First America Resources (FSTJ) grows revenue 20% and returns to profit in Q2 2026

Rhea-AI Filing Summary

First America Resources Corporation, an electronic waste management and IT asset disposition provider, reported strong improvement for the quarter and six months ended June 30, 2026. Quarterly revenue was $5,788,731, up from $4,822,842, and six-month revenue reached $10,590,029 versus $8,847,835, a 20% increase driven by continued growth.

Gross margin improved to 56% for the quarter and 59% for the six months, compared with 51% and 54% in the prior-year periods. Income from operations turned positive to $544,987 for the quarter and $872,833 year-to-date, leading to net income of $780,241 for the six months. Operating cash flow was positive at $348,747, and cash grew to $524,504.

The balance sheet remains leveraged, with total liabilities of $9,457,044 exceeding assets of $8,649,358, resulting in a stockholders’ deficit of $(807,686). The company has significant related-party exposure through major customers, vendors, and noteholders, but management’s projections and shareholder support led to a conclusion that prior substantial doubt about going concern has been alleviated through at least August 15, 2027.

Positive

• Revenue grew 20% for both the quarter and six months ended June 30, 2026, to $5,788,731 and $10,590,029, respectively, reflecting continued top-line expansion.
• Margins expanded, with gross margin rising to 56% for the quarter and 59% for the six months, up from 51% and 54% in the prior-year periods.
• Profitability improved, with income from operations of $544,987 for Q2 and $872,833 year-to-date, and six-month net income of $780,241 versus $287,252 a year earlier.
• Cash generation strengthened, as operating activities provided $348,747 in the first half of 2026, compared with $249,948 used in the prior-year period.
• Going-concern doubt was alleviated; management cites recent profitability, projected positive cash flows through at least August 15, 2027, and financial support from significant shareholders.

Negative

• Balance sheet remains weak, with total liabilities of $9,457,044 exceeding assets of $8,649,358, leaving a stockholders’ deficit of $(807,686) at June 30, 2026.
• Working capital is strained, as current liabilities of $5,702,619 substantially exceed current assets of $3,221,205, indicating ongoing liquidity pressure.
• Customer and vendor concentration is high; Customer A accounts for 30% of six-month revenue and 38% of accounts receivable, and Vendor A represents 38% of accounts payable.
• Significant related-party dependence, including $519,000 in notes payable to the largest shareholder, $707,000 to FAMC, and $1,220,000 in six-month expenses via FAMC, concentrates financial risk.
• Additional capital may be required; the company states it may need to raise further debt or equity to fund operations, with no assurance such capital will be available on acceptable terms.

Filing Explained

Existing holders face no disclosed dilution in this report; the unresolved structural issue is reliance on related-party balances and possible future capital.

This unaudited Form 10-Q for the quarter ended June 30, 2026, signed on August 13, 2026, reports 87,964,090 common shares issued and outstanding as of August 13 and says no potentially dilutive securities were outstanding at June 30.

The filing presents the share count as unchanged from December 31, 2025, and reports no potentially dilutive securities, so it does not identify a current share-expansion mechanism for existing holders.

First America Metal Corp. (FAMC) is both a related-party customer and vendor: it represented 30% of six-month revenue, 38% of accounts receivable, and 38% of accounts payable at June 30; the company reported $887,000 owed to FAMC in accounts payable, $707,000 in notes payable, and $1,058,000 due from FAMC.

The company also reports $519,000 of notes payable to its largest shareholder and $228,933 of loans from officer Jian Li, while stating that it may need additional debt or equity capital without assuring that funding will be available on acceptable terms.

Key Figures

Q2 2026 Revenue: $5,788,731 Six-month 2026 Revenue: $10,590,029 Six-month 2026 Net Income: $780,241 +5 more

8 metrics

Q2 2026 Revenue $5,788,731 For the three months ended June 30, 2026

Six-month 2026 Revenue $10,590,029 For the six months ended June 30, 2026

Six-month 2026 Net Income $780,241 For the six months ended June 30, 2026

Cash Balance $524,504 Cash at June 30, 2026

Total Assets $8,649,358 Balance sheet as of June 30, 2026

Total Liabilities $9,457,044 Balance sheet as of June 30, 2026

Stockholders' Deficit $(807,686) Equity section as of June 30, 2026

Shares Outstanding 87,964,090 Common shares issued and outstanding as of August 13, 2026

Key Terms

working capital deficit, going concern, electronic waste management, IT asset disposition (ITAD), +2 more

6 terms

working capital deficit financial

"The Company has a limited history of profitable operations and a working capital deficit"

A working capital deficit occurs when a company's short-term obligations—like bills, supplier payments and near-term debt—are larger than its readily available short-term resources such as cash, money expected from customers, and inventory that can be sold. Like a household whose monthly bills exceed its checking account, it signals potential difficulty paying immediate expenses, which matters to investors because it raises the chance the company will need outside financing or cut operations, affecting risk and value.

going concern financial

"conditions which raised substantial doubt about its ability to continue as a going concern"

Going concern is the accounting assumption that a company will keep operating and meeting its obligations for the foreseeable future. The phrase matters most when a company or its auditors disclose substantial doubt about it, a formal warning that the business may not have enough resources to continue without raising money, restructuring, or selling assets. That language in a filing or press release signals elevated financial risk.

electronic waste management technical

"specializes in electronic waste management and IT asset disposition (ITAD)"

IT asset disposition (ITAD) technical

"specializes in electronic waste management and IT asset disposition (ITAD)"

R2-certified facilities technical

"They operate multiple R2-certified facilities across the U.S."

employee retention credit financial

"other income totaling $347,000 related to a non-recurring employee retention credit"

A government-provided payroll tax credit that reimburses employers for a portion of wages paid to staff during qualifying downturns or disruptions, designed to encourage businesses to keep employees on the payroll. For investors, it matters because the credit improves a company’s cash flow and reduces payroll expenses—like a temporary government subsidy that boosts short-term profits and may change the company’s reported tax liabilities and cash reserves, which can affect valuation and risk assessments.

FAQ

How did First America Resources (FSTJ) perform financially in Q2 2026?

First America Resources reported Q2 2026 revenue of $5,788,731 and income from operations of $544,987, compared with a prior-year operating loss. Net income for the quarter was $483,011, reflecting improved margins and scale.

What were First America Resources (FSTJ) results for the six months ended June 30, 2026?

For the six months ended June 30, 2026, revenue was $10,590,029, up from $8,847,835, and net income was $780,241 versus $287,252 a year earlier. Income from operations reached $872,833, indicating stronger core profitability.

What is the financial position of First America Resources (FSTJ) as of June 30, 2026?

As of June 30, 2026, the company had total assets of $8,649,358 and total liabilities of $9,457,044, resulting in stockholders’ deficit of $(807,686). Cash stood at $524,504, up from $276,855 at year-end 2025.

Does First America Resources (FSTJ) still face going-concern issues?

The company previously had conditions raising substantial doubt, but management now concludes that doubt is alleviated through at least August 15, 2027, based on recent profitability, projected positive cash flows, and funding support from significant shareholders.

How dependent is First America Resources (FSTJ) on related parties?

Related parties are significant: notes payable total $519,000 to the largest shareholder and $707,000 to FAMC. Customer A/Vendor A (FAMC) represents 30% of six-month revenue and 38% of accounts receivable, plus $1,220,000 of expenses in six months.

What are the key margin trends for First America Resources (FSTJ)?

Gross margin improved to 56% for Q2 2026 and 59% for the six months, compared with 51% and 54% in the prior-year periods. This reflects better profitability after freight and material processing costs.

How many shares of First America Resources (FSTJ) are outstanding?

As of August 13, 2026, there were 87,964,090 shares of common stock issued and outstanding. The par value is $0.001, and authorized common shares total 500,000,000.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from _________ to _________

First America Resources Corporation

(Name of small registrant as specified in its charter)

Nevada		5065		27-2563052
(State or other jurisdiction of incorporation or organization)		(Primary Standard Industrial Classification Code Number)		(IRS I.D.)

1000 East Armstrong Street Morris, IL		60450
(Address of principal executive offices)		(Zip Code)

SEC File No. 333-175482

Issuer’s telephone number: 815-941-9888

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒     No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒     No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐     No ☒

As of August 13, 2026, there were 87,964,090 shares issued and outstanding of the registrant’s common stock.

INTRODUCTORY COMMENT

Throughout this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” “First America Resources Corporation,” or the “Company” refers to First America Resources Corporation, a Nevada corporation.

SPECIAL NOTE ABOUT FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains statements that are, or may be considered to be, forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, as amended, Section 27 A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements that are not historical facts, including statements about our beliefs or expectations, are forward-looking statements. These statements may be identified by such forward-looking terminology as “expect,” “estimate,” “intend,” “believe,” “anticipate,” “may,” “will,” “should,” “could,” “continue,” “project,” “opportunity,” “predict,” “would,” “potential,” “future,” “forecast,” “guarantee,” “assume,” “likely," “target” or similar statements or variations of such terms.

Our forward-looking statements are based on a series of expectations, assumptions and projections about our Company and the markets in which we operate, and are not guarantees of future results or performance, and involve substantial risks and uncertainty, including assumptions and projections concerning our assets under management, net cash inflows and outflows, operating cash flows and future credit facilities, for all future periods. All of our forward-looking statements contained in this Quarterly Report on Form 10-Q are as of the date of the Report only.

We can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially. We do not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of the Original Report, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. If there are any future public statements or disclosures by us which modify or impact any of the forward-looking statements contained in or accompanying this Quarterly Report on Form 10-Q, such statements or disclosures will be deemed to modify or supersede such statements in this Quarterly Report on Form 10-Q.

Certain other factors which may impact our continuing operations, prospects, financial results and liquidity or which may cause actual results to differ from such forward-looking statements are discussed or included in the Company’s periodic reports filed with the SEC and are available on at www.otcmarkets.com. You are urged to carefully consider all such factors.

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements		4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		11
Item 3.	Quantitative and Qualitative Disclosure about Market Risk		13
Item 4.	Controls and Procedures		13
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings		14
Item 1A.	Risk Factors		14
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		14
Item 3.	Defaults Upon Senior Securities		14
Item 4.	Mine Safety Disclosures		14
Item 5.	Other Information		14
Item 6.	Exhibits		15

3

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

First America Resources Corporation

Condensed Consolidated Financial Statements (Unaudited)

Contents

Condensed Consolidated Balance Sheets – June 30, 2026 and December 31, 2025		5
Condensed Consolidated Statements of Operations – Three and Six Months Ended June 30, 2026 and 2025		6
Condensed Consolidated Statements of Stockholders’ Deficit - Six Months Ended June 30, 2026 and 2025		7
Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30, 2026 and 2025		8
Notes to Unaudited Financial Statements		9

4

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FIRST AMERICA RESOURCES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

JUNE 30, 2026 AND DECEMBER 31, 2025

(UNAUDITED)

		June 30,				December 31,
		2026				2025
Assets
Current assets
Cash		$	524,504			$	276,855
Accounts receivable, net			1,583,194				2,141,220
Accounts receivable, related party, First America Metal Corp.			1,058,175				318,273
Prepaid expenses			55,332				37,439
Total current assets			3,221,205				2,773,787
Long term assets
Property and equipment, net			346,579				372,508
Right of use assets			3,904,266				2,254,214
Goodwill			750,000				750,000
Deposits			427,308				513,630
Total long term assets			5,428,153				3,890,352
Total assets		$	8,649,358			$	6,664,139
Liabilities and Stockholders' Deficit
Current liabilities
Accounts payable		$	1,330,775			$	1,100,608
Accounts payable, related party, First America Metal Corp.			886,563				1,159,571
Accrued expenses			974,422				1,358,912
Accrued interest			56,917				21,062
Lease liability, current portion			877,736				851,191
Loans from officer			228,933				228,933
Notes payable, current portion			1,347,273				1,093,031
Total current liabilities			5,702,619				5,813,308
Lease liability, net of current portion			3,140,196				1,479,796
Notes payable, net of current portion			614,229				958,962
Total liabilities			9,457,044				8,252,066
Commitments and contingencies (Note 3)
Stockholders' deficit
Common stock $0.001 par value; 500,000,000 authorized; 87,964,090 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively			87,964				87,964
Additional paid-in capital			1,535,266				1,535,266
Accumulated deficit			(2,430,916	)			(3,211,157	)
Total stockholders' deficit			(807,686	)			(1,587,927	)
Total liabilities and stockholders' deficit		$	8,649,358			$	6,664,139

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Table of Contents

FIRST AMERICA RESOURCES CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(UNAUDITED)

		For the three months ended								For the six months ended
		June 30,								June 30,
		2026				2025				2026				2025
Revenues		$	5,788,731			$	4,822,842			$	10,590,029			$	8,847,835
Cost of revenues			2,534,405				2,343,044				4,312,319				4,095,204
Gross profit			3,254,326				2,479,798				6,277,710				4,752,631
Operating expenses
General and administrative			625,022				694,631				1,337,599				1,253,131
Payroll expenses			1,482,189				1,261,144				2,822,573				2,375,853
Professional fees			82,870				86,369				173,348				145,715
Advertising and marketing			27,844				32,564				63,692				73,966
Rent and lease			473,411				440,928				971,129				867,506
Depreciation and amortization			18,003				18,933				36,536				36,892
Total operating expenses			2,709,339				2,534,569				5,404,877				4,753,063
Income (loss) from operations			544,987				(54,771	)			872,833				(432	)
Other income (expense)
Interest expense			(30,399	)			(35,875	)			(63,072	)			(61,789	)
Other income			2,630				2,769				4,687				349,473
Total other income (expense)			(27,769	)			(33,106	)			(58,385	)			287,684
Income (loss) before provision for income taxes			517,218				(87,877	)			814,448				287,252
Provision for income taxes			34,207				-				34,207				-
Net income (loss)		$	483,011			$	(87,877	)		$	780,241			$	287,252
Income (loss) per share - basic and diluted		$	0.01			$	0.00			$	0.01			$	0.00
Weighted average shares outstanding - basic and diluted			87,964,090				87,964,090				87,964,090				87,964,090

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

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FIRST AMERICA RESOURCES CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT

FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(UNAUDITED)

		Common Stock								Common Stock - METech								Additional Paid in				Accumulated
		Shares				Amount				Shares				Amount				Capital				Deficit				Total
Balances, December 31, 2024 - Pre reverse merger			-			$	-				100,800			$	1,008			$	1,843,916			$	(3,213,922	)		$	(1,368,998	)
Effect of reverse merger			87,964,090				87,964				(100,800	)			(1,008	)			(308,650	)			-				(221,694	)
Balances, December 31, 2024 - Post reverse merger			87,964,090			$	87,964				-			$	-			$	1,535,266			$	(3,213,922	)		$	(1,590,692	)
Net income			-				-				-				-				-				375,129				375,129
Balances, March 31, 2025			87,964,090			$	87,964				-			$	-			$	1,535,266			$	(2,838,793	)		$	(1,215,563	)
Net income			-				-				-				-				-				(87,877	)			(87,877	)
Balances, June 30, 2025			87,964,090			$	87,964				-			$	-			$	1,535,266			$	(2,926,670	)		$	(1,303,440	)
Balances, December 31, 2025			87,964,090			$	87,964				-			$	-			$	1,535,266			$	(3,211,157	)		$	(1,587,927	)
Net income			-				-				-				-				-				297,230				297,230
Balances, March 31, 2026			87,964,090			$	87,964				-			$	-			$	1,535,266			$	(2,913,927	)		$	(1,290,697	)
Net income			-				-				-				-				-				483,011				483,011
Balances, June 30, 2026			87,964,090			$	87,964				-			$	-			$	1,535,266			$	(2,430,916	)		$	(807,686	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

Table of Contents

FIRST AMERICA RESOURCES CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(UNAUDITED)

		For the six months ended
		June 30,
		2026				2025
Operating activities
Net income		$	780,241			$	287,252
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization			36,536				36,892
Bad debt expense			4,000				154,953
Financed repair costs			-				28,004
Changes in operating assets and liabilities:
Accounts receivable			(185,876	)			(1,173,493	)
Deposits			86,322				(23,993	)
Prepaid expenses			(17,893	)			148,640
Accounts payable			(42,841	)			664,331
Accrued expenses			(384,490	)			(221,295	)
Accrued interest			35,855				(5,073	)
Right of use assets and lease liabilities			36,893				(820	)
Financed insurance policy			-				(145,346	)
Net cash provided by (used in) operating activities			348,747				(249,948	)
Investing activities
Cash paid for property and equipment			(10,607	)			-
Net cash used in investing activities			(10,607	)			-
Financing activities
Proceeds from notes payable			-				150,000
Repayments of notes payable			(90,491	)			(208,269	)
Net cash used in financing activities			(90,491	)			(58,269	)
Net increase (decrease) in cash			247,649				(308,217	)
Cash - beginning of period			276,855				459,022
Cash - end of period		$	524,504			$	150,805
Cash paid for income taxes		$	-			$	-
Cash paid for interest		$	27,217			$	66,862
Supplemental schedule of non-cash investing and financing activities
Recognition of right of use asset and lease liability		$	2,315,008			$	-
Accounts payable settled through the issuance of notes payable		$	-			$	500,000
Financed property and equipment		$	-			$	86,117

The accompanying notes are an integral part of these condensed consolidated financial statements.

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FIRST AMERICA RESOURCES CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Nature of the Company and Business

Business

First America Resources Corporation (FSTJ), a Nevada corporation, through its wholly owned operating subsidiary, METech Recycling, Inc., a Delaware corporation (collectively, the Company), specializes in electronic waste management and IT asset disposition (ITAD). The Company provides certified recycling services, secure data destruction, and IT asset management. With a focus on sustainability, the Company aims to maximize material recovery while ensuring the protection of proprietary technology and customer data. They operate multiple R2-certified facilities across the U.S., offering customized solutions for safe recycling, inventory management, and equipment disposal. The Company emphasizes eco-responsible practices and transparency.

Going Concern

The Company has a limited history of profitable operations and a working capital deficit, conditions which raised substantial doubt about its ability to continue as a going concern. However, the Company's recent operations have been profitable, and management's projections indicate positive cash flows through at least August 15, 2027. In addition, the Company's significant shareholders (Note 5) have demonstrated the ability and intent to fund the Company's operations through at least August 15, 2027. Management has concluded these factors alleviate the substantial doubt, and the financial statements have been prepared on a going concern basis.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

The accompanying interim unaudited condensed consolidated financial statements and footnotes have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) for interim financial information and the instructions to Rule 10-01 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the results of the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2026. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Segments

The Company operates as a single segment.

Earnings (Loss) Loss Per Share

Basic earnings (loss) per share are computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the year. Diluted earnings (loss) per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The Company had no potentially dilutive securities outstanding at June 30, 2026, and 2025.

Recently Issued Accounting Standards

During the period ended June 30, 2026, there were several new accounting pronouncements issued by the FASB. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company’s financial statements.

Subsequent Events

The Company has evaluated all transactions through the date the financial statements were issued for subsequent event disclosure or adjustment consideration.

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FIRST AMERICA RESOURCES CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 3 – Commitments and Contingencies

From time to time, the Company may be involved in litigation in the ordinary course of business. The Company is not currently involved in any litigation that the Company believes could have a material adverse effect on its financial condition or results of operations.

Note 4 – Concentrations

The following table details the Company’s revenue concentrations for the six months ended June 30, 2026, and 2025, and the accounts receivable concentrations at June 30, 2026, and December 31, 2025.

		Revenues								Accounts Receivable
		2026				2025				2026				2025
Customer A			30	%			15	%			38	%			12	%
Customer B			12	%			10	%			22	%			19	%
Customer C			10	%			13	%		*				*
Customer D		*				*					11	%			12	%
Customer E		*				*				*					14	%

* = less than 10% 

Customer A is a related party (Note 5) who utilizes the Company for recycling of various goods and materials. The transactions are at arm's length and have standard sales rates and payment terms.

The following table details the Company’s accounts payable concentrations at June 30, 2026, and December 31, 2025.

		Accounts Payable
		2026				2025
Vendor A			38	%			51	%
Vendor B			15	%		*

Customer A and Vendor A is FAMC, a related party (Note 5). The Company is hired by FAMC for the recycling of various goods and materials. The sales transactions are at arm's length and have standard sales rates and payment terms. The Company purchases materials from FAMC and utilizes FAMC for recycling/disposal services as well as freight. The purchase transactions are at arm's length and have standard purchase rates and payment terms. Outstanding accounts receivable and accounts payable between the Company and FAMC may be periodically offset.

Note 5 – Related Party Transactions

At June 30, 2026, and December 31, 2025, outstanding notes payable due to First American Management Group Corp, the Company’s largest shareholder, totaled $519,000, respectively.

At June 30, 2026, and December 31, 2025, outstanding notes payable due to FAMC, the Company’s second largest shareholder, totaled $707,000, respectively.

FAMC is Customer A and Vendor A (Note 4). During the six months ended June 30, 2026 and 2025, the Company incurred expenses via FAMC totaling $1,220,000 and $1,093,000, respectively. At June 30, 2026, and December 31, 2025, accounts payable due to FAMC totaled $887,000 and $1,160,000, respectively, and accounts receivable due from FAMC totaled $1,058,000 and $318,000, respectively.

At June 30, 2026, and December 31, 2025, outstanding loans due to Jian Li totaled $228,933, respectively.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

We urge you to read the following discussion in conjunction with our Annual Report for the year ended December 31, 2025, as well as with our financial statements and the notes thereto included elsewhere herein. In addition to historical financial information, the following discussion and analysis may contain forward-looking statements that involve risks, uncertainties and assumptions. Our actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed elsewhere in this Report.

Results of Operations

Comparison of Three Months Ended June 30, 2026 and 2025

For the three months ended June 30, 2026, our revenue was $5,789,000, as compared to $4,823,000, for the three months ended June 30, 2025. The increase in revenue of 20% was the result of continued revenue growth. We expect revenues to continue to increase on a year-over-year basis.

Cost of revenues for the three months ended June 30, 2026, and 2025, were $2,534,000 and $2,343,000, respectively, resulting in gross margins of 56% and 51%, respectively. The primary components of cost of revenues include freight and material processing, which comprise the majority of the costs.

For the three months ended June 30, 2026, operating expenses were $2,709,000 as compared to $2,535,000 for the same period in 2025, an increase of 7%. General and administrative expenses decreased by $70,000 from $695,000 to $625,000, payroll expenses increased $221,000 from $1,261,000 to $1,482,000 and rent and lease expenses increased by $32,000 from $441,000 to $473,000. The increases were driven by the expansion in operations and are consistent with the increase in revenues. Professional fees decreased from $86,000 during the three months ended June 30, 2025, to $83,000 for the three months ended June 30, 2026. We expect operating expenses to continue to increase with revenues as the Company expands operations.

As a result of the above, our income from operations for the three months ended June 30, 2026, was $545,000 as compared to a loss from operations of $55,000 for the prior year period.

Other income and expenses included $30,000 in interest expenses during the three months ended June 30, 2026, compared to $36,000 in the prior year. We expect interest expenses to increase as the Company obtains additional funding.

Comparison of Six Months Ended June 30, 2026 and 2025

For the six months ended June 30, 2026, our revenue was $10,590,000, as compared to $8,848,000, for the six months ended June 30, 2025. The increase in revenue of 20% was the result of continued revenue growth. We expect revenues to continue to increase on a year-over-year basis.

Cost of revenues for the six months ended June 30, 2026, and 2025, were $4,312,000 and $4,095,000, respectively, resulting in gross margins of 59% and 54%, respectively. The primary components of cost of revenues include freight and material processing, which comprise the majority of the costs.

For the six months ended June 30, 2026, operating expenses were $5,405,000 as compared to $4,753,000 for the same period in 2025, an increase of 14%. General and administrative expenses increased by $85,000 from $1,253,000 to $1,338,000, payroll expenses increased $447,000 from $2,376,000 to $2,823,000 and rent and lease expenses increased by $103,000 from $868,000 to $971,000. The increases were driven by the expansion in operations and are consistent with the increase in revenues. Professional fees increased from $146,000 during the six months ended June 30, 2025, to $173,000 for the six months ended June 30, 2026. The increase was primarily driven by legal and audit fees. We expect operating expenses to continue to increase with revenues as the Company expands operations.

As a result of the above, our income from operations for the six months ended June 30, 2026, was $873,000 as compared to a loss from operations of $400 for the prior year period.

Other income and expenses included $63,000 in interest expenses during the six months ended June 30, 2026, compared to $62,000 in the prior year. Additionally, the prior year had other income totaling $347,000 related to a non-recurring employee retention credit. We expect interest expenses to increase as the Company obtains additional funding.

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Liquidity and Capital Resources

At June 30, 2026, we had cash totaling $525,000 as compared to cash totaling $277,000 at December 31, 2025. Our cash flows provided by operations were $349,000 for the six months ended June 30, 2026, as compared to $250,000 used in operations for the same period in the prior year. We expect cash used in operating activities to be neutral as the Company expands operations.

Cash flows used in investing activities were $11,000 for the six months ended June 30, 2026, as compared to $-0- for the six months ended June 30, 2025, respectively. We expect investing expenditures to increase as the Company expands operations.

Our cash flows used in financing activities were $90,000 for six months ended June 30, 2026, as compared to $58,000 for the same period in the prior year. We expect financing receipts and expenditures to increase as the Company utilizes financing to expand operations.

The Company may need to raise additional debt or equity capital in order to fund its operations. There can be no assurance that the Company will be able to do so or on acceptable terms.

Significant Accounting Policies

There have been no changes from the Summary of Significant Accounting Policies described in our Annual Report for the year ended December 31, 2025, filed with the Securities and Exchange Commission on April 1, 2026.

Off Balance Sheet Arrangements

As of June 30, 2026, we did not have any material off-balance sheet arrangements.

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Item 3. Quantitative and Qualitative Disclosure about Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Jian Li, our principal executive officer and principal financial officer, conducted an evaluation of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act) as of June 30, 2026, pursuant to Exchange Act Rule 13a-15. Such disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Based upon that evaluation, our principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures as of June 30, 2026, were effective as of the end of the period covered by this Quarterly Report.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal controls over financial reporting during the quarter ended June 30, 2026, that have materially affected or are reasonably likely to materially affect our internal controls over financial reporting.

Limitations on the Effectiveness of Controls

Our disclosure controls and procedures provide our principal executive officer and principal financial officer with reasonable assurances that our disclosure controls and procedures will achieve their objectives. However, our management does not expect that our disclosure controls and procedures or our internal control over financial reporting can or will prevent all human error. A control system, no matter how well designed and implemented, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Furthermore, the design of a control system must reflect the fact that there are internal resource constraints, and the benefit of controls must be weighed relative to their corresponding costs. Because of the limitations in all control systems, no evaluation of controls can provide complete assurance that all control issues and instances of error, if any, within our company are detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur due to human error or mistake. Additionally, controls, no matter how well designed, could be circumvented by the individual acts of specific persons within the organization. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated objectives under all potential future conditions.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

Not applicable.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

(a) Exhibits.

Exhibit No.		Document Description
31.1		CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.
32.1 *		CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002
Exhibit 101		Interactive data files formatted in XBRL (eXtensible Business Reporting Language): (i) the Balance Sheets, (ii) the Statements of Operations, (iii) the Statements of Cash Flows, (iv) the Statement of Changes in Stockholders’ Deficit, and (v) the Notes to the Financial Statements.**
101.INS		Inline XBRL Instance Document**
101.SCH		Inline XBRL Taxonomy Extension Schema Document**
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document**
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document**
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document**
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document**
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

_____________

*

This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 of the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in any filings.

**

XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

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SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

First America Resources Corporation, a Nevada corporation

Title		Name		Date		Signature
Principal Executive Officer and Principal Financial Officer		Jian Li		August 13, 2026		/s/ Jian Li

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EXHIBIT INDEX

Exhibit No.		Document Description
31.1		CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.
32.1 *		CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002
Exhibit 101		Interactive data files formatted in XBRL (eXtensible Business Reporting Language): (i) the Balance Sheets, (ii) the Statements of Operations, (iii) the Statements of Cash Flows, (iv) the Statement of Changes in Stockholders’ Deficit, and (v) the Notes to the Financial Statements.**
101.INS		Inline XBRL Instance Document**
101.SCH		Inline XBRL Taxonomy Extension Schema Document**
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document**
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document**
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document**
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document**
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

____________

*

This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 of the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in any filings.

**

XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

17