Verde Resources Reports 1,546% Revenue Surge Amidst Rising Losses and High Operating Expenses

Summary of Recent Developments for Verde Resources, Inc. (OTCBB: VRDR)

Positive Aspects:

• New Revenue Source: The company reported a remarkable 1,546.4% increase in revenue, from $7,774 in December 2023 to $127,993 in December 2024.
• Gross Profit Improvement: Transitioning operations has allowed Verde Resources to achieve a gross profit of $68,845, reversing a gross loss of $131,587 in the previous year.
• Successful Technology Demonstration: December 2024 marked the successful testing of the Biochar-Asphalt technology, which sequestered about 8 tons of carbon, paving the way for carbon credits certification.
• Strategic Collaborations: Ongoing partnerships with CRH Ventures and NCAT are expected to accelerate commercialization efforts and enhance credibility in the sustainable building materials market.
• Growth Potential: The successful demonstration at the NCAT test track positions the company favorably for expanding its Biochar-Asphalt technology across U.S. infrastructure.

Negative Aspects:

• Substantial Losses: The company incurred a net loss of $2,694,329 for the three months ended December 31, 2024, compared to a loss of $526,338 during the same period in 2023.
• High Operating Expenses: Selling, general, and administrative expenses surged by 355.3% to $2,383,949 due to one-time bonuses, increased consultancy fees, and share-based compensations.
• Liquidity Concerns: Despite cash and cash equivalents reaching $892,000, accumulated deficits rose to $15,819,791, reflecting ongoing challenges in ensuring sustainable cash flows.

Key Financial Statistics:

• Revenue (Q4 2024): $2,423
• Cost of Revenue (Q4 2024): $9,552
• Gross Loss (Q4 2024): $(7,129)
• Net Loss (Q4 2024): $(2,694,329)
• Accumulated Deficit: $(15,819,791) as of December 31, 2024
• Total Assets: $39,745,600 as of December 31, 2024
• Cash and Cash Equivalents: $892,000 as of December 31, 2024

Concluding Remarks:

Verde Resources continues to pivot towards sustainable materials and carbon credit generation, bolstered by strategic partnerships. However, significant losses and rising operational costs pose challenges for financial stability in the near term. The company's future trajectory rests on successfully monetizing its innovations and maintaining effective cash flow management.