies and Procedures (incorporated by reference to Exhibit 19.1 of the Registrant’s Annual Report on Form 10-K, filed with the SEC on October 23, 2025). 21.1 List of Subsidiaries (incorporated by reference to Exhibit 21.1 of the Registrant’s Annual Report on Form 10-K, filed with the SEC on October 23, 2025). 31.1* Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer 31.2* Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer 32.1** Section 1350 Certification of the Principal Executive Officer 32.2** Section 1350 Certification of the Principal Financial Officer 97.1 Executive Compensation Clawback Policy (incorporated by reference to Exhibit 97.1 of the Registrant’s Annual Report on Form 10-K, filed with the SEC on October 23, 2025). 101.INS* Inline XBRL Instance Document 101.SCH* Inline XBRL Taxonomy Extension Schema Document 101.CAL* Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF* Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB* Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE* Inline XBRL Taxonomy Extension Presentation Linkbase Document 104* Cover Page Interactive Data File * Filed herewith. ** Furnished and not filed herewith. † Indicates a management contract or compensatory plan, contract or arrangement. # Certain annexes, schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted attachment to the SEC on a confidential basis upon request. + Certain portions of this exhibit (indicated by “[*]”) have been omitted pursuant to Item 601(a)(6) of Regulation S-K. ITEM 16. Form 10-K Summary Not applicable. 60 Table of Contents SIGNATURES Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized this 3rd day of June, 2026. VERDE RESOURCES, INC. By: /s/ Jack Wong Jack Wong Chief Executive Officer (Principal Executive Officer) By: /s/ Sherina Chui Sherina Chui Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to the requirements of the Securities Act, this Annual Report has been signed by the following persons in the capacities and on the date indicated: Signature Title Date /s/ Jack Wong Chief Executive Officer and Director June 3, 2026 Jack Wong (principal executive officer) /s/ Sherina Chui Chief Financial Officer June 3, 2026 Sherina Chui (principal financial and accounting officer) /s/ Eric Bava Director June 3, 2026 Eric Bava /s/ Karl Strahl Director June 3, 2026 Karl Strahl /s/ Raymond Lee Powell Director June 3, 2026 Raymond Lee Powell 61 Table of Contents VERDE RESOURCES, INC. INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2025 AND 2024 Page Reports of Independent Registered Accounting Firm - J&S Associate PLT (PCAOB ID: 6743) F-2 Consolidated Balance Sheets F-4 Consolidated Statements of Operations and Comprehensive Loss F-5 Consolidated Statements of Cash Flows F-6 Consolidated Statements of Changes in Stockholders’ Equity F-7 Notes to Consolidated Financial Statements F-8 F- 1 Table of Contents J&S ASSOCIATE PLT 202206000037 (LLP0033395-LCA) & AF002380 (Registered with PCAOB and MIA) B-11-14, Megan Avenue II 12,Jalan Yap Kwan Seng, 50450, Kuala Lumpur, Malaysia Tel: +603-4813 9469 Email : info@jns-associate.com Website : jns-associate.com REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Stockholders of VERDE RESOURCES, INC. Opinion on the Financial Statement We have audited the accompanying consolidated balance sheet of Verde Resources, Inc. and its subsidiaries (the ‘Company’) as of June 30, 2025 and 2024, and the related consolidated statement of operations and comprehensive loss, changes in stockholders’ equity and cash flows for the years ended June 30, 2025 and 2024, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2025 and 2024, and the results of its operations and its cash flows for the years ended June 30, 2025 and 2024, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. Critical Audit Matters Critical audit matters are matters arising from the current year audit of the financial statements that were communicated or are required to be communicated to the audit committee, or in their absence, the directors, and that: (1) relate to accounts or disclosures that are material to the financial statements, and (2) involved especially challenging, subjective, or complex judgements. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Impairment Assessment of Intellectual Properties As described in Note 8 to the consolidated financial statements, the intangible assets comprise intellectual properties acquired from third parties and were measured initially at fair value. The intellectual properties are classified as indefinite-lived intangible assets and are not being amortized. The Company’s evaluation of its acquired intellectual properties for potential impairment involved significant judgement. As disclosed in Note 8 to the financial statements, management performed a qualitative assessment to determine whether it is more likely than not that the intangible asset is impaired. This assessment considered various factors including macroeconomic conditions, industry and market trends, cost factors, overall financial performance, legal and regulatory environment factors and relevant internal reporting and management’s plans. F- 2 Table of Contents We identified the qualitative impairment assessment of the intellectual properties as a critical audit matter due to the subjective nature of management’s assumptions, the complexity of evaluating multiple qualitative factors, and the materiality of the asset to the financial statements. Auditing this matter required a high degree of auditor judgment and an increased extent of audit effort. Our audit procedures related to the qualitative impairment assessment included the following: i) Evaluated the appropriateness of management’s qualitative assessment framework in accordance with ASC 350; ii) Discussions with key management of the Company to understand the future plans and direction of the Company; iii) Assessed the completeness and relevance of the qualitative factors considered by management; iv) Critically evaluated management’s assessment on a high level for their rationale and justification of the assumptions used and agreed these with external public data and signed agreements, where applicable; v) Interviewed operational personnel of the Company and corroborated the understanding of management’s future plans and their assumptions; vi) Obtained the internal forecasts prepared by management for the future direction of the Company and obtained an understanding of how the forecast indirectly related to the future use of the intellectual properties; vii) Reviewed the internal forecasts prepared by management including evaluation of the reasonableness of the assumptions used and agreed the key inputs to supporting documents; viii) Interviewed key management and a key supplier of the Company to confirm their commitment and readiness to support the Company in its plans; ix) Tested the mathematical accuracy of the internal forecasts prepared by management; x) Reviewed the disclosures in the consolidated financial statements to ensure compliance with the requirements of ASC 350. /s/ J&S Associate PLT Certified Public Accountants Firm ID: 6743 We have served as the Company’s auditor since 2022. Kuala Lumpur, Malaysia October 23, 2025 except for Notes 2, 3, 6, 13, 15, 16, 21 and 24 to the financial statements, as to which the date is June 3, 2026. F- 3 Table of Contents VERDE RESOURCES, INC. CONSOLIDATED BALANCE SHEETS (Currency expressed in United States Dollars (“US$”), except for number of shares) 2025 2024 As of June 30, 2025 2024 (revised) ASSETS Current asset: Cash and cash equivalents $ 1,021,112 $ 279,137 Deposits with banks 1,276,484 2,000,000 Accounts receivable 188,415 66,749 Inventories 284,561 309,144 Amounts due from related party 100 100 Prepaid share-based compensation- nonemployees 455,291 135,144 Prepayments 46,605 26,507 Other receivables and deposits 15,647 6,862 Total current assets before discontinued operation 3,288,215 2,823,643 Assets held for sale 4,000 606,043 Total current assets 3,292,215 3,429,686 Non-current assets: Property, plant and equipment, net 1,574,984 2,916,006 Right of use assets, net 518,375 509,482 Intangible assets 33,503,771 33,160,631 Security deposit 80,000 80,000 Prepaid share-based compensation- nonemployees 126,047 65,522 Total non-current assets 35,803,177 36,731,641 TOTAL ASSETS $ 39,095,392 $ 40,161,327 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 55,092 $ 91,533 Other payables 545,963 461,012 Deposit and accrued liabilities 371,837 83,671 Accrued share-based compensation for nonemployee 44,288 139,191 Accrued share-based compensation for employee 44,877 135,679 Accrued share-based compensation 44,877 135,679 Finance lease liabilities - 22,323 Finance lease liabilities – assets held for sale - 603,252 Current portion of operating lease liabilities 38,311 24,881 Bank loan - 211,440 Promissory notes to related party - 591,170 Amount due to a director 209,640 4,188 Amounts due to related parties 324,974 385,550 Total current liabilities 1,634,982 2,753,890 Non-current liabilities: Finance lease liabilities - 86,565 Operating lease liabilities, net of current portion 91,639 4,602 Total non-current liabilities 91,639 91,167 TOTAL LIABILITIES 1,726,621 2,845,057 Commitments and contingencies - - STOCKHOLDERS’ EQUITY Preferred stock, $ 0.001 par value, 50,000,000 shares authorized, none issued and outstanding - - Common stock, $ 0.001 par value; 10,000,000,000 shares authorized; 1,262,680,891 and 1,221,346,586 issued and outstanding as of June 30, 2025 and 2024 1,262,680 1,221,346 Additional paid-in capital 54,530,117 49,647,034 Accumulated other comprehensive income ( 160,809 ) ( 71,906 ) Accumulated deficit ( 18,263,181 ) ( 13,480,204 ) Stockholders' Equity Before Non controlling interest 37,368,807 37,316,270 Non-controlling interest ( 36 ) - Stockholders’ equity 37,368,771 37,316,270 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 39,095,392 $ 40,161,327 See accompanying notes to consolidated financial statements. F- 4 Table of Contents VERDE RESOURCES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Currency expressed in United States Dollars (“US$”)) 2025 2024 Years ended June 30, 2025 2024 Revenue, net $ 133,202 $ 96,584 Cost of revenue 51,789 62,978 Gross profit 81,413 33,606 Operating expenses: Selling, general and administrative expenses 5,889,024 2,882,376 Other operating expenses 214,410 237,047 Total operating expenses 6,103,434 3,119,423 LOSS FROM OPERATION ( 6,022,021 ) ( 3,085,817 ) Other (expense) income: Interest expense ( 102,703 ) ( 176,483 ) Rental income 38,200 68,200 Gain from insurance claims 481,513 - Unrealized foreign exchange gain 582,034 - Gain on disposal of property, plant and equipment 164,624 - Interest income 70,650 1,112 Other income 4,690 5,326 Total other income (expense), net 1,239,008 ( 101,845 ) LOSS BEFORE INCOME TAXES ( 4,783,013 ) ( 3,187,662 ) Income tax expense - ( 112 ) NET LOSS ( 4,783,013 ) ( 3,187,774 ) Net loss attributable to non-controlling interest ( 36 ) - Net loss attributable to Verde Resources Inc., shareholders ( 4,782,977 ) ( 3,187,774 ) Net (loss) income attributable to non-controlling interest $ ( 4,783,013 ) $ ( 3,187,774 ) Other comprehensive (loss) income: - Foreign currency adjustment (expense) income ( 88,903 ) 7,286 COMPREHENSIVE LOSS $ ( 4,871,916 ) $ ( 3,180,488 ) Net loss per share - Basic and diluted $ ( 0.00 ) $ ( 0.00 ) Weighted average common shares outstanding - Basic and diluted 1,242,092,192 1,187,606,780 See accompanying notes to consolidated financial statements. F- 5 Table of Contents VERDE RESOURCES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Currency expressed in United States Dollars (“US$”)) 2025 2024 Years ended June 30, 2025 2024 (revised) Cash flows from operating activities: Net loss $ ( 4,783,013 ) $ ( 3,187,774 ) Adjustments to reconcile net loss to net cash used in operating activities Depreciation of property, plant and equipment 248,940 417,517 Amortization 102,857 115,359 Stock-based compensation-nonemployee 1,341,373 252,369 Stock-based compensation-employee 432,246 135,679 Stock-based compensation-director 5,534 - Stock-based compensation 5,534 - Finance cost interest element of promissory notes (non-cash) 84,718 103,380 Operating lease expense 42,848 28,240 Deposit paid for acquisition of subsidiary written off - 21,316 Impairment on accounts receivable - 27,481 Impairment on other receivables - 29,842 Impairment on property, plant and equipment 137,632 134,042 Impairment on advance to supplier - 177,200 Impairment on assets held for sale 5,866 - Write down of inventories - 15,587 Unrealized foreign exchange gain ( 582,034 ) - Gain from insurance claim ( 481,513 ) - Loss on disposal of asset held for sale 2,877 - Gain on disposal of property, plant and equipment ( 164,624 ) - Inventories written off - 5,978 Property, plant and equipment written off - 3,979 Change in operating assets and liabilities: Accounts receivable ( 121,278 ) ( 81,427 ) Other receivables and deposits ( 34,867 ) ( 22,918 ) Prepayments ( 20,098 ) ( 6,656 ) Inventories 32,733 ( 235,677 ) Accounts payables ( 44,368 ) 19,725 Accrued liabilities and other payables 277,467 ( 38,160 ) Advanced from director 205,581 ( 5,472 ) Advanced from/to related parties ( 61,206 ) 30,640 Repayment of operating lease liabilities ( 38,442 ) ( 28,240 ) Net cash used in operating activities ( 3,410,771 ) ( 2,087,990 ) Cash flows from investing activities: Proceeds from disposal of assets held for sale 943,300 - Proceeds from disposal of property, plant and equipment 947,995 - Proceeds from insurance recoveries 541,221 - Withdrawal of deposit with bank 750,000 - Placement of deposit with bank - ( 2,000,000 ) Purchase of property, plant and equipment ( 378 ) ( 16,646 ) Net cash provided by (used in) investing activities 3,182,138 ( 2,016,646 ) Cash flows from financing activities: Repayment to lease liabilities ( 712,140 ) ( 138,156 ) Proceeds of bank loan - 50,000 Repayment of bank loan ( 211,440 ) ( 29,560 ) Advanced from other payables - 136,983 Proceeds from issuance of Common Stock 1,983,000 4,108,379 Refund from cancellation of Common Stock ( 80,000 ) - Net cash provided by financing activities 979,420 4,127,646 Net change in cash and cash equivalent 750,787 23,010 Foreign currency translation adjustment ( 8,812 ) 55,718 Net change in cash and cash equivalents 741,975 78,728 CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR 279,137 200,409 CASH AND CASH EQUIVALENTS, AT END OF YEAR $ 1,021,112 $ 279,137 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for income taxes $ - $ - Cash paid for interest $ 16,247 $ 59,566 SUPPLEMENTAL NONCASH DISCLOSURE: Share issuance for employee compensation 392,903 $ - Promissory Note to related party settled by Company’s Common Stock 675,888 See accompanying notes to consolidated financial statements. F- 6 Table of Contents VERDE RESOURCES, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (revised) (Currency expressed in United States Dollars (“US$”), except for number of shares) No. of shares Amount capital income losses interest equity Common stock Additional paid-in Accumulated other comprehensive Accumulated Non- controlling Total stockholders’ No. of shares Amount capital income (loss) deficit interest equity Balance as of July 1, 2023 1,176,200,278 $ 1,176,200 $ 45,415,958 $ ( 79,192 ) $ ( 10,292,430 ) $ - $ 36,220,536 Shares issued to service provider 1,000,000 1,000 133,000 - - - 134,000 Shares issued for private placement 44,651,232 44,651 4,273,556 - - - 4,318,207 Shares cancelled ( 504,924 ) ( 505 ) ( 175,480 ) - - - ( 175,985 ) Net loss for the year - - - - ( 3,187,774 ) - ( 3,187,774 ) Foreign currency translation adjustment - - - 7,286 - - 7,286 Balance as of June 30, 2024 1,221,346,586 $ 1,221,346 $ 49,647,034 $ ( 71,906 ) $ ( 13,480,204 ) - $ 37,316,270 Balance as of July 1, 2024 1,221,346,586 $ 1,221,346 $ 49,647,034 $ ( 71,906 ) $ ( 13,480,204 ) - $ 37,316,270 Balance 1,221,346,586 $ 1,221,346 $ 49,647,034 $ ( 71,906 ) $ ( 13,480,204 ) - $ 37,316,270 Share issued for private placement 21,202,213 21,202 1,961,798 - - - 1,983,000 Shares issued to service provider 8,856,550 8,856 1,808,091 - - - 1,816,947 Shares issued to employee 2,070,000 2,070 520,978 - - - 523,048 Shares issued for settlement of promissory notes 9,655,542 9,656 666,232 - - - 675,888 Shares cancelled ( 800,000 ) ( 800 ) ( 79,200 ) - - - ( 80,000 ) Shares issued to director 350,000 350 5,184 - - - 5,534 Net loss for the period - - - - ( 4,782,977 ) ( 36 ) ( 4,783,013 ) Foreign currency translation adjustment - - - ( 88,903 ) - - ( 88,903 ) Balance as of June 30, 2025 1,262,680,891 $ 1,262,680 $ 54,530,117 $ ( 160,809 ) $ ( 18,263,181 ) ( 36 ) $ 37,368,771 Balance 1,262,680,891 $ 1,262,680 $ 54,530,117 $ ( 160,809 ) $ ( 18,263,181 ) ( 36 ) $ 37,368,771 See accompanying notes to consolidated financial statements. F- 7 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) NOTE 1 - ORGANIZATION AND BUSINESS BACKGROUND Verde Resources, Inc. (the “We” or “Company” or “VRDR”) was incorporated on April 22, 2010, in the State of Nevada, U.S.A. The Company is a road construction and building materials company offering proprietary, environmentally sustainable materials, with the goal to drive innovations that enhance sustainability and advance environmental stewardship. By integrating biochar, a highly effective carbon sequester and performance enhancer, the Company intends to facilitate the industry’s transition to zero emissions. The Company believes its approach reduces greenhouse gas (“GHG”) emissions, optimizes the use of native soils and recycled materials, speeds installation, and improves efficiency while cutting costs. Since June 2023 the Company’s strategic focus has been on testing the Company’s biochar asphalt technology through the Company’s subsidiary, Verde Renewables Inc., at the National Center for Asphalt Technology (NCAT) test track. This endeavor with NCAT is rigorously testing the Company’s innovative biochar asphalt technology, which is intended to provide superior performance, environmental sustainability, and the generation of carbon removal and avoidance credits. In December 2024, Verde Resources, in collaboration with C-Twelve, successfully demonstrated its pioneering biochar-asphalt technology at the NCAT test track in Auburn, Alabama. The project showcased the ability to retrofit an existing asphalt plant to produce cold-mix biochar asphalt under winter conditions without the use of heat, solvents, or odors, resulting in an estimated 50% increase in installation efficiency compared to conventional methods. The demonstration sequestered approximately eight (8) tons of carbon, verified and certified under Puro.earth in collaboration with Oregon Biochar Solutions. This achievement marked what the Company believes to be the world’s first carbon removal credits generated through asphalt production and installation. The credits, issued and sold in April 2025, were pre-purchased by one of the world’s largest financial institutions focused on Carbon Dioxide Removals (CDRs). The Company refers to this integrated model of combining low-carbon materials, operational efficiency, and verified carbon removal credit generation as the “Verde Net Zero Blueprint.” In July 2025 the Company received early validation based on performance results from NCAT which demonstrated consistent durability, particularly under low-volume roadway conditions. Further in September 2025, NCAT’s latest evaluation of Verde’s cold recycling mix using 100% reclaimed asphalt pavement (“RAP”) from laboratory testing demonstrated that Verde’s cold-recycled mix not only meets but exceeds industry specifications for cold-recycled asphalt. Results showed superior cohesion, high tensile strength ratio (“TSR”), and retained stability compared to standard cold mix benchmarks, validating its strength, durability, and moisture resistance. Puro.earth, the crediting platform for durable carbon removal, has officially registered the Company as a Carbon Removal Credit supplier as part of its Accelerate program. This registration was formalized through a platform agreement signed in April 2023. The Company’s endeavors are positioned to potentially create additional revenue opportunities through the generation of carbon removal credits (CORCs). The Company believes that the generation of CORCs and the demand for CORCs incentivizes the broader adoption of climate technologies and enables the Company to supply these credits to companies seeking to offset their carbon footprint in pursuit of net-zero objectives. Simultaneously, this approach creates the potential for an additional and substantial revenue stream for the Company. The Company’s current priority is the successful commercialization of its technology in North America, and if that commercialization is successful, the Company intends to introduce the same blueprint in Malaysia. Ongoing discussions with PLUS Malaysia, the country’s largest highway operator, signal a growing demand for biochar in the region. This demand, coupled with the certification, could enable the BioFraction™ plant to secure a reliable client, ensuring the resumption of normal operations in Malaysia with the potential for significant scale-up over time. During the years ended June 30, 2025, and 2024, the Company achieved the following major milestones on its path to commercialization of its biochar-asphalt technology and achieving “net-zero”: F- 8 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) On June 27, 2024, the Company entered into an agreement with The National Center for Asphalt Technology at Auburn University (“NCAT”) to undertake a 3-year Performance Testing Project titled “Structural Capacity of Sustainable Pavement” (the “Project”). The Project, led by Dr. Nam Tran, Associate Director and Research Professor at NCAT, involved a comprehensive performance testing on the NCAT Test Track in Opelika, Alabama. This facility, sponsored by various state Departments of Transportation (DOTs) and in partnership with the Minnesota Road Research Facility (MnROAD), is dedicated to advancing sustainable pavement technologies. Success in this Project is expected to drive widespread adoption of a net-zero road construction blueprint by DOTs across the United States and the federal DOT. The Project commenced on June 24, 2024, and is expected to conclude on September 30, 2027, with the first draft of the final report expected in Spring 2027. On August 14, 2024, the Company entered into a Memorandum of Understanding (the “NPI MOU”) with Nature Plus Inc. (“NPI”) to formalize the collaboration on the NCAT Project referred to above Test Track Project (the “Project”) and explore subsequent business opportunities arising from the successful completion of the Project. The Project involved the application of TerraZyme technology for the stability of subgrade and base layers, with the overarching goal of advancing road construction methodologies. The Company and NPI will jointly develop mixed designs and materials incorporating biochar, aimed at enhancing performance and promoting carbon sequestration. The NPI MOU shall be effective until December 31, 2026, or until replaced by a subsequent distributor agreement. Upon the successful completion of the Project, the Company and NPI intend to continue the collaboration on future initiatives, including soil stabilization and material development, carbon removal credits, certification and compliance, and exclusive rights to distributing TerraZyme. On October 16, 2024, the Company formed a new subsidiary, VerdePlus Inc. (“VerdePlus”), a Missouri corporation in partnership with Nature Plus Inc. (“NPI”) for the purpose of conducting business on the production of low-carbon building materials by integrating the Company’s expertise with the innovative stabilization enzyme TerraZyme, an intellectual property of NPI to be injected into VerdePlus. The Company and NPI owned 55% and 45% of VerdePlus, respectively. On October 18, 2024, the Company entered into a binding Term Sheet with C-Twelve Pty Ltd (“C-Twelve”), a corporation incorporated in Western Australia, granting the Company (i) an exclusive license to utilize its proprietary binder and biochar asphalt mixed designs (the “Licensed Technology”) for the production and commercialization of asphalt surfacing-related products (the “End Products”) within the United States of America and (ii) the first right of refusal to extend the exclusive licensing of the Licensed Technology to other countries and territories subject to terms and conditions to be mutually agreed upon. Subsequently on May 19, 2025, the Company and C-Twelve entered into a definitive agreement, namely the Joint Development Agreement (“C-Twelve Agreement”) which provides for a 10 year license commencing May 19, 2025. On October 10, 2025, Verde Renewables entered into a license agreement with Ergon, pursuant to which the Company granted an exclusive, non-transferable license to use, manufacture, commercialize, market, sell and distribute any product that contains or is manufactured or formed by Ergon using Verde V24 in the United States, Canada, and Mexico, in exchange for Ergon agreeing to purchase Verde V24 at a fixed price (which is inclusive of all fees associated with the license, but subject to consumer price index adjustments) for use in Ergon’s asphalt road materials products. As of June 30, 2025, the Company has the following subsidiaries: SCHEDULE OF SUBSIDIARIES DETAILS Company name Place of incorporation Principal activities and place of operation Effective interest held Verde Resources Asia Pacific Limited (“VRAP”) British Virgin Islands Investment holding 100 % Verde Resources (Malaysia) Sdn Bhd (“Verde Malaysia”) Malaysia Manufacturing and distribution of renewable agricultural commodities, and provision of consultation services related thereto 100 % Verde Renewables, Inc. (“VRI”) State of Missouri, U.S.A. Trading of building materials and management of a processing and packaging facility 100 % VerdePlus Inc. (“VerdePlus”) * State of Missouri, U.S.A. Production of low-carbon building materials 55 % Verde Life Inc. (“VLI”) State of Oregon, U.S.A. Development of health and wellness products formulated with natural plant extracts derived from crops cultivated using biochar . 100 % The Wision Project Sdn Bhd (“Wision”) Malaysia Digital innovation, marketing & consulting service, PR, branding, influencer marketing, event management and media relations services 100 % Verde Estates LLC (“VEL”) State of Missouri, U.S.A. Holding real property 100 % Bio Resources Limited (“BRL”) Labuan, Malaysia Proprietor of pyrolysis technology 100 % * On October 16, 2024, a new subsidiary, VerdePlus, Inc was incorporated in the State of Missouri, USA with an equity interest of 55%. Unless context indicates otherwise, Verde Resources, Inc. and its subsidiaries are hereinafter referred to as the “Company.” F- 9 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated financial statements and notes. Basis of Presentation These accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). Use of Estimates and Assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the years presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include the useful lives of plant and equipment, impairment of long-lived assets (including intangible assets), allowance for expected credit losses, revenue recognition, share based compensation, deferred taxes and uncertain tax position. The inputs into the management’s judgments and estimates consider the geopolitical tension, inflationary and high-interest rate environment and other macroeconomic factors on the Company’s critical and significant accounting estimates. Actual results could differ from these estimates. Basis of Consolidation The consolidated financial statements include the financial statements of Verde Resources, Inc. and its subsidiaries. All significant inter-company balances and transactions within the Company and its subsidiaries have been eliminated upon consolidation. The Company accounts for acquisitions in accordance with guidance found in Accounting Standards Codification (“ASC”) 805, Business Combinations . The guidance requires consideration given, including contingent consideration, assets acquired, and liabilities assumed to be valued at their fair market values at the acquisition date. Segment Reporting During the fiscal year ended June 30, 2025, the Company reassessed its segment reporting conclusions in accordance with ASC Topic 280 and determined that it operates as a 1 single operating and reportable segment. This reassessment reflects changes in how the business is managed and how financial information is reviewed by the Company’s Chief Operating Decision Maker (“CODM”). The Company’s CODM is the Chief Executive Officer, who reviews financial information on a consolidated basis, including revenue, operating expenses and net income (loss), when evaluating operating performance and allocating resources. The CODM uses net income (loss) as the primary measure of performance and uses revenue as the primary measure for allocating resources. This conclusion reflects the increased integration of the Company’s operations, including centralized decision-making, shared resources, and alignment of strategic objectives across the organization. In prior periods, the Company had evaluated its operations as potentially comprising multiple segments based on earlier organizational structures and the CODM had used sales and operating income as the primary measures of segment profit or loss to assess performance and make resource allocation decisions. The CODM assessed those metrics and compared actuals to budgeted and forecasted values to evaluate segment operating performance and allocate resources to the operating segments. As a result of these changes, management now evaluates performance and allocates resources on a consolidated basis. This change did not impact the Company’s consolidated financial statements but may affect the comparability of segment-related disclosures between periods. See Note 3 – Business Segment Information for additional information. Concentration of Credit Risk The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents, deposit with banks and accounts receivable. The Company places its cash and cash equivalents and bank deposits with financial institutions of high credit worthiness. At times, its cash and cash equivalents and bank deposits with a particular financial institution may exceed any applicable government insurance limits. The Company’s management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited. Risks and Uncertainties The Company newly operates in the supply of net zero road constructions and building materials are subject to significant risks and uncertainties, including financial, operational, technological, and other risks associated with a production operation for renewable commodities, including the potential risk of business failure. F- 10 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Cash and Cash Equivalents Cash and cash equivalents are carried at cost and represent cash in banks, money market funds, which are readily convertible to known amounts of cash and that mature within three months or less from the date of purchase, which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had $ 1,021,112 and $ 279,137 in cash and cash equivalents at June 30, 2025 and 2024. At June 30, 2025, and 2024, cash and cash equivalents consisted of petty cash on hand and cash in banks. Deposits with Banks Deposits held for investments that are not debt securities are included in short-term investments in the consolidated balance sheets. Investments in time deposits with original maturities of more than three months but remaining maturities of less than one year are considered short-term investments. Investments held with the intent to reinvest or hold for longer than a year, or with remaining maturities of one year or more, are considered long-term investments. Accounts Receivables Accounts receivables are recognized and carried at amortized cost. The Company maintains an allowance for expected credit loss to provide for the estimated number of receivables that will not be collected. The Company considers several factors in its estimate of the allowance, including knowledge of a client’s financial condition, its historical collection experience, and other factors relevant to assessing the collectability of such receivables. Bad debts are written off against allowances. An allowance for doubtful accounts will be recorded in the period when a loss is probable based on an assessment of specific evidence indicating troubled collection, historical experience, accounts aging, ongoing business relation and other factors. Accounts are written off after exhaustive efforts at collection. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. As of June 30, 2025, and 2024, the longest credit term for certain customers are 60 to 90 days . At June 30, 2025 and 2024, the allowance for expected credit loss for accounts receivables amounted to $ 0 and $ 27,481 respectively, and for other receivables amounted to $ 33,939 and $ 29,842 respectively. Expected Credit Loss The Company accounts for expected credit losses in accordance with ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASC Topic 326 requires entities to use a current expected credit loss (“CECL”) methodology to estimate lifetime expected credit losses for certain financial assets measured at amortized cost, including accounts receivable and other financial instruments. The CECL methodology generally results in earlier recognition of credit losses than the previous incurred loss model. The Company maintains an allowance for expected credit losses based on a combination of quantitative and qualitative factors, including historical loss experience, customer-specific credit risk, aging of receivables, current economic conditions and reasonable and supportable forecasts of future conditions. Management applies significant judgment in identifying relevant risk factors, evaluating the impact of macroeconomic conditions, including inflation, interest rates and geopolitical uncertainty, and determining the appropriate expected loss rates. Changes in these assumptions or economic conditions could materially affect the timing and amount of credit loss provisions recognized in future periods. No allowance for expected credit losses on accounts receivable was recognized for the financial years ended June 30, 2025 and 2024. Inventories Inventories are stated at the lower of cost or market value (net realizable value), cost being determined on a first-in-first-out method. Cost of raw materials include cost of materials and incidental costs in bringing the inventory to its current location. Costs of finished goods, on the other hand include material, labor and overhead costs. The Company provides inventory allowances based on excess and obsolete inventories determined principally by customer demand. As of June 30, 2025, and 2024, the write down of inventories amounted to $ 0 and $ 15,587 respectively, and inventories written off amounted to $ 0 and $ 5,978 respectively. Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: SCHEDULE OF EXPECTED USEFUL LIVES OF PROPERTY, PLANT AND EQUIPMENT Expected useful life Land and buildings 3 - 27.5 years Plant and machinery 5 - 10 years Office equipment 3 years Computers 5 years Motor vehicles 5 years Furniture and fittings 5 years Renovation 10 years F- 11 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) The estimated useful lives and depreciation methodology reflect management’s judgment based on historical experience, the nature of the assets, anticipated usage, and technological and economic factors. The Company periodically reviews the estimated useful lives of its property, plant and equipment and revises such estimates when events or changes in circumstances indicate that the estimates may no longer be appropriate. Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterment which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses. The Company also evaluates property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. See Note 7 for details of property, plant and equipment and related depreciation expense. Depreciation and Impairment of Plant and Machinery ● Depreciation expense for the years ended June 30, 2025 and 2024: $ 248,940 and $ 417,517 , respectively ● As of June 30 2025, and 2024: ○ Impairment losses: $ 137,632 and $ 134,042 , respectively, and plant and machinery ○ Write-offs: $ 0 and $ 3,979 , respectively Intangible Assets The Company accounts for intangible assets in accordance with ASC Topic 350, Intangibles—Goodwill and Other , and accounts for impairment of long-lived assets in accordance with ASC Topic 360, Impairment or Disposal of Long-Lived Assets . Intangible assets acquired from third parties are initially measured at fair value. Indefinite-lived intangible assets are not amortized and are evaluated for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. In accordance with ASC Topic 360, Impairment or Disposal of Long-Lived Assets , the Company evaluates long-lived assets, including property, plant and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability is assessed by comparing the carrying amount of the asset or asset group to the estimated undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If the carrying amount exceeds the estimated undiscounted future cash flows, an impairment loss is recognized based on the excess of the carrying amount over the asset’s fair value. To evaluate indefinite-lived intangible assets for impairment under ASC Topic 350, Intangibles—Goodwill and Other , the Company may first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. Alternatively, the Company may bypass the qualitative assessment and perform a quantitative impairment test. The qualitative assessment considers factors including business performance, market conditions, macroeconomic trends, strategic plans, recent market transactions and projected future cash flows. If a quantitative assessment is performed, the fair value of the indefinite-lived intangible asset is compared to its carrying amount. Fair value is generally determined using discounted cash flow models, appraised values or other valuation techniques, as appropriate, and requires management to make significant estimates and assumptions, including projected revenues, operating margins, future cash flows and discount rates. If the carrying amount exceeds fair value, an impairment loss is recognized for the excess carrying value. These estimates are inherently subjective and sensitive to changes in assumptions and market conditions. Actual results or changes in estimates could result in material impairment charges in future periods. See Note 8 for details of intangible assets and related impairment write offs. As of June 30, 2025, and 2024, the Company did not record an impairment on the intangible assets. Assets Held for Sale The Company classifies assets as held-for-sale (“disposal group”) in the period when all of the relevant criteria to be classified as held for sale are met. These criteria include management’s commitment to sell the disposal group in its present condition and the sale being deemed probable of being completed within one year. Assets held for sale are reported at the lower of their carrying value or fair value less cost to sell. The fair values of disposal groups are estimated using accepted valuation techniques, including indicative listing prices. The Company considers historical experience, guidance received from third parties, and all information available at the time the estimates are made to derive fair value. Any loss resulting from the measurement is recognized in the period when the held for sale criteria are met. The Company assesses the fair value of a disposal group, less any costs to sell, each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the initial carrying value of the disposal group. Assets held-for-sale are not amortized or depreciated. The impairment loss on assets held for sale for the years ended June 30, 2025 and 2024 was $ 5,866 and $ 0 respectively. Impairment of Long-lived Assets In accordance with the provisions of ASC Topic 360, Impairment or Disposal of Long-Lived Assets , all long-lived assets such as property, plant and equipment owned and held by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. Advance to Supplier Advance to supplier is provided for the provision of goods and services and they are secured either by a security deposit or a legally enforceable right to recover. As of June 30, 2025, and 2024, the Company recorded a write-off of $ 0 and $ 177,200 respectively. F- 12 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Revenue Recognition The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”), which establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfils its obligations under each of its agreements: ● identify the contract with a customer; ● identify the performance obligations in the contract; ● determine the transaction price; ● allocate the transaction price to performance obligations in the contract; and ● recognize revenue as the performance obligation is satisfied. Revenue is recognized when the Company satisfies its performance obligation under the contract by transferring the promised product to its customer that obtains control of the product and collection is reasonably assured. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. Most of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. Accordingly, the transaction price is allocated in its entirety to the single performance obligation and recognized upon its fulfilment. The Company considers customer order confirmations, whether formal or otherwise, to be a contract with the customer. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. The Company also follows the guidance provided in ASC 606, Revenue from Contracts with Customers, for determining whether the Company is the principal or an agent in arrangements with customers that involve another party that contributes to the provision of goods to a customer. In these instances, the Company determines whether it has promised to provide the goods itself (as principal) or to arrange for the specified goods to be provided by another party (as an agent). This determination is a matter of judgment that depends on the facts and circumstances of each arrangement. As such t he Company derives its revenue from the sale of products and services in its role as a principal. Rental income Rental income is recognized on a straight line basis over the term of the respective lease agreement. Cost of Revenue Cost of revenue consists primarily of the cost of goods sold, which are directly attributable to the sales of products. Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. The Company uses rate implicit in the lease to determine the present value of future lease payments to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement of the lease liability. Lease expense is recognized on a straight-line basis over the lease term. For lease terms of twelve months or fewer, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC Topic 360, Property, Plant, and Equipment , as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU assets are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of June 30, 2025, and 2024. The operating lease is included in operating lease right-of-use assets and operating lease liabilities as current and non-current liabilities in the consolidated balance sheets at June 30, 2025 and 2024. F- 13 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the five criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value and v) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. At the inception of a finance lease, we as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to us, while the leased asset is depreciated in accordance with our depreciation policy if the title is to eventually transfer to us. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 842. Income Taxes The Company adopted the ASC Topic 740, Income tax provisions of paragraph 740-10-25-13, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. Under paragraph 740-10-25-13, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of paragraph 740-10-25-13. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. In assessing the realizability of deferred tax assets, management evaluates both positive and negative evidence, including projected future taxable income, tax planning strategies, recent financial performance, economic trends and potential changes in tax laws. Judgment is required in determining whether valuation allowances are necessary and adjustments to such valuation allowances could materially impact income tax expense or benefit in future periods. See Note 17 for details related to income taxes. Uncertain Tax Positions The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the ASC Topic 740 provisions of Section 740-10-25 for the years ended June 30, 2025, and 2024. Foreign Currencies Translation The Company’s reporting currency is the United States dollar (“US$”) and the accompanying consolidated financial statements have been expressed in United States dollars. The Company and its subsidiaries in the United States have functional currency of US$ whereas the functional currency of the Company’s subsidiaries in Malaysia is Malaysian Ringgit (“MYR”). The functional currencies represent the primary currencies of the economic environment in which the respective companies’ operations are conducted. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the consolidated statement of operations. For reporting purposes, in accordance with ASC Topic 830 “ Translation of Financial Statements ”, capital accounts of the consolidated financial statements are translated into United States dollars from MYR at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the respective year. The gains and losses resulting from translation of financial statements subsidiaries to the reporting currency are recorded as a separate component of accumulated other comprehensive income within the statements of changes in stockholder’s equity. Translation of MYR into U.S. dollars has been made at the following exchange rates for the following periods:- SCHEDULE OF FOREIGN CURRENCY TRANSLATION June 30, 2025 June 30, 2024 Year-end MYR:US$ exchange rate 0.23650 0.21199 Annualized average MYR:US$ exchange rate 0.22874 0.21316 Comprehensive Income ASC Topic 220, Comprehensive Income , establishes standards for reporting and display of comprehensive income, its components and accumulated balances. Comprehensive income as defined includes all changes in equity during a period from non-owner sources. Accumulated other comprehensive income, as presented in the accompanying consolidated statements of changes in stockholders’ equity, consists of changes in unrealized gains and losses on foreign currency translation. This comprehensive income is not included in the computation of income tax expense or benefit. F- 14 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Non-controlling Interest The Company accounts for non-controlling interest in accordance with ASC Topic 810-10-45, which requires the Company to present non-controlling interests as a separate component of total shareholders’ equity on the consolidated balance sheets and the consolidated net loss attributable to the non-controlling interest be clearly identified and presented on the face of the consolidated statements of operations and comprehensive loss. Net Loss per Share The Company calculates net loss per share in accordance with ASC Topic 260, Earnings per Share . Basic income per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed similarly to basic net loss per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential Common Stock equivalents had been issued, if dilutive. The Company’s share-based awards consist of common shares that are legally issued, fully vested, and nonforfeitable upon grant. Accordingly, such shares are included in the weighted-average shares outstanding from the date of issuance, and there are no unvested or forfeitable awards requiring separate consideration in the calculation of basic or diluted net loss per share. For the years ended June 30, 2025 and 2024, diluted weighted-average common shares outstanding is equal to basic weighted average common shares, due to the Company’s net loss position. Hence no Common Stock equivalents were included in the computation of diluted net loss per shares since such inclusion would have been antidilutive. Stock Cancellation and Reissuance Policy In certain circumstances, after the Company grants fully vested and nonforfeitable share-based awards to nonemployees, the Company may enter into mutual agreements with the recipients to cancel shares associated with services not yet performed or no longer expected to be performed under the applicable arrangements. In such instances, the Company evaluates the substance of the arrangement in accordance with ASC 718-10-25-2 and ASC 718-10-35-1, which require that compensation cost be recognized based on the goods or services received. In accordance with ASC 718-10-45-3, the grant date fair value of these awards are initially recognized as a prepaid share-based compensation, which is recognized as compensation expense over the period in which the related goods or services are received. When mutual agreements are concluded to cancel shares associated with services which are not performed or are no longer expected to be performed, the Company reverses the remaining balance of the prepaid share-based compensation, which represents the value of services not yet performed. There are no reversals of previously recognized share-based compensation expense relating to services already performed under the applicable arrangements. Treasury Stock Policy The Company may also, if required, cancel shares of its Common Stock that have been repurchased or otherwise reacquired, including shares acquired through share repurchase programs or forfeited under equity compensation plans. Cancelled shares are retired and removed from the issued and outstanding share count in accordance with applicable corporate law and the Company’s Articles of Incorporation. Upon cancellation, the par value of the shares is deducted from Common Stock, and any excess of repurchase cost over the par value is charged against additional paid-in capital (APIC) or retained earnings, as applicable. If the original issuance price is not known or determinable, the cost is first charged to APIC to the extent available, with any remaining amount charged to retained earnings. The Company accounts for reissuance of treasury shares in accordance with ASC 505-30 – Equity: Treasury Stock . Treasury shares may be reissued for various purposes, including the settlement of employee equity awards, acquisitions, or other corporate purposes. If treasury shares are reissued: ● The proceeds received upon reissuance are credited to treasury stock at the cost of the shares. ● Any difference between the reissuance price and the cost of the treasury shares is recorded as an adjustment to APIC. ○ If the reissuance price exceeds the cost, the excess is credited to APIC. ○ If the reissuance price is less than the cost and APIC related to treasury stock transactions is insufficient to absorb the difference, the remainder is charged to Retained Earnings. The Company uses the cost method to account for treasury stock transactions. Reissued shares are included in the number of shares issued and outstanding as of the date of reissuance. F- 15 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) As of year-ended June 30, 2025, there have been no Treasury Stock purchases by the Company. Stock Based Compensation Policy Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic 718, Compensation—Stock Compensation , which requires the measurement and recognition of compensation expense for all share-based payment arrangements related to the acquisition of goods and services from both employees and nonemployees based on the fair value of the awards at grant date. Grant Date and Measurement The grant date represents the date on which all key terms and conditions of the award are approved and understood by both the Company and the recipient, which generally corresponds to the date of final board approval. The fair value of share-based awards is measured based on the closing market price of the Company’s Common Stock on the grant date. The Company considers stock-based compensation to be a significant accounting estimate due to the judgment involved in determining the grant date, estimating the fair value of awards, evaluating the timing and recognition of compensation expense and assessing the substance of certain share-based arrangements. Because the Company issues Common Stock awards that are measured based on the market price of its Common Stock at the grant date, changes in the timing of grant approvals, service periods and the Company’s stock price, may impact the amount and timing of compensation expense recognized in future periods. Fully Vested and Nonforfeitable Awards The Company issues shares that are fully vested and nonforfeitable upon grant, and the Company does not retain the ability to cancel such shares. For these awards, the recipient has an unconditional right to the shares at the grant date. When such awards are issued to nonemployees in advance of the receipt of goods or services, the Company records prepaid share-based compensation at the grant date in accordance with ASC 718-10-45-3. The prepaid amount represents the fair value of the goods or services to be received and is recognized as compensation expense over the period in which the related goods or services are received. For employee awards, when shares are issued in advance of the receipt of services, the Company does not recognize a prepaid asset. Instead, consistent with ASC 718-10-25 and ASC 718-10-35, compensation cost is recognized over the requisite service period as the services are rendered. Awards Without an Established Grant Date For certain share-based payment arrangements, the service inception date precedes the establishment of the grant date. In such cases, compensation cost is recognized based on the best estimate of the fair value of the Company’s Common Stock at each reporting period until the grant date is established, with a corresponding liability recorded in accordance with ASC 718. Once the grant date is established, the cumulative compensation cost is adjusted to reflect the grant-date fair value of the award. Recognition of Compensation Expense Share-based compensation cost is recognized over the requisite service period for employee awards and over the service period for nonemployee awards. F- 16 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Presentation Considerations Awards that are fully vested and nonforfeitable are included in shares issued and outstanding at the grant date. Accordingly: ● for nonemployees - APIC, together with shares issued, is recognized at the grant date fair value of the awards, with a corresponding increase in prepaid share-based compensation, which is recognized as compensation expense over the period in which the related goods or services are received. ● for employees - APIC is recognized to the extent that, together with shares issued, reflect the compensation cost for the requisite service period rendered as of the reporting date. Any remaining unrecognized compensation cost is recorded in APIC over the remaining requisite service period. The impact of such awards on earnings per share is evaluated in accordance with ASC 718-10-45-1. Stock-Based Compensation Expense During the years ended June 30, 2025 and 2024, the Company recognized share-based compensation expense as follows: ● Nonemployees : $ 1,341,373 and $ 252,369 , respectively ● Employees: $ 432,246 and $ 135,679 , respectively ● Directors: $ 5,534 and $ 0 , respectively In addition, the Company recorded $ 89,165 and $ 274,870 as accrued compensation cost for share-based arrangements for which the grant date had not yet been established during the years ended June 30, 2025 and 2024, respectively. Retirement Plan Costs Contributions to retirement plans (which are defined contribution plans) are charged to general and administrative expenses in the accompanying statements of operation as the related employee service are provided. Related Parties The Company follows the ASC 850-10, Related Party for the identification of related parties and disclosure of related party transactions. Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825-10-15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. F- 17 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Commitments and Contingencies The Company follows the ASC 450-20, Contingencies, to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. Fair Value of Financial Instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP) and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally unobservable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, deposits with bank, loan and fee receivable, prepayments and other receivables, amounts due from related parties, accrued liabilities and other payables, loans payable, amounts due to related parties approximate their fair values because of the short maturity of these instruments. F- 18 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Recent Accounting Pronouncements During the year ended June 30, 2025, there have been no new, or existing, recently issued accounting pronouncements that are of significance, or potential significance, that impact the Company’s consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires the disclosure of additional segment information. The key amendments include annual and interim disclosures of significant expenses and other segment items that are regularly provided to the chief operating decision maker and included within each reported measure of profit or loss, as well as any other key measure of performance used for segment management decisions. This ASU also requires disclosure of key profitability measures used in assessing performance and how to allocate resources. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted this standard for the fiscal year beginning July 1, 2024 and this standard did not have a material impact on the Company’s results of operations, cash flows, financial condition, or disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires disaggregated information about a reporting entity’s income tax information, including jurisdictional information, by requiring consistent categories and greater disaggregation of information in both the rate reconciliation and income taxes paid disaggregated by jurisdiction. ASU No. 2023-09 is effective for annual periods beginning after December 15, 2024. The guidance is to be applied on a prospective basis with the option to apply the standard retrospectively; this ASU allows for early adoption. The Company is currently evaluating the effect of this pronouncement on its disclosures. In March 2024, the FASB issued ASU No. 2024-01, Compensation-Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards , which provides illustrative guidance to help entities determine whether profits interest and similar awards should be accounted for as share based payment arrangements within the scope of ASC 718. ASU 2024-01 is effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. The Company is currently evaluating the effect of this pronouncement on its disclosures. In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (“ASU 2025 01”) . ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Both early adoption and retrospective application are permitted. The Company is currently evaluating the effect of this pronouncement on its disclosures. In November 2024, the FASB issued ASU No. 2024-04, Induced Conversions of Convertible Debt Instruments (Topic 470), which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The amendments in this update are effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the effect of this pronouncement on its disclosures. F- 19 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) In March 2025, the FASB issued ASU No. 2025-02, Liabilities (405): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 122 . The amendments in this Update are effective immediately and on a fully retrospective basis to annual periods beginning after December 15, 2024. The Company is currently evaluating the effect of this pronouncement on its disclosures. In May 2025, the FASB issued ASU No. 2025-04, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606) . ASU 2025-04 revises the definition of the term performance condition for share-based consideration payable to a customer to incorporate conditions that are based on the volume or monetary amount of a customer’s purchases or potential purchases. ASU 2025-04 also eliminates the policy election to account for forfeitures as they occur for awards with service conditions. ASU 2025-04 also clarifies that ASC 606 variable consideration guidance does not apply to share-based payments to customers; instead, vesting probability should be assessed solely under ASC 718, Compensation—Stock Compensation. ASU 2025-04 is effective for the Company’s annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2025-04 may be applied on either a modified retrospective basis or on a retrospective basis. The Company is currently assessing the impact this standard will have on the Company’s consolidated financial statements. The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and believes the future adoption of any such pronouncements may not be expected to cause a material impact on its financial condition or the results of its operations. F- 20 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) NOTE 3 - BUSINESS SEGMENT INFORMATION The Company applies the provisions of ASC Topic 280, Segment Reporting , which requires disclosure of information about operating segments based on how management organizes the Company’s business activities for making operating decisions and assessing performance. The Company’s Chief Executive Officer serves as the CODM. The CODM reviews consolidated financial information, including revenue, operating expenses and net income (loss), when evaluating performance and allocating resources. The CODM uses net income (loss) as the primary measure of performance and uses revenue as the primary measure for allocating resources. During the fiscal year ended June 30, 2025, the Company reassessed its segment reporting conclusions in accordance with ASC Topic 280 due to changes in how the business is managed and how information is reviewed by the CODM. Specifically, the Company’s operations have become more integrated, with centralized decision-making, shared resources, and aligned strategic objectives across the organization. As a result, the CODM no longer reviews discrete financial information for separate components of the business and instead evaluates performance and allocates resources based on consolidated financial information for the Company as a single segment. Accordingly, the Company has determined that it operates as a single operating and reportable segment under ASC Topic 280. This conclusion reflects current-period facts and circumstances and differs from prior period assessments due to the evolution of the Company’s internal reporting structure and operational focus. In prior periods, the Company had evaluated its operations as potentially comprising multiple segments based on earlier organizational structures and internal considerations and these segments were (i) trading and production of building materials and renewable commodities, (ii) holding of real property and (iii) licensor of proprietary pyrolysis technology. The CODM used sales and operating income as the primary measure of segment profit or loss to assess performance and allocate resources. Because the Company operates as a single segment and the CODM reviews consolidated financial information, the significant expense categories reviewed by the CODM are reflected in the consolidated statements of operations. The presentation of the comparative information has been revised for comparability with the current year presentation. The CODM reviews on a consolidated financial information basis the significant expense categories as disclosed below. SCHEDULE OF BUSINESS SEGMENT INFORMATION Consolidated June 30, 2025 Consolidated June 30, 2024 (revised) Revenue $ 133,202 $ 96,584 Cost of revenue 51,789 62,978 Gross profit 81,413 33,606 Operating expenses: Depreciation and amortization ( 351,797 ) ( 532,876 ) Impairment on property, plant and equipment ( 137,632 ( 134,042 ) Impairment on advance to supplier - ( 177,200 ) Payroll expenses ( 2,615,348 ) ( 960,155 ) Consultant fees ( 1,425,097 ) ( 347,792 ) Research and development expense ( 472,090 ) ( 100,000 ) Legal and professional fees ( 453,354 ) ( 258,135 ) Other segment expenses ( 648,116 ) ( 609,223 ) Loss from operations ( 6,022,021 ) ( 3,085,817 ) Interest expense ( 102,703 ) ( 176,483 ) Rental income 38,200 68,200 Unrealized foreign exchange gains 582,034 - Gain from insurance claim 481,513 - Gain on disposal of property, plant and equipment 164,624 - Interest income 70,650 1,112 Other income 4,690 5,326 Loss before income tax ( 4,783,013 ) ( 3,187,662 ) Income tax - ( 112 ) Net loss $ ( 4,783,013 ) $ ( 3,187,774 ) Substantially all of the Company’s revenue is generated in the United States. Long-lived assets are located primarily in the United States and in its subsidiaries in Malaysia and the British Virgin Islands, with the Company’s key intellectual property held by its BVI subsidiary. F- 21 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) NOTE 4 - DEPOSIT WITH BANKS ● Interest rates: 1.98 % to 4.64 % and 4.64 % per annum as of June 30, 2025 and 2024, respectively ● Maturities: 120 to 270 days and 120 to 365 days as of June 30, 2025 and 2024, respectively NOTE 5 - INVENTORIES Inventories as of June 30, 2025 and 2024 consisted of the following: SCHEDULE OF INVENTORY As of June 30, 2025 2024 Manufactured bio produce $ 77,399 $ 70,560 Trading goods 207,162 238,584 Total inventories $ 284,561 $ 309,144 Trading goods represent bio asphalt products purchased from an external supplier. NOTE 6 – OTHER RECEIVABLE, DEPOSITS AND PREPAYMENTS Other receivables, deposits and prepayments as of June 30, 2025 and 2024 consisted of the following: SCHEDULE OF OTHER RECEIVABLES DEPOSITS AND PREPAYMENTS 2025 2024 (revised) As of June 30, 2025 2024 (revised) Deposits 6,781 4,775 Other receivables 41,976 31,929 Total 48,757 36,704 Less: impairment on other receivables ( 33,110 ) ( 29,842 ) Other receivables and deposits, net 15,647 6,862 Prepayments 46,605 26,507 Prepaid share based compensation – nonemployees (current portion) 455,291 135,144 Total Other receivables, deposits and prepayments $ 517,543 $ 168,513 Prepaid share based compensation – nonemployees (non-current portion) $ 126,047 $ 65,522 The Company accounts for share-based compensation in accordance with ASC 718 based on the grant-date fair value of the awards. When awards are granted to nonemployees in advance of the related services, the Company records the fair value as prepaid share-based compensation and recognizes the expense over the service period. Share-based compensation for employees is recognized over the requisite service period without the recognition of a prepaid asset. The portion of prepaid share-based compensation to nonemployees expected to be recognized within twelve months is classified as a current asset, with the remainder classified as non-current. This classification reflects the expected timing of the underlying service periods as defined in the applicable agreements NOTE 7 – PROPERTY, PLANT AND EQUIPMENT A summary of property, plant and equipment at June 30, 2025 and 2024 is as follows: SCHEDULE OF PROPERTY PLANT AND EQUIPMENT 2025 2024 As of June 30, 2025 2024 Land and building $ - $ 1,258,360 Plant and machinery 1,843,774 1,875,761 Office equipment 6,161 6,168 Computers 14,233 13,908 Motor vehicles 4,240 140,989 Furniture and fittings 4,421 16,359 Renovation 4,431 4,431 Property, plant and equipment, gross 1,877,260 3,315,976 Less: accumulated depreciation ( 480,820 ) ( 382,141 ) Foreign exchange adjustment 178,544 ( 17,829 ) Total Property, plant and equipment $ 1,574,984 $ 2,916,006 F- 22 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Property, Plant and Equipment ● Depreciation expense for the years ended June 30, 2025 and 2024: $ 248,940 and $ 417,517 , respectively ● Impairment losses for the years ended June 30, 2025 and 2024: $ 137,632 and $ 134,042 , respectively, related to assets intended to be disposed and transferred to assets held for disposal at net carrying values of $ 350,000 and $ 606,043 , respectively ● Write-offs of plant and machinery for the years ended June 30, 2025 and 2024: $ 0 and $ 3,979 , respectively ● Assets pledged as collateral: ○ Land and buildings with a net carrying amount of $ 0 and $ 701,817 as of June 30, 2025 and 2024, respectively ● Assets under financing arrangements: ○ Plant and machinery: $ 0 and $ 7,688 as of June 30, 2025 and 2024, respectively ○ Motor vehicles: $ 0 and $ 98,362 as of June 30, 2025 and 2024, respectively On December 10, 2024, CEO Jack Wong entered into a Sale and Purchase Agreement (the “Wong Agreement”) with VRI to purchase the Property at the current market value of $ 857,500 with payment in equal installments over 26 pay cycles. Pursuant to the Agreement, VRI shall immediately transfer ownership of the Property to CEO Jack Wong by Warranty Deed, free of encumbrances except as specified in the Agreement. The transfer of title was completed on December 19, 2024. NOTE 8 – INTANGIBLE ASSETS The intangible assets comprise (i) a global intellectual property (“IP”) of $ 30,192,771 known as “Catalytic BioFraction Process”, whereby, subsidiary Bio Resources Limited (“BRL”) is the beneficial and/or registered proprietor and (ii) an exclusive license assigned to Verde Malaysia for the operation of the IP in the state of Sabah, Malaysia of MYR 14,000,000 ($ 3,311,000 ). The “Catalytic BioFraction Process” is a slow pyrolysis process using a proprietary catalyst to depolymerize palm biomass waste (empty fruit bunches or palm kernel shells) in temperature range of 350 degrees Celsius to 500 degrees Celsius to yield commercially valuable bio products: bio-oil, wood vinegar (pyroligneous acid), biochar and bio-syngas. The intellectual property is a second-generation pyrolysis process where non-food feedstock like palm biomass waste is used as feedstock. Upon fulfilling UN’s (United Nations) ACM 22 protocol as well as LCA (Life Cycle Assessment) requirements, it is anticipated that the by-products from this IP would lead to certification and issuance of Carbon Avoidance Credits as well as Carbon Removal Credits to generate carbon revenue for the Company. The Company has identified these intangible assets as indefinite life intangible assets as there are currently no legal, competitive, economic or other factors that materially limit the useful life of the Company’s intangible assets. ASC 350-30-35, Intangibles - Goodwill and Other , provides for an option to first perform a qualitative assessment to determine whether it is more likely than not that an asset is impaired. If the qualitative assessment supports that it is more likely than not that the fair value of the asset exceeds its carrying value, a quantitative impairment test is not required. If the qualitative assessment does not support the fair value of the asset, then a quantitative assessment is performed. Our annual impairment assessment of our identifiable indefinite-lived intangible assets is performed as of the fourth quarter of each year. An assessment is performed at other times if an event occurs or circumstances change that would more likely than not reduce the fair value of the asset below its carrying value. If the carrying value of the intangible assets exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. As of June 30, 2025, the Company performed a qualitative assessment, during the fourth quarter of 2025, to determine whether it was more likely than not that the carrying amounts of its intangible assets were impaired. This assessment considered a number of qualitative factors, including but not limited to: ● Macroeconomic conditions, ● Industry and market trends, ● Cost factors, ● Overall financial performance of the asset, ● Legal and regulatory environment, and ● Relevant internal reporting and management’s plans. Based on this qualitative assessment, management did not identify any events or changes in circumstances that would indicate that the carrying amounts of the Company’s intangible assets are not recoverable. The qualitative impairment assessment of the indefinite intangible assets indicated that the fair value of such assets exceeded their carrying value and therefore were not at risk of impairment. Accordingly, no quantitative impairment test was deemed necessary, and no impairment losses were recognized for the year ended June 30, 2025. The Company performed a quantitative assessment during the fourth quarter of 2024. As of the date of the annual assessment for 2024, management’s impairment assessment of the indefinite intangible assets indicated that the estimated fair value of the Company’s intangible assets exceeded their carrying values and therefore no impairment losses were recognized for the year ended June 30, 2024. F- 23 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) NOTE 9 – ASSETS HELD FOR SALE At June 30, 2025 and 2024, assets held for sale are as follows: SCHEDULE OF ASSETS HELD FOR SALE 2025 2024 As of June 30, 2025 2024 Plant and machinery $ - $ 213,494 Motor vehicles 9,866 392,549 Assets held for sale gross 9,866 606,043 Less: impairment ( 5,866 ) - Total assets held for sale $ 4,000 $ 606,043 The Company, through Verde Estates LLC, decided to sell its property located in La Belle, Missouri (the “La Belle Property”) and entered into discussions with a buyer to sell the La Belle Property prior to December 31, 2024. The La Belle Property has been presented separately in the balance sheet as assets held for sale as at December 31, 2024. On January 17, 2025, the Company entered into a Purchase and Sale Agreement (the “TAFleer Agreement”) with TAFleer Properties LLC, a Missouri limited liability company (the “Buyer”). Under the terms of the TAFleer Agreement, the proceeds for the sale of the La Belle Property were USD 350,000 paid in full by the Buyer at closing. The disposition of the La Belle Property was completed in January 2025. On June 27, 2024, the Company, through its wholly-owned subsidiary Verde Renewables, Inc. (“VRI”), a company incorporated in the State of Missouri, U.S.A, entered into a Consignment Contract with ED’s Machinery LLC (“EDM”) to dispose plant and machinery and motor vehicles with a carrying amount of $ 606,043 . The disposal was pending completion as at June 30, 2024, and thus the assets had been presented separately in the balance sheets as assets held for sale. The disposal of assets with carrying values totaling $ 596,176 was completed as of December 31, 2024. The remaining asset comprises a vehicle that will be sold for its parts, and accordingly, an impairment of $ 5,866 was recognized during the period. Assets Held for Sale ● Assets acquired under financing arrangements (as of June 30, 2025 and 2024): ○ Plant and machinery: $ 0 and $ 168,994 , respectively ○ Motor vehicles: $ 0 and $ 350,217 , respectively ● Impairment loss on assets held for sale for the years ended June 30, 2025 and 2024: $ 5,866 and $ 0 , respectively NOTE 10 - DEPOSIT PAID At June 30, 2025 and 2024, deposits consist of the following: SCHEDULE OF SECURITY DEPOSIT 2025 2024 As of June 30, 2025 2024 Security deposit - Factory site $ 80,000 $ 80,000 On March 2, 2022, the Company, through VRAP, entered into a Commercial Lease Agreement and Option to Purchase (“Segama Lease Agreement”) the factory site from Segama Ventures for a lease term of seven ( 7 ) years (“Lease Term”) at a monthly rental of MYR 36,000 ($ 8,571 ). The rental for the entire Lease Term amounting to the sum of MYR 3,024,000 ($ 720,000 ) (the “Lease Payment”) was paid in advance upon commencement of the Segama Lease Agreement together with a payment of security deposit for the sum of MYR 336,000 ($ 80,000 ) (the “Security Payment”). NOTE 11 – BANK LOAN The bank loan as of June 30, 2024, represented a rolling facility to a maximum principal of $ 250,000 and was secured by deed of trusts from VRDR, land and building of VEL and a subsidiary who acts as guarantor for the performance of debts. The pledge was released on January 17, 2025, with the disposal of the land and building as mentioned in Note 9, and the full settlement of the loan. The interest on loan was fixed at the rate of 5.25 %. per annum. For the years ended June 30, 2025 and 2024, the interest expense amounted to $ 10,879 and $ 13,640 respectively. F- 24 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) NOTE 12 - AMOUNTS DUE TO/FROM RELATED PARTIES AND DIRECTOR The following breakdown of the balances due to related parties and director, consisted of:- SCHEDULE OF BREAKDOWN BALANCES DUE TO RELATED PARTIES 2025 2024 (revised) As of June 30, 2025 2024 (revised) Amount due to related parties Borneo Oil Corporation Sdn. Bhd (“BOC”) (2) $ 72,869 $ 70,677 Borneo Oil Berhad (“BOB”) (1) 3,007 3,007 Taipan International Limited (3) 119,153 119,153 Borneo Energy Sdn Bhd ( 1) 16,356 14,599 Victoria Capital Sdn Bhd (4) 5,913 93,270 UnitiMart Sdn Bhd (1) - 7,782 Makin Teguh Sdn Bhd (1) 19,379 19,379 J. Ambrose & Partners (5) 75,904 48,588 SB Resorts Sdn Bhd (2) 6,622 2,120 SB Supplies & Logistics Sdn Bhd (1) 4,612 5,936 Borneo Eco Food Sdn. Bhd. (1) 1,159 1,039 Total due to related parties $ 324,974 $ 385,550 Amount due to related parties $ 324,974 $ 385,550 Amount due from a related party Vetrolysis Limited (6) $ 100 $ 100 Amount due from a related parties $ 100 $ 100 Amount due to director Mr. Jack Wong (7) $ 209,640 $ 4,188 Amount due to director $ 209,640 $ 4,188 (1) Borneo Oil Berhad (“BOB”) is the ultimate holding company of Borneo Eco Food Sdn. Bhd., Borneo Energy Sdn. Bhd., SB Supplies & Logistic Sdn. Bhd. and UnitiMart Sdn. Bhd., (holding 13.4 % of the Company’s issued and outstanding Common Stock as of June 30, 2025). Makin Teguh Sdn Bhd is an associate of BOB. The advances are related to ordinary business transactions and bear no interest or collateral and are repayable on demand. (2) SB Resorts Sdn. Bhd. and Borneo Oil Corporation Sdn. Bhd. (“BOC”) are wholly owned subsidiaries of Borneo Oil Berhad (“BOB”) (holding 13.4 % of the Company’s issued and outstanding Common Stock as of June 30, 2025). The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms. (3) Taipan International Limited is one of the shareholders of the Company and held 15.4 % of the Company’s issued and outstanding Common Stock as of June 30, 2025. The advances are related to ordinary business transactions and bear no interest or collateral and are repayable on demand. (4) Victoria Capital Sdn. Bhd. is one of the shareholders of the BOB (holding 7.8 % if BOB’s shares) and also is a direct shareholder of Company, holding 0.2 % of the Company’s issued and outstanding Common Stock as of June 30, 2025. The advances are related to ordinary business transactions and bear no interest or collateral and are repayable on demand. (5) J. Ambrose & Partners is controlled by J Ambrose who is one of the shareholders of the Company, and he held 1.6 % of the Company’s issued and outstanding Common Stock as of June 30, 2025. He is also a substantial shareholder of BOB. The advances are related to ordinary business transactions and bear no interest or collateral and are repayable on demand. (6) Encik Anuar bin Ismail, an indirect significant shareholder, is a director of Vetrolysis Limited. (7) Mr. Jack Wong is the Chief Executive Officer of the Company effective October 1, 2022. Further, Jack Wong was re-elected Director of the Company by Waiver and Consent of Shareholders, effective March 30, 2024. This represents remaining balance of the special bonus of $ 1.25 million to CEO Jack Wong approved by the Board of the Company on December 9, 2024. On December 10, 2024, CEO Jack Wong entered into the Wong Agreement to purchase the Property located at 1138 Wildhorse Parkway Drive, Chesterfield, Missouri 63005 owned by VRI, for a current market value of $ 857,500 .The Board also approved the option for this amount to be repaid through monthly installments deducted from the bonus over 26 pay cycles starting from January 2025. This transaction shall be structured as a sale and purchase agreement between the Company and CEO Jack Wong, with no cash exchange involved. The remaining balance of the bonus shall be allocated to cover any taxes associated with the bonus on behalf of CEO Jack Wong F- 25 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) NOTE 13 - PROMISSORY NOTE TO RELATED PARTY SCHEDULE OF PROMISSORY NOTES 2025 2024 As of June 30, 2025 2024 Promissory Note to related party $ - $ 591,170 The following is a reconciliation of the beginning and ending balances of promissory notes payable using Level 3 inputs: SCHEDULE OF RECONCILIATION OF PROMISSORY NOTES PAYABLE 2025 2024 As of June 30, 2025 2024 Balance at the beginning of year $ 591,170 $ 487,790 Accretion of liability 84,718 103,380 Converted to Company Common Stock ( 675,888 ) - Balance at the end of year $ - $ 591,170 On March 13, 2023, the Company and its former indirect wholly-owned subsidiary Champmark Sdn Bhd (“CSB”) entered into a Settlement of Debts Agreement (the “SDA Agreement”) for the settlement in full of CSB’s account payable to a related party, Borneo Oil Corporation Sdn Bhd (“BOC”) by way of the issuance of a two year term Promissory Note with the face value (principal) amount of $ 675,888 and bearing 2 % coupon interest. The Note was repayable by May 12, 2025, either in cash or by the issuance of the Company’s Common Stock priced at $ 0.07 per share at the discretion of the holder of the Promissory Note. The fair value of the Promissory Note of $ 481,023 was calculated using the net present value of estimated future cash flows with the assumptions of risk free rate at 4.03 %, credit spread of 11.6 % and liquidity risk premium of 5.6%. On August 16, 2024, the Company entered into a Supplementary Agreement to the SDA Agreement and Promissory Note with the Creditor to convert the total amount of $ 675,888 into 9,655,542 shares of the Company’s Common Stock at the agreed conversion price of $ 0.07 per share for issuance on August 16, 2024. A total of 9,655,542 shares of the Company’s Common Stock were issued on August 16, 2024, to Borneo Oil Berhad, the appointed nominee of the Creditor, to settle in full the total of $ 675,888 of CSB’s account payable to the Creditor. The Company determined the reacquisition price of the debt based on the fair value of the Company’s Common Stock issued to the Creditor. The fair value was determined using the closing quoted market price of $0.29 per share on August 16, 2024, the date the shares were issued, in accordance with ASC 470-50-40-3 and ASC 850. Because the debt holder was a related party shareholder, the Company evaluated the transaction under ASC 470-50-40-2 and ASC 850 to determine whether the extinguishment should be recognized in earnings or treated as a capital transaction. In making this determination, the Company considered that the creditor was an existing equity holder and accordingly, concluded that the transaction represented a transaction with an owner in their capacity as an equity holder, and therefore was accounted for as a restructuring of capital. Based on this evaluation, the Company accounted for the transaction as a capital transaction. Accordingly, the liability was derecognized as its carrying amount, and the excess of the fair value of the shares issued over the carrying amount of the debt was recorded within APIC. No gain or loss on extinguishment of debt was recognized in the consolidated statements of operations. The issuance of equity in satisfaction of debt is classified as a non-cash financing activity and is disclosed as such in the consolidated statements of cash flows. As of August 16, 2024, there were no remaining balances payable to or receivable from BOC related to this transaction. Promissory Notes – Interest Expense ● Accretion of liability (presented as interest expense) for the years ended June 30, 2025 and 2024: $ 84,718 and $ 103,380 , respectively ● Interest expense at 2 % for the years ended June 30, 2025 and 2024: $ 1,738 and $ 13,536 , respectively NOTE 14 - LEASES The Company adopted ASU No. 2016-02, Leases and determines whether an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration. Control of an underlying asset is conveyed if we obtain the rights to direct the use of and to obtain substantially all of the economic benefit from the use of the underlying asset. Some of our leases include both lease and non-lease components which are accounted for as a single lease component as the Company has elected the practical expedient. Some of the operating lease agreements include variable lease costs, primarily taxes, insurance, common area maintenance or increases in rental costs related to inflation. Substantially all of our equipment leases and some of our real estate leases have terms of less than one year and, as such, are accounted for as short-term leases as we have elected the practical expedient. Operating leases are included in the right-of-use lease assets, other current liabilities and long-term lease liabilities on the Consolidated Balance Sheet. Right-of-use assets and lease liabilities are recognized at each lease’s commencement date based on the present values of its lease payments over its respective lease term. When a borrowing rate is not explicitly available for a lease, the incremental borrowing rate is used based on information available at the lease’s commencement date to determine the present value of its lease payments. Operating lease payments are recognized on a straight-line basis over the lease term. F- 26 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) The table below presents the lease-related assets and liabilities recorded on the balance sheet. SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES 2025 2024 As of June 30, 2025 2024 Assets Right-of-use asset (1) $ 720,000 $ 720,000 Right-of-use assets (2) 162,092 64,910 Total RoU assets $ 882,092 $ 784,910 Less: Accumulated amortization ( 363,717 ) ( 275,428 ) Operating lease right of use assets $ 518,375 509,482 Liabilities Current: Operating lease liabilities $ 38,311 $ 24,881 Finance lease liabilities - 22,323 Total lease liabilities current 38,311 47,204 Finance lease liabilities – assets held for sale $ - $ 603,252 Total Current Lease Liabilities $ 38,311 650,456 Non-current: Operating lease liabilities $ 91,639 $ 4,602 Finance lease liabilities - 86,565 Total Non-current Lease Liabilities 91,639 91,167 Total lease liabilities $ 129,950 $ 741,623 Leases ● Right-of-use assets: $ 518,375 and $ 509,482 as of June 30, 2025 and 2024, respectively ● Lease liabilities: $ 129,950 and $ 741,623 as of June 30, 2025 and 2024, respectively ● Amortization of right-of-use assets for the years ended June 30, 2025 and 2024: $ 34,825 and $ 117,517 , respectively (1) This leasing arrangement for the lease of the Segama factory amounting to $ 720,000 is for a lease term of seven ( 7 ) years and included an exclusive right and option to purchase the factory site, together with all its right title and interest, for a consideration to be mutually agreed between the parties at any time during the period of two years from the date of the Lease Agreement ended March 1, 2024. The option was not exercised and has lapsed. There are no corresponding lease liabilities recorded as the lease payments for the entire lease period has been paid upfront upon inception of the agreement. (2) The Company through its wholly owned subsidiary VRI entered into various lease arrangements for the use of motor vehicles for lease term of three (3) to four (4) years which expire at various dates through 2029. Certain of the lease arrangements contain option to purchase at an agreed consideration as stated in the respective lease agreement. The Company’s lease agreements do not contain any material restrictive covenants. The table below presents the information related to weighted average discount rate and the remaining lease term (years) of the operating leases. SCHEDULE OF THE LEASE TERMS AND DISCOUNT RATES As of June 30, 2025 2024 Operating leases Weighted average discount rate 9.00 % 18.20 % Weighted average remaining lease term (years) 3.10 1.17 Finance leases Weighted average discount rate NA 6.73 % Weighted average remaining lease term (years) NA 3.66 The accretion of lease liability for the years ended June 30, 2025 and 2024, were $ 8,023 and $ 7,471 , respectively. F- 27 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) The Company excludes short-term leases (those with lease terms of less than one year at inception) from the measurement of lease liabilities or right-of-use assets. The following tables summarize the lease expense for the years. SCHEDULE OF LEASE COSTS 2025 2024 Years ended June 30, 2025 2024 Finance lease cost: Interest on lease liabilities (per ASC 842) $ 5,368 $ 45,926 Operating lease cost: Operating lease expense (per ASC 842) 145,705 131,096 Total lease expense $ 151,073 $ 177,022 Components of Lease Expense The Company recognizes operating lease expense on a straight-line basis over the term of the operating leases, comprising interest expense determined using the effective interest method, and amortization of the right-of-use asset, as reported within “general and administrative” expense on the accompanying consolidated statement of operations. Finance lease expense comprises of interest expenses determined using the effective interest method. Future Contractual Lease Payments as of June 30, 2025 The table below summarizes our (i) minimum lease payments over the next five years, (ii) lease arrangement implied interest, and (iii) present value of future lease payments for the next three years and thereafter ending June 30: SCHEDULE OF FUTURE MINIMUM OPERATING LEASE PAYMENTS Years ending June 30, Operating and finance lease amount 2026 48,435 2027 48,435 2028 37,710 Thereafter 15,741 Total minimum lease liabilities payment 150,321 Less: imputed interest ( 20,371 ) Present value of lease liabilities $ 129,950 F- 28 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) NOTE 15 - STOCKHOLDERS’ EQUITY Authorized Stock The Company has authorized 10,000,000,000 Common shares and 50,000,000 preferred shares, both with a par value of $ 0.001 per share. Each Common share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholders of the corporation is sought. Preferred stock outstanding There are no preferred shares outstanding as of June 30, 2025, and 2024. Common stock outstanding As of June 30, 2025 and 2024, the Company had received proceeds and entered into binding subscription agreements for 7,744,445 shares and 21,988,335 shares respectively, that were issued shortly after year-end due to administrative timing. The Company had no remaining substantive performance obligations, and the investors were irrevocably committed to the transactions as of the balance sheet date, with no conditions precedent remaining. These 7,744,445 shares as of June 30, 2025 were subsequently issued in July 2025, and 21,988,335 shares as of June 30, 2024 were subsequently issued in July 2024 and August 2024. Shares based awards represent unregistered securities and are subject to resale restrictions under Rule 144 of the Securities Act of 1933, as amended. Stock cancellations and re-issuances ● On September 8, 2023, the Company, through VRI, entered into a Service and Stock Cancellation Agreement with Steven Sorhus pursuant to the termination of his service resulting in the cancellation of 171,591 shares. The Service Agreement was dated December 1, 2022 for the first tranche of 300,000 shares of Common Stock which were issued at $ 0.20 per share on December 31, 2022 totaling $ 60,000 . The cancellation of the shares, were effected via the cancellation of the initial 300,000 shares which was completed on March 28, 2024 and the re-issuance of 128,409 shares of shares of Common Stock on May 24, 2024, to compensate his prior service. ● On September 8, 2023, the Company, through VRI, entered into a Service and Stock Cancellation Agreement with EMGTA LLC to cancel the Service Agreement dated December 1, 2022, including the cancellation of 375,000 shares of Common Stock that were issued at $ 0.20 per share on December 31, 2022 totaling $ 75,000 as consideration for certain services. The cancellation is still in process. ● On September 12, 2023, the Company, through VRI, entered into a Service and Stock Cancellation Agreement with Y M Tengku Chanela Jamidah Y A M Tengku Ibrahim pursuant to the termination of her service resulting in the cancellation of 333,333 shares. The Service Agreement was dated November 30, 2022 for the first tranche of 500,000 shares of Common Stock which were issued at $ 0.20 per share on December 31, 2022 totaling $ 100,000 . The cancellation of the shares were effected via the cancellation of the initial 500,000 shares, which was completed on March 28, 2024 and the re-issuance of 166,667 shares of shares of Common Stock on May 24, 2024, to compensate her prior service. As such, the total number of cancelled shares of 504,924 shares and the number of shares remaining to be cancelled of 375,000 shares were measured at the grant-date fair value of $ 0.20 per share as per the original service agreements, and equity was reduced by $ 175,985 accordingly. F- 29 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Stock issued and stock cancelled to shareholders ● On November 22, 2023, the Company issued a total of 14,931,624 shares of Common Stock comprising 11,538,461 shares of Common Stock for $ 1,050,000 at $ 0.091 per share to five non-U.S. shareholders, 100,000 shares of Common Stock for $ 10,000 at $ 0.10 per share to one non-U.S. shareholder, 1,943,163 shares of Common Stock for $ 176,828 at $ 0.091 per share to ten U.S. shareholders and 1,350,000 shares of Common Stock for $ 135,000 at $ 0.10 per share to nine U.S. shareholders. ● On December 4, 2023, the Company issued a total of 1,238,889 shares of Common Stock comprising of 850,000 shares of Common Stock for $ 85,000 at $ 0.10 per share to four U.S. shareholders and 388,889 shares of Common Stock for $ 35,000 at $ 0.09 per share to one U.S. shareholders. ● On April 12, 2024, shares that were committed to be issued as of March 31, 2024 were fully settled by way of issuance of 2,881,274 shares of Common Stock at $ 0.108 per share to four non-U.S. shareholders in settlement of $ 311,178 subscription amounts paid, and issuance of 200,000 shares of Common Stock on April 15, 2024 at $ 0.091 per share to one U.S. shareholder in settlement of $ 18,200 subscription amount paid. ● On April 15, 2024, the Company issued a total of 3,055,555 shares of Common Stock to four U.S. shareholders, in which 2,300,000 shares of Common Stock were issued at $ 0.10 per share to two U.S. shareholders, 200,000 shares of Common Stock were issued at $ 0.091 per share to one U.S. shareholder, and 555,555 shares of Common Stock were issued at $ 0.09 per share to one U.S. shareholder. ● On July 24, 2024, the Company issued 3,194,443 shares of Common Stock for $ 287,500 at $ 0.09 per share to four U.S. shareholders and 6,005,000 shares of Common Stock for $ 600,500 at $ 0.10 per share to twenty U.S. shareholders and one non-U.S. shareholder. ● On August 9, 2024, the Company issued 888,888 shares of Common Stock for $ 80,000 at $ 0.09 per share to one U.S. shareholder and 11,840,000 shares of Common Stock for $ 1,184,000 at $ 0.10 per share to twenty-three U.S. shareholders and one non-U.S. shareholder. ● On August 26, 2024, the Company issued 722,221 shares of Common Stock for $ 65,000 at $ 0.09 per share to three U.S. shareholders, 3,990,000 shares of Common Stock for $ 399,000 at $ 0.10 per share to six U.S. shareholders and two non-U.S. shareholders. ● On September 16, 2024, the Company issued 222,222 shares of Common Stock for $ 20,000 at $ 0.09 per share to one U.S. shareholder and 350,000 shares of Common Stock for $ 35,000 at $ 0.10 per share to two U.S. shareholders. ● On October 16, 2024, the Company issued 800,000 shares of Common Stock for $ 80,000 at $ 0.10 per share to three U.S. shareholders. ● On November 27, 2024, the Company cancelled 450,000 shares of Common Stock that were previously issued to two U.S. shareholders. ● On January 2, 2025, the Company issued a total of 3,277,775 shares of Common Stock, comprising 2,500,000 shares of Common Stock for $ 250,000 at $ 0.10 per share to seven U.S. shareholders and 777,775 shares of Common Stock for $ 70,000 at $ 0.09 per share to six U.S. shareholders. F- 30 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) ● On January 6, 2025, the Company cancelled 200,000 Common Shares that were previously issued to two U.S. shareholders. ● On February 18, 2025, the Company issued a total of 3,905,555 shares of Common Stock, comprising 3,000,000 shares of Common Stock for $ 300,000 at $ 0.10 per share to one non-U.S. shareholder, 850,000 shares of Common Stock for $ 85,000 at $ 0.10 per share to seven U.S. shareholders and 55,555 shares of Common Stock for $ 5,000 at $ 0.09 per share to one U.S. shareholder. ● On April 22, 2025, the Company cancelled 150,000 Common Shares that were previously issued to one U.S. shareholder. ● On May 20, 2025, the Company issued 249,999 shares of Common Stock for $ 24,999.90 at $ 0.10 per share to one U.S. shareholder and one non-U.S. shareholder. Stock issued to nonemployees and employees ● On January 31, 2024, the Company issued 1,000,000 shares of the Company’s Common Stock to Donald R. Fosnacht. See Note 21 Shares Issued to Nonemployees and Employees, Fosnacht Agreement . ● On July 31, 2024 the Company issued 1,000,000 shares each to Dr. Nam Tran and Dr. Raymond Powell. See Note 21 Shares Issued to Nonemployees and Employees, National Implementation Expert Agreements . ● On August 8, 2024, the Company issued 700,000 shares of the Company’s Common Stock to Dale Ludwig. See Note 21 Shares Issued to Nonemployees and Employees , Ludwig Agreement. ● On August 30, 2024, the Company issued 1,350,000 of the Company’s shares of Common Stock to Jeremy P. Concanon. See Note 21 Shares Issued to Nonemployees and Employees, Jeremy P. Concannon Chief Growth Officer. ● On August 30, 2024, the Company issued 670,000 of the Company’s shares of Common Stock to Eric Bava. See Note 21 Shares Issued to Nonemployees and Employees, Eric Bava Chief Operating Officer. ● On January 2, 2025, the Company issued 4,656,550 of the Company’s shares of Common Stock to Aegis Ventures Limited. See Note 21 Shares Issued to Nonemployees and Employees, AUM Capital Markets Advisory Agreement. ● On January 3, 2025, the Company issued 50,000 of the Company’s Common Shares to Hannah Bruehl. See Note 21 Shares Issued to Nonemployees and Employees, Hannah Bruehl-Chief of Staff. ● On June 1, 2025, the Company issued 350,000 of the Company’s shares of Common Stock to Karl Strahl. See Note 21 Shares Issued to Nonemployees and Employees, Karl Strahl Director . ● On June 1, 2025, the Company issued 1,500,000 shares of the Company’s Common Stock to Sundeo Pty Ltd, an affiliate designated by C-Twelve. See Note 21 Shares Issued to Nonemployees and Employees, C-Twelve Joint Development and License Agreement. F- 31 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Debt settled in shares ● On August 16, 2024, the Company issued 9,655,542 shares of the Company’s Common Stock at the price of $ 0.07 per share to Borneo Oil Berhad in relation to the Settlement of Debts Agreement (the “SDA Agreement”) and a two-year term period Promissory Note entered into with its former indirect wholly-owned subsidiary Champmark Sdn Bhd (“CSB”) and CSB’s creditor Borneo Oil Corporation Sdn Bhd (the “Creditor”) to settle in full a total of $ 675,888 of CSB’s account payable. On March 13, 2023, the Company and CSB entered into an SDA Agreement and a two-year term period Promissory Note with the Creditor to settle in full a total of $ 675,888 of CSB’s account payable to the Creditor either in cash or by the issuance of new shares of the Company’s Common Stock at a price of $ 0.07 per share. As set out in the SDA Agreement, the new shares for settlement of the account payable to the Creditor shall be issued to the Creditor or its nominee. On August 16, 2024, the Company entered into a Supplementary Agreement to the SDA Agreement and Promissory Note with the Creditor to convert the total amount of $ 675,888 into 9,655,542 shares of the Company’s Common Stock. Not considering the commitment to cancel shares as above, there were 1,262,680,891 (including 7,744,445 shares which were issued for private placement subsequent to financial year end) and 1,221,346,586 (including 21,988,335 shares which were issued for private placement subsequent to financial year end) shares of Common Stock issued and outstanding at June 30, 2025 and 2024, respectively. Apart from the Common Stock which was issued as disclosed in Note 22, the Company has no stock option plan, warrants, or other dilutive securities as at June 30, 2025. As of June 30, 2024, 2,700,000 and 670,000 were committed to be issued to nonemployees and one employee respectively. NOTE 16 - NET LOSS PER SHARE The following table sets forth the computation of basic and diluted net (loss) income per share for the respective years: SCHEDULE OF NET LOSS PER SHARE 2025 2024 Years ended June 30, 2025 2024 Net loss $ ( 4,782,977 ) $ ( 3,187,774 ) Less: Net loss attributable to non-controlling interest 36 - Net loss attributable to Verde Resources, Inc. shareholders $ ( 4,783,013 ) $ ( 3,187,774 ) Weighted average common shares outstanding: - Basic and diluted 1,242,092,192 1,187,606,780 Net loss per share: - Basic and diluted $ ( 0.00 ) $ ( 0.00 ) # less than $0.005 For the years ended June 30, 2025, and 2024, diluted weighted-average common shares outstanding is equal to basic weighted-average common shares, due to the Company’s net loss position. Hence, no Common Stock equivalents were included in the computation of diluted net loss per share since such inclusion would have been antidilutive. The Company evaluated all share-based awards in accordance with ASC 260 and ASC 718 to determine whether any awards represented contingently issuable shares for purposes of calculating basic and diluted net loss per share. Management considered whether any awards were subject to substantive service, performance, market, forfeiture, repurchase, clawback, or other contingent provisions. The Company determined that the shares included in weighted-average Common Stock outstanding were legally issued, fully vested, and nonforfeitable upon issuance. Such shares were not subject to substantive service, market, or performance conditions and were not subject to contractual forfeiture, repurchase, clawback, or automatic cancellation provisions. Upon issuance, holders possessed the same rights as all other holders of the Company’s Common Stock, including voting, dividend and other ownership rights, and the shares were not subject to contractual restrictions on ownership, transfer or retention. Management further considered that the shares were not subject to vesting schedules, repurchase rights, or other contractual mechanisms that would cause the shares to be treated as contingently issuable under ASC 260. While certain shares were issued in advance of related service periods and compensation expense was recognized over those periods in accordance with ASC 718, management distinguished the accounting treatment of the related compensation expense from the determination of whether the shares were outstanding for purposes of calculating net loss per share. Because the shares were legally issued and outstanding and holders possessed the same rights as all other holders of the Company’s Common Stock, management concluded such shares did not represent contingently issuable shares under ASC 260 and were appropriately included in weighted-average Common Stock outstanding upon issuance. F- 32 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) NOTE 17 - INCOME TAX For the years ended June 30, 2025, and 2024, the local (“United States of America”) and foreign components of loss before income taxes were comprised of the following: SCHEDULE OF LOCAL AND FOREIGN COMPONENTS OF LOSS BEFORE INCOME TAXES 2025 2024 Years ended June 30, 2025 2024 Tax jurisdiction from: - Local (US regime) $ ( 4,845,138 ) $ ( 2,444,654 ) - Foreign, including British Virgin Island 472,865 ( 160,538 ) Malaysia ( 398,431 ) ( 578,231 ) Labuan, Malaysia ( 12,309 ) ( 4,239 ) Tax jurisdiction foreign ( 12,309 ) ( 4,239 ) Loss before income taxes $ ( 4,783,013 ) $ ( 3,187,662 ) The provision for income taxes consisted of the following: SCHEDULE OF PROVISION FOR INCOME TAXES 2025 2024 Years ended June 30, 2025 2024 Current tax: $ - $ - - Local - - - Foreign - - Deferred tax - Local - - - Foreign - - Income tax expense (benefit) $ - $ - The effective tax rate in the years presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate. The Company mainly operates in U.S. and Malaysia that is subject to taxes in the jurisdictions in which they operate, as follows: United States of America VRDR, VRI, VerdePlus and VLI are subject to the tax laws of United States of America. The U.S. corporate income tax rate is 21 % effective January 1, 2018. The Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits in its income tax provision. The Company has not accrued or paid interest or penalties which were not material to its results of operations for the periods presented. The Company has provided for a full valuation allowance against the deferred tax assets of $ 2,090,801 on the expected future tax benefits from the net operating loss (“NOL”) carry forwards of $ 9,956,196 as the management believes it is more likely than not that these assets will not be realized in the future. Net Operating Losses (NOLs) generated prior to January 1, 2018, are able to be carried forward up to twenty subsequent years. Any NOLs created for tax years subsequent to that may be carried forward indefinitely. However, any NOLs arising from tax years ending after December 31, 2020, can only be used to offset up to 80% of taxable income. For the years ended June 30, 2025, and 2024, there were no operating income under the applicable U.S. tax regime. BVI Under the current BVI law, VRAP is not subject to tax on income. Labuan Under the current laws of the Labuan applicable to BRL, income derived from an intellectual property right is subject to tax under the Malaysian Income Tax Act 1967 (ITA) at 24 % of its chargeable income. However, BRL is not subject to income tax, given that it was a net loss position during the current period presented. The losses are presently not able to be carried forward to offset against its future operation income as income generating activities have not yet been undertaken. F- 33 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Malaysia The Company’s subsidiaries, Verde Malaysia and Wision is registered in Malaysia and are subject to the Malaysia corporate income tax at a standard income tax rate of 24 % on chargeable income. The operation in Malaysia incurred $ 1,041,549 of cumulative net operating losses as of June 30, 2025 which can be carried forward to offset future taxable income. The net operating loss are allowed to be carried forward up to a maximum of ten (10) years of assessments under the current tax legislation in Malaysia. The Company has provided for a full valuation allowance against the deferred tax assets of $ 249,972 on the expected future tax benefits from the net operating loss (“NOL”) carry forwards as the management believes it is more likely than not that these assets will not be realized in the future. SCHEDULE OF INCOME TAX RATE AND TAX PROVISION 2025 2024 Years ended June 30, 2025 2024 Loss before income taxes $ ( 398,431 ) $ ( 578,231 ) Statutory income tax rate 24 % 24 % Income tax expense at statutory rate ( 95,623 ) ( 138,775 ) Non-deductible items 50,953 47,265 Tax losses unable to be carried forward 2,954 1,017 Valuation allowance 41,716 90,493 Income tax expense $ - $ - The following table sets forth the significant components of the deferred tax assets of the Company: SCHEDULE OF DEFERRED TAX ASSETS 2025 2024 As of June 30, 2025 2024 Deferred tax assets: Net operating loss carry forwards, from US tax regime $ 2,090,051 $ 1,439,384 Malaysia tax regime 249,972 205,026 Net operating loss carryforwards 249,972 205,026 Less: valuation allowance ( 2,340,023 ) ( 1,644,410 ) Deferred tax assets, net $ - $ - The Company has recorded valuation allowances for certain tax attribute carry forwards and other deferred tax assets due to uncertainty that exists regarding future realizability. If in the future the Company believes that it is more likely than not that these deferred tax benefits will be realized, the majority of the valuation allowances will be reversed in the consolidated statement of operations. The Company did not have uncertainty tax positions or events leading to uncertainty tax position within the next 12 months. F- 34 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) NOTE 18 - RELATED PARTY TRANSACTIONS SCHEDULE OF RELATED PARTY TRANSACTIONS 2025 2024 For the Years ended June 30, 2025 2024 Related party transactions: Sales to: Borneo Eco Food Sdn Bhd (1) $ - $ 4,071 SB Resorts Sdn Bhd ( 2) $ - $ 25,441 Sales $ - $ 25,441 Rental income: Mr. Jack Wong (3) $ 30,000 $ 60,000 Rental income $ 30,000 $ 60,000 Professional services provided by: Warisan Khidmat Sdn Bhd (4) $ - $ 17,905 Professional services provided $ - $ 17,905 Interest expense paid to: BOC (5) $ 1,738 $ 13,536 Interest expense paid $ 1,738 $ 13,536 Rental expense paid to: SB Resorts Sdn Bhd (2) $ 3,431 $ 1,918 Rental expense paid $ 3,431 $ 1,918 Sale of property: Mr. Jack Wong (3) $ 857,500 $ - Sale of property $ 857,500 $ - Settlement of debts by issuance of Company’s Common Stock BOC (2) $ 675,888 $ - Settlement of debts by issuance of company’s common stock $ 675,888 $ - Related party balances (other than those disclosed in Note 12 and Note 13) SCHEDULE OF RELATED PARTY BALANCES 2025 2024 As of June 30, 2025 2024 Accounts payable Warisan Khidmat Sdn Bhd (4) $ - $ 1,484 Accounts payable $ - $ 1,484 (1) Borneo Oil Berhad (“BOB”) is ultimate holding company of Borneo Eco Food Sdn. Bhd., and held 13.4 % of the Company’s issued and outstanding Common Stock as of June 30, 2025. (2) SB Resorts Sdn Bhd and Borneo Oil Corporation Sdn Bhd (“BOC”) are wholly owned subsidiaries of Borneo Oil Berhad (“BOB”) (holding 13.4 % of the Company’s issued and outstanding Common Stock as of June 30, 2025). (3) Mr. Jack Wong is the Chief Executive Officer of the Company effective October 1, 2022. By Waiver and Consent of Shareholders, Mr. Jack Wong was re-elected Director of the Company, effective March 30, 2024. This represents sale of the property located at 1138 Wildhorse Parkway Drive, Chesterfield, Missouri 63005 owned by VRI, for a current market value of $ 857,500 . A gain on disposal of $ 161,156 was recognized as a result of this transaction. (4) Warisan Khidmat Sdn. Bhd. is a company whose shareholdings is entirely held by a Director of Verde Malaysia. (5) On August 16, 2024, BOC and the Company entered into an arrangement to settle the debt of $ 675,888 owing to BOC by way of the issuance of 9,655,542 shares of the Company’s Common Stock. The settlement was deemed to be a capital transaction which represented a distribution to an equity holder and therefore was not charged in earnings. Refer Note 13 for further details regarding this transaction. Apart from the transactions and balances detailed elsewhere in these accompanying consolidated financial statements, the Company has no other significant or material related party transactions during the years presented. F- 35 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) NOTE 19 - CONCENTRATIONS OF RISKS The Company is subject to concentrations of credit risk primarily from customers and vendors. Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and accounts receivable. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. Major customers For the years ended June 30, 2025 and 2024, the Company had one and two customers, respectively, whose revenue accounted for more than 10% of total revenue. SCHEDULE OF CONCENTRATION RISK USD % USD % Revenue June 30, 2025 June 30, 2024 USD % USD % Customer A $ 125,120 $ 94 % 62,560 $ 64.8 % Customer B * - - 25,441 26.3 % Revenue - - 25,441 26.3 % Accounts Receivable Concentration Accounts receivable concentrations from customers representing more than 10% of total accounts receivable were as follows: 2025 2024 Account Receivable As of June 30, 2025 2024 Customer A $ 187,314 $ 62,560 Customer B * $ - $ 25,441 Accounts receivable $ - $ 25,441 * impaired and represents a related party. Major Vendors The Company relies on a limited number of vendors for certain materials and services used in its operations. For the years ended June 30, 2025 and 2024 the Company had one and two vendors respectively, whose purchases accounted for more than 10% of total direct costs included in cost of revenue. SCHEDULE OF REVENUE OF PRODUCTION AND DISTRIBUTION OF VENDORS USD % USD % Direct Costs June 30, 2025 June 30, 2024 USD % USD % Vendor A $ - $ - % 118,621 45 % Vendor B $ - $ - % 135,200 51 % Vendor C $ 8,800 $ 14 % - - % Direct Costs $ 8,800 $ 14 % - - % Accounts Payable Concentration Accounts payable concentrations from vendors representing more than 10% of total accounts payable were as follows: 2025 2024 Account Payable As of June 30, 2025 2024 Vendor A $ - $ 118,621 Vendor B $ - $ - Vendor C $ 8,800 $ - Account payable $ 8,800 $ - Revenue by Geographic Location The revenues below are based on the countries in which the Company’s customers are located. Summarized financial information concerning the geographic locations are shown in the following table: SCHEDULE OF REVENUE FROM EXTERNAL CUSTOMERS BY GEOGRAPHIC AREAS 2025 2024 Years ended June 30, 2025 2024 Malaysia $ 4,782 $ 34,024 United States of America 128,420 62,560 Revenue $ 133,202 $ 96,584 Economic and political risk The Company’s primary operations are conducted in the U.S. and Malaysia. Accordingly, the political, economic, and legal environments in these jurisdictions, as well as broader macroeconomic conditions may influence the Company’s business, financial condition, and results of operations. Further, the escalation tensions in the Middle East, including the continuing Russian – Ukraine conflict may impact the global economic situation, which indirectly may impact the Company’s operations. Exchange rate risk The Company cannot guarantee that the current exchange rate will remain steady; therefore, there is a possibility that the Company could post the same amount of losses for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of MYR converted to USD on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice. F- 36 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) NOTE 20 - PENSION COSTS The Company is required to make contribution to their employees under a government-mandated defined contribution pension scheme for its eligible full-times employees in Malaysia. The Company is required to contribute a specified percentage of the participants’ relevant income based on their ages and wages level. During the years ended June 30, 2025, and 2024, $ 5,275 and $ 10,064 contributions were made accordingly. NOTE 21 – SHARES ISSUED TO NONEMPLOYEES AND EMPLOYEES The Company enters into consulting, employment, and advisory agreements pursuant to which compensation may be paid, in whole or in part, through the issuance of shares of the Company’s Common Stock. Share-based awards issued under these arrangements are generally structured as separate equity awards with distinct grant dates corresponding to final board approval. Shares are issued as fully vested and nonforfeitable upon grant; however, such awards are often granted in advance of the performance of the related services. For certain arrangements, shares are awarded based on tranches covering varying service periods within the entire service agreement. Each tranche represents a separate share-based award with a distinct grant date. These awards are legally issued, fully vested and nonforfeitable upon issuance, and the recipients obtain the same ownership rights as all other holders of the Company’s Common Stock. Accordingly, the shares are recorded within stockholders’ equity upon issuance, while the related prepaid share-based compensation is recognized as an asset and amortized over the applicable service period, in accordance with ASC 718, as the related services are received. If the related services are not completed, the Company evaluates the remaining unamortized prepaid share-based compensation and will reverse amounts associated with unperformed services. In such circumstances, the Company shall seek to negotiate the voluntary cancellation of shares previously issued; however, such shares are not subject to contractual forfeiture, repurchase, or automatic cancellation provisions. Consulting and Advisory Agreements Looi Pei See Agreement On December 15, 2022, the Company entered into a Services Agreement with Looi Pei See (the “Looi Pei See Agreement”) to support the development of retail markets in Malaysia and Singapore. Under the Looi Pei See Agreement, the Company issued 1,140,000 shares of the Company’s Common Stock on December 31, 2022. The shares had a grant date fair value of $ 228,000 , based on a closing stock price of $ 0.20 per share on December 31, 2022 (date of final board approval and grant date). The shares were issued in advance of the service period from December 15, 2022 through December 14, 2025. Accordingly, the Company recognizes the related compensation expense over the three-year service period. During the year ended June 30, 2025, the Company recognized $ 74,082 of consulting expense related to this agreement, which is included in selling, general and administrative expenses. Fosnacht Agreement On October 23, 2023, the Company, through VRI, entered into a Services Agreement (the “Fosnacht Agreement”) with Donald R. Fosnacht to engage him as National Certification and Extensive BCR (Biochar Carbon Removal) Implementation Specialist to develop and implement a comprehensive strategy to obtain national and regional certification and endorsement for carbon net-negative construction products with high biochar content, encompassing asphalt, concrete, and soil stabilization as designated in the Agreement. F- 37 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Under the Fosnacht Agreement, the Company issued 1,000,000 shares of the Company’s Common Stock, on January 31, 2024. The shares had a grant-date fair value of $ 134,000 , based on a closing stock price of $ 0.134 per share on January 31, 2024 (date of final board approval and grant date). The term of the Fosnacht Agreement expired on December 31, 2025. The shares were issued in advance of the service period through December 31, 2025, and compensation expense is recognized over the service period. During the year ended June 30, 2025, the Company recognized $ 61,061 of consulting expense related to this agreement. National Implementation Expert Agreements On April 20, 2024 and as amended on June 29, 2024, the Company entered into two Services Agreements (the “NIE Agreements”) with Dr. Nam Tran and Dr. Raymond Powell to serve as National Implementation Experts for VRI, to initiate connections with esteemed asphalt contractors, identify potential partners, explore potential collaborations through their extensive networks in the asphalt industry and recommend strategies to capitalize on emerging opportunities as designated in the NIE Agreements. Under the NIE Agreements, each consultant is entitled to receive 3,000,000 shares of Common Stock, to be granted in three separate tranches of 1,000,000 shares each corresponding to successive twelve-month service periods beginning May 1, 2024. The term of the NIE Agreements will remain effective until April 30, 2027, and both parties may renew their respective agreement, or enter into a new agreement as may be mutually agreed on terms to be separately negotiated. The first tranche of 1,000,000 shares for each consultant was approved and issued on July 31, 2024 and had a grant-date fair value of $ 360,000 per consultant based on a stock price of $ 0.36 per share on July 31, 2024 (date of final board approval and grant date). As the second tranche of 1,000,000 shares to Dr. Raymond Powell were only approved and issued on July 1, 2025 (date of final board approval and grant date), the compensation expense for the service period for the two months ended June 30, 2025 was accrued for based on management’s best estimate of the fair value of the stock determined as the stock price as of grant date of $ 0.095 per share, for a total fair value of $ 95,000 . As the second tranche for Dr Nam Tran remained to be issued as of June 30, 2025, the accrual for the service period of two months ended June 30, 2025 was based on management’s best estimate of the fair value of 1,000,000 shares as of June 30, 2025, being $ 100,000 , valued at $ 0.10 per share. During the year ended June 30, 2025, the Company recognized $ 632,261 of consulting expenses related to the NIE Agreements, which includes accruals based on best estimate for two months ended June 30, 2025 for the second tranche of 1,000,000 shares each, and is recorded to selling, general and administrative expenses. Ludwig Agreement On June 1, 2024 and as amended June 29, 2024, the Company entered into a multi-year Services Agreement with Dale Ludwig (the “Ludwig Agreement”) to serve as a Strategic Advisor to maintain and build strong relationships with policymakers at both state and federal levels, collaborate with Missouri Department of Transportation, build relationships with MAPA members, collaborate with Missouri contractors to encourage the use of the Company’s technologies, identify current biochar producers in Missouri and engage with the Missouri Department of Economic Development. The agreement provides for the issuance of 2,000,000 shares of Common Stock in three tranches ( 700,000 , 700,000 , and 600,000 shares), each representing separate awards corresponding to successive service periods, which begins 11 months from June 1, 2024 and 12 months from May 1, 2025, and May 1, 2026, respectively. The first tranche of 700,000 shares was approved and issued on August 8, 2024 and had a grant-date fair value of $ 210,000 , based on a stock price of $ 0.30 per share on August 8, 2024 (date of final board approval and grant date). F- 38 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) As the second tranche for Dale Ludwig remained to be issued as of June 30, 2025, the accrual for the service period of two months ended June 30, 2025 was based on management’s best estimate of the fair value of 700,000 shares as of June 30, 2025, being $ 70,000 , valued at $ 0.10 per share. During the year ended June 30, 2025, the Company recognized $ 202,836 of consulting expense related to the Ludwig Agreement, which includes accruals based on best estimate for two months, and is recorded to selling, general and administrative expenses. AUM Capital Markets Advisory Agreement On November 29, 2024, the Company, through VRI entered into a Consulting Services Agreement (the “AUM Agreement”) to engage AUM Media Inc (“AUM”), a Delaware corporation, to provide capital markets advisory, investor relations, and media relations services in connection with the Company’s planned equity financing and anticipated Nasdaq uplisting. The AUM Agreement provides for: ● a monthly cash fee of $ 6,000 , and ● the issuance of 9,313,100 shares ( 0.75 % of the Company’s outstanding shares as of November 29, 2024) The shares are issuable in two tranches: ● 4,656,550 shares upon execution of the agreement ● 4,656,550 shares upon Nasdaq listing On January 2, 2025, the Company issued the first tranche of 4,656,550 shares to Aegis Ventures Limited, as designated by AUM. The 4,656,550 shares had a grant-date fair value of $ 745,048 , based on a grant date of November 29, 2024 and closing stock price of $ 0.16 per share. The shares were issued in advance of the service period from January 1, 2025 through December 31, 2025, and compensation expense is recognized over the service period. During the year ended June 30, 2025, the Company recognized $ 369,462 of consulting expense related to the AUM Agreement and is recorded to selling, general and administrative expenses. Employee and Director Share Compensation Eric Bava – Chief Operating Officer On October 1, 2023, the Company entered into an employment Agreement with Eric Bava, (the “Bava Employment Agreement”, as amended) with the Company’s Chief Operating Officer. The Company agreed to issue 670,000 of the Company’s Common Stock annually to Eric Bava, upon completion of each full year of service under the Bava Employment Agreement, as amended. The term of the Bava Employment Agreement will remain effective until September 30, 2027. On August 30, 2024, the Company approved and issued 670,000 shares with a grant-date fair value of $ 181,235 , based on a closing stock price of $ 0.2705 per share on August 30, 2024 (date of final board approval and grant date). These shares were related to service period from October 1, 2023 through September 30, 2024, and the related expense was accrued based on best estimate as of June 2024. The related expense for the year ended June 30, 2025 amounted to $ 45,556 . Pursuant to the addendum dated August 29, 2025, the grant-date fair value of the share-based compensation for the second year of service was established at $ 60,000 . Prior to the establishment of the grant date, compensation expense was accrued based on management’s estimate of fair value in accordance with ASC 718-10-30-6. Accordingly, $ 44,877 was recognized over the requisite service period from October 1, 2024 through June 30, 2025. During the year ended June 30, 2025, the Company recognized $ 90,433 of compensation expense. The expense is recorded to selling, general and administrative expenses. F- 39 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Jeremy P. Concannon – Chief Growth Officer On July 31, 2024, VRI entered into Service Agreement with Jeremy P. Concannon, the Company’s Chief Growth Officer of the Company, effective from August 1, 2024 (the “Concannon Services Agreement”). Pursuant to the Concannon Services Agreement, as amended on September 27, 2024, the Company agreed to issue a total of 4,050,000 shares of the Company’s Common Stock to Jeremy P. Concannon over three tranches of 1,350,000 shares, with each tranche of shares to be issued as compensation for each service period beginning 12 months from August 1, 2024, and 2025, and for 14 months from August 1, 2026, to September 30, 2027, respectively. The term of the Concannon Service Agreement will remain effective until September 30, 2027, and both parties may renew the agreement, or enter into a new agreement as may be mutually agreed on terms to be separately negotiated. The first tranche of 1,350,000 shares was approved and issued on August 30, 2024, with a grant-date fair value of $ 365,175 , based on a closing stock price of $ 0.2705 per share on August 30, 2024 (date of final board approval and grant date. During the year ended June 30, 2025, the Company recognized $ 334,160 of compensation expense related to the Concannon Agreement, which is recorded to selling, general and administrative expenses. The second tranche of 1,350,000 shares of Common Stock due to be issued to Mr. Concannon on August 31, 2025, has not been issued as of the date of these financial statements. Hannah Bruehl – Chief of Staff The Company agreed to issue 50,000 shares of Common Stock to Hannah Bruehl, Chief of Staff of the Company for service period from September 3, 2024 to September 2, 2025, as part of the compensation package in the Employment Agreement signed on September 3, 2024. The shares were approved and issued on January 3, 2025, and had a grant-date fair value of $ 9,280 , based on a closing stock price of $ 0.1856 per share on January 3, 2025 (date of final board approval and grant date). During the year ended June 30, 2025, the Company recognized $ 7,653 of compensation expense related to this award, which is recorded to selling, general and administrative expenses. Karl Strahl – Director On June 1, 2025, the Company approved and issued 350,000 shares of Common Stock to Karl Strahl under a director appointment agreement, dated May 1, 2025, covering the service period May 1, 2025 through April 30, 2026. The shares had a grant-date fair value of $ 33,110 , based on a stock price of $ 0.0946 per share on January 3, 2025 (date of final board approval and grant date). During the year ended June 30, 2025, the Company recognized $ 5,534 director compensation expense related to this award, which is recorded as selling, general and administrative expenses. License Agreement C-Twelve Joint Development and License Agreement On October 18, 2024, the Company entered into a binding Term Sheet with C-Twelve, pursuant to which C-Twelve agreed to grant the Company: (i) an exclusive license to utilize its proprietary binder and biochar asphalt mixed designs for the production and commercialization of asphalt surfacing-related products within the United States; and (ii) a first right of refusal to extend the exclusive licensing of the Licensed Technology to other countries and territories, subject to terms and conditions to be mutually agreed. The Term Sheet, originally set to expire on February 28, 2025, was subsequently extended to May 31, 2025. On May 19, 2025, the Company and C-Twelve entered into the definitive Joint Development Agreement, which formalized the licensing and collaboration terms contemplated by the Term Sheet. In consideration for the rights granted under the C-Twelve Agreement, the Company agreed to issue 1,500,000 shares of the Company’s Common Stock to C-Twelve within thirty (30) business days following the Effective Date. On June 1, 2025, the Company approved and issued 1,500,000 shares to Sundeo Pty Ltd, an affiliate designated by C-Twelve. The shares had a grant-date fair value of $ 141,900 , calculated based on the Company’s closing stock price of $ 0.0946 per share on June 1, 2025, which represents the date of final board approval and grant date. The Company determined that the share issuance represents compensation for services and other performance obligations associated with the arrangement including licensing, development, and collaboration activities. Accordingly, the fair value of the shares is recognized as expense over the service period of May 19, 2025 through May 18, 2035, in accordance with ASC 718. During the year ended June 30, 2025, the Company recognized $ 1,671 of licensing expense related to this agreement, which recorded in selling, general and administrative expenses. F- 40 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Unrecognized Stock-Based Compensation Although shares are generally issued as fully vested upon grant, certain awards are granted in advance of the performance of services. Accordingly, the Company has unrecognized stock-based compensation cost related to services to be rendered in future periods. As of June 30, 2025 and 2024: ● Nonemployee awards: $ 581,338 and $ 200,666 , respectively, to be recognized over a weighted-average period of 3.79 and 1.48 , respectively. ● Employee and director awards: $ 60,219 and $ 0 , respectively, to be recognized over a weighted-average period of 0.60 and 0 , respectively. There was no income tax benefit recognized in connection with stock-based compensation expenses. NOTE 22 - COMMITMENTS AND CONTINGENCIES Future commitments with regards to repayment of lease liabilities are disclosed in Notes 14. Apart from the above, as of June 30, 2025, the Company had the following commitments: a) commitment to issue shares of Common Stock to the following service providers on or before October 31, 2025 and 2026, subject to final board approval for the second and third tranches respectively as below, for services to be performed pursuant to the Service Agreements signed with nonemployees as disclosed in Note 15 and Note 21: SCHEDULE OF CAPITAL COMMITMENT Number of shares to be issued Financial year ended June 30, 2026 Nam Tran 1,000,000 Raymond Powell # 1,000,000 Dale Ludwig 700,000 Total 2,700,000 Financial year ended June 30, 2027: Nam Tran 1,000,000 Raymond Powell 1,000,000 Dale Ludwig 600,000 Total 2,600,000 # issued on July 1, 2025. F- 41 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) b) commitment to cancel 375,000 shares of Common Stock pursuant to the Service Agreement signed and Service and Stock Cancellation Agreement as disclosed in Note 15. c) quarterly committed payments, to be paid in advance of $ 62,500 for period from July 2025 to September 2026 to support a 3-year Performance Testing Project titled “Structural Capacity of Sustainable Pavement” pursuant to an agreement entered with The National Center for Asphalt Technology at Auburn University (“NCAT”) on June 27, 2024. d) commitment to issue 4,656,550 shares of Common Stock to Aegis Ventures Limited pursuant to the terms of the consulting services agreement that the Company through its wholly-owned subsidiary Verde Renewables, Inc. entered into with AUM on November 29, 2024, within three days following the Company’s listing on the Nasdaq. e) commitment to issue shares of Common Stock, comprising of 7,744,445 shares of Common Stock, comprising 4,444,445 shares of Common Stock for $ 400,000 at $ 0.09 per share to one non-U.S. shareholder and 3,300,000 shares of Common Stock for $ 264,000 at $ 0.08 per share to one non-U.S. shareholder and seven U.S. shareholders and the committed common shares was subsequently issued on July 1, 2025. f) Commitment to pay C-Twelve the remaining 50% of the sign-on fee or $ 150,000 on or before September 30, 2025 pursuant to the terms of the C-Twelve Agreement that the Company through its wholly-owned subsidiary Verde Renewables, Inc. entered into with C-Twelve on May 19, 2025. Pursuant to the terms of the C-Twelve Agreement, the Company will also allocate to C-Twelve a royalty equal to three percent (3%) of all future carbon removal credits generated through the use of Verde-C12 IPs, provide a loan to C-Twelve in an amount not less than USD $ 2,000,000 (the Loan), with interest accruing at the lowest applicable federal rate and pay the Loan to C-Twelve within 30 days following the Company’s successful uplisting from OTC to a National Exchange. As of June 30, 2025, the Company has no material contingencies. NOTE 23 - SUBSEQUENT EVENTS Share Issuances On July 1, 2025, the Company issued a total of 7,744,445 shares of Common Stock, comprising 4,444,445 shares of Common Stock for $ 400,000 at $ 0.09 per share to one non-U.S. shareholder and 3,300,000 shares of Common Stock for $ 264,000 at $ 0.08 per share to one non-U.S. shareholder and seven U.S. shareholders. On July 1, 2025, the Company issued the second tranche of 1,000,000 of the Company’s shares of Common Stock to Dr. Raymond Powell as part of the compensation package in the NIE agreement. On July 28, 2025, the Company issued a total of 187,500 shares of Common Stock for $ 15,000 at $ 0.08 per share to one U.S. shareholder. On September 12, 2025, the Company issued a total of 5,412,500 shares of Common Stock for $ 433,000 at a price of $ 0.08 per share to three non-U.S. shareholders. Appointment of Director Effective July 3, 2025, by resolution of the Board, Dr. Raymond Powell was appointed as a member of the board of directors of the Company. Test Results In July 2025, Verde Resources Inc. received encouraging preliminary performance results from the National Center for Asphalt Technology (NCAT) regarding its Cold-Mix Biochar-Asphalt test section at NCAT’s Test Track—installed in December 2024. After approximately 50,000 equivalent single axle loads (ESALs) of heavy truck traffic, the asphalt surface remained flexible and demonstrated consistent durability, particularly under low-volume roadway conditions, as confirmed by NCAT’s Assistant Director for Test Track Research, Mr. Nathan Moore. This demonstration marks the world’s first deployment of a carbon-sequestering asphalt material engineered to maintain competitive strength and flexibility for road applications. Verde announced this milestone in a press release on July 28, 2025. F- 42 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) In September 2025, NCAT’s latest evaluation of Verde’s cold recycling mix using 100% RAP further validated the testing results of our proprietary formulation. Laboratory testing conducted in accordance with ASTM D6927 (Marshall Stability and Flow), ASTM D6931 (Indirect Tensile Strength), and AASHTO T283 (Moisture Susceptibility) demonstrated that Verde’s cold-recycled mix not only meets but exceeds industry specifications for cold-recycled asphalt. Results showed superior cohesion, high TSR, and retained stability compared to standard cold mix benchmarks, validating its strength, durability, and moisture resistance. Addendum to C-Twelve Agreement Effective October 8, 2025, the Company entered into an addendum to the Joint Development Agreement (the “C-Twelve Addendum”) with C-Twelve pursuant to which (i) C-Twelve approved the Company’s entry into the License Agreement with Ergon, (ii) the exclusive territory granted to Verde under the Joint Development Agreement is expanded to comprise the United States of America (including all states, territories, and regions thereof), Canada and Mexico, (iii) the Company agreed to pay an additional $1 million in exclusive licensing fees for the expanded territories of Canada and Mexico, which shall be paid concurrently with the $2 million loan previously agreed upon under the Joint Development Agreement (the “C-Twelve Loan”) and (iv) the Company agreed to a potential conditional fee payment to C-Twelve in 2027 based on agreed to minimum amounts of liters of Verde 24 which the Company may purchase from C-Twelve. The Company is required to fund the C-Twelve Loan and the additional $1 million fee to C-Twelve (the proceeds of which are expected to be used by C-Twelve in part to enhance its Verde 24 manufacturing capability) within thirty (30) days of closing of a transaction in which our Common Stock becomes listed on a U.S. national exchange, provided that if such funding is not achieved by July 31, 2026, C-Twelve shall have the right, on ten (10) business days’ notice, to hold us in breach of the Joint Development Agreement. Ergon License On October 10, 2025, Verde Renewables entered into a license agreement with Ergon, pursuant to which the Company has granted Ergon an exclusive, non-transferable license to use, manufacture, commercialize, market, sell and distribute any product that contains or is manufactured or formed by Ergon using the Company’s proprietary cold mix biochar asphalt emulsifying agent, Verde V24, in the United States (including its territories), Canada and Mexico, in exchange for Ergon agreeing to purchase Verde V24 from the Company at a fixed price (which is inclusive of all fees associated with the license, but subject to consumer price index adjustments) for use in Ergon’s asphalt road materials products. The Company has agreed with Ergon to an initial fifteen (15) month “go-to-market period”, during which there will be no minimum purchase requirements for Ergon’s purchases of Verde V24. For each calendar year beginning January 1, 2027, Ergon has agreed to negotiate with the Company in good faith towards the establishment of possible minimum purchase amounts based on certain customary factors. The Company has also agreed with Ergon that if minimum purchase amounts are agreed to for any given calendar year, the Company and Ergon will agree in good faith to new minimum purchase amounts for each subsequent year, subject to consideration of customary factors. The Company has also agreed to provide Ergon with forty percent (40%) of its share of the carbon removal credits generated from the mixing of the final carbon sequestering BioAsphalt™ surface material, so long as: (a) the carbon removal credits are generated from bulk mixing or packaged mixed product, and (b) the mixing of the final BioAsphalt™ surface material includes biochar purchased from the Company. The Ergon License additionally grants Ergon the right to use the Company’s trademarks and access to ongoing technical services to facilitate the monitoring, reporting, and verification process of each ton of carbon dioxide sequestered. The term of the Ergon License is ten (10) years, with an automatic renewal for additional ten (10) year periods, subject to a minimum of six (6) months’ notice of cancellation prior to renewal. The Ergon License may be terminated in the event of non-payment of amounts due, initiation of bankruptcy proceedings, or under other customary terms. Additionally, Ergon may terminate the Ergon License upon sixty (60) days’ prior written notice in the event that our Chief Executive Officer, Jack Wong, or our Chief Operating Officer, Eric Bava, are removed from their respective positions with the Company for reasons other than termination for cause or voluntary resignation. The Ergon License additionally contains provisions regarding confidentiality, indemnification, and representations and warranties of the parties that are customary for such an agreement. Entry into Non-binding Term Sheet for an Equity Financing On October 10, 2025, the Company entered into a non-binding term sheet with Ergon for a $ 2 million investment by Ergon in the Company. In accordance with ASC Topic 855, “ Subsequent Events ”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before consolidated financial statements are issued, the Company has evaluated all events or transactions that occurred after June 30, 2025, up through the date the Company issued the audited consolidated financial statements. F- 43 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) NOTE 24 – REVISIONS OF PRIOR-YEAR COMPARATIVE AMOUNTS During the preparation of the consolidated financial statements for the year ended June 30, 2025, management identified errors in the classification of certain share-based compensation arrangements and equity balances in the previously issued consolidated financial statements for the year ended June 30, 2024. As a result, the Company has revised certain prior-year comparative amounts to correct these errors. The Company evaluated these adjustments in accordance with ASC 250-10-45-22 through 45-26 and concluded that the revision was required to correct errors in the application of ASC 718, specifically related to the classification of certain equity-related balances. Management determined that certain share-based compensation arrangements for which the service inception period had commenced, but the grant-date criteria under ASC 718 had not yet been established, were previously presented within stockholders’ equity. Under ASC 718, when the grant date has not occurred but services have begun, the related cost attribution should be recognized as a liability until the grant-date criteria are satisfied. Accordingly, the Company has revised the comparative balance sheet as of June 30, 2024 to reclassify the related accrued share-based compensation amounts from stockholders’ equity to current liabilities. In addition, the Company adjusted the presentation of certain equity-related accounts to reflect their appropriate classification in accordance with U.S. GAAP. The Company further evaluated whether the identified errors were material to the previously issued financial statements in accordance with ASC 250 and Staff Accounting Bulletin No. 99. Based on this evaluation, the Company determined that the errors were not material, either individually or in the aggregate, to the prior period financial statements and did not materially impact trends in results of operations, compliance with regulatory requirements, or key financial metrics. Accordingly, the Company concluded that a revision of prior period financial statements (commonly referred to as a “little r” revision) was appropriate and has revised the prior period financial statements in the current filing to correct these errors and enhance transparency. Equity and Share-Based Compensation Presentation (i) Certain balances previously presented as Common Stock to be issued were combined with Common Stock issued in the consolidated statements of changes in stockholders’ equity to reflect issued share capital on a consistent basis. (ii) Balances previously presented as Common Stock to be cancelled and Common Stock subject to forfeiture were reclassified within APIC to appropriately reflect their nature as equity adjustments, for issued fully vested and non-forfeitable stocks issued, which were mutually agreed to be cancelled as of the year end. (iii) Share-based compensation arrangements for which the service inception period had commenced but the grant-date criteria under ASC 718 had not yet been met were previously presented within stockholders’ equity. Management determined that the related cost attribution should be presented as a current liability until the grant-date criteria are satisfied. Accordingly, these balances have been reclassified from stockholders’ equity to current liabilities in the consolidated balance sheet as of June 30, 2024. The revisions described above had no impact on previously reported net loss, earnings per share, total assets, or total cash flows. However, it resulted in changes to the classification and presentation of certain line items within the consolidated balance sheet and consolidated statements of changes in stockholders’ equity. F- 44 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Summary of Restated Comparative Amounts (June 30, 2024) SCHEDULE OF CONSOLIDATED STATEMENTS OF BALANCE SHEET Consolidated balance sheet line item As previously reported Revisions As revised Accrued share-based compensation for nonemployee $ - $ 139,191 $ 139,191 Accrued share-based compensation for employee $ - 135,679 135,679 Accrued share-based compensation $ - 135,679 135,679 Total current liabilities $ 2,478,231 $ 275,659 $ 2,753,890 Total liabilities $ 2,569,398 $ 275,659 $ 2,845,057 Common stock $ 1,199,358 $ 21,988 $ 1,221,346 Common stock to be issued $ 22,887 $ ( 22,887 ) $ - Common stock to be cancelled $ ( 375 ) $ 375 $ - Additional paid-in capital $ 49,921,380 $ ( 274,346 ) $ 49,647,034 Total equity $ 37,591,140 $ ( 274,870 ) $ 37,316,270 Total equity and liabilities $ 40,160,538 $ 789 $ 40,161,327 Consolidated statements of changes in stockholders’ equity line item SCHEDULE OF CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY No. of shares Amount issued cancelled capital Total Common stock Common stock to be Common stock to be Additional paid-in No. of shares Amount issued cancelled capital Total Shares issued for private placement - As previously reported 22,662,899 $ 22,663 $ - $ - $ 2,128,544 $ 2,151,207 - Revisions 21,988,333 $ 21,988 $ - $ - $ 2,145,012 $ 46,818,232 - As revised 44,651,232 $ 44,651 $ - $ - $ 4,273,556 $ 48,969,439 Shares issued for private placement 44,651,232 $ 44,651 $ - $ - $ 4,273,556 $ 48,969,439 Shares to be issued for private placement - As previously reported 21,988,335 $ - $ 21,988 $ - $ 2,145,012 $ 2,167,000 - Revisions ( 21,988,335 ) $ - $ ( 21,988 ) $ - $ ( 2,145,012 ) $ ( 2,167,000 ) - As revised - $ - $ - $ - $ - $ - Shares to be issued for private placement - $ - $ - $ - $ - $ - Common stock subject to forfeiture - As previously reported - $ - $ - $ ( 1,175 ) $ ( 175,105 ) $ ( 176,280 ) - Revisions - $ - $ - $ 1,175 $ 175,105 $ 176,280 - As revised - $ - $ - $ - $ - $ - Common stock subject to forfeiture - $ - $ - $ - $ - $ - Shares cancelled - As previously reported ( 800,000 ) $ 800 $ - $ 800 $ - $ - - Revisions 295,076 $ 295 $ - $ ( 800 ) $ ( 175,480 ) $ ( 175,985 ) - As revised ( 504,924 ) $ ( 505 ) $ - $ - $ ( 175,480 ) $ ( 175,985 ) Shares cancelled ( 504,924 ) $ ( 505 ) $ - $ - $ ( 175,480 ) $ ( 175,985 ) Shares to be issued to service providers - As previously reported 397,108 $ - $ 397 $ - $ 138,794 $ 139,191 - Revisions ( 397,108 ) $ - $ ( 397 ) $ - $ ( 138,794 ) $ ( 139,191 ) - As revised - $ - $ - $ - $ - $ - Shares to be issued to service providers - $ - $ - $ - $ - $ - Shares to be issued to employee - As previously reported 501,580 $ - $ 502 $ - $ 135,177 $ 135,679 - Revisions ( 501,580 ) $ - $ ( 502 ) $ - $ ( 135,177 ) $ ( 135,679 ) - As revised - $ - $ - $ - $ - $ - Shares to be issued to employee - $ - $ - $ - $ - $ - Reissued shares previously cancelled to service providers - As previously reported 295,076 $ 295 $ - $ - $ - $ 295 - Revisions ( 295,076 ) $ ( 295 ) $ - $ - $ - $ ( 295 ) - As revised - $ - $ - $ - $ - $ - Reissued shares previously cancelled to service providers - $ - $ - $ - $ - $ - Balance as of June 30, 2024 - As previously reported 1,222,245,276 $ 1,199,358 $ 22,887 $ ( 375 ) $ 49,921,380 $ 37,591,140 - Revisions ( 898,690 ) $ 21,988 $ ( 22,887 ) $ 375 $ ( 274,346 ) $ ( 274,870 ) - As revised 1,221,346,586 $ 1,221,346 $ - $ - $ 49,647,034 $ 37,316,270 Balance 1,221,346,586 $ 1,221,346 $ - $ - $ 49,647,034 $ 37,316,270 F- 45 Table of Contents VERDE RESOURCES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024 (Currency expressed in United States Dollars (“US$”), except for number of shares) Summary of Restated Comparative Amounts (June 30, 2024) The revised presentation reflects the correction of classification errors described above, as well as related adjustments to improve the consistency and comparability of the Company’s financial statement presentation between periods. In connection with the revisions, the Company made the following adjustments to the presentation of certain line items in the consolidated financial statements as of and for the year ended June 30, 2024: (i) The Company reclassified certain related party balances within the consolidated balance sheet to reflect their appropriate classification. (ii) The Company reclassified prepaid share-based compensation related to nonemployees to a separate financial statement line item within assets on the consolidated balance sheet to enhance transparency and consistency of presentation. (iii) The Company reclassified certain cash flow amounts related to leases within the consolidated statements of cash flows to conform to the current year presentation. As a result of the above adjustments, comparative amounts for the year ended June 30, 2024 have been revised to reflect the correction of classification errors and to conform to the current year presentation. Consolidated balance sheet line item As previously reported Revisions As revised Accounts receivables $ 65,960 $ 789 $ 66,749 Prepaid share-based compensation-nonemployees $ - $ 135,144 $ 135,144 Prepayments $ 222,173 $ ( 200,666 ) $ 26,507 Total current assets $ 3,494,419 $ ( 64,733 ) $ 3,429,686 Prepaid share-based compensation-nonemployees $ - $ 65,522 $ 65,522 Total non-current assets $ 36,666,119 $ 65,522 $ 36,731,641 Total assets $ 40,160,538 $ 789 $ 40,161,327 Accounts payable $ 92,250 $ ( 717 ) $ 91,533 Other payables $ 517,189 $ ( 56,177 ) $ 461,012 Amount due to related parties $ 327,867 $ 57,683 $ 385,550 Total current liabilities $ 2,478,231 $ 275,659 $ 2,753,890 Total liabilities $ 2,569,398 $ 275,659 $ 2,845,057 The revisions of the consolidated statements of cash flows includes the correction of classification errors related to certain lease-related cash flows, which were previously misclassified between operating and financing activities. These amounts have been reclassified in accordance with the appropriate guidance under ASC 842, Leases. This correction did not impact the total net change in cash for the period. SCHEDULE OF CONSOLIDATED STATEMENTS OF CASH FLOWS Consolidated statements of cash flows line item As previously reported Revisions As revised Operating lease expense $ 45,926 $ ( 17,686 ) $ 28,240 Repayment of operating lease liabilities $ - $ ( 28,240 ) $ ( 28,240 ) Total cash flows from operating activities $ ( 2,042,064 ) $ ( 45,926 ) $ ( 2,087,990 ) Lease interest paid $ ( 45,926 ) $ 45,926 $ - Total cash flows from financing activities $ 4,081,720 $ 45,926 $ 4,127,646 In addition, certain narratives within the notes to the consolidated financial statements included in this Amendment No. 1 on Form 10-K/A have been updated to enhance presentation, formatting, consistency, and disclosure clarity, without any amendments to the contents of the notes. These revisions did not result in any changes to the Company’s previously reported assets, liabilities, stockholders’ equity, results of operations, net cash flows, or net loss per share. F- 46