VERDE RESOURCES, INC.

Verde Resources, Inc.

Overview

Verde Resources, Inc. is a road construction and building materials company focused on environmentally sustainable materials and carbon-removal economics. The company’s core concept is to embed engineered biochar into asphalt and other infrastructure materials to lower lifecycle emissions, improve performance, and create verifiable carbon removal credits. Verde pursues an asset-light licensing and strategic-collaboration model, supplying proprietary inputs (engineered biochar and related formulations) and providing carbon-credit monetization services rather than owning and operating full-scale manufacturing and installation.

Business model and commercialization

• Asset-light licensing and collaboration with strategic partners to commercialize biochar-based formulations in road materials.
• Primary commercialization partner: Ergon Asphalt & Emulsions, Inc. (Ergon). Verde has multi-year arrangements with Ergon to license and supply biochar-based formulations for North America, with potential future global expansion.
• Regional expansion plans via Verde Resources Asia Pacific Pte. Ltd. (VRAPPL) and a Sabah, Borneo BioFraction facility for biochar production and licensing.

Technologies and products

• Engineered Biochar: purpose-built biochar tailored for asphalt and other road applications, produced by a dedicated supplier (Biochar Solutions LLC, BSL) via a proprietary process.
• BioAsphalt: a 100% RAP (reclaimed asphalt pavement) cold-mix formulation that incorporates engineered biochar and Ergon’s engineered emulsion for road applications.
• Verde V24: an emulsifying agent for biochar asphalt formulations. Initially licensed via a C-Twelve arrangement; the current go-forward strategy with Ergon does not rely on Verde V24 as the primary path.
• TerraZyme: an enzyme-based soil-stabilization catalyst developed in collaboration with Nature Plus Inc. (NPI); potential for a worldwide exclusive license is under negotiation.
• BioFraction: a pyrolysis-based process to convert palm-waste biomass into biochar and other outputs; the Sabah facility is planned for production and regional licensing.

Key commercial agreements and initiatives

• Ergon License (October 2025): exclusive, non-transferable license for Ergon to use Verde V24-based biochar asphalt emulsions in the United States, Canada, and Mexico; Ergon will purchase Verde V24 at a fixed price subject to CPI adjustments.
• Master Commercialization and Collaboration Agreement (MCCA) with Ergon (July 2026): Verde Renewables designated as a preferred biochar supplier and carbon-credit monetization services provider. Ergon will develop and market Ergon-Verde products containing Verde’s biochar; the agreement includes supply commitments, revenue sharing from biochar sales, and sharing of carbon credits from Ergon-Verde products. An initial project (“Project #1”) will use Verde Renewables’ biochar in Ergon’s product.
• Biochar Solutions LLC (BSL) Supply Agreement (March 14, 2026) and First Amendment (June 30, 2026): BSL will manufacture and supply engineered biochar to Verde Renewables as the exclusive U.S. supplier. Initial supply is 38,500 tons/year; 50% of supply is expected to qualify for carbon removal credits. The parties have joint IP on a Designer-Blend Char formulation and may enter a long-term supply and revenue-sharing agreement; early termination is possible with notice.
• C-Twelve Agreement (June 2026): exclusive 10-year license in the U.S., Canada, and Mexico to produce and sell end-product asphalt containing Verde V24; includes a $1.0 million upfront licensing fee and a $2.0 million loan. Funding conditions were historically tied to Verde’s listing on a U.S. exchange; funding has not been provided to date. NCAT testing indicated Verde V24-based material is not yet ready for full-scale commercial deployment; Verde may still have obligations under the agreement.
• NPI MOU for TerraZyme (August 2024; effective through 2026): parties are exploring an exclusive worldwide license for TerraZyme; definitive license negotiations are ongoing.
• Highway International Pte. Ltd. MoU (August 2026): non-binding framework to license and implement Verde’s engineered biochar platform in Singapore; a Land Transport Authority (LTA) pilot is contemplated. VRAPPL will lead technical and operational work, with potential exclusive licensing in Singapore contingent on pilot success and definitive agreements.
• VRAPPL and regional hub setup (2026): Singapore-based subsidiary established to support licensing, business development, and commercialization in Asia-Pacific. Verde Malaysia (Sabah) will handle production and biochar supply for the region.

Testing and validation

• BioAsphalt: NCAT lab validations completed with favorable results (September 2025) and ongoing testing through 2026. NCAT demonstrated strength, TSR, and moisture resistance meeting or exceeding industry standards.
• Verde V24: tested in NCAT projects; remains a tested option but is not the primary commercialization path with Ergon as of 2026.
• TerraZyme: pilot test tracks being developed with NCAT; the technology may be combined with engineered biochar to reduce cement usage and improve pavement performance.

Production and supply

• Engineered biochar for U.S. supply is produced by BSL under the supply agreement. Verde Renewables sources other inputs, including Ergon emulsions for specific formulations, and uses RAP feedstock for cold-mix formulations.
• Sabah, Borneo BioFraction facility (Verde Malaysia/VRAP) is planned to ramp up starting in 2027, contingent on Singapore-related pilots and licensing. Initial capacity projections include approximately 1,080 tons of biochar in the first year and 1,350 tons annually thereafter, with broader regional supply tied to licensing activity.

Customers and financials

• Near-term revenue focus is on the Ergon license and MCCA, and on biochar supply and carbon-credit monetization services.
• The company identifies a high degree of customer concentration risk with a single primary customer, Ergon, under the current go-forward strategy.
• Reported financials:
  • Fiscal year 2026 (year ended June 30, 2026): net loss of approximately $3.44 million.
  • Fiscal year 2025 (year ended June 30, 2025): net loss of approximately $4.78 million.
  • Accumulated deficit as of June 30, 2026: approximately $21.71 million.

Workforce and corporate structure

• As of September 14, 2026, the company’s employees and consultants total 23 people:
  • Senior Management: 3
  • Sales and Marketing: 1
  • Production: 2
  • Information Technology: 5
  • Administration/Finance/HR: 4
  • Independent Consultants: 8
• Corporate structure: Verde Renewables is the primary operating subsidiary. The company has five wholly owned subsidiaries, one majority-owned subsidiary, and two wholly owned indirect subsidiaries, including Verde Malaysia and VRAPPL. VRAP serves as the Asia-Pacific licensing hub, with Verde Renewables and VRAPPL coordinating North American and Southeast Asia activities, respectively.

Geography and facilities

• United States: Verde Renewables (Missouri) is the primary operating company; U.S. biochar supply is provided by BSL.
• Southeast Asia: a Sabah, Borneo BioFraction facility for biochar production will be managed by Verde Malaysia (Sabah).
• Singapore: VRAPPL is established to drive licensing and commercialization in Asia-Pacific; a Highway MoU frames potential Singapore deployment and pilot activity.

Intellectual property

• Core technologies are largely protected as trade secrets, including engineered biochar formulations, biochar production processes, TerraZyme interactions, and catalytic BioFraction processes.
• Joint IP arrangements with BSL exist for the Designer-Blend Char formulation, with potential joint patent filings under discussion.
• Verde V24 and TerraZyme remain subject to ongoing patent and licensing considerations.

Key takeaways

• Verde Resources positions itself as an asset-light innovator at the intersection of sustainable road materials and carbon removal, using partnerships to commercialize engineered biochar in asphalt and related applications.
• Near-term revenue is expected to come primarily from the Ergon license and MCCA, with carbon-credit monetization as an additional monetization channel.
• The company is pursuing regional expansion in Southeast Asia and Singapore through VRAPPL and related regional hubs, while developing production capacity via the Sabah BioFraction facility.