NOTE 2 – COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

Inventories

Inventories as of June 30, 2026, and December 31, 2025, are comprised of the following:

SCHEDULE OF INVENTORIES 

Quartzite inventories as of June 30, 2026 contain slabs produced through the cutting and polishing of natural quartzite. Slabs are actively sold in the market and classified as finished goods.

Property and Equipment

The following table sets forth the components of our property and equipment as of June 30, 2026 and December 31, 2025:

SCHEDULE OF PROPERTY AND EQUIPMENT

For the six months ended June 30, 2026 and 2025, we recorded depreciation and amortization expense of $11,502, $8,476, respectively.

Derivative assets - Non-Deliverable Forward

Our Brazilian subsidiaries are exposed to foreign-currency exchange-rate fluctuations in the normal course of business because a portion of their expenses are paid in Brazilian reais (BRL). To mitigate this exposure, these subsidiaries utilize non-deliverable forward foreign-exchange contracts (“NDFs”), which are designed to offset changes in cash flows attributable to currency exchange movements.

We apply hedge accounting in accordance with U.S. GAAP (ASC 815). As a result, these derivative instruments are designated and qualify as cash flow hedges, with the entire gain or loss on the derivative initially recorded in Other Comprehensive Income (OCI). These amounts remain deferred in OCI and are subsequently reclassified into earnings in the same income statement line item as the hedged item when it affects earnings.

We actively monitor the derivative portfolio of its subsidiaries on a monthly basis to assess financial results and cash flow implications. These contracts are used strictly for risk management purposes, and none of our Brazilian subsidiaries engage in speculative foreign-exchange transactions. Additionally, these contracts do not contain any credit-risk-related contingent features.

As of June 30, 2026, the fair value of outstanding NDF contracts was recorded as Derivative assets on the balance sheet. 

For the period ended June 30, 2026:

The following table summarizes the non-deliverable forward foreign exchange contracts that remain open as of June 30, 2026:

 SCHEDULE OF FOREIGN EXCHANGE CONTRACTS

Related Party Receivables/Payables

As of June 30, 2026, we had related party payables totaling $20,268, compared to $1,088,540 as of December 31, 2025.

The balance as of June 30, 2026 relates to amounts payable to Atlas Lítio do Brasil Ltda. (“ALB”), an indirect subsidiary of Atlas Lithium under a cost-sharing agreement for geology-related and administrative support services. The balance associated with this arrangement was $83,493 as of December 31, 2025.

The December 31, 2025 related party balance also included intercompany loans payable to Atlas Lithium totaling $1,005,049, which were fully settled during the first quarter of 2026.

Accounts Payable and Accrued Expenses

SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES 

Other Current Assets

Other current assets are comprised primarily of the amounts paid to Atlas Lithium following the Option Agreement, pursuant to which we acquired an option to acquire 100% of the equity interests of Brazil Minerals Resources Corporation, a wholly owned subsidiary of Atlas Lithium.

The table below summarizes the amounts presented as Other Current Assets:

SCHEDULE OF OTHER CURRENT ASSETS