NOTE 13 - LEASES

The Company adopted ASU No. 2016-02, Leases and determines whether an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration. Control of an underlying asset is conveyed if we obtain the rights to direct the use of and to obtain substantially all of the economic benefit from the use of the underlying asset. Some of our leases include both lease and non-lease components which are accounted for as a single lease component as the Company has elected the practical expedient. Some of the operating lease agreements include variable lease costs, primarily taxes, insurance, common area maintenance or increases in rental costs related to inflation. Substantially all of our equipment leases and some of our real estate leases have terms of less than one year and, as such, are accounted for as short-term leases as we have elected the practical expedient.

Operating leases are included in the right-of-use lease assets, other current liabilities and long-term lease liabilities on the Consolidated Balance Sheet. Right-of-use assets and lease liabilities are recognized at each lease’s commencement date based on the present values of its lease payments over its respective lease term. When a borrowing rate is not explicitly available for a lease, the incremental borrowing rate is used based on information available at the lease’s commencement date to determine the present value of its lease payments. Operating lease payments are recognized on a straight-line basis over the lease term.

The table below presents the lease-related assets and liabilities recorded on the balance sheet.

SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES

Leases:

VERDE RESOURCES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Leases Arrangements:

The table below presents the information related to weighted average discount rate and the remaining lease term (years) of the operating leases.

 SCHEDULE OF THE LEASE TERMS AND DISCOUNT RATES

The accretion of lease liability for the years ended June 30, 2026 and 2025, were $10,687 and $8,023, respectively.

The Company excludes short-term leases (those with lease terms of less than one year at inception) from the measurement of lease liabilities or right-of-use assets. The following tables summarize the lease expense for the years.

 SCHEDULE OF LEASE COSTS

Components of Lease Expense

The Company recognizes operating lease expense on a straight-line basis over the term of the operating leases, comprising interest expense determined using the effective interest method, and amortization of the right-of-use asset, as reported within “general and administrative” expense on the accompanying consolidated statement of operations.

Finance lease expense comprises of interest expenses determined using the effective interest method.

VERDE RESOURCES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Future Contractual Lease Payments as of June 30, 2026

The table below summarizes our (i) minimum lease payments over the next five years, (ii) lease arrangement implied interest, and (iii) present value of future lease payments for the next three years and thereafter ending June 30:

 SCHEDULE OF FUTURE MINIMUM OPERATING LEASE PAYMENTS

On June 24, 2026, the Company entered into a lease agreement for office premises commencing on October 1, 2026 with a lease term of 62 months. A security deposit of $16,703 was paid subsequent to the reporting date. As the lease commenced after the reporting date, no right-of-use asset or lease liability has been recognized in the financial statements as of June 30, 2026. The Company will recognize the lease in accordance with ASC 842, Leases, upon commencement of the lease. The Company is committed to future rental payments as follows:

 SCHEDULE OF FUTURE RENTAL PAYMENTS

New Corporate Lease

On June 24, 2026, the Company, through its wholly owned subsidiary Verde Renewables, Inc., entered into a lease agreement for approximately 7,033 rentable square feet of office space located at 7800 Forsyth Boulevard in St. Louis, Missouri. The lease is expected to commence in October 2026 and has an initial term of 62 months. As the lease had not commenced as of June 30, 2026, no right-of-use asset or lease liability related to the lease was recognized as of that date.

VERDE RESOURCES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)