CONCENTRATIONS OF RISKS

12 Months Ended

Jun. 30, 2025

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.

	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:

	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.

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)

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

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+ Details

VERDE RESOURCES, INC. 10-K/A