NOTE 24 – REVISIONS OF PRIOR-YEAR COMPARATIVE AMOUNTS

During the preparation of the consolidated financial statements for the year ended June 30, 2025, management identified errors in the classification of certain share-based compensation arrangements and equity balances in the previously issued consolidated financial statements for the year ended June 30, 2024. As a result, the Company has revised certain prior-year comparative amounts to correct these errors.

The Company evaluated these adjustments in accordance with ASC 250-10-45-22 through 45-26 and concluded that the revision was required to correct errors in the application of ASC 718, specifically related to the classification of certain equity-related balances.

Management determined that certain share-based compensation arrangements for which the service inception period had commenced, but the grant-date criteria under ASC 718 had not yet been established, were previously presented within stockholders’ equity. Under ASC 718, when the grant date has not occurred but services have begun, the related cost attribution should be recognized as a liability until the grant-date criteria are satisfied. Accordingly, the Company has revised the comparative balance sheet as of June 30, 2024 to reclassify the related accrued share-based compensation amounts from stockholders’ equity to current liabilities. In addition, the Company adjusted the presentation of certain equity-related accounts to reflect their appropriate classification in accordance with U.S. GAAP.

The Company further evaluated whether the identified errors were material to the previously issued financial statements in accordance with ASC 250 and Staff Accounting Bulletin No. 99. Based on this evaluation, the Company determined that the errors were not material, either individually or in the aggregate, to the prior period financial statements and did not materially impact trends in results of operations, compliance with regulatory requirements, or key financial metrics. Accordingly, the Company concluded that a revision of prior period financial statements (commonly referred to as a “little r” revision) was appropriate and has revised the prior period financial statements in the current filing to correct these errors and enhance transparency.

Equity and Share-Based Compensation Presentation

(i) Certain balances previously presented as Common Stock to be issued were combined with Common Stock issued in the consolidated statements of changes in stockholders’ equity to reflect issued share capital on a consistent basis.

(ii) Balances previously presented as Common Stock to be cancelled and Common Stock subject to forfeiture were reclassified within APIC to appropriately reflect their nature as equity adjustments, for issued fully vested and non-forfeitable stocks issued, which were mutually agreed to be cancelled as of the year end.

(iii) Share-based compensation arrangements for which the service inception period had commenced but the grant-date criteria under ASC 718 had not yet been met were previously presented within stockholders’ equity. Management determined that the related cost attribution should be presented as a current liability until the grant-date criteria are satisfied. Accordingly, these balances have been reclassified from stockholders’ equity to current liabilities in the consolidated balance sheet as of June 30, 2024.

The revisions described above had no impact on previously reported net loss, earnings per share, total assets, or total cash flows. However, it resulted in changes to the classification and presentation of certain line items within the consolidated balance sheet and consolidated statements of changes in stockholders’ equity.

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)

Summary of Restated Comparative Amounts (June 30, 2024)

 SCHEDULE OF CONSOLIDATED STATEMENTS OF BALANCE SHEET

Consolidated statements of changes in stockholders’ equity line item

 SCHEDULE OF CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

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)

Summary of Restated Comparative Amounts (June 30, 2024)

The revised presentation reflects the correction of classification errors described above, as well as related adjustments to improve the consistency and comparability of the Company’s financial statement presentation between periods.

In connection with the revisions, the Company made the following adjustments to the presentation of certain line items in the consolidated financial statements as of and for the year ended June 30, 2024:

The revisions of the consolidated statements of cash flows includes the correction of classification errors related to certain lease-related cash flows, which were previously misclassified between operating and financing activities. These amounts have been reclassified in accordance with the appropriate guidance under ASC 842, Leases. This correction did not impact the total net change in cash for the period.

 SCHEDULE OF CONSOLIDATED STATEMENTS OF CASH FLOWS

In addition, certain narratives within the notes to the consolidated financial statements included in this Amendment No. 1 on Form 10-K/A have been updated to enhance presentation, formatting, consistency, and disclosure clarity, without any amendments to the contents of the notes. These revisions did not result in any changes to the Company’s previously reported assets, liabilities, stockholders’ equity, results of operations, net cash flows, or net loss per share.