Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2022 | Nov. 15, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | Verde Resources, Inc. | |
Entity Central Index Key | 0001506929 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Sep. 30, 2022 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Entity Common Stock Shares Outstanding | 836,619,265 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-55276 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 32-0457838 | |
Entity Address Address Line 1 | 2 Cityplace Drive | |
Entity Address Address Line 2 | Suite 200 | |
Entity Address City Or Town | St. Louis | |
Entity Address State Or Province | MO | |
Entity Address Postal Zip Code | 63141 | |
City Area Code | 323 | |
Local Phone Number | 538-5799 | |
Security 12g Title | Common Stock, $0.001 par value | |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Current asset: | ||
Cash and cash equivalents | $ 748,351 | $ 418,917 |
Accounts receivable | 28,132 | 21,028 |
Inventories | 83,204 | 87,035 |
Other receivables, deposits and prepayments | 189,303 | 119,238 |
Total current assets | 1,048,990 | 646,218 |
Non-current assets: | ||
Property and equipment, net | 1,923,833 | 1,048,893 |
Right of use assets, net | 660,000 | 685,714 |
Mining rights | 18,728 | 27,088 |
Security deposit | 0 | 240,000 |
Deposit paid for acquisition of subsidiaries | 25,935,550 | 25,935,550 |
Deposit paid for acquisition of property and equipment | 5,080,000 | 5,080,000 |
Total non-current assets | 33,618,111 | 33,017,245 |
TOTAL ASSETS | 34,667,101 | 33,663,463 |
Current liabilities: | ||
Accounts payable | 5,400 | 18,211 |
Accrued liabilities and other payables | 269,994 | 283,656 |
Lease liabilities | 116,905 | 75,224 |
Promissory notes | 19,010,255 | 18,484,028 |
Amounts due to related parties | 530,362 | 555,527 |
Total current liabilities | 19,932,916 | 19,416,646 |
Non-current liabilities: | ||
Lease liabilties | 285,154 | 97,900 |
Total non-current liabilities | 285,154 | 97,900 |
TOTAL LIABILITIES | 20,218,070 | 19,514,546 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 10,000,000,000 shares authorized; 820,688,055 and 819,188,055 issued and outstanding as of September 30, 2022 and June 30, 2022 | 820,688 | 819,188 |
Common stock, $0.001 par value; 15,328,029 and 0 shares to be issued as of September 30, 2022 and June 30, 2022 | 15,328 | 0 |
Additional paid-in capital | 24,505,062 | 22,945,190 |
Accumulated other comprehensive loss | 822,279 | 742,459 |
Accumulated deficit | (11,714,326) | (10,357,920) |
Stockholders' equity | 14,449,031 | 14,148,917 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 34,667,101 | $ 33,663,463 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Sep. 30, 2022 | Jun. 30, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 |
Common stock, shares issued | 820,688,055 | 819,188,055 |
Common stock, shares outstanding | 820,688,055 | 819,188,055 |
Common stock to be issued, par value | $ 0.001 | $ 0.001 |
Common stock to be issued, shares | 15,328,029 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | ||
Revenue, net | $ 26,312 | $ 0 |
Cost of revenue | (47,939) | 0 |
Gross loss | (21,627) | 0 |
Operating expenses: | ||
General and administrative expenses | (810,442) | (363,996) |
Total operating expenses | (810,442) | (363,996) |
LOSS FROM OPERATION | (832,069) | (363,996) |
Other (expense) income : | ||
Interest expense | (530,112) | (470,766) |
Other income | 5,775 | 12,090 |
Total other expense, net | (524,337) | (458,676) |
LOSS BEFORE INCOME TAXES | (1,356,406) | (822,672) |
Income tax expense | 0 | 0 |
NET LOSS | (1,356,406) | (822,672) |
Net loss attributable to non-controlling interest | 0 | (4,379) |
Net loss attributable to Verde Resources Inc., shareholders | 0 | (818,293) |
Total | (1,356,406) | (822,672) |
Other comprehensive income: | ||
- Foreign currency adjustment gain | 79,820 | 8,994 |
Less: other comprehensive income attributable to non-controlling interest | 0 | 1,349 |
Add: other comprehensive income attributable to Verde Resources Inc., shareholders | 79,820 | 7,645 |
COMPREHENSIVE LOSS | $ (1,276,586) | $ (809,299) |
Net loss per share: | ||
- Basic | $ 0 | $ 0 |
- Diluted | $ 0 | $ 0 |
Weighted average common shares outstanding: | ||
- Basic | 820,182,620 | 810,742,109 |
- Diluted | 835,510,649 | 810,742,109 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (1,356,406) | $ (822,672) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ||
Depreciation of property and equipment | 27,952 | 1,086 |
Amortization | 32,919 | 7,776 |
Stock-based compensation | 232,500 | 96,128 |
Finance cost interest element of promissory notes (non-cash) | (526,227) | (470,766) |
Change in operating assets and liabilities: | ||
Accounts receivable | (8,141) | 0 |
Other receivables, deposits and prepayments | (70,165) | 87 |
Inventories | (462) | 0 |
Accounts payables | (11,912) | (721) |
Accrued liabilities and other payables | 9,413 | 2,445 |
Advanced from sub-contractor and related parties | 17,091 | 291 |
Net cash used in operating activities | (600,984) | (244,814) |
Cash flows from investing activity: | ||
Purchase of property and equipment | (424,248) | 0 |
Net cash used in investing activity | (424,248) | 0 |
Cash flows from financing activities: | ||
Repayments to related parties | 0 | (79,518) |
Proceeds from common shares and additional paid in capital | 1,323,200 | 0 |
Repayments to lease liabilities | (11,814) | 0 |
Net cash provided by (used in) financing activities | 1,311,386 | (79,518) |
Net change in cash and cash equivalent | 286,154 | (324,332) |
Foreign currency translation adjustment | 43,280 | 5,805 |
Net change in cash and cash equivalents | 329,434 | (318,527) |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD | 418,917 | 2,117,622 |
CASH AND CASH EQUIVALENTS, AT END OF PERIOD | 748,351 | 1,799,095 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 0 | 0 |
Cash paid for interest | $ 0 | $ 0 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($) | Total | Common Stock | Additional Paid-In Capital | Accumulated other comprehensive loss | Accumulated deficit [Member] | Noncontrolling Interest |
Balance, shares at Jun. 30, 2021 | 779,742,109 | |||||
Balance, amount at Jun. 30, 2021 | $ 15,769,925 | $ 779,742 | $ 20,699,067 | $ 646,205 | $ (5,913,255) | $ (441,834) |
Shares issued for acquisition, shares | 31,000,000 | |||||
Shares issued for acquisition, amount | 930,000 | $ 31,000 | 899,000 | 0 | 0 | 0 |
Stock based compensation | 96,128 | 0 | 96,128 | 0 | 0 | 0 |
Net loss for the period | (822,672) | 0 | 0 | 0 | (818,293) | (4,379) |
Foreign currency translation adjustment | 8,994 | $ 0 | 0 | 7,645 | 0 | 1,349 |
Balance, shares at Sep. 30, 2021 | 810,742,109 | |||||
Balance, amount at Sep. 30, 2021 | 15,982,375 | $ 810,742 | 21,694,195 | 653,850 | (6,731,548) | (444,864) |
Balance, shares at Jun. 30, 2022 | 819,188,055 | |||||
Balance, amount at Jun. 30, 2022 | 14,148,917 | $ 819,188 | 22,945,190 | 742,459 | (10,357,920) | 0 |
Stock based compensation | 232,500 | |||||
Net loss for the period | (1,356,406) | 0 | 0 | 0 | (1,356,406) | |
Foreign currency translation adjustment | 79,820 | $ 0 | 0 | 79,820 | 0 | 0 |
Share issued to service provider, shares | 1,500,000 | |||||
Share issued to service provider, amount | 232,500 | $ 1,500 | 231,000 | 0 | 0 | 0 |
Shares to be issued, shares | 15,328,029 | |||||
Shares to be issued, amount | 1,344,200 | $ 15,328 | 1,328,872 | 0 | 0 | 0 |
Balance, shares at Sep. 30, 2022 | 835,724,316 | |||||
Balance, amount at Sep. 30, 2022 | $ 14,449,031 | $ 836,016 | $ 24,505,062 | $ 822,279 | $ (11,714,326) | $ 0 |
ORGANIZATION AND BUSINESS BACKG
ORGANIZATION AND BUSINESS BACKGROUND | 3 Months Ended |
Sep. 30, 2022 | |
ORGANIZATION AND BUSINESS BACKGROUND | |
ORGANIZATION AND BUSINESS BACKGROUND | NOTE 1 - ORGANIZATION AND BUSINESS BACKGROUND Verde Resources, Inc. (“We” or “Company” or “VRDR”) was incorporated on April 22, 2010, in the State of Nevada, U.S.A.. We currently operate in two lines of business: (i) gold exploration and mining through Champmark Sdn. Bhd., a Malaysian corporation (“CSB”); and (ii) production and distribution of renewable commodities through Verde Resources (Malaysia) Sdn. Bhd., a Malaysian corporation. We intend to develop operations in the distribution of THC-free cannabinoid products through Verde Life Inc., an Oregon corporation. We are also engaged in investment opportunities in other non-mining areas including the bioenergy industry, real properties and the food & beverage sector. The Company currently is engaged in the sale of gold mineral, distribution of THC-free cannabinoid (CBD) products, production and distribution of renewable commodities and real property holding. As of September 30, 2022, the Company has the following subsidiaries:- Company name Place of incorporation Principal activities and place of operation Effective interest held Verde Resources Asia Pacific Limited (“VRAP”) (fka Gold Billion Global Limited) British Virgin Islands Investment holding 100% Verde Resources (Malaysia) Sdn Bhd (“VRSB”) Malaysia Provision of consultation service and distribution of renewable agricultural commodities 100% Verde Renewables, Inc. (“VRI”) State of Missouri, U.S.A. Management of a processing and packaging facility 100% Verde Life Inc. (“VLI”) State of Oregon, U.S.A. Distribution of THC-free cannabinoid (CBD) products 100% Champmark Sdn Bhd (“Champmark”) Malaysia Mining of minerals 100% The Wision Project Sdn Bhd (“Wision”) Malaysia Digital innovation, marketing & consulting service, PR, branding, influencer marketing, event management and media relations services 100% Verde Estates LLC (“VEL”) State of Missouri, U.S.A. Holding real property 100% The Company and its subsidiaries are hereinafter referred to as (the “Company”). |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying unaudited condensed consolidated financial statements and notes. · Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (“GAAP”), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, the consolidated balance sheet as of June 30, 2022 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended September 30, 2022 are not necessarily indicative of the results to be expected for the entire fiscal year ending June 30, 2023 or for any future period. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended June 30, 2022, filed with the SEC on November 4, 2022. · Use of Estimates and Assumptions The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s periodic filings with the Securities and Exchange Commission include, where applicable, disclosures of estimates, assumptions, uncertainties and markets that could affect the financial statements and future operations of the Company. In preparing these unaudited condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the periods reported. Actual results may differ from these estimates. · Basis of Consolidation The unaudited condensed consolidated financial statements include the financial statements of Verde Resources, Inc. and its subsidiaries. All significant inter-company balances and transactions within the Company and its subsidiaries have been eliminated upon consolidation. · Segment Reporting Accounting Standard Codification (“ASC”) Topic 280, Segment Reporting · Concentrations of Credit Risk The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company’s management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited. · Risks and Uncertainties The Company operates in the resource exploration industry that is subject to significant risks and uncertainties, including financial, operational, technological, and other risks associated with operating a resource exploration business, including the potential risk of business failure. · Cash and Cash Equivalents Cash and cash equivalents are carried at cost and represent cash in banks, money market funds, and certificates of term deposits with maturities of less than three months, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had $748,356 and $418,917 in cash and cash equivalents at September 30, 2022 and June 30, 2022. At September 30, 2022 and June 30, 2022, cash and cash equivalents consisted of bank deposits in a Malaysian bank and petty cash on hand. · Accounts Receivable Accounts receivable are recognized and carried at net realizable value. An allowance for doubtful accounts will be recorded in the period when a loss is probable based on an assessment of specific evidence indicating troubled collection, historical experience, accounts aging, ongoing business relation and other factors. Accounts are written off after exhaustive efforts at collection. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. At September 30, 2022 and June 30, 2022, the Company has no allowance for doubtful accounts, as per management’s judgment based on their best knowledge. As of September 30, 2022 and June 30, 2022, the longest credit term for certain customers are 60 days. · Inventories Inventories are stated at the lower of cost or market value (net realizable value), cost being determined on a first-in-first-out method. Costs include material, labor and overhead costs. The Company provides inventory allowances based on excess and obsolete inventories determined principally by customer demand. As of September 30, 2022 and June 30, 2022, the Company did not record an allowance for obsolete inventories, nor have there been any write-offs. · Property and Equipment Property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Expected useful life Land and buildings 3-27.5 years Plant and machinery 5-7 years Office equipment 3 years Project equipment 5 years Computer 5 years Motor vehicle 5 years Furniture & fittings 5 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterment which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the unaudited condensed consolidated statements of income and other comprehensive income in other income or expenses. · Impairment of Long-lived Assets In accordance with the provisions of ASC Topic 360, Impairment or Disposal of Long-Lived Assets · Revenue Recognition ASC Topic 606, Revenue from Contracts with Customers The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. Revenue is recognized when the Company satisfies its performance obligation under the contract by transferring the promised product to its customer that obtains control of the product and collection is reasonably assured. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. Most of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. Product sales Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial. Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers. Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the following categories: discounts, returns and rebates. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable as the amount is payable to the Company’s customer. Gold mining Revenue from the sales of gold mineral or other minerals to registered gold trading companies or other customers in Malaysia is recognized as revenue in accordance with the following core principles: at the time of gold or minerals sales, the contract with customers and the performance obligations are identified. The transaction and selling price is determined by the prevailing market value of gold bullion quoted by the leading registered gold trading company in Malaysia or at an agreed price. Sales invoice will be prepared to reflect the proper transaction price based on the performance obligation allocation. After delivery is completed and the performance obligation is satisfied, sales invoice will be presented to the customers and so revenue is then recognized accordingly. · Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for the operating lease, the Company generally uses an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement of the lease liability. Lease expense is recognized on a straight-line basis over the lease term. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC Topic 360, Property, Plant, and Equipment ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of September 30, 2022 and June 30, 2022. The operating lease is included in operating lease right-of-use assets and operating lease liabilities as current and non-current liabilities in the unaudited condensed consolidated balance sheets at September 30, 2022 and June 30, 2022. Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value. At the inception of a finance lease, we as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to us, while the leased asset is depreciated in accordance with our depreciation policy if the title is to eventually transfer to us. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 842. · Income Taxes The Company adopted the ASC Topic 740, Income tax The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. · Uncertain Tax Positions The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the ASC Topic 740 provisions of Section 740-10-25 for the three months ended September 30, 2022 and 2021. · Foreign Currencies Translation The Company’s reporting currency is the United States dollar (“US$”) and the accompanying unaudited condensed consolidated financial statements have been expressed in United States dollars. The Company’s functional currency is the Malaysian Ringgit (“MYR”) which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the unaudited condensed consolidated statement of operations. For reporting purposes, in accordance with ASC Topic 830 ” Translation of Financial Statements Translation of MYR into U.S. dollars has been made at the following exchange rates for the following periods:- September 30, 2022 September 30, 2021 Period-end MYR:US$ exchange rate 4.23360 4.15511 Average period MYR:US$ exchange rate 0.22687 0.23895 · Comprehensive Income ASC Topic 220, Comprehensive Income · Net Loss per Share The Company calculates net loss per share in accordance with ASC Topic 260, Earnings per Share · Stock Based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic 718-10, Compensation-Stock Compensation The Company accounts for non-employee stock-based awards at fair value in accordance with the measurement and recognition criteria of ASC Topic 505-50, “ Equity-Based Payments to Non-Employees · Mineral Acquisition and Exploration Costs Mineral property acquisition and exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserves. · Environmental Expenditures The operations of the Company have been, and may in the future, be affected from time to time in varying degree by changes in environmental regulations, including those for future reclamation and site restoration costs. Both the likelihood of new regulations and their overall effect upon the Company vary greatly and are not predictable. The Company’s policy is to meet or, if possible, surpass standards set by relevant legislation by application of technically proven and economically feasible measures. Environmental expenditures that relate to ongoing environmental and reclamation programs are charged against earnings as incurred or capitalized and amortized depending on their future economic benefits. All of these types of expenditures incurred since inception have been charged against earnings due to the uncertainty of their future recoverability. Estimated future reclamation and site restoration costs, when the ultimate liability is reasonably determinable, are charged against earnings over the estimated remaining life of the related business operation, net of expected recoveries. · Related Parties The Company follows the ASC 850-10, Related Party Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The unaudited condensed consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. · Commitments and Contingencies The Company follows the ASC 450-20, Commitments If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s unaudited condensed consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. · Fair Value of Financial Instruments The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, loan and fee receivable, prepayments and other receivables, amounts due from related parties, accrued liabilities and other payables, loans payable, amounts due to related parties approximate their fair values because of the short maturity of these instruments. · Recent Accounting Pronouncements During the three months ended September 30, 2022, there have been no new, or existing, recently issued accounting pronouncements that are of significance, or potential significance, that impact the Company’s unaudited condensed consolidated financial statements. |
GOING CONCERN UNCERTAINTIES
GOING CONCERN UNCERTAINTIES | 3 Months Ended |
Sep. 30, 2022 | |
GOING CONCERN UNCERTAINTIES | |
GOING CONCERN UNCERTAINTIES | NOTE 3 - GOING CONCERN UNCERTAINTIES The accompanying unaudited condensed consolidated financial statements have been prepared using the going concern basis of accounting, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has generated recurring losses and suffered from an accumulated deficit of $11,714,326 at September 30, 2022. The continuation of the Company as a going concern in the next twelve months is dependent upon the Company’s success in pursuing additional financing for its operations. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations. The ability of the Company to survive is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan. In response to these problems, management intends to raise additional funds through public or private placement offerings, and related party loans. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stockholders, in the case of equity financing. These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. These unaudited condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets and liabilities that may result in the Company not being able to continue as a going concern. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended |
Sep. 30, 2022 | |
BUSINESS SEGMENT INFORMATION | |
BUSINESS SEGMENT INFORMATION | NOTE 4 – BUSINESS SEGMENT INFORMATION Currently, the Company has four reportable business segments, mainly operating in: (i) Gold mineral mining; (ii) Distribution of THC-free cannabinoid (CBD) products, (iii) Production and distribution of renewable commodities; and (iv) Holding of real property. In the following table, revenue is disaggregated by primary major product line, and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the reportable segments for the three months ended September 30, 2022 and 2021: Three Months ended September 30, 2022 Gold mineral mining Distribution of THC-free cannabinoid (CBD) products Production and distribution of renewable commodities Holding property Corporate unallocated Consolidated Revenue $ - $ - $ 23,344 $ 2,050 $ 918 $ 26,312 Cost of revenue - - (47,427 ) - (512 ) (47,939 ) Gross loss - - (24,083 ) (2,050 ) 406 (21,627 ) General & administrative expenses (47,060 ) (25 ) (498,779 ) (23,453 ) (241,125 ) (810,442 ) Loss from operations (47,060 ) (25 ) (522,862 ) (21,403 ) (240,719 ) (832,069 ) Interest expense - - (3,885 ) - (526,227 ) (530,112 ) Other income 5,775 - - - - 5,775 Loss before income tax (41,285 ) (25 ) (526,747 ) (21,403 ) (766,946 ) (1,356,406 ) Income tax - - - - - - Net loss $ (41,285 ) $ (25 ) $ (526,747 ) $ (21,403 ) $ (766,946 ) $ (1,356,406 ) Total assets at September 30, 2022 $ 36,503 $ 148,479 $ 865,687 $ 1,256,787 $ 32,359,645 $ 34,667,101 Three Months ended September 30, 2021 Gold mineral mining Distribution of THC-free cannabinoid (CBD) products Production and distribution of renewable commodities Holding property Corporate unallocated Consolidated Revenue $ - $ - $ - $ - $ - $ - Cost of revenue - - - - - Gross loss - - - - - - General & administrative expenses (41,283 ) - - (10,488 ) (312,225 ) (363,996 ) Loss from operations (41,283 ) - - (10,488 ) (312,225 ) (363,996 ) Interest expense - - - - (470,766 ) (470,766 ) Other income 12,090 - - - - 12,090 Loss before income tax (29,193 ) - - (10,488 ) (782,991 ) (822,672 ) Income tax - - - - - - Net loss $ (29,193 ) $ - $ - $ (10,488 ) $ (782,991 ) $ (822,672 ) Total assets as September 30, 2021 $ 101,928 $ - $ - $ 555,311 33,145,572 $ 33,802,811 The below revenues are based on the countries in which the customer is located. Summarized financial information concerning the geographic segments is shown in the following tables: Three Months ended September 30, 2022 2021 Malaysia $ 11,612 $ - United States of America 14,700 - 26,312 - |
OTHER RECEIVABLE, DEPOSIT AND P
OTHER RECEIVABLE, DEPOSIT AND PREPAYMENT | 3 Months Ended |
Sep. 30, 2022 | |
OTHER RECEIVABLE, DEPOSIT AND PREPAYMENT | |
OTHER RECEIVABLE, DEPOSIT AND PREPAYMENT | NOTE 5 – OTHER RECEIVABLE, DEPOSITS AND PREPAYMENTS Other receivable, deposits and prepayments as of September 30, 2022 and June 30, 2022 consist of the following: September 30, 2022 June 30, 2022 Deposits $ 148,451 $ 118,516 Prepayments 40,010 722 Other receivables 842 - $ 189,303 $ 119,238 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Sep. 30, 2022 | |
PROPERTY AND EQUIPMENT | |
PROPERTY AND EQUIPMENT | NOTE 6 – PROPERTY AND EQUIPMENT A summary of property and equipment at September 30, 2022 and June 30, 2022 is as follows: September 30, 2022 June 30, 2022 Land and building $ 2,106,599 $ 1,642,102 Plant and machinery 467,257 134,198 Office equipment 22,697 23,353 Project equipment 585,055 615,420 Computer 14,717 14,846 Motor vehicle 276,303 225,861 Furniture & fittings 10,270 2,527 3,482,898 2,658,307 Less: accumulated depreciation (1,559,065 ) (1,609,414 ) $ 1,923,833 $ 1,048,893 Depreciation expense for the three months ended September 30, 2022 and 2021 totaled $27,952 and $1,086, respectively. Land and building with the net carrying value of $740,604 at September 30, 2022 ($746,145 at June 30, 2022) was pledged to a financial institution for facilities granted. |
DEPOSITS PAID
DEPOSITS PAID | 3 Months Ended |
Sep. 30, 2022 | |
DEPOSITS PAID | |
DEPOSITS PAID | NOTE 7 – DEPOSITS PAID At September 30, 2022 and June 30, 2022, deposits consist of the following: September 30, 2022 June 30, 2022 Deposits paid for acquisition of subsidiaries - Bio Resources Limited (#1) $ 25,935,550 $ 25,935,550 Deposits paid for acquisition of property and equipment - Intellectual property license (#2) 5,000,000 5,000,000 - Factory site (#3) 80,000 80,000 $ 5,080,000 $ 5,080,000 Security deposit (#4) $ - $ 240,000 ___________ (#1) The Company announced the Share Sale Agreement on May 12, 2021 for the acquisition of the entire issued and paid-up share capital of Bio Resources Limited from Taipan International Limited, an unrelated third party, The Wision Project Limited (formerly known as “Borneo Resources Limited”), an unrelated third party, and other unrelated third party individuals, in consideration of issuance of 321,500,000 shares of the Company’s restricted common stock at $0.03 per share, valued at $9,645,000, and the issuance of promissory notes with two-year term period with a principal amount of $20,355,000. 321,500,000 shares were issued on May 12, 2021 and the promissory notes were issued on May 12, 2021. The face value (principal) amount of $20,355,000 is convertible into common shares within 60 days from October 12, 2022, and bearing zero coupon interest. The promissory note is priced at $16,290,550 considering the current market interest rate. This transaction was subsequently closed on October 12, 2022. (#2) On May 10, 2021, the Company announced the Sale and Purchase Agreement to acquire the assets of a biofraction plant and the right to use intellectual property license in Sabah, Malaysia from Borneo Energy Sdn Bhd, in consideration of issuance of 166,666,667 share of the Company’s stock at $0.03 per share, valued at $5,000,000. 135,666,667 shares and 31,000,000 shares were issued on May 10, 2021 and July 1, 2021, respectively. This acquisition is currently in progress and the completion of the S&P Agreement is subject to all such acts necessary, including but not limited to due diligence exercise to ascertain the valuation of the assets of the biofraction plant and the right to use the licensed intellectual property in Sabah, Malaysia. The consideration shall be refundable if the transaction fails to complete. (#3) On June 11, 2021, VRAP entered into a Sale and Purchase of Assets Agreement (the “SPA Agreement”) to purchase a factory site from a Malaysia company Segama Ventures Sdn Bhd (“Segama Ventures”), an unrelated third party, in order to expand the Company’s biofraction plant in Malaysia. Under the terms of the SPA Agreement, the acquisition is satisfied by cash payment of $1,600,000 in two instalments of $800,000 each, one payment upon signing the SPA Agreement, and the second payment within three (3) months from the date of the SPA Agreement. A deposit of $800,000 was paid to Segama Ventures on June 10, 2021. On March 2, 2022, however, VRAP entered into a Cancellation of Sale and Purchase of Assets Agreement (“Cancellation Agreement”) for the cancellation of the Sale and Purchase of Assets Agreement to purchase the factory site from Segama Ventures that was signed on June 11, 2021. Also on March 2, 2022, the Company, through VRAP, entered into a Commercial Lease Agreement and Option to Purchase (“Lease Agreement”) to lease the factory site from Segama Ventures for a lease term of seven (7) years (“Lease Term”) at a monthly rental of MYR 36,000 ($8,571). The rent for the entire Lease Term amounts to the sum of MYR 3,024,000 ($720,000) (the “Lease Payment”) to be paid in advance upon commencement of the Lease Agreement together with a payment of security deposit for the sum of MYR 336,000 ($80,000) (the “Security Payment”). The refundable advance of $800,000 from the Cancellation Agreement above was utilized against the security deposit and payment of the advance rental. (#4) On February 10, 2022, the Company, through VEL, a limited liability company incorporated in the State of Missouri, which is an indirect wholly-owned subsidiary of the Company via Verde Renewables, Inc., entered into a Commercial Lease Agreement and Option to Purchase (the “Lease Agreement”) a 24-acre property in La Belle from Jon Neal Simmons and Betty Jo Simmon (the “Landlord”) in order to kickstart carbon farming with biochar in Missouri. Under the Lease Agreement, the term of the lease was for a period of two (2) years and the Company had the right to renew the lease for a total of three renewal periods with each renewal term being two years. The base rent of $10,000 for the term, was payable on the commencement of the Lease Agreement, together with a security deposit of $240,000. The Lease Agreement also granted the Company the exclusive right and option to purchase the premises together with all the right title and interest from the Landlord for a consideration of $490,000 at any time during the two-year term of the lease. If the Company exercised the option to purchase the premises from the Landlord, the upfront lease payment and security deposit could be utilized as part payment of the purchase consideration. The option to purchase was exercised on September 27, 2022. |
MINING RIGHT
MINING RIGHT | 3 Months Ended |
Sep. 30, 2022 | |
MINING RIGHT | |
MINING RIGHT | NOTE 8 - MINING RIGHT A lump sum payment of RM260,500 ($62,260) was made for a mining right over a period of 2 years up to June 13, 2023. The mining right is amortised on a straight-line basis over the term of the right. The table below presents the movement of the right as recorded on the balance sheets. Three months ended September 30, 2022 Year Ended June 30, 2022 Balance as at July 1, 2022 and July 1, 2021 $ 27,088 $ 60,131 Amortization charge for the period (7,205 ) (30,779 ) Foreign exchange adjustment (1,155 ) (2,264 ) Balance as of September 30, 2022 and June 30, 2022 $ 18,728 $ 27,088 Amortization charge of mining right was $7,205 and $7,776 for the three months ended September 30, 2022 and 2021, respectively. |
AMOUNTS DUE TO RELATED PARTIES
AMOUNTS DUE TO RELATED PARTIES | 3 Months Ended |
Sep. 30, 2022 | |
AMOUNTS DUE TO RELATED PARTIES | |
AMOUNTS DUE TO RELATED PARTIES | NOTE 9 – AMOUNTS DUE TO RELATED PARTIES The following breakdown of the balances due to related parties, consisted of:- September 30, 2022 June 30, 2022 BOG $ 530,362 $ 555,527 Borneo Oil and Gas Corporation Sdn Bhd (“BOG”) is a wholly owned subsidiary of Borneo Oil Berhad (“BOB”) (holding 22.7% and 22.8% of the Company’s issued and outstanding common stock as of September 30, 2022 and June 30, 2022, respectively).. The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms. |
PROMISSORY NOTES
PROMISSORY NOTES | 3 Months Ended |
Sep. 30, 2022 | |
PROMISSORY NOTES | |
PROMISSORY NOTES | NOTE 10 – PROMISSORY NOTES On May 13, 2021, the Company announced the Share Sale Agreement dated May 12, 2021 for the acquisition of the entire issued and paid-up share capital of Bio Resources Limited from Taipan International Limited, an unrelated third party, The Wision Project Limited (formerly known as “Borneo Resources Limited”), an unrelated third party, and other unrelated third party individuals, in consideration of issuance of 321,500,000 shares of the Company’s restricted common stock at $0.03 per share, valued at $9,645,000, and the issuance of promissory notes with two-year term period with a principal amount of $20,355,000. 321,500,000 shares were issued on May 12, 2021 and the promissory notes were issued on May 12, 2021. The face value (principal) amount of $20,355,000 is repayable by May 12, 2023, and bearing zero coupon interest. On January 20, 2022, the Company had reached a mutual agreement with the holders of the notes to enter into a Supplement to Promissory Note, with each noteholder, to convert the total principal loan amount of $20,355,000 into shares of the Company’s restricted Common Stock priced at $0.0611 per share, which represented the last ninety (90) days’ volume weighted average price (VWAP) as of the market closing of January 19, 2022. The Company and the noteholders further agreed that the actual date for the allotment and issue of new shares of the Company’s restricted common stock shall be confirmed in a subsequent written agreement. The fair value of the outstanding promissory notes was calculated with the following assumptions: Risk free rate 0.268 % Credit spread 6.513 % Liquidity risk premium 5.000 % The following is a reconciliation of the beginning and ending balances of promissory notes payable using Level 3 inputs: September 30, June 30, 2022 2022 Balance at the beginning of period or year $ 18,484,028 $ 16,535,942 Interest expense 526,227 1,948,086 Balance at the end of period or year $ 19,010,255 $ 18,484,028 The Company recorded $526,227 and $470,766 interest expense on the promissory notes for the three months ended September 30, 2022 and 2021, respectively. |
LEASES
LEASES | 3 Months Ended |
Sep. 30, 2022 | |
LEASES | |
LEASES | NOTE 11 - 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 Condensed 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 Company adopts a 5% as weighted average incremental borrowing rate to determine the present value of the lease payments. The weighted average remaining life of the lease was 3 years. The table below presents the lease-related assets and liabilities recorded on the balance sheet. September 30, 2022 June 30, 2022 Assets Right-of-use asset # $ 660,000 $ 685,714 Liabilities Current: Finance lease liabilities $ 116,905 $ 75,224 Non-current: Finance lease liabilities 285,154 97,900 Total lease liabilities $ 402,059 $ 173,124 As of September 30, 2022, right-of-use assets were $660,000 and lease liabilities were $402,059. As of June 30, 2022, right-of-use assets were $685,714 and lease liabilities were $173,124. 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 periods. Three Months ended September 30, 2022 2021 Finance lease cost: Interest on lease liabilities (per ASC 842) $ 3,885 $ - Operating lease cost: Operating lease expense (per ASC 842) 25,714 10,818 Total lease expense $ 29,599 $ 10,818 Components of Lease Expense The Company recognizes lease expense on a straight-line basis over the term of the operating leases, as reported within “general and administrative” expenses on the accompanying unaudited condensed consolidated statement of operations. Future Contractual Lease Payments as of September 30, 2022 The below table 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 five years and thereafter ending September 30: Years ending September 30, Operating and finance lease amount 2023 $ 116,905 2024 66,361 2025 69,797 2026 73,366 2027 66,956 Thereafter 8,674 Total minimum finance lease liabilities instalment payment $ 402,059 Representing:- Current liabilities $ 116,905 Non-current liabilities 285,154 $ 402,059 For the three months ended September 30, 2022 and 2021, the amortization charge was $3,885 and $0, respectively. # This leasing arrangement for the lease of the Segama factory amounting to $720,000 is for a lease term of seven (7) years and includes an exclusive right and option to purchase the factory site, together with all its right title and interest, for a consideration to be mutually agreed between the parties at any time during the period of two years from the date of the Lease Agreement. The Lease Payment and Security Payment shall be applied toward the Purchase Price upon VRAP exercising the option to purchase. The Company’s lease agreements do not contain any material restrictive covenants. There are no corresponding lease liabilities recorded as the lease payments for the entire lease period has been paid upfront upon inception of the agreement. |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 3 Months Ended |
Sep. 30, 2022 | |
STOCKHOLDERS EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 12 - STOCKHOLDERS’ EQUITY Authorized Stock The Company has authorized 10,000,000,000 common shares and 50,000,000 preferred shares, both with a par value of $0.001 per share. Each common share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholders of the corporation is sought. Preferred stock outstanding There are no preferred shares outstanding as of September 30, 2022 and June 30, 2022. The Company has no stock option plan, warrants, or other dilutive securities. Common stock outstanding On July 15, 2022, the Company issued a total of 1,500,000 restricted common shares at US$0.155 per share to two consultants pursuant to two consultant agreements; 1,000,000 restricted common shares were issued to Gary F. Zimmer and 500,000 restricted common shares were issued to Lisa Leilani Zimmer Durand, to serve as consultants to the Company. An aggregate of $232,500 was recognized as stock-based compensation under general and administrative expenses during the period ended September 30, 2022. There were 820,688,055 and 819,188,055 shares of common stock issued and outstanding at September 30, 2022 and June 30, 2022, respectively. |
INCOME TAX
INCOME TAX | 3 Months Ended |
Sep. 30, 2022 | |
INCOME TAX | |
INCOME TAX | NOTE 13 - INCOME TAX For the three months ended September 30, 2022 and 2021, the local (“United States of America”) and foreign components of loss before income taxes were comprised of the following: Three Months ended September 30, 2022 2021 Tax jurisdiction from: - Local (US regime) $ (1,079,901 ) $ (638,989 ) - Foreign, including British Virgin Island (99,335 ) (154,489 ) Malaysia (177,170 ) (29,194 ) Loss before income taxes $ (1,356,406 ) $ (822,672 ) The provision for income taxes consisted of the following: Three Months ended September 30, 2022 2021 Current tax: - Local $ - $ - - Foreign - - Deferred tax - Local - - - Foreign - - Income tax expense (benefit) $ - $ - The effective tax rate in the periods presented is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rate. The Company mainly operates in U.S.A. and Malaysia that is subject to taxes in the jurisdictions in which they operate, as follows: United States of America VRDR, VRI and VLI are subject to the tax laws of United States of America. The U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law on December 22, 2017. The Tax Reform Act significantly revised the U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21% effective January 1, 2018. The Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits in its income tax provision. The Company has not accrued or paid interest or penalties which were not material to its results of operations for the periods presented. Net Operating Losses (NOLs) generated prior to January 1, 2018 are able to be carried forward up to twenty subsequent years. Any NOLs created for tax years subsequent to that may be carried forward indefinitely. However, any NOLs arising from tax years ending after December 31, 2020, can only be used to offset up to 80% of taxable income. For the three months ended September 30, 2022 and 2021, there were no operating income under US tax regime. A full valuation allowance has been provided against the deferred tax assets of $796,959 on the expected future tax benefits from the net operating loss (“NOL”) carry forwards of $3,795,045 as the management believes it is more likely than not that these assets will not be realized in the future. BVI Under the current BVI law, VRAP is not subject to tax on income. Malaysia VRSB, Champmark and Wision are registered in Malaysia and Champmark is subject to the Malaysian corporate income tax at a standard income tax rate of 24% while VRSB and Wision with paid-up capital of MYR2.5 million or less, and gross business income of not more than MYR50 million are taxed at 17% on the first MYR600,000 and 24% for chargeable income in excess of MYR600,000 on the assessable income arising in Malaysia during its tax year. As of September 30, 2022, the operation in Malaysia incurred $5,416,265 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss are allowed to be carried forward up to a maximum of ten (10) years of assessments under the current tax legislation in Malaysia. The Company has provided for a full valuation allowance against the deferred tax assets of $1,299,904 on the expected future tax benefits from the net operating loss (“NOL”) carry forwards as the management believes it is more likely than not that these assets will not be realized in the future. Three Months ended September 30, 2022 2021 Loss before income taxes $ (177,170 ) $ (29,194 ) Statutory income tax rate 24 % 24 % Income tax expense at statutory rate (42,521 ) (7,007 ) Non-deductible items 2,280 - Net operating loss 40,241 7,007 Income tax expense $ - $ - The following table sets forth the significant components of the deferred tax assets of the Company: September 30, 2022 June 30, 2022 Deferred tax assets: Net operating loss carry forwards, from US tax regime $ 796,959 $ 1,983 Malaysia tax regime 1,299,904 1,204,288 Less: valuation allowance (2,096,863 ) (1,206,271 ) Deferred tax assets, net $ - $ - The Company has recorded valuation allowances for certain tax attribute carry forwards and other deferred tax assets due to uncertainty that exists regarding future realizability. If in the future the Company believes that it is more likely than not that these deferred tax benefits will be realized, the majority of the valuation allowances will be reversed in the unaudited condensed consolidated statement of operations. The Company did not have any interest and penalty provided or recognized in the income statements for the three months ended September 30, 2022 and 2021. The Company did not have uncertainty tax positions or events leading to uncertainty tax position within the next 12 months. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Sep. 30, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 14 - RELATED PARTY TRANSACTIONS For the Three Months ended September 30, 2022 2021 Related party transactions: Sales to: Borneo Eco Food Sdn Bhd (#3) $ 7,158 $ - Other income – Sales of wash sand to: Jusra Mining Merapoh Sdn Bhd (#1) $ - $ 12,090 Site expenses: Warisan Khidmat Sdn Bhd (#4) $ 7,972 $ - Professional services provided by: Warisan Khidmat Sdn Bhd (#4) $ 4,647 $ - Related party balances: As of September 30, 2022 June 30, 2022 Trade receivables Borneo Eco Food Sdn Bhd (#2) $ 8,353 $ 5,933 Deposits paid for acquisition of property and equipment Borneo Energy Sdn Bhd (#2) $ - $ 5,000,000 Trade Payables Warisan Khidmat Sdn Bhd (#3) $ - $ 7,253 Advanced from related parties Advanced from BOG (#4) $ 530,362 $ 555,527 (#1) Lamax Gold Limited (“LGL”) held 15% equity interests of Champmark Sdn Bhd which was disposed on October 20, 2021 to Verde Resources Asia Pacific Limited (“VRAP”) (formerly known as Gold Billion Global Limited) and is also the major shareholder of Jusra Mining Merapoh Sdn Bhd. (#2) Borneo Oil Berhad (“BOB”) is the ultimate holding company of Borneo Eco Food Sdn. Bhd. and Borneo Energy Sdn Bhd, and held 22.7% and 22.8% of the Company’s issued and outstanding common stock as of September 30, 2022 and June 30, 2022, respectively. (#3) Warisan Khidmat Sdn, Bhd. is a company whose shareholdings is entirely held by Director of Verde Malaysia. (#4) Borneo Oil and Gas Corporation Sdn Bhd (“BOG”) is a wholly owned subsidiary of Borneo Oil Berhad (“BOB”) (holding 22.7% and 22.8% of the Company’s issued and outstanding common stock as of September 30, 2022 and June 30, 2022, respectively). The advances are related to ordinary business transactions and bear no interest or collateral, repayable and renewable under normal business advancement terms. Apart from the transactions and balances detailed elsewhere in these accompanying unaudited condensed consolidated financial statements, the Company has no other significant or material related party transactions during the periods presented. |
CONCENTRATIONS OF RISK
CONCENTRATIONS OF RISK | 3 Months Ended |
Sep. 30, 2022 | |
CONCENTRATIONS OF RISK | |
CONCENTRATIONS OF RISK | NOTE 15 - CONCENTRATIONS OF RISK The Company is exposed to the following concentrations of risk: (a) Major customers For the three months ended September 30, 2022 and 2021, there was no single customer whose revenue exceeded 10% of the revenue. (b) Economic and political risk The Company’s major operations are conducted in U.S.A. and Malaysia. Accordingly, the political, economic, and legal environments in U.S.A. and Malaysia, as well as the general state of U.S.A. and Malaysia’s economy may influence the Company’s business, financial condition, and results of operations. Changes in global economic conditions, including inflation which resulted in lower consumer confidence, may continue to have negative impact on our business, revenues and earnings. Inflation rates have increased and may continue to rise. Our suppliers may continue to raise prices that we may not be able to pass on to our customers. This may continue to affect our business, including our competitive position, market share, revenues and profit margins. (c) Exchange rate risk The Company cannot guarantee that the current exchange rate will remain steady; therefore there is a possibility that the Company could post the same amount of profit for two comparable periods and because of the fluctuating exchange rate actually post higher or lower profit depending on exchange rate of HKD converted to US$ on that date. The exchange rate could fluctuate depending on changes in political and economic environments without notice. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 16 - COMMITMENTS AND CONTINGENCIES As of September 30, 2022, the Company has no material commitments or contingencies. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Sep. 30, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 17 - SUBSEQUENT EVENTS In accordance with ASC Topic 855, “ Subsequent Events On October 1, 2022, Balakrishnan B S Muthu resigned from his position as President of Verde Resources, Inc. (“Verde” or the “Company”). Balakrishnan B S Muthu shall remain as Treasurer, Chief Financial Officer, General Manager and Director of Verde and Liang Wai Keen shall remain as Secretary of the Company. Mr. Jack Wong has been appointed President and Chief Executive Officer of the Company effective October 1, 2022. Mr. Wong was the sole shareholder of The Wision Project Sdn Bhd (“Wision”), a subsidiary which was acquired by the Company through its wholly owned subsidiary Verde Resources (Malaysia) Sdn Bhd (“Verde Malaysia”) pursuant to Share Sale Agreement (“SSA”) signed on March 23, 2022 for the acquisition of one hundred percent 100% of the issued and paid-up ordinary shares in Wision from Mr. Wong. On October 1, 2022, the Company’s Board of Directors adopted an employment and compensation agreement for Mr. Wong (the “Agreement”). The Agreement provides for an employment term of five (5) years. Mr. Wong will receive an annual salary of $287,650 inclusive of any tax payable as required by law. The Company will also provide Mr. Wong an executive vehicle, executive housing, health benefits, and equity incentives upon the Company adopting an equity incentive plan. On October 26, 2022, the Company entered into a corporate consulting services agreement (the “Consulting Agreement”) for investor communication and public relations services with Dutchess Group LLC (“DGL”). Pursuant to terms of the Consulting Agreement, the Company agreed to issue 1,500,000 shares of the Company’s restricted common stock to DGL within forty-five (45) days of signing the Consulting Agreement. On November 7, 2022, the Company issued a total of 15,931,210 restricted common shares comprising 291,667 restricted common shares for US$21,000 at US$0.072 per share to one non-US shareholder, 15,036,362 restricted common shares for US$1,323,200 at US$0.088 per share to five non-US shareholders and 603,181 restricted common shares for US$53,080 at US$0.088 per share to three US shareholders. On November 8, 2022, Jack Wong has been appointed Chief Executive Officer of the Company’s wholly owned subsidiaries Verde Renewables, Inc and Verde Life Inc. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (“GAAP”), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, the consolidated balance sheet as of June 30, 2022 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended September 30, 2022 are not necessarily indicative of the results to be expected for the entire fiscal year ending June 30, 2023 or for any future period. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended June 30, 2022, filed with the SEC on November 4, 2022. |
Use of Estimates and Assumptions | The preparation of unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s periodic filings with the Securities and Exchange Commission include, where applicable, disclosures of estimates, assumptions, uncertainties and markets that could affect the financial statements and future operations of the Company. In preparing these unaudited condensed consolidated financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the periods reported. Actual results may differ from these estimates. |
Basis of Consolidation | The unaudited condensed consolidated financial statements include the financial statements of Verde Resources, Inc. and its subsidiaries. All significant inter-company balances and transactions within the Company and its subsidiaries have been eliminated upon consolidation. |
Segment Reporting | Accounting Standard Codification (“ASC”) Topic 280, Segment Reporting |
Concentrations of Credit Risk | The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents and related party payables it will likely incur in the near future. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company’s management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited. |
Risks and Uncertainties | The Company operates in the resource exploration industry that is subject to significant risks and uncertainties, including financial, operational, technological, and other risks associated with operating a resource exploration business, including the potential risk of business failure. |
Cash and Cash Equivalents | Cash and cash equivalents are carried at cost and represent cash in banks, money market funds, and certificates of term deposits with maturities of less than three months, which are readily convertible to known amounts of cash and which, in the opinion of management, are subject to an insignificant risk of loss in value. The Company had $748,356 and $418,917 in cash and cash equivalents at September 30, 2022 and June 30, 2022. At September 30, 2022 and June 30, 2022, cash and cash equivalents consisted of bank deposits in a Malaysian bank and petty cash on hand. |
Accounts Receivable | Accounts receivable are recognized and carried at net realizable value. An allowance for doubtful accounts will be recorded in the period when a loss is probable based on an assessment of specific evidence indicating troubled collection, historical experience, accounts aging, ongoing business relation and other factors. Accounts are written off after exhaustive efforts at collection. If accounts receivable are to be provided for, or written off, they would be recognized in the consolidated statement of operations within operating expenses. At September 30, 2022 and June 30, 2022, the Company has no allowance for doubtful accounts, as per management’s judgment based on their best knowledge. As of September 30, 2022 and June 30, 2022, the longest credit term for certain customers are 60 days. |
Inventories | Inventories are stated at the lower of cost or market value (net realizable value), cost being determined on a first-in-first-out method. Costs include material, labor and overhead costs. The Company provides inventory allowances based on excess and obsolete inventories determined principally by customer demand. As of September 30, 2022 and June 30, 2022, the Company did not record an allowance for obsolete inventories, nor have there been any write-offs. |
Property and equipment | Property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the following expected useful lives from the date on which they become fully operational and after taking into account their estimated residual values: Expected useful life Land and buildings 3-27.5 years Plant and machinery 5-7 years Office equipment 3 years Project equipment 5 years Computer 5 years Motor vehicle 5 years Furniture & fittings 5 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterment which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the unaudited condensed consolidated statements of income and other comprehensive income in other income or expenses. |
Impairment of Long-lived Assets | In accordance with the provisions of ASC Topic 360, Impairment or Disposal of Long-Lived Assets |
Revenue Recognition | ASC Topic 606, Revenue from Contracts with Customers The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. Revenue is recognized when the Company satisfies its performance obligation under the contract by transferring the promised product to its customer that obtains control of the product and collection is reasonably assured. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. Most of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. Product sales Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial. Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers. Product revenue reserves, which are classified as a reduction in product revenues, are generally characterized in the following categories: discounts, returns and rebates. These reserves are based on estimates of the amounts earned or to be claimed on the related sales and are classified as reductions of accounts receivable as the amount is payable to the Company’s customer. Gold mining Revenue from the sales of gold mineral or other minerals to registered gold trading companies or other customers in Malaysia is recognized as revenue in accordance with the following core principles: at the time of gold or minerals sales, the contract with customers and the performance obligations are identified. The transaction and selling price is determined by the prevailing market value of gold bullion quoted by the leading registered gold trading company in Malaysia or at an agreed price. Sales invoice will be prepared to reflect the proper transaction price based on the performance obligation allocation. After delivery is completed and the performance obligation is satisfied, sales invoice will be presented to the customers and so revenue is then recognized accordingly. |
Leases | The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for the operating lease, the Company generally uses an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating lease right-of-use (“ROU assets”) assets represent the Company’s right to control the use of an identified asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are generally recognized based on the amount of the initial measurement of the lease liability. Lease expense is recognized on a straight-line basis over the lease term. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC Topic 360, Property, Plant, and Equipment ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of September 30, 2022 and June 30, 2022. The operating lease is included in operating lease right-of-use assets and operating lease liabilities as current and non-current liabilities in the unaudited condensed consolidated balance sheets at September 30, 2022 and June 30, 2022. Leases that transfer substantially all the rewards and risks of ownership to the lessee, other than legal title, are accounted for as finance leases. Substantially all of the risks or benefits of ownership are deemed to have been transferred if any one of the four criteria is met: (i) transfer of ownership to the lessee at the end of the lease term, (ii) the lease containing a bargain purchase option, (iii) the lease term exceeding 75% of the estimated economic life of the leased asset, (iv) the present value of the minimum lease payments exceeding 90% of the fair value. At the inception of a finance lease, we as the lessee records an asset and an obligation at an amount equal to the present value of the minimum lease payments. The leased asset is amortized over the shorter of the lease term or its estimated useful life if title does not transfer to us, while the leased asset is depreciated in accordance with our depreciation policy if the title is to eventually transfer to us. The periodic rent payments made during the lease term are allocated between a reduction in the obligation and interest element using the effective interest method in accordance with the provisions of ASC Topic 842. |
Income Taxes | The Company adopted the ASC Topic 740, Income tax The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary. |
Uncertain Tax Positions | The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the ASC Topic 740 provisions of Section 740-10-25 for the three months ended September 30, 2022 and 2021. |
Foreign Currency Translation | The Company’s reporting currency is the United States dollar (“US$”) and the accompanying unaudited condensed consolidated financial statements have been expressed in United States dollars. The Company’s functional currency is the Malaysian Ringgit (“MYR”) which is a functional currency as being the primary currency of the economic environment in which their operations are conducted. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the unaudited condensed consolidated statement of operations. For reporting purposes, in accordance with ASC Topic 830 ” Translation of Financial Statements Translation of MYR into U.S. dollars has been made at the following exchange rates for the following periods:- September 30, 2022 September 30, 2021 Period-end MYR:US$ exchange rate 4.23360 4.15511 Average period MYR:US$ exchange rate 0.22687 0.23895 |
Comprehensive Income | ASC Topic 220, Comprehensive Income |
Net Loss per Share | The Company calculates net loss per share in accordance with ASC Topic 260, Earnings per Share |
Stock-Based Compensation | The Company accounts for stock-based compensation in accordance with ASC Topic 718-10, Compensation-Stock Compensation The Company accounts for non-employee stock-based awards at fair value in accordance with the measurement and recognition criteria of ASC Topic 505-50, “ Equity-Based Payments to Non-Employees |
Mineral Acquisition and Exploration Costs | Mineral property acquisition and exploration costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserves. |
Environmental Expenditures | The operations of the Company have been, and may in the future, be affected from time to time in varying degree by changes in environmental regulations, including those for future reclamation and site restoration costs. Both the likelihood of new regulations and their overall effect upon the Company vary greatly and are not predictable. The Company’s policy is to meet or, if possible, surpass standards set by relevant legislation by application of technically proven and economically feasible measures. Environmental expenditures that relate to ongoing environmental and reclamation programs are charged against earnings as incurred or capitalized and amortized depending on their future economic benefits. All of these types of expenditures incurred since inception have been charged against earnings due to the uncertainty of their future recoverability. Estimated future reclamation and site restoration costs, when the ultimate liability is reasonably determinable, are charged against earnings over the estimated remaining life of the related business operation, net of expected recoveries. |
Related Parties | The Company follows the ASC 850-10, Related Party Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The unaudited condensed consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. |
Commitments and contingencies | The Company follows the ASC 450-20, Commitments If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s unaudited condensed consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. |
Fair Value of Financial Instruments | The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, loan and fee receivable, prepayments and other receivables, amounts due from related parties, accrued liabilities and other payables, loans payable, amounts due to related parties approximate their fair values because of the short maturity of these instruments. |
Recent Accounting Pronouncements | During the three months ended September 30, 2022, there have been no new, or existing, recently issued accounting pronouncements that are of significance, or potential significance, that impact the Company’s unaudited condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Property and equipment | Expected useful life Land and buildings 3-27.5 years Plant and machinery 5-7 years Office equipment 3 years Project equipment 5 years Computer 5 years Motor vehicle 5 years Furniture & fittings 5 years |
Schedule of foreign currencies translation | September 30, 2022 September 30, 2021 Period-end MYR:US$ exchange rate 4.23360 4.15511 Average period MYR:US$ exchange rate 0.22687 0.23895 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
BUSINESS SEGMENT INFORMATION (Tables) | |
Schedule of reconciliation of the disaggregated revenue | Three Months ended September 30, 2022 Gold mineral mining Distribution of THC-free cannabinoid (CBD) products Production and distribution of renewable commodities Holding property Corporate unallocated Consolidated Revenue $ - $ - $ 23,344 $ 2,050 $ 918 $ 26,312 Cost of revenue - - (47,427 ) - (512 ) (47,939 ) Gross loss - - (24,083 ) (2,050 ) 406 (21,627 ) General & administrative expenses (47,060 ) (25 ) (498,779 ) (23,453 ) (241,125 ) (810,442 ) Loss from operations (47,060 ) (25 ) (522,862 ) (21,403 ) (240,719 ) (832,069 ) Interest expense - - (3,885 ) - (526,227 ) (530,112 ) Other income 5,775 - - - - 5,775 Loss before income tax (41,285 ) (25 ) (526,747 ) (21,403 ) (766,946 ) (1,356,406 ) Income tax - - - - - - Net loss $ (41,285 ) $ (25 ) $ (526,747 ) $ (21,403 ) $ (766,946 ) $ (1,356,406 ) Total assets at September 30, 2022 $ 36,503 $ 148,479 $ 865,687 $ 1,256,787 $ 32,359,645 $ 34,667,101 Three Months ended September 30, 2021 Gold mineral mining Distribution of THC-free cannabinoid (CBD) products Production and distribution of renewable commodities Holding property Corporate unallocated Consolidated Revenue $ - $ - $ - $ - $ - $ - Cost of revenue - - - - - Gross loss - - - - - - General & administrative expenses (41,283 ) - - (10,488 ) (312,225 ) (363,996 ) Loss from operations (41,283 ) - - (10,488 ) (312,225 ) (363,996 ) Interest expense - - - - (470,766 ) (470,766 ) Other income 12,090 - - - - 12,090 Loss before income tax (29,193 ) - - (10,488 ) (782,991 ) (822,672 ) Income tax - - - - - - Net loss $ (29,193 ) $ - $ - $ (10,488 ) $ (782,991 ) $ (822,672 ) Total assets as September 30, 2021 $ 101,928 $ - $ - $ 555,311 33,145,572 $ 33,802,811 |
Schedule of financial information, geographic segment | Three Months ended September 30, 2022 2021 Malaysia $ 11,612 $ - United States of America 14,700 - 26,312 - |
OTHER RECEIVABLE, DEPOSITS AND
OTHER RECEIVABLE, DEPOSITS AND PREPAYMENTS (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
OTHER RECEIVABLE, DEPOSITS AND PREPAYMENTS (Tables) | |
SCHEDULE OF OTHER RECEIVABLE, DEPOSITS AND PREPAYMENTS | September 30, 2022 June 30, 2022 Deposits $ 148,451 $ 118,516 Prepayments 40,010 722 Other receivables 842 - $ 189,303 $ 119,238 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
PROPERTY AND EQUIPMENT | |
Schedule of property and equipment | September 30, 2022 June 30, 2022 Land and building $ 2,106,599 $ 1,642,102 Plant and machinery 467,257 134,198 Office equipment 22,697 23,353 Project equipment 585,055 615,420 Computer 14,717 14,846 Motor vehicle 276,303 225,861 Furniture & fittings 10,270 2,527 3,482,898 2,658,307 Less: accumulated depreciation (1,559,065 ) (1,609,414 ) $ 1,923,833 $ 1,048,893 |
Deposits Paid (Tables)
Deposits Paid (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Deposits Paid (Tables) | |
Schedule of deposit paid | September 30, 2022 June 30, 2022 Deposits paid for acquisition of subsidiaries - Bio Resources Limited (#1) $ 25,935,550 $ 25,935,550 Deposits paid for acquisition of property and equipment - Intellectual property license (#2) 5,000,000 5,000,000 - Factory site (#3) 80,000 80,000 $ 5,080,000 $ 5,080,000 Security deposit (#4) $ - $ 240,000 |
MINING RIGHT (Table)
MINING RIGHT (Table) | 3 Months Ended |
Sep. 30, 2022 | |
MINING RIGHT | |
Summary of operating lease related assets and liabilities recorded on the balance sheets | Three months ended September 30, 2022 Year Ended June 30, 2022 Balance as at July 1, 2022 and July 1, 2021 $ 27,088 $ 60,131 Amortization charge for the period (7,205 ) (30,779 ) Foreign exchange adjustment (1,155 ) (2,264 ) Balance as of September 30, 2022 and June 30, 2022 $ 18,728 $ 27,088 |
AMOUNTS DUE TO RELATED PARTIES
AMOUNTS DUE TO RELATED PARTIES (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
AMOUNTS DUE TO RELATED PARTIES (Tables) | |
Schedule of breakdown of the balances due to related parties | September 30, 2022 June 30, 2022 BOG $ 530,362 $ 555,527 |
PROMISSORY NOTES (Tables)
PROMISSORY NOTES (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
PROMISSORY NOTES | |
Schedule of fair value of the outstanding promissory notes | Risk free rate 0.268 % Credit spread 6.513 % Liquidity risk premium 5.000 % |
Schedule of beginning and ending balances of notes payable | September 30, June 30, 2022 2022 Balance at the beginning of period or year $ 18,484,028 $ 16,535,942 Interest expense 526,227 1,948,086 Balance at the end of period or year $ 19,010,255 $ 18,484,028 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
LEASES (Tables) | |
Schedule of lease-related assets and liabilities | September 30, 2022 June 30, 2022 Assets Right-of-use asset # $ 660,000 $ 685,714 Liabilities Current: Finance lease liabilities $ 116,905 $ 75,224 Non-current: Finance lease liabilities 285,154 97,900 Total lease liabilities $ 402,059 $ 173,124 |
Schedule of right-of-use assets | Three Months ended September 30, 2022 2021 Finance lease cost: Interest on lease liabilities (per ASC 842) $ 3,885 $ - Operating lease cost: Operating lease expense (per ASC 842) 25,714 10,818 Total lease expense $ 29,599 $ 10,818 |
Schedule of Future Contractual Lease Payments | Years ending September 30, Operating and finance lease amount 2023 $ 116,905 2024 66,361 2025 69,797 2026 73,366 2027 66,956 Thereafter 8,674 Total minimum finance lease liabilities instalment payment $ 402,059 Representing:- Current liabilities $ 116,905 Non-current liabilities 285,154 $ 402,059 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
INCOME TAX | |
Schedule of income (loss) before income taxes | Three Months ended September 30, 2022 2021 Tax jurisdiction from: - Local (US regime) $ (1,079,901 ) $ (638,989 ) - Foreign, including British Virgin Island (99,335 ) (154,489 ) Malaysia (177,170 ) (29,194 ) Loss before income taxes $ (1,356,406 ) $ (822,672 ) |
Schedule of provision for income taxes | Three Months ended September 30, 2022 2021 Current tax: - Local $ - $ - - Foreign - - Deferred tax - Local - - - Foreign - - Income tax expense (benefit) $ - $ - |
Schedule of effective tax rate | Three Months ended September 30, 2022 2021 Loss before income taxes $ (177,170 ) $ (29,194 ) Statutory income tax rate 24 % 24 % Income tax expense at statutory rate (42,521 ) (7,007 ) Non-deductible items 2,280 - Net operating loss 40,241 7,007 Income tax expense $ - $ - |
Schedule of significant components of the deferred tax assets | September 30, 2022 June 30, 2022 Deferred tax assets: Net operating loss carry forwards, from US tax regime $ 796,959 $ 1,983 Malaysia tax regime 1,299,904 1,204,288 Less: valuation allowance (2,096,863 ) (1,206,271 ) Deferred tax assets, net $ - $ - |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
RELATED PARTY TRANSACTIONS | |
Schedule of Related party transactions | For the Three Months ended September 30, 2022 2021 Related party transactions: Sales to: Borneo Eco Food Sdn Bhd (#3) $ 7,158 $ - Other income – Sales of wash sand to: Jusra Mining Merapoh Sdn Bhd (#1) $ - $ 12,090 Site expenses: Warisan Khidmat Sdn Bhd (#4) $ 7,972 $ - Professional services provided by: Warisan Khidmat Sdn Bhd (#4) $ 4,647 $ - |
Schedule of Related party balances | Related party balances: As of September 30, 2022 June 30, 2022 Trade receivables Borneo Eco Food Sdn Bhd (#2) $ 8,353 $ 5,933 Deposits paid for acquisition of property and equipment Borneo Energy Sdn Bhd (#2) $ - $ 5,000,000 Trade Payables Warisan Khidmat Sdn Bhd (#3) $ - $ 7,253 Advanced from related parties Advanced from BOG (#4) $ 530,362 $ 555,527 |
ORGANIZATION AND BUSINESS BAC_2
ORGANIZATION AND BUSINESS BACKGROUND (Details) | 3 Months Ended |
Sep. 30, 2022 | |
Verde Resources [Member] | |
Effective interest held | 100% |
Verde Renewables, Inc. [Member] | |
Effective interest held | 100% |
Verde Life Inc. [Member] | |
Effective interest held | 100% |
Champark Sdn Bhd [Member] | |
Effective interest held | 100% |
The Wision Project Sdn Bhd [Member] | |
Effective interest held | 100% |
Verde Estates LLC [Member] | |
Effective interest held | 100% |
Represents information about Gold billion global limited. | |
Effective interest held | 100% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended |
Sep. 30, 2022 | |
Land and Building [Member] | Upper [Member] | |
Estimated useful lives | 27 years 6 months |
Land and Building [Member] | Lower [Member] | |
Estimated useful lives | 3 years |
Office Equipment [Member] | |
Estimated useful lives | 3 years |
Furniture & fttings [Member] | |
Estimated useful lives | 5 years |
Plant And Machinery [Member] | Upper [Member] | |
Estimated useful lives | 7 years |
Plant And Machinery [Member] | Lower [Member] | |
Estimated useful lives | 5 years |
Project Equipment [Member] | |
Estimated useful lives | 5 years |
Computer [Member] | |
Estimated useful lives | 5 years |
Motor Vehicle [Member] | |
Estimated useful lives | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | Sep. 30, 2022 | Sep. 30, 2021 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Foreign Currency Exchange Rate | 4.23360 | 4.15511 |
Annualized average Foreign Currency Exchange Rate | 0.22687 | 0.23895 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Jun. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Credit term | 60 years | |
Cash and cash equivalents | $ 748,356 | $ 418,917 |
GOING CONCERN UNCERTAINTIES (De
GOING CONCERN UNCERTAINTIES (Details Narrative) | Sep. 30, 2022 USD ($) |
GOING CONCERN UNCERTAINTIES | |
Accumulated deficit | $ (11,714,326) |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Revenue | $ 26,312 | $ 0 | |
Gross loss | (1,356,406) | (822,672) | |
Interest expense | (530,112) | (470,766) | |
Other income | 5,775 | 12,090 | |
Income tax | 0 | 0 | |
Net loss | (1,356,406) | (822,672) | |
Total assets | 34,667,101 | $ 33,663,463 | |
Gold Mineral Mining [Member] | |||
Revenue | 0 | 0 | |
Cost of revenue | 0 | 0 | |
Gross loss | 0 | 0 | |
General & administrative expenses | (47,060) | (41,283) | |
Loss from operations | (47,060) | (41,283) | |
Interest expense | 0 | 0 | |
Other income | 5,775 | 12,090 | |
Loss before income tax | (41,285) | (29,193) | |
Income tax | 0 | 0 | |
Net loss | (41,285) | (29,193) | |
Total assets | 36,503 | 101,928 | |
Distribution of THC-free cannabinoid (CBD) products [Member] | |||
Revenue | 0 | 0 | |
Cost of revenue | 0 | 0 | |
Gross loss | 0 | 0 | |
General & administrative expenses | (25) | 0 | |
Loss from operations | (25) | 0 | |
Interest expense | 0 | 0 | |
Other income | 0 | 0 | |
Loss before income tax | (25) | 0 | |
Income tax | 0 | 0 | |
Net loss | (25) | 0 | |
Total assets | 148,479 | 0 | |
Production and Distribution of Renewable Commodities [Member] | |||
Revenue | 23,344 | 0 | |
Cost of revenue | 47,427 | 0 | |
Gross loss | (24,083) | 0 | |
General & administrative expenses | (498,779) | 0 | |
Loss from operations | (522,862) | 0 | |
Interest expense | (3,885) | 0 | |
Other income | 0 | 0 | |
Loss before income tax | (526,747) | 0 | |
Income tax | 0 | 0 | |
Net loss | (526,747) | 0 | |
Total assets | 865,687 | 0 | |
Holding Property [Member] | |||
Revenue | 2,050 | 0 | |
Cost of revenue | 0 | 0 | |
Gross loss | (2,050) | 0 | |
General & administrative expenses | (23,453) | (10,488) | |
Loss from operations | (21,403) | (10,488) | |
Interest expense | 0 | 0 | |
Other income | 0 | 0 | |
Loss before income tax | (21,403) | (10,488) | |
Income tax | 0 | 0 | |
Net loss | (21,403) | (10,488) | |
Total assets | 1,256,787 | 555,311 | |
Corporate Unallocated [Member] | |||
Revenue | 918 | 0 | |
Cost of revenue | 512 | 0 | |
Gross loss | 406 | 0 | |
General & administrative expenses | (241,125) | (312,225) | |
Loss from operations | (240,719) | (312,225) | |
Interest expense | (526,227) | (470,766) | |
Other income | 0 | 0 | |
Loss before income tax | (766,946) | (782,991) | |
Income tax | 0 | 0 | |
Net loss | (766,946) | (782,991) | |
Total assets | 32,359,645 | 33,145,572 | |
Consolidated [Member] | |||
Revenue | 26,312 | 0 | |
Cost of revenue | 47,939 | 0 | |
Gross loss | (21,627) | 0 | |
General & administrative expenses | (810,442) | (363,996) | |
Loss from operations | (832,069) | (363,996) | |
Interest expense | (530,112) | (470,766) | |
Other income | 5,775 | 12,090 | |
Loss before income tax | (1,356,406) | (822,672) | |
Income tax | 0 | 0 | |
Net loss | (1,356,406) | (822,672) | |
Total assets | $ 34,667,101 | $ 33,802,811 |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION (Details 1) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue | $ 26,312 | $ 0 |
Malaysia [Member] | Operating Segment [Member] | ||
Revenue | 11,612 | 0 |
United States of America [Member] | Operating Segment [Member] | ||
Revenue | $ 14,700 | $ 0 |
OTHER RECEIVABLE, DEPOSITS AN_2
OTHER RECEIVABLE, DEPOSITS AND PREPAYMENTS (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
OTHER RECEIVABLE, DEPOSITS AND PREPAYMENTS (Details) | ||
Deposits | $ 148,451 | $ 118,516 |
Prepayments | 40,010 | 722 |
Other receivables | 842 | 0 |
Other receivables,deposit and prepayment | $ 189,303 | $ 119,238 |
PROPERTY PLANT AND EQUIPMENT (D
PROPERTY PLANT AND EQUIPMENT (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Total | $ 3,482,898 | $ 2,658,307 |
Less: accumulated depreciation | (1,559,065) | (1,609,414) |
Property, plant and equipment, net | 1,923,833 | 1,048,893 |
Office Equipment [Member] | ||
Total | 22,697 | 23,353 |
Project Equipment [Member] | ||
Total | 585,055 | 615,420 |
Computer [Member] | ||
Total | 14,717 | 14,846 |
Land and Building [Member] | ||
Total | 2,106,599 | 1,642,102 |
Plant And Machinery [Member] | ||
Total | 467,257 | 134,198 |
Motor Vehicle [Member] | ||
Total | 276,303 | 225,861 |
Furniture & fittings [Member] | ||
Total | $ 10,270 | $ 2,527 |
PROPERTY PLANT AND EQUIPMENT _2
PROPERTY PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
ORGANIZATION AND BUSINESS BACKGROUND | |||
Land and Building | $ 740,604 | $ 746,145 | |
Depreciation expenses | $ 27,952 | $ 1,086 |
DEPOSITS PAID (Details)
DEPOSITS PAID (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Security deposit | $ 0 | $ 240,000 |
Deposits paid for acquisition of property and equipment | 5,080,000 | 5,080,000 |
Bio Resources Limited (#1) [Member] | ||
Deposits paid for acquisition of subsidiaries | 25,935,550 | 25,935,550 |
Intellectual property license (#3) [Member] | ||
Deposits paid for acquisition of property and equipment | 5,000,000 | 5,000,000 |
Factory site (#4) [Member] | ||
Other deposits | $ 80,000 | $ 80,000 |
DEPOSITS PAID (Details Narrativ
DEPOSITS PAID (Details Narrative) - USD ($) | Mar. 02, 2022 | Feb. 10, 2022 | Jun. 11, 2021 | May 12, 2021 | May 10, 2021 | Jul. 01, 2021 | Jun. 10, 2021 |
Shares issued | 135,666,667 | 31,000,000 | |||||
Segama Ventures Sdn Bhd [Member] | Sale and Purchase Agreement [Member] | |||||||
Deposit | $ 800,000 | ||||||
Cash payment | $ 1,600,000 | ||||||
Number of instalments | two | ||||||
Instalments amount | $ 800,000 | ||||||
Bio Resources Limited [Member] | Sale and Purchase Agreement [Member] | |||||||
Amount of issuance promissory notes | $ 20,355,000 | ||||||
Restricted shares of common stock | 321,500,000 | ||||||
Amount of shares issued under acquisition | $ 9,645,000 | ||||||
Shares issued price under acquisition | $ 0.03 | ||||||
Number of shares issued under acquisition | 321,500,000 | ||||||
promissory note priced | $ 16,290,550 | ||||||
Biofraction plant [Member] | Sale and Purchase Agreement [Member] | |||||||
Amount of shares issued under acquisition | $ 5,000,000 | ||||||
Shares issued price under acquisition | $ 0.03 | ||||||
Number of shares issued under acquisition | 166,666,667 | ||||||
Lease Agreements [Member] | |||||||
Lease Terms | 7 years | 2 years | |||||
Rent payable | $ 8,571 | $ 10,000 | |||||
Landlord consideration | 720,000 | 490,000 | |||||
Security deposit | 80,000 | $ 240,000 | |||||
Refundable advance | $ 800,000 |
MINING RIGHT (Details)
MINING RIGHT (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Jun. 30, 2022 | |
MINING RIGHT (Details) | ||
Balance as at the 1 July 2021 | $ 27,088 | $ 60,131 |
Amortization charge for the year | (7,205) | (30,779) |
Foreign exchange adjustment | (1,155) | (2,264) |
Balance as of June 30,2022 | $ 18,728 | $ 27,088 |
MINING RIGHT (Details Narrative
MINING RIGHT (Details Narrative) - USD ($) | 3 Months Ended | ||
Jun. 14, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
MINING RIGHT (Details) | |||
Lump sum payments for rent | $ 62,260 | ||
Terms of mining leases | the mining space with lease period for 2 years up to June 13, 2023, and no ongoing payments will be made under the terms of these mining leases. | ||
Amortization charge of rights of use lease assets | $ 7,205 | $ 7,776 | |
Lease term | 2 | ||
Description of lease payments | Lease expense for lease payment is recognized on a straight-line basis over the lease term. |
AMOUNTS DUE TO RELATED PARTIE_2
AMOUNTS DUE TO RELATED PARTIES (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
AMOUNTS DUE TO RELATED PARTIES (Details) | ||
Advanced from related parties | $ 530,362 | $ 555,527 |
AMOUNTS DUE TO RELATED PARTIE_3
AMOUNTS DUE TO RELATED PARTIES (Details Narrative) | Sep. 30, 2022 | Jun. 30, 2022 |
AMOUNTS DUE TO RELATED PARTIES (Details) | ||
Holding share percentage | 22.70% | 22.80% |
PROMISSORY NOTES (Details)
PROMISSORY NOTES (Details) | 3 Months Ended |
Sep. 30, 2022 | |
PROMISSORY NOTES (Details) | |
Risk free interest | 0.268 |
Credit spread | 6.513 |
Liquidity risk premium | 5.000 |
PROMISSORY NOTES (Details 1)
PROMISSORY NOTES (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
PROMISSORY NOTES (Details) | |||
Balance at the beginning of year | $ 18,484,028 | $ 16,535,942 | $ 16,535,942 |
Interest expenses | 526,227 | $ 470,766 | 1,948,086 |
Balance at the end of year | $ 19,010,255 | $ 18,484,028 |
PROMISSORY NOTES (Details Narra
PROMISSORY NOTES (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jan. 20, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Jul. 15, 2022 | Mar. 31, 2022 | May 12, 2021 | |
Interest expenses | $ 526,227 | $ 470,766 | $ 1,948,086 | ||||
Stock price per share | $ 0.0611 | ||||||
Convert principal loan amount into shares of the restricted common stock | $ 20,355,000 | ||||||
Common stock shares issued, shares | 820,688,055 | 819,188,055 | |||||
Common stock shares issued, amount | $ 820,688 | $ 819,188 | |||||
May 12, 2021 [Member] | Promissory Note [Member] | |||||||
Common stock shares issued, shares | 321,500,000 | ||||||
Promissory notes issued, amount | $ 20,355,000 | ||||||
Repaymnet of promissory notes | 20,355,000 | ||||||
Bearing interest rate | $ 0 | ||||||
Restricted Stock [Member] | |||||||
Common stock shares issued, shares | 1,500,000 | 321,500,000 | |||||
Common stock per share | $ 0.03 | ||||||
Common stock shares issued, amount | $ 9,645,000 |
LEASES (Details)
LEASES (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Assets | ||
Right-of-use asset # | $ 660,000 | $ 685,714 |
Liabilities non current | ||
Finance lease liabilities | 285,154 | 97,900 |
Liabilities Current | ||
Finance lease liabilities current | 116,905 | 75,224 |
Total lease liabilities | $ 402,059 | $ 173,124 |
LEASES (Details 1)
LEASES (Details 1) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Finance lease cost | ||
Interest on lease liabilities | $ 3,885 | $ 0 |
Operating lease cost | ||
Operating lease expense | 25,714 | 10,818 |
Total lease expense | $ 29,599,000,000 | $ 10,818 |
LEASES (Details 2)
LEASES (Details 2) | Sep. 30, 2022 USD ($) |
Operating And Finance Lease Maturities | |
2023 | $ 116,905 |
2024 | 66,361 |
2025 | 69,797 |
2026 | 73,366 |
2027 | 66,956 |
2028 and thereafter | 8,674 |
Total minimum finance lease liabilities payment | 402,059 |
Current liabilities | 116,905 |
Non-current liabilities | 285,154 |
Finance Lease Liability | $ 402,059 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
LEASES | |||
Weighted average remaining life of the lease | 3 years | ||
Right Of Use Asset | $ 660,000 | $ 685,714 | |
Weighted average incremental borrowing rate | 5% | ||
Lease liabilities | $ 402,059 | $ 173,124 | |
Amortization charge | 3,885 | $ 0 | |
Lease | $ 720,000 | ||
Lease term | 7 years |
STOCKHOLDERS EQUITY (Details Na
STOCKHOLDERS EQUITY (Details Narrative) - USD ($) | 3 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Jul. 15, 2022 | Jun. 30, 2022 | May 12, 2021 | |
Common stock, shares authorized | 10,000,000,000 | 10,000,000,000 | |||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Stock based compensation | $ 232,500 | $ 96,128 | |||
Common stock shares issued | 820,688,055 | 819,188,055 | |||
Common stock shares outstanding | 820,688,055 | 819,188,055 | |||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Restricted Stock [Member] | |||||
Common stock, par value (in dollars per share) | $ 0.155 | ||||
Common stock shares issued | 1,500,000 | 321,500,000 | |||
Restricted Stock [Member] | Gary F. Zimmer [Member] | |||||
Common stock shares issued | 1,000,000 | ||||
Restricted Stock [Member] | Lisa Leilani Zimmer [Member] | |||||
Common stock shares issued | 500,000 |
INCOME TAX (Details)
INCOME TAX (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Loss before income taxes | $ (1,356,406) | $ (822,672) |
Foreign, including British Virgin IslandMember | ||
Loss before income taxes | (99,335) | (154,489) |
Local (US regime) Member | ||
Loss before income taxes | (1,079,901) | (638,989) |
Malaysia [Member] | ||
Loss before income taxes | $ (177,170) | $ (29,194) |
INCOME TAX (Details 1)
INCOME TAX (Details 1) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Current tax | ||
Local | $ 0 | $ 0 |
Foreign | 0 | 0 |
Deferred tax | ||
Local | 0 | 0 |
Foreign | 0 | 0 |
Income tax expense benefit | $ 0 | $ 0 |
INCOME TAX (Details 2)
INCOME TAX (Details 2) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
INCOME TAX | ||
Loss before income taxes | $ (177,170) | $ (29,194) |
Statutory income tax rate | 24% | 24% |
Non-deductible items | $ 2,280 | $ 0 |
Income tax expense at statutory rate | (42,521) | (7,007) |
Net operating loss | 40,241 | 7,007 |
Income tax expense benefit | $ 0 | $ 0 |
INCOME TAX (Details 3)
INCOME TAX (Details 3) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
INCOME TAX | ||
US tax regime | $ 796,959 | $ 1,983 |
Malaysia tax regime | 1,299,904 | 1,204,288 |
Less: valuation allowance | (2,096,863) | (1,206,271) |
Deferred tax assets, net | $ 0 | $ 0 |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) - USD ($) | 3 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Valuation allowance - Malaysia Rate | 24% | ||
U.S. corporate income tax rate | 35% | 21% | |
Net operating loss carryforwards, from | $ 5,416,265 | ||
Deferred tax assets | 1,299,904 | ||
Deferred tax asset valuation allowance | 2,096,863 | $ 1,206,271 | |
Paid-up capital | 24,505,062 | $ 22,945,190 | |
United States of America [Member] | |||
Net operating loss carryforwards, from | 3,795,045 | ||
Deferred tax asset valuation allowance | 796,959 | ||
VRSB and Wision [Member] | |||
Business income, Gross | 50,000,000 | ||
Paid-up capital | $ 2,500,000 | ||
Tax rate upto MYR600,000 | 17% | ||
Tax rate excess MYR600,0000 | 24% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Sales to : | ||
Borneo Eco Food Sdn Bhd | $ 7,158 | $ 0 |
Other income - Sales of wash sand to: | ||
Jusra Mining Merapoh Sdn Bhd (#1) | 0 | 12,090 |
Site expenses [Member] | ||
Warisan Khidmat Sdn Bhd | 7,972 | 0 |
Professional services provided by [Member] | ||
Warisan Khidmat Sdn Bhd | $ 4,647 | $ 0 |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details 1) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Deposits paid for acquisition of property, plant and equipment [Member] | ||
Borneo Energy Sdn Bhd (#3) | $ 0 | $ 5,000,000 |
Trade Receivables [Member] | ||
Borneo Eco Food Sdn Bhd (#3) | 8,353 | 5,933 |
Trade Payables [Member] | ||
Warisan Khidmat Sdn Bhd (#5) | 0 | 7,253 |
Advanced From Related Parties [Member] | ||
Advanced from BOG (#6) | $ 530,362 | $ 555,527 |
RELATED PARTY TRANSACTIONS (D_3
RELATED PARTY TRANSACTIONS (Details Narrative) | 1 Months Ended | 3 Months Ended |
Oct. 20, 2021 | Sep. 30, 2022 | |
Lamax Gold Limited [Member] | ||
Equity interests | 15% | |
Borneo Oil Berhad [Member] | ||
Description of equity held | Borneo Eco Food Sdn. Bhd. and Borneo Energy Sdn Bhd, and held 22.7% and 22.8% of the Company’s issued and outstanding common stock as of September 30, 2022 and June 30, 2022, respectively | |
Borneo Oil and Gas Corporation Sdn Bhd ("BOG") [Member] | ||
Description of equity held | Borneo Oil Berhad (“BOB”) (holding 22.7% and 22.8% of the Company’s issued and outstanding common stock as of September 30, 2022 and June 30, 2022 |
CONCENTRATIONS OF RISK (Details
CONCENTRATIONS OF RISK (Details narrative) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Major Customers [Member] | ||
No single customer whose revenue exceeded | 10% | 10% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - $ / shares | Oct. 01, 2022 | Nov. 07, 2022 | Oct. 26, 2022 | Sep. 30, 2022 | Jul. 15, 2022 | Jun. 30, 2022 | May 12, 2021 |
Common stock shares issued | 820,688,055 | 819,188,055 | |||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||||
Restricted Stock [Member] | |||||||
Common stock shares issued | 1,500,000 | 321,500,000 | |||||
Common stock, par value (in dollars per share) | $ 0.155 | ||||||
Subsequent Event [Member] | |||||||
Description of agreement | The Agreement provides for an employment term of five (5) years. Mr. Wong will receive an annual salary of $287,650 inclusive of any tax | ||||||
Subsequent Event [Member] | Restricted Stock [Member] | |||||||
Common stock shares issued | 15,931,210 | ||||||
Common stock, par value (in dollars per share) | $ 0.072 | ||||||
Consulting Agreement [Member] | Dutchess Group LLC [Member] | Subsequent Event [Member] | |||||||
Restricted common shares | 1,500,000 |