10-Q - VERDE RESOURCES, INC. (0001506929) (Filer)

Tue, Nov 19, 10:19 PM (13 days ago)

For the quarter ended September 30, 2024, Verde Resources, Inc. (VRDR) reported a significant revenue increase to $126,000, up from $2,600 in the prior year, driven by sales of biochar asphalt products. The gross profit was $76,000, contrasting with a gross loss of $68,000 in the previous year. Operating expenses rose 78% to $813,000, primarily due to increased consultancy and share-based compensation costs. Despite these expenses, the company achieved a net profit of $355,000 compared to a loss of $549,000 in Q3 2023. Cash flows showed a net increase of $845,000, bolstered by $1.29 million from investing activities, including asset disposals and insurance recoveries. However, operating activities consumed $437,000 in cash. The company is transitioning to a focus on sustainable materials, having discontinued its mining and CBD operations. Future operations hinge on successful certifications and partnerships, particularly with NCAT for biochar-asphalt technology, which may generate additional revenue through carbon credits. Despite current profitability, uncertainties remain regarding financing and operational sustainability in the coming year.