NOTE 7 – Revenue

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers, when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. The Company generates revenue from engineering and process development services and legacy oil and gas (“O&G”) operations, Revenue is recognized either over time or at a point in time depending on the nature of the Company’s performance obligations.

Revenue from engineering, process development, pilot plant operations, engineering design, testing, and technology commercialization services is generally recognized over time because customers simultaneously receive and consume the benefits of the services as they are performed. Progress toward completion is measured using an input method, such as costs incurred or labor hours, which the Company believes faithfully depicts the transfer of control of the services to the customer. Revenue from engineering and process development is generated from a limited number of customer contracts at any given time, consistent with the nature of its business. As a result, revenue is concentrated on a small number of customers in any given reporting period. As each engagement is typically project-specific and of finite duration the customers comprising this concentration are not necessarily the same period to period. For the three months ending June 30, 2026, revenue from five customers represented approximately 74% of revenue. For the six months ending June 2026 revenue from six customers represented approximately 80% of the revenue. Accounts receivable related to revenue from engineering and process development services as of June 30, 2026, were concentrated in two customers representing 65% of the receivables.

Revenue from the sale of oil and gas production is recognized at a point in time. Generally, control transfers at the time of delivery to the customer at a pipeline interconnect, the tailgate of a processing facility, or as a tanker lifting is completed.

The following table disaggregates revenue by significant product type for the three and six months ended June 30, 2026, and 2025:

Schedule of Disaggregates Revenue

Oil and gas revenues for the legacy HUSA business have been included in the statement of operations from July 1, 2025. See Note 5 – Acquisition above.

Engineering, design, and technology commercialization services have been included in statement of operations from April 16, 2025. See Note 4- Common Control Transactions

Contract balances

Contract assets are recognized when revenue is recognized prior to the Company’s right to invoice the customer, and deferred revenue is recognized when consideration is received or billed in advance of the transfer of goods or services.

Significant changes in the contract assets and the deferred revenue balances during the period are as follows:

 Schedule Of Contract Assets and Contract Liabilities

Contract Assets

Deferred Revenue