v3.26.3
INTANGIBLE ASSETS
 12 Months Ended
Jun. 30, 2026
Intangible Asset, Goodwill and Other [Abstract]  
INTANGIBLE ASSETS

NOTE 9 – INTANGIBLE ASSETS

 

       
   As of June 30, 
   2026   2025 
Catalytic Biofraction Process (1)  $30,192,771   $30,192,771 
License for the Catalytic Biofraction Process (2)   3,438,960    3,311,000 
Intangible assets  $33,631,731   $33,503,771 

 

  (1) Proprietary intellectual property (“IP”) with a carrying value of $30,192,771, consisting of proprietary trade secrets known as the “Catalytic Biofraction Process.” The Company’s subsidiary, VRAP, is the beneficial and/or registered owner of the IP pursuant to the Intellectual Property Transfer Agreement dated October 15, 2025 between Bio Resources Limited (“BRL”) and VRAP.
     
  (2) An exclusive license with a carrying value of MYR 14,000,000 ($3,438,960), granted by VRAP to Verde Malaysia, providing the exclusive right to utilize the Catalytic Biofraction Process within the state of Sabah, Malaysia.

 

The “Catalytic BioFraction Process” is a slow pyrolysis process using a proprietary catalyst to depolymerize palm biomass waste (empty fruit bunches or palm kernel shells) in temperature range of 350 degrees Celsius to 500 degrees Celsius to yield commercially valuable bio products: bio-oil, wood vinegar (pyroligneous acid), biochar and bio-syngas. The intellectual property is a second-generation pyrolysis process where non-food feedstock like palm biomass waste is used as feedstock. Upon fulfilling UN’s (United Nations) ACM 22 protocol as well as LCA (Life Cycle Assessment) requirements, it is anticipated that the by-products from this IP would lead to certification and issuance of Carbon Avoidance Credits as well as Carbon Removal Credits to generate carbon revenue for the Company.

 

 

VERDE RESOURCES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

 

The Company has identified these intangible assets as indefinite life intangible assets as there are currently no legal, competitive, economic or other factors that materially limit the useful life of the Company’s intangible assets.

 

As of June 30, 2026, the Company performed a qualitative assessment, during the fourth quarter of 2026, to determine whether it was more likely than not that the carrying amounts of its intangible assets were impaired. This assessment considered a number of qualitative factors, including but not limited to:

 

  ● Macroeconomic conditions,
     
  ● Industry and market trends,
     
  ● Cost factors,
     
  ● Overall financial performance of the asset,
     
  ● Legal and regulatory environment, and
     
  ● Relevant internal reporting and management’s plans.

 

Based on this qualitative assessment, management did not identify any events or changes in circumstances that would indicate that the carrying amounts of the Company’s intangible assets are not recoverable. Accordingly, no quantitative impairment test was deemed necessary, and no impairment losses were recognized for the year ended June 30, 2026.