Verde Resources Reports 251% Revenue Growth and Strategic Partnerships in 10-K Filing

Verde Resources, Inc. reported significant financial developments in its recent 10-K filing for the fiscal year ending June 30, 2026. The company achieved revenues of $467,788, marking a 251% increase from $133,202 in the previous fiscal year. This growth was primarily driven by initial commercial sales of its proprietary cold mix asphalt emulsifying agent, Verde V24, to Ergon, a key partner in the asphalt industry. Despite the revenue increase, Verde reported a net loss of $3.38 million, a reduction of 29% from the previous year's loss of $4.78 million, attributed to higher gross profits and lower selling, general, and administrative expenses.

The company has made strategic advancements, including entering into a Master Commercialization and Collaboration Agreement (MCCA) with Ergon on July 1, 2026. This agreement positions Verde as Ergon's preferred supplier of engineered biochar, which is integral to the production of sustainable asphalt products. Additionally, Verde has established a Memorandum of Understanding (MoU) with Highway International Pte. Ltd. in Singapore, aiming to validate and commercialize its engineered biochar carbon platform in the region. These partnerships are expected to enhance Verde's market presence and facilitate its expansion into Southeast Asia.

Operationally, Verde has focused on scaling its production capabilities, particularly through its BioFraction facility in Sabah, Borneo, which is set to resume operations in 2027. The facility is designed to convert palm oil waste into biochar and other renewable products, supporting Verde's sustainability goals. The company anticipates that successful pilot projects in Southeast Asia could lead to increased demand for its engineered biochar and additional licensing opportunities.

Verde's business model emphasizes an asset-light approach, relying on strategic partnerships to minimize capital intensity while generating recurring revenue streams through licensing and carbon credit monetization. The company aims to leverage its relationship with Ergon to penetrate the North American market and expand its operations globally, particularly in regions aligned with the Paris Climate Agreement. However, Verde acknowledges the need for additional capital to support its growth initiatives and plans to seek funding through equity or debt financing.

Looking ahead, Verde Resources is optimistic about its potential to capture market share in the sustainable construction materials sector, driven by increasing demand for low-carbon solutions. The company is committed to continuous innovation and improvement of its technologies, which are designed to meet the evolving needs of the infrastructure sector while contributing to global sustainability efforts.