v3.26.1
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 6 – SEGMENT REPORTING

 

The Company determined it has three reporting segments on the basis of its operations, products, and the economic characteristics of each of its operating segments and corresponds to the manner in which its Chief Operating Decision Maker (“CODM”) reviews and evaluates performance to make decisions about resources to be allocated to the segment. The Company’s segment structure reflects the Company’s engineering and process development services (“RPD”) its legacy O&G operations (“O&G”) and its emerging renewables initiatives (“Renewables”). Prior to the April 1, 2026 acquisition of RPD, the Company operated with two operating segments consisting of O&G and Renewables. As the acquisition was accounted for as a transaction between entities under common control, prior-period segment information has been retrospectively adjusted to reflect the current three-segment structure for all periods presented, as applicable.

 

The O&G segment generates revenue from oil and gas operations and the RPD segment generates revenue from its engineering, pilot plant operations, testing, process development, and technical services. The Renewables is in the pre-revenue stage, primarily incurring research and development and start-up costs associated with its development of scalable technologies for converting plastic and biomass waste into renewable fuels and chemicals. The CODM is a committee including the Company’s Chief Executive Officer, Chief Operating Officer, and Chief Financial Officer.

 

The Company measures and evaluates its reportable segments based on their respective adjusted net income (loss), general and administrative expenses, research and development costs, and professional fees. The Company excludes certain corporate-related expenses and certain transactions or adjustments that the CODM considers to be non-operational, such as changes in fair value of warrant liabilities, restructuring charges, interest expense and income and amounts related to depreciation, depletion and amortization expense. Although these amounts are excluded, they are included in reported Loss before income taxes within the accompanying unaudited consolidated statements of operations and are included in the reconciliation below. The CODM uses segment adjusted net loss in the budget and forecasting process and to monitor budgets versus actual results, which are used in assessing the performance of the reportable segments and to allocate resources across the reportable segments. The balance sheet is presented on a consolidated basis, as the CODM does not use segment specific asset or liability information, including fixed assets, to assess performance. As a result, segment asset and liability details are disclosed at the aggregate level.

 

 

A reconciliation of net loss for the reportable segments to the applicable line items within the accompanying consolidated statements of operations is as follows.

 

SCHEDULE OF SEGMENT REPORTING INFORMATION

   RPD   O&G   Renewables   Total 
   Three Months Ended
June 30, 2026		 
   RPD   O&G   Renewables   Total 
Revenue  $1,812,737   $143,031   $-   $1,955,768 
                     
Segment expense:                    
Cost of Engineering and process development services   1,259,074    -    -    1,259,074 
General and administrative   725,864    -    2,800,275    3,526,139 
Research and development costs   -    -    207,413    207,413 
Operating lease expense and severance tax   -    95,125    -    95,125 
Adjusted segment operating income (loss)   (172,201)    47,906    (3,007,688)   (3,131,983)
                     
Reconciliation of “Adjusted segment operating income (loss)” to “Loss before income taxes”                    
Depreciation, depletion and amortization   36,535    5,479    5,381    47,395 
Write off of application costs incurred on abandoned patent applications   -    -    190,367    190,367 
Changes in fair value of convertible note   104,397    -    -    104,397 
Interest expense   -    -    99,726    99,726 
Interest income   -    -    (69,307)   (69,307)
Foreign currency gain   -    -    4,851    4,851 
Loss before income taxes  $(313,133)  $42,427   $(3,238,706)  $(3,509,412)

 

   RPD   O&G   Renewables   Total 
   Six Months Ended
June 30, 2026		 
   RPD   O&G   Renewables   Total 
Revenue  $3,024,484   $275,996   $-   $3,300,480 
                     
Segment expense:                    
Engineering and Process development services   1,925,564    -    -    1,925,564 
General and administrative expenses   1,588,124    -    7,349,746    8,937,870 
Research and development costs   -    -    394,146    394,146 
Operating lease expense and severance tax   -    220,787    -    220,787 
Adjusted segment operating income (loss)   (489,204)   55,209    (7,743,892)   (8,177,887)
                     
Reconciliation of “Adjusted segment operating income (loss)” to “Loss before income taxes”                    
Depreciation, depletion and amortization   104,123    70,228    10,804    185,155 
Write off of application costs incurred on abandoned patent applications   -    -    474,294    474,294 
Changes in fair value of convertible note   104,397    -    -    104,397 
Interest expense   -    -    258,711    258,711 
Interest income   -    -    (136,871)   (136,871)
Foreign currency gain   -    -    4,369    4,369 
Loss before income taxes  $(697,724)  $(15,019)   $(8,355,199)  $(9,067,942)

 

 

   RPD   O&G   Renewables   Total 
   Three Months Ended
June 30, 2025		 
   RPD   O&G   Renewables   Total 
Revenue  $483,627   $-   $-   $483,627 
                     
Segment expense:                    
Engineering and Process development services   824,816    -    -    824,816 
General and administrative expenses   437,527    -    963,930    1,401,457 
Research and development costs   -    -    121,431    121,431 
Operating lease expense and severance tax   -    -    -    - 
Adjusted segment operating income (loss)   (778,716)   -    (1,085,360)   (1,864,077)
                     
Reconciliation of “Adjusted segment operating income (loss)” to “Loss before income taxes”                    
Depreciation, depletion and amortization   56,299    -    -    56,299 
Grant income   -    -    (46,604)   (46,604)
Change in far value of warrant liability   -    -    (51,418)   (51,418)
Interest expense   -    -    99,726    99,726 
Foreign currency gain   -    -    23,258    23,258 
Loss before income taxes  $(835,015)  $-   $(1,110,323)  $(1,945,338)

 

   RPD   O&G   Renewables   Total 
   Six Months Ended
June 30, 2025		 
   RPD   O&G   Renewables   Total 
Revenue  $483,627   $-   $-   $483,627 
                     
Segment expense:                    
Engineering and Process development services   824,816    -    -    824,816 
General and administrative expenses   437,527    -    1,962,769    2,400,296 
Research and development costs   -    -    724,406    724,406 
Operating lease expense and severance tax   -    -    -    - 
Adjusted segment operating income (loss)   (778,716)   -    (2,687,175)   (3,415,891)
                     
Reconciliation of “Adjusted segment operating income (loss)” to “Loss before income taxes”                    
Depreciation, depletion and amortization   56,299    -    -    56,299 
Grant income   -    -    (737,811)   (737,811)
Changes in fair value of warrant liability   -    -    (45,965)   (45,965)
Interest expense   -    -    198,356    198,356 
Foreign currency gain   -    -    16,809    16,809 
Loss before income taxes  $(835,015)  $-   $(2,118,564)  $(2,953,579)

 

Oil and gas revenues and expenses for the legacy HUSA business have been included in the accompanying unaudited condensed consolidated statements of operations from July 1, 2025. See Note 5 – Acquisition above.

 

RPD’s revenues and expenses have been included in the accompanying unaudited condensed consolidated statements of operations beginning April 16, 2025, the date on which RPD and the Company became entities under common control. See Note 4- Common Control Transactions.

 

 

         
   Six Months Ended
June 30,		 
   2026   2025 
Depreciation, depletion and amortization:          
RPD  $104,123   $56,299 
O&G   70,228    - 
Renewables   10,804    - 
Consolidated depreciation, depletion and amortization expense  $185,155   $56,299 

 

   June 30, 2026   December 31, 2025 
Assets:          
RPD  $4,291,313   $2,475,498 
O&G   673,288   $794,963 
Renewables   43,561,560    31,060,468 
Total assets of reportable segments  $48,526,161   $34,330,929 

 

Geographic Information

 

All the Company’s revenues from customers are generated from customers located in the United States, and all of the Company’s long-lived assets are located in the United States. Accordingly, no additional geographic information is presented.