First America Resources Corporation

What they do

The company, via METech Recycling, provides IT asset disposition (ITAD) services, electronics recycling, data destruction, and data center decommissioning. It refurbishes and resells IT equipment (laptops, servers, networking gear) and recovers materials from end-of-life devices. Technologies include machine learning-based sorting and data analytics for pricing and asset tracking.

Revenue drivers

• IT asset disposition (ITAD) — Core service line including collection, logistics, testing, data destruction, refurbishment, and resale of enterprise IT equipment; growth driven by enterprise customers upgrading data centers.
• Electronics recycling — Material recovery from non-refurbishable equipment; reported as a key service line with demand increasing in 2025.
• Data center decommissioning — Removal and secure processing of legacy servers and networking equipment, often tied to AI infrastructure upgrades; mentioned as a revenue growth driver.

Recent performance

For the six months ended June 30, 2026, revenue was $10.6M, up 20% from $8.8M in the prior year period. Gross margin improved to 59% from 54%, and operating income was $873,000 versus a $400 loss in the prior year. In 2025, annual revenue was $18.8M with net income of $2,765. At June 30, 2026, total assets were $8.6M, liabilities $9.5M, and shareholders' equity was negative $807,686.

Strategy

Management is leveraging AI-related infrastructure upgrades to drive server decommissioning and asset disposition projects. The company is investing in technology-assisted sorting, machine learning classification, and data analytics for pricing and recovery optimization. It expects to expand operations and may raise additional debt or equity capital to fund growth. Operating expenses are expected to increase in line with revenue as the company scales.

Risks

• Customer concentration — Top three customers accounted for approximately 15%, 13%, and 12% of 2025 revenue; loss of any could materially impact results.
• Negative shareholders' equity — As of June 30, 2026, shareholders' equity was -$807,686, indicating accumulated deficits and potential going-concern risk.
• Need for additional capital — Management states the company may need to raise additional debt or equity capital, with no assurance of acceptable terms.
• Gross margin compression — Gross margin declined from 56.2% in 2024 to 55.1% in 2025 due to mix shift, higher logistics costs, and new customer onboarding.

Outlook

Management expects revenue to continue increasing year-over-year based on continued growth. Operating expenses are anticipated to rise with revenue as operations expand. Cash flows from operations are expected to be neutral, while investing and financing expenditures may increase. The company may seek additional funding to support growth.