v3.25.4
ACCOUNTING IMPACTS ARISING FROM THE MERGER WITH APOLLO
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACCOUNTING IMPACTS ARISING FROM THE MERGER WITH APOLLO

NOTE 2 – ACCOUNTING IMPACTS ARISING FROM THE MERGER WITH APOLLO

 

As discussed in Note 1, Organization and Description of Business, on November 19, 2024, the Company consummated a merger transaction through which Apollo Resources Corporation (“Apollo”), an entity under the same control of the Company, was merged with and into the Company. Such a transfer of net assets between entities under the control of the same parent is referred to under US GAAP as a common-control transaction.

 

The growing demand for critical minerals needed for clean energy technologies and high-tech applications presents significant long-term opportunities. The Company’s goal is to become a leading critical mineral resources company supplying materials for the rapidly growing clean energy technologies. The acquisition of Apollo Resources’ mineral rights on critical minerals strengthens the Company’s portfolio of critical minerals and improves its position to become a leading supplier in this industry.

 

The fair value of the net assets acquired was determined at $14 million based on an independent opinion prepared by RPM Global Canada Limited (“RPM”).

 

While a common-control asset acquisition transaction is similar to a business combination for the entity that receives the net assets or equity interests, such a transaction does not meet the definition of a business combination. Acquisition of assets that are under common control are excluded from the scope of the business combinations guidance and are addressed specifically by subsection ASC 805-50, which requires the receiving entity to recognize the net assets received at their historical carrying amounts, as reflected in the ultimate parent’s financial statements.

 

The table below presents the consolidated balance sheet of the Company in the effective date of the merger and the accounting impacts arising from the recognition of the net assets of Apollo at their historical carrying value, as required by ASC 805-50 for common-control transactions:

 

   Consolidated   Merged   Consolidated 
   pre-merger   entity   post-merger 
             
ASSETS               
Current assets:               
Cash and cash equivalents   16,648    2,857    19,505 
Accounts Receivable   35,082    -    35,082 
Taxes recoverable   -    26    26 
Inventory   206,510    -    206,510 
                
Other current assets   8,684    22,565    31,249 
Total current assets   266,924    25,448    292,372 
                
Property and equipment, net   336,120    1,273,827    1,609,947 
Intangible assets, net   -    -    - 
Total assets   603,044    1,299,275    1,902,319 
                
LIABILITIES AND STOCKHOLDERS’ DEFICIT               
Current liabilities:               
Accounts payable and accrued expenses   49,468    24,215    73,683 
Related party transactions   279,816    481,815    761,631 
Other current liabilities   1,757    6,561    8,318 
Total current liabilities   331,041    512,591    843,632 
                
Non Current liabilities:               
Other non-current liabilities   4,685    13,718    18,403 
Total current liabilities   4,685    13,718    18,403 
                
Total liabilities   335,726    526,309    862,035 
                
Total stockholders’ equity   267,318    772,966    1,040,284 
Total liabilities and stockholders’ equity   603,044    1,299,275    1,902,319 

 

 

The table below presents the balance sheet of Atlas Critical Minerals including the acquired assets and assumed liabilities as if the acquisition had occurred in the beginning of the period, compared to the consolidated balance sheet as of December 31, 2024:

 

ATLAS CRITICAL MINERALS CORPORATION

CONSOLIDATED BALANCE SHEETS

 

   ATLAS CRITICAL MINERALS CORP
December 31,		   APOLLO RESOURCES CORP
December 31,		   INTRAGROUP   PRO- FORMA CONSOLIDATED
December 31,		   ATLAS CRITICAL MINERALS CORP
December 31,		 
   2023   2023   TRANSACTIONS   2023   2024 
                     
ASSETS                         
Current assets:                         
Cash and cash equivalents  $92,813   $5,973   $-   $98,786   $396,216 
Accounts Receivable   -    -    -    -    47,682 
Taxes recoverable   -    -    -    -    26 
Inventory   -    -    -    -    171,726 
Related party transactions   -    674,461    674,461    -    - 
Other current assets   3,621    30,147    -    33,768    47,772 
Total current assets   96,434    710,581    674,461    132,554    663,422 
Property and equipment, net   320,700    1,059,862    -    1,380,562    1,717,488 
Total assets   417,134    1,770,443    674,461    1,513,116    2,380,910 
                          
LIABILITIES AND STOCKHOLDERS’ DEFICIT                         
Current liabilities:                         
Accounts payable  $59,009   $22,601   $-   $81,610   $346,346 
Related party transactions   674,461    -    674,461    -    872,942 
Other current liabilities   648    40,951    -    41,599    8,083 
Total current liabilities   734,118    63,552    674,461    123,209    1,227,371 
                          
Non Current liabilities:                         
Other non-current liabilities   4,729    53,849    -    58,578    33,961 
Total current liabilities   4,729    53,849    -    58,578    33,961 
                          
Total liabilities   738,847    117,401    674,461    181,787    1,261,332 
                          
Total stockholders’ equity   (321,713)   1,653,042    -    1,331,329    1,119,578 
Total liabilities and stockholders’ equity   417,134    1,770,443    674,461    1,513,116    2,380,910