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COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS
 12 Months Ended
Dec. 31, 2025
Composition Of Certain Financial Statement Items  
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

NOTE 3 – COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

 

Inventories

 

Inventories are composed of quartzite blocks and slabs generated by the cut and polishing process of the blocks. Both products are actively sold in the market, therefore considered finished products:

 

   2025   2024   2023 
   December 31 
   2025   2024   2023 
Quartzite unprocessed blocks   -    116,143    - 
Quartzite processed slabs   36,493    55,583    - 
Total   36,493    171,726    - 

 

Quartzite inventories only contain slabs produced through the cutting and polishing of natural quartzite, which are currently stored in the manufacturer’s warehouse. Slabs are actively sold in the market and classified as finished goods.

 

Property and Equipment, Net

 

The following table sets forth the components of the Company’s property and equipment as at December 31, 2025, 2024 and 2023:

 

   December 31, 2025 
   Cost   Accumulated
Depreciation		   Net Book
Value		 
             
Computers and office equipment  $6,453    (1,290)   5,163 
Machinery and equipment   469,472    (14,845)   454,627 
Mining Rights (1)   1,446,843    (749)   1,446,094 
Land   20,250    -    20,250 
Facilities   16,327    (1,848)   14,479 
Total fixed assets  $1,959,345    (18,732)   1,940,613 

 

   December 31, 2024 
   Cost   Accumulated
Depreciation		   Net Book
Value		 
             
Computers and office equipment  $5,733    -   $5,733 
Machinery and equipment (2)  $452,205    (41)  $452,165 
Mining rights (3)  $1,245,274    -   $1,245,274 
Facilities  $14,508    (191)  $14,316 
Vehicles  $-    -   $- 
Total fixed assets  $1,717,720    (232)  $1,717,488 

 

 

   December 31, 2023 
   Cost   Accumulated
Depreciation		   Net Book
Value		 
Computers and office equipment  $-    -   $- 
Machinery and equipment   320,700    -    320,700 
Vehicles   -    -    - 
Total fixed assets  $320,700    -    320,700 

 

For the years ended December 31, 2025, 2024 and 2023, the Company recorded depreciation expense of $18,282, $209 and $nil, respectively.

 

  (1) The amortization of mineral rights was triggered by the extraction of iron ore in Rio Piracicaba Project, following the lease agreement entered into by the Company and a third party in 2025.
  (2) In 2024, the Company acquired an excavator to be used in our quartzite operations for a total consideration of R$810,000 ($133,424 at the date of the transaction). In 2023, the Company acquired a gold processing plant from Atlas Lithium at a total price of $320,700. Total paid for the plant acquisition was composed of 320,700 shares issued by the Company at $1.00 each.
  (3) The mining rights addition in 2024 correspond to the impacts of the merger of the Company and Apollo. Mining rights are held by the new subsidiary MAL.

 

In 2023, the Company proceeded to an impairment analysis on its property and equipment and intangibles and concluded that, other than the gold processing plant acquired in 2023, there was no expectation of future economic benefits being generated from the assets use or disposal, affecting the main condition for an asset to be recognized. As a result, an impairment loss of $56,536 was recognized in profit and loss of the period as Other expenses, as demonstrated in the table below:

 

   December 31,   Foreign currency   Impairment   December 31, 
   2022   translation   losses   2023 
Property and equipment, net   41,929    2,358    (44,287)   - 
Intangibles, net   11,499    750    (12,249)   - 
    53,428    3,108    (56,536)   - 

 

 

Related Party Receivables/Payables

 

As of December 31, 2025, there are $1,088,540 ($872,942 as of December 31, 2024) of relating parties outstanding balances, represented by 1,005,048 ($851,678 in 2024) of intercompany loans received from Atlas Lithium (which include the impact of interest accrued for in the year ended December 31, 2025 of $46,807 and $10,918 in the year ended December 31, 2024) and $83,493 payable to Atlas Lítio do Brasil Ltda (“ALB”) as a result of a cost sharing agreement through which the Company borrows resources from ALB mainly for Geology-related work ($21,264 as of December 31, 2024).

 

Following the uplisting on Nasdaq in January 2026, the Company used part of the funds raised to repay the loan owed to Atlas Lithium. Currently, there is no outstanding balance between the Company and Atlas Lithium.

 

Accounts Payable and Accrued Expenses

 

   December 31, 2025   December 31, 2024   December 31, 2023 
Trade payables  $594,566    305,638    29,989 
Payroll and social charges  $

116,221

    26,220    18,797 
Taxes payable  $11,002    14,488    10,223 
Total  $721,789   $346,346   $59,009 

 

OTHER CURRENT ASSETS

 

Other current assets are essentially comprised of the amounts paid to Atlas Lithium following the Option Agreement, pursuant to which we acquired an option to acquire 100% of the equity interests of Brazil Minerals Resources Corporation, a wholly-owned subsidiary of Atlas Lithium.

 

The table below summarizes the amounts presented as Other Current Assets:

 

SCHEDULE OF OTHER CURRENT ASSETS 

   December 31, 2025   December 31, 2024   December 31, 2023 
Option agreement   500,000    -    - 
Other   96,833    47,772    3,621 
Total   596,833    47,772    3,621