ABUNDIA GLOBAL IMPACT GROUP, INC. Annual Report - How They Did This Year

Here's an easy-to-understand guide to ABUNDIA GLOBAL IMPACT GROUP, INC.'s performance this past year. Think of this as a chat with a friend about a company you might consider investing in. We will break down their annual report simply, focusing on what matters to you.

You can find more official reports and information on their website: www.abundiaimpact.com.

1. What does this company do and how did they perform this year?

   • ABUNDIA GLOBAL IMPACT GROUP, INC. (AGIG on NYSE American) transformed this year. Their report covers the fiscal year ending December 31, 2025, comparing it to 2024.
   • A Big Change: On July 1, 2025, the company (previously Houston American Energy Corp., or HUSA) merged with Abundia Global Impact Group LLC (AGIG LLC). This was a reverse acquisition. Imagine a smaller, private company (AGIG LLC) taking over a public one (HUSA). This made the private company publicly traded. For accounting, the new AGIG's history now follows AGIG LLC's past.
   • New Core Business: The new AGIG now focuses on low-carbon energy solutions. They develop and sell low-carbon fuels and renewable chemical products.
   • How they do it: They plan to convert waste plastics and biomass (like plant material) into useful hydrocarbon products. They use licensed and proprietary technologies for this. These "drop-in" products work with existing fuel and chemical infrastructure.
   • What they'll make: They will make renewable diesel (including ultra-low sulfur and marine fuels). They also plan to produce sustainable aviation fuel (SAF) and renewable naphtha (a chemical feedstock).
   • Current Stage: Important: As of December 31, 2025, the company is still developing. They are in a precommercial stage. They haven't started sustained commercial production yet. So, they earn no significant revenue from their new business. They are still building facilities and starting operations. Sales depend on facility completion, product qualification, and regulatory approval. Their limited operating history with this technology and different waste materials makes future predictions hard.
   • Legacy Oil & Gas: The original company (HUSA) explored for oil and gas. AGIG still owns these legacy oil and gas assets. These assets operate and generate some revenue. The company says this O&G business is not important to its current operations. They won't invest more money or effort beyond basic maintenance. All O&G production sells on spot markets (daily prices). They have no long-term sales agreements.
   • Key Facilities: In July 2025, they bought a 25-acre industrial site in Baytown, Texas. It's called the Cedar Port Renewable Energy Complex. This will be their main hub for converting waste plastics into fuels and chemicals. It will also be a center for innovation.
   • Marketing: They have agreements in Europe to sell crude pyrolysis oil (from plastics). This oil will come from their first future European site. Terms and volumes are not disclosed, but show early market interest. They will market products to fuel distributors, refiners, airlines, marine fuel customers, and chemical manufacturers.

2. Financial performance - revenue, profit, growth metrics

   • Here are some key numbers. The company reported large losses for both years. This is mainly because they are still developing and lack new business revenue:
     • 2025 Loss: $29,460,935
     • 2024 Loss: $3,621,948
   • Losses increased dramatically from 2024 to 2025, over 700%. This reflects major investments and costs for their transformation and facility development. They had no matching commercial revenue.
   • The company expects continued operating losses and capital spending. They are spending to build their new business. They aren't yet making enough to cover costs or profit.
   • They state they don't expect profit soon. This is due to investments, capacity building, and ramping up operations. They cannot guarantee future profitability.

3. Major wins and challenges this year

   • 2025 was a busy year for AGIG's corporate activities.
     • Major Strategic Shift: The Share Exchange Agreement on July 1, 2025, was huge. It was a reverse acquisition, not just a takeover. This completely changed the company's identity and focus. They shifted from a small O&G player to a low-carbon energy company.
     • New Asset Acquisition: Buying the Cedar Port industrial site in Baytown, Texas, in July 2025 was a big step. It provides a physical hub for their new low-carbon strategy.
     • Development Activities: They developed sites, secured technology licenses, and worked on engineering. They also designed and permitted their first waste plastics facility. They are pilot-testing their upgrading processes.
     • They also pursued financing. This included a Securities Purchase Agreement with "Three I HUSA" on July 10, 2025. It involved a convertible note (a loan that can become company stock).
     • Also on July 10, 2025, they created an Equity Line of Credit Agreement.
     • On November 12, 2025, they secured more financing with "BFH HUSA Notes Payable". These are related party notes (loans from connected individuals/entities).
     • Significant Challenge: Financial Statement Restatement. The company restated its financial statements for Q3 2025. This is a serious warning for investors. It often signals problems with financial record-keeping or reporting. This can hurt investor trust and attract regulatory attention.
     • Subsequent events occurred on February 23 and 24, 2026. These happened after 2025 ended but before the report was filed. These events could be important for understanding their current situation.

4. Financial health - cash, debt, liquidity

   • MAJOR RED FLAG: "Going Concern" Warning. Auditors reviewed AGIG's 2025 and 2024 financial statements. They included a "going concern qualification" in their report. This is a serious warning. It means auditors have "substantial doubt" about the company's ability to continue operating. This links to their growing losses ($29.5 million in 2025). It also links to an accumulated deficit (they've lost more money than they've made).
   • The company heavily relies on raising more money. This capital is needed to operate and fund growth investments. Without more money, they might not continue operating.
   • AGIG has various types of debt. They have convertible debt (loans that can become company stock). Some are "related party" notes (loans from connected individuals/entities). They also have a bridge loan, a short-term loan for immediate needs. This bridge loan covers needs until permanent financing arrives.
   • The Equity Line of Credit helps their finances. It lets them access funds by issuing new shares.
   • Since they are developing and expect losses and spending, they need significant funding. This funding will launch their commercial operations. These different financings show they manage capital needs. But it also highlights their reliance on outside money.
   • As of December 31, 2025, the company had only two full-time employees. This is a very small team for their ambitious plans. This limited team and past reductions could hinder operations. It might also make compliance and retaining good employees harder. This is especially true given their complex technical and regulatory environment.

5. Key risks that could hurt the stock price

   • CRITICAL RISK: Going Concern Warning. Auditors have "substantial doubt" about the company's ability to continue operating. This is the most significant risk. The company's existence is uncertain without more funding.
   • Significant and Continuing Losses: The company has massive losses ($29.5 million in 2025, up from $3.6 million in 2024). They expect these losses to continue. There's no guarantee of profitability. These losses will keep draining money.
   • Weak Internal Controls: The company found serious problems in its financial reporting management. This includes poor risk assessment for job duties (segregation of duties). It also includes risks of incorrect financial statements. They struggled with complex transaction accounting. This led to restating their Q3 2025 financial results. These weaknesses increase error chances in reports. This could hurt investor trust, lower stock price, and attract regulators.
   • Development Stage Risk: This is a major risk. The company is in a "development and precommercial stage". They haven't started sustained commercial production yet. There is no guarantee of commercial production or profitability. Their plans might not work out, or cost more and take longer. Their limited operating history with this technology adds uncertainty.
   • Intellectual Property (IP) Disputes & Lawsuits: Protecting ideas (IP) is vital in low-carbon fuels. AGIG faces two IP risks. Competitors might copy their technology or trademarks. AGIG might sue to protect its rights. Lawsuits are expensive, time-consuming, and distract management. Conversely, others might accuse AGIG of using their patented technology. If found guilty, AGIG could face huge legal costs or damages. They might also need to buy expensive licenses, if available. Any legal battle could seriously hurt their finances and operations. There's no guarantee AGIG would win.
   • Attracting and Keeping Talent: AGIG competes for skilled employees. Many competitors have more money and resources. This makes attracting and keeping top talent tough for AGIG. New hires need extensive training. AGIG might lose them to competitors before seeing a return. Failing to build and keep a strong team could seriously hurt the business.
   • Stock Price and Employee Morale: Many key employees hold stock options or restricted stock. Poor stock performance or a significant drop could demotivate them. This is especially true if options are "underwater" (stock price below exercise price). AGIG might then spend more on salaries and benefits to retain staff. This would reduce their profits.
   • Disasters and Global Instability: AGIG's headquarters are in the U.S. Planned facilities are in Houston, Texas. They also plan global partnerships. This exposes them to natural disasters (hurricanes, floods, wildfires). Other risks include man-made disasters, terrorism, disease outbreaks, and instability. Any event could severely disrupt their or partners' operations. This might make business difficult or impossible for a time. Repairing or replacing facilities would be costly and slow. Their insurance might not cover all losses. This could significantly harm their finances and reputation.
   • IT System & Cybersecurity Risks: Imagine their computer systems suddenly failing. Or their main office hit by a disaster. Their concentrated operations mean a major IT disruption could cause big problems. Even with offsite backups, quick recovery is a huge challenge. This could cause significant business issues. Like most companies, AGIG's systems are vulnerable to cyber-attacks or hacks. These could come from outside or inside the company. A system breach could mean stolen data or halted operations. Such issues could cost much money and damage their reputation.
   • Outdated Technology Risk: The low-carbon fuel industry changes rapidly. New technologies emerge constantly. AGIG's success depends on staying current. Their technology or products could become outdated. They might be less efficient or too expensive compared to competitors' solutions. If so, their business might become unprofitable.
   • Challenges in Managing Growth: The company has big plans, but rapid growth is hard to manage. They must improve operations, financial systems, HR policies, and reporting. They need to accurately predict needs for space, equipment, and staff. Then they must hire, train, and keep those employees successfully. This requires significant money and management time. International expansion adds complexity. They face different business customs, language barriers, and local permits. They must handle varying customer demands and diverse legal systems. This includes potential business model changes and power cost variations. Arranging customer financing is also a challenge. This means more travel, infrastructure, and legal compliance costs. Poor growth management could seriously hurt their business. It could also damage their ability to deliver and their reputation.
   • Competition Risk: The waste-to-liquid fuel market is new and developing. It's a bit like the wild west. This offers opportunity from emerging demand, but also uncertainty. Uncertainty comes from evolving technologies and market structures. AGIG needs early engagement in markets like Europe to gain share. They face many competitors, some with limited funding. This could lead to inconsistent customer experiences and hurt industry trust. A big risk: larger, established companies could acquire competitors. This would let them outmaneuver AGIG in speed, pricing, or market reach. They also face costly intellectual property disputes as the market matures. New competitors with better tech or more money could emerge. This could create price pressure or make market share harder for AGIG. They risk failing to compete successfully, limiting their growth.
   • Reliance on Industry Partners: AGIG expects to rely on a few industry partners for near-term revenue. Their success is closely tied to these relationships. If a partner underperforms, breaches agreements, or lacks resources, problems arise. This could cause delays, prevent commercial products, hurt finances, and stop profitability. Disagreements or difficulty finding new partners (e.g., for feedstock) are also major problems.
   • Regulatory & Environmental Risks: This is a big risk for their new business. Their Baytown facility faces extensive environmental laws. These include federal, state, and local rules (e.g., Clean Air Act, Clean Water Act). Baytown is an "ozone severe nonattainment area". This means stricter permitting and control requirements. They aim to be a "minor source" (lower emissions). But if emissions exceed limits or rules change, risks arise. They could face more permits, monitoring, reporting, higher costs, delays, or restrictions. Non-compliance can lead to large fines, penalties, and liabilities for contamination. Environmental laws constantly change, making financial impact uncertain. International expansion (UK, Europe) adds new complex laws. This includes rules on hazardous chemicals, data protection (GDPR), banking, employment, and taxes. Any law changes or non-compliance could seriously hurt their business.
   • Filer Status: AGIG is a "Non-accelerated filer" and "Smaller reporting company". This means it's a smaller company with less publicly traded stock. They might also have fewer resources than larger companies. This status can mean higher risk for investors. Smaller companies might have weaker internal controls. Their stock might have less liquidity or be more sensitive to market changes.
   • Market Value: The public's share of common stock was small. It was $17,898,445 as of June 30, 2025. This small public float can cause higher stock price swings. It also means lower liquidity for investors.
   • Shares Outstanding: As of March 19, 2026, 43,720,999 common shares existed.
   • Convertible Debt: Convertible notes offer financing but pose a risk. If converted to stock, they increase total shares. This could dilute existing shares (your ownership percentage shrinks). Given AGIG's reliance on outside funding, future dilution is a notable risk.
   • Related Party Debt: Scrutinize loans from "related parties" (connected individuals/entities). Their terms might not be as fair as independent bank loans. This could be less favorable for the company or its shareholders.
   • Specific Technology Risks: They use licensed technologies. But these still need "ongoing pilot testing and product validation". Their modular facility design might not deliver promised capital efficiency. They rely on technologies they don't own or control. Losing rights to these could stop product development. Their patent rights might not strongly protect them from competitors.
   • Cost Management: They risk failing to continuously reduce operating and capital costs. This could affect product adoption and hurt their business.
   • Product Liability Claims: Selling products could lead to lawsuits if harm occurs. This would mean significant costs and reputation damage.
   • Stock Price Fluctuation: Their stock price could swing wildly. This makes selling shares at a desired price difficult.

6. Competitive positioning

   • Competitive Landscape: The waste-to-liquid fuel market is new and developing. It's a bit like the wild west. This offers opportunity from emerging demand, but also uncertainty. Uncertainty comes from evolving technologies and market structures. AGIG needs early engagement in markets like Europe to gain share. They face many competitors, some with limited funding. This could lead to inconsistent customer experiences and hurt industry trust. A big risk: larger, established companies could acquire competitors. This would let them outmaneuver AGIG in speed, pricing, or market reach. They also face costly intellectual property disputes as the market matures. New competitors with better tech or more money could emerge. This could create price pressure or make market share harder for AGIG. AGIG focuses on converting waste plastics and biomass into "drop-in" fuels. This places them in a growing, competitive niche. They aim to use licensed technologies and modular facility design. However, they must compete successfully to survive and grow.

7. Leadership or strategy changes

   • The reverse acquisition on July 1, 2025, was the biggest strategy change. The company fundamentally shifted its focus. It moved from a small oil and gas producer to a low-carbon energy developer.
   • Legacy O&G assets are now not important to the new strategy. This shows a clear pivot from their old business.
   • They have stock plans (like the "Two Thousand Twenty Five Plan"). These are common for employee pay and retention. They don't necessarily signal an overall strategy change.

8. Future outlook

   • The company's future focuses on developing its low-carbon energy business. This requires securing more money (critical due to the "going concern" warning and losses). It also involves completing engineering and permitting. They must construct production facilities and commission operations. They need to manage anticipated growth effectively. This means building internal systems and hiring many more people. They continue investing to grow in the U.S., UK, and Europe. Their success also heavily depends on strong relationships with a few industry partners.
   • They expect continued operating losses and capital spending to meet these goals. This reinforces their need for continuous financing.
   • Commercial sales depend on successful facility completion, product qualification, and regulatory compliance.
   • Profitability depends entirely on successful product development, introduction, and acceptance. It also relies on managing costs effectively as they expand products and internationally.
   • The subsequent events in early 2026 are critical. They help understand immediate future plans and recent developments. These could impact their path forward.
   • Existing marketing agreements in Europe for future pyrolysis oil show foresight. They are already planning commercial sales. They target a broad range of fuel and chemical customers.

9. Market trends or regulatory changes affecting them

   • Environmental Regulations: Their new low-carbon business, especially the Baytown facility, faces extensive environmental laws. These include federal, state, and local rules (e.g., Clean Air Act, Clean Water Act). Compliance will mean significant capital and operating costs. Changes in these laws could materially affect the business.
   • Climate Change Regulations: The EPA recently rescinded its 2009 finding on greenhouse gases for motor vehicles. This repealed federal GHG emission standards for cars. However, this does not change existing GHG permitting or reporting for stationary sources. So, their O&G assets and new facilities are still subject to GHG regulations.
   • Opportunity from Climate Change: As a low-carbon energy solutions company, climate change debate helps them. Regulatory responses aim to increase demand for their products. These products (like renewable diesel, SAF) are alternatives to traditional fuels. This could be a significant boost for their business. However, the ultimate impact of future climate initiatives remains uncertain. This dual nature of regulation (burden and driver) is key to AGIG's strategy.
   • Oil & Gas Regulations: Their legacy O&G operations face heavy regulation. Various government agencies regulate everything from conservation to drilling permits. Compliance is costly and complex. Non-compliance can lead to significant penalties. These regulations still impact the legacy business, despite the company's pivot.

So, what does this all mean for you as a potential investor? AGIG is a company in a very early, high-risk stage, transitioning into a promising but unproven market. They have big plans and a clear direction, but also significant financial hurdles and operational challenges ahead. Your decision to invest would be a bet on their future potential and ability to secure continuous funding, rather than on current profitability. Make sure to consider all these factors carefully.