Financial Performance - For the nine months ended September 30, 2025, total revenue was $3,553,219, a significant increase compared to $561,956 for the same period in 2024, representing a growth of approximately 531%[22] - The net loss for the nine months ended September 30, 2025, was $317,378, compared to a net loss of $83,160 for the same period in 2024, indicating a deterioration in financial performance[26] - Gross profit for the three months ended September 30, 2025, was $146,136, while for the same period in 2024, it was $140,173, showing a slight increase of about 4%[22] - The operating loss for the three months ended September 30, 2025, was $(98,370), while the nine-month operating loss was $(257,729)[149] - Total revenues for the three months ended September 30, 2025, were $1,302,814, with a gross profit of $146,136[149] - For the nine months ended September 30, 2025, total revenues reached $3,553,219, resulting in a gross profit of $629,331[149] - The company reported a segment net income from operations of $357,265 for the nine months ended September 30, 2025, compared to a loss of $290,572 for the same period in 2024[154] Assets and Liabilities - Total assets increased to $18,017,593 as of September 30, 2025, up from $15,040,664 on December 31, 2024, representing a growth of approximately 19.7%[18] - Total liabilities increased to $3,953,828 from $1,414,940, indicating a rise of about 179.5%[18] - Total current assets surged to $3,609,664, a significant increase from $753,196, reflecting a growth of approximately 378.5%[18] - Cash and cash equivalents rose to $173,174, compared to $114,138 at the end of the previous year, marking an increase of 51.8%[18] - The Company’s total cash, cash equivalents, and restricted cash amounted to $368,524 as of September 30, 2025, compared to $309,488 as of December 31, 2024, an increase of about 19%[38] - As of September 30, 2025, the Company had cash and cash equivalents of $173,174, up from $114,138 as of December 31, 2024, reflecting an increase of approximately 52%[38] Equity and Dividends - Stockholders' equity grew to $14,063,765, up from $13,625,724, which is an increase of approximately 3.2%[19] - The company declared dividends of $74,338 for the current period, compared to none in the previous period[19] - A dividend of $0.0025 per share was declared for each quarterly period ending June 30, 2025, resulting in a total payment of $37,410 on July 14, 2025[110] - The company paid dividends totaling $36,928 ($0.0025 per share) for the third quarter of 2025, with plans to increase the dividend to $0.01 per share for the next four quarters starting June 30, 2025[166] Cash Flow and Operating Activities - The company reported a net cash used in operating activities of $54,983 for the nine months ended September 30, 2025, compared to $252,631 for the same period in 2024, reflecting improved cash flow management[26] - Positive total cash flow for the nine months ended September 30, 2025, was $59,036, indicating a need for additional capital to support investment and growth plans[165] Revenue Sources and Growth - Environmental Services revenue for the nine months ended September 30, 2025, was $3,478,551, compared to $483,630 for the same period in 2024, indicating a growth of about 620%[52] - The increase in revenue was primarily due to additional business obtained through RMC Environmental Services LLC, which signed a new contractor services agreement[160] Investments and Financial Instruments - The Company has $195,350 in restricted cash as of September 30, 2025, which serves as a performance bond for a mining permit[36] - The Company recorded passthrough income from FUB Mineral LLC of $4,603 and $1,381 for the three-month periods ended September 30, 2025 and 2024, respectively, and $9,447 and $4,074 for the nine-month periods[71] - The company advanced $100,000 to Heart Water Inc. under an unsecured convertible promissory note with an 8.0% annual interest rate, maturing on October 6, 2028[75] - The company invested a total of $250,000 into convertible debt of Ferrox, which carries a 7.0% annual interest rate[76] Operating Expenses - Total operating expenses for the nine months ended September 30, 2025, were $887,060, compared to $830,996 for the same period in 2024, indicating an increase of approximately 7%[22] - Total other expenses for the three months ended September 30, 2025, were $110,725, while other income for the same period in 2024 was $50,315, indicating a significant shift in financial performance[163] Internal Controls and Compliance - Management concluded that disclosure controls and procedures were not effective due to insufficient staffing in accounting and reporting functions[172] - The company has not reported any changes in internal control over financial reporting that materially affected its operations during the fiscal quarter[174] - There were no off-balance sheet arrangements that required disclosure, and all transactions are recognized in accordance with U.S. GAAP[167] Future Outlook - The company anticipates continued growth and expansion in its business model, focusing on investments in natural resources and emerging technologies[159] - The company may need to raise additional funds through equity or debt securities to execute its investment and growth plans[165]

Group 1 - The S&P 500 has gained 35% since its lows in April, indicating optimism for continued market rally into 2026 [1] - Executives are cautioning about a potential equity market drop of more than 10% in the next 12 to 24 months, which is described as normal market behavior [2] Group 2 - Royalty Management Holding Corp. (RMCO) moved up 51 spots to 30th place on Barchart's top 100 stocks to buy list [3] - Estrella Immunopharma (ESLA) also rose 51 spots to 18th place, both being penny stocks trading below $5 [3] Group 3 - Royalty Management went public on November 6, 2023, through a combination with American Acquisition Opportunity Inc., a SPAC that raised $100 million in March 2021 [4] - The SPAC focused its search on companies with land and resource holdings, with its management team linked to American Resources Corporation (AREC) [5] Group 4 - AREC stock has increased by 953% from its low of 38 cents in April, attracting investors to Royalty Management and RMCO stock [6] - The SPAC extended its timeline to effect a combination from March 2022 to September 2022, announcing the combination with Royalty Management on June 28, 2022 [6]

Core Viewpoint - Royalty Management Holding Corp is diversifying its royalty business by investing in a range of sectors including critical minerals, sustainable land use, advanced manufacturing, and Bitcoin, aiming to balance risk and reward while enhancing efficiency and sustainability [1][2][3]. Investment Strategy - The company's core strategy involves securing royalties based on top-line revenue from various projects, which helps reduce operational risk and allows for capturing commodity price expansion [4][15]. - The company is flexible in its approach, considering equity or debt participation if royalties cannot be secured [4]. Market Differentiation - Unlike traditional royalty companies that focus on specific commodities, the company’s broad investment scope includes technologies that enhance revenue monetization and operational efficiency [6][9]. - The company actively seeks to create synergies among its investments, particularly in the rare earth sector, to build a complete supply chain from extraction to production [10][13]. Key Investments - Significant investments include a US-based permanent magnet manufacturer, earning a 1.5% royalty on magnet sales, and a partnership with Texas Tech University to develop sustainable fertilizer recycling technology [8][18]. - The company is focused on investing in technologies that improve resource use efficiency and sustainability, alongside traditional extractive operations [9]. Revenue Growth and Margins - As earlier investments begin to produce returns, the company anticipates revenue growth while maintaining disciplined cost management, expecting margins to expand as royalty income increases [14][16]. - The company’s role is to monitor performance and ensure agreements are honored, allowing for revenue scaling without proportional cost increases [15][16]. Industry Challenges and Opportunities - The US rare earth industry is experiencing a resurgence due to reduced reliance on foreign sources, particularly China, which has dominated the market [17][18]. - Challenges include rebuilding lost expertise in magnet production and navigating the complexities of the rare earth supply chain [19][20]. Future Outlook - The company plans to continue its selective and strategic investment approach, focusing on identifying bottlenecks in the supply chain and supporting companies that can advance from material concentrate to finished products [22][23]. - The company is exploring a Bitcoin Treasury strategy, viewing cryptocurrencies as commodities and considering investments in data centers and cryptocurrency mining operations [28][30]. Shareholder Value - The company is currently paying dividends due to excess cash and aims to grow these dividends alongside business expansion in the future [32].

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive has bureaus and studios in key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Group 2 - The company is focused on sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4] - Automation and software tools, including generative AI, are occasionally used, but all content is edited and authored by humans [5]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content includes insights into sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance its content creation and workflow processes [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all published content is edited and authored by humans [5]

[Part I – Financial Information](index=4&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) This section presents the unaudited interim financial statements and management's analysis of financial performance for Q1 2025 [Item 1. Interim Financial Statements](index=4&type=section&id=Item%201.%20Interim%20Financial%20Statements) The unaudited statements for Q1 2025 show significant revenue growth but a net loss due to higher costs, with total assets increasing to $15.7 million Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | **Total Current Assets** | 1,452,754 | 753,196 | | **Total Assets** | **15,723,265** | **15,040,664** | | **Total Current Liabilities** | 1,326,085 | 989,936 | | **Total Liabilities** | **1,741,896** | **1,414,940** | | **Total Stockholders' Equity** | **13,981,369** | **13,625,724** | Condensed Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended Mar 31, 2025 ($) | Three Months Ended Mar 31, 2024 ($) | | :--- | :--- | :--- | | **Total Revenue** | 923,223 | 162,100 | | Cost of Revenue | (669,900) | (2,693) | | **Gross Profit** | 253,323 | 159,407 | | Total Operating Expenses | (364,533) | (145,609) | | **Net (Loss) Income from Operations** | (111,210) | 13,798 | | Total Other Income | 52,455 | 139,958 | | **Net (Loss) Income** | **(58,755)** | **153,756** | | Basic and Diluted Net Income Per Share | 0.00 | 0.01 | Summary of Cash Flows (Unaudited) | Cash Flow Activity | Three Months Ended Mar 31, 2025 ($) | Three Months Ended Mar 31, 2024 ($) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (327,120) | (285,309) | | Net Cash Used in Investing Activities | (5,722) | (36,329) | | Net Cash Provided by Financing Activities | 351,243 | 261,000 | | **Net Change in Cash** | **18,401** | **(60,638)** | - Key activities affecting stockholders' equity in Q1 2025 included issuing **381,243 preferred shares for debt purchase**, 56,250 preferred shares for services, and repurchasing 40,000 common shares for $30,000[24](index=24&type=chunk) - The company's business model is to invest or purchase assets with near and medium-term income potential, such as natural resources, patents, and emerging technologies, to generate accretive cash flow[30](index=30&type=chunk) - The company has investments in FUB Mineral LLC (41.75% ownership) and Ferrox Holdings Ltd (9.9% ownership), totaling **$10.24 million** as of March 31, 2025[71](index=71&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk) - A discretionary stock repurchase program for up to **$2.0 million** was approved; as of March 31, 2025, the company has repurchased 71,777 shares of its common stock[104](index=104&type=chunk) - Significant related party transactions exist with entities like American Resources Corporation (ARC); in Q1 2025, the company settled a **$381,243 liability with ARC** by issuing preferred stock[111](index=111&type=chunk)[115](index=115&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes revenue growth to a new contract, while the net loss resulted from increased costs and public company expenses Comparison of Operations for the Three Months Ended March 31 | Metric | 2025 ($) | 2024 ($) | Change Driver | | :--- | :--- | :--- | :--- | | Total Operating Revenues | 923,223 | 162,100 | New environmental services contract | | Cost of Revenues | 669,900 | 2,693 | Costs associated with new contract | | Total Operating Expenses | 364,533 | 145,609 | Increased G&A and professional fees | | Net (Loss) Income | (58,755) | 153,756 | Higher costs and expenses offsetting revenue growth | - The company has **positive working capital of $126,669** and a cash balance of $132,539 as of March 31, 2025[143](index=143&type=chunk) - Management believes existing liquidity is sufficient for the next 12 months but acknowledges that **additional capital will likely be required** to execute growth plans[143](index=143&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exempt from these disclosures as it qualifies as a smaller reporting company - As a smaller reporting company, the **registrant is exempt** from providing disclosure under this item[146](index=146&type=chunk) [Item 4. Controls and Procedures](index=23&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective as of March 31, 2025, due to insufficient accounting staff - Management concluded that **disclosure controls and procedures were not effective** as of the period ending March 31, 2025[149](index=149&type=chunk) - The reason for the ineffectiveness was identified as an **insufficient number of staff** in accounting and reporting roles[149](index=149&type=chunk) - **No changes in internal control** over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[151](index=151&type=chunk) [Part II – Other Information](index=23&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) This section covers legal, risk, equity, and other disclosures, noting no significant reportable events for the period [Item 1. Legal Proceedings](index=23&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - None[152](index=152&type=chunk) [Item 1A. Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) The company is not required to provide risk factor information as it is an Emerging Growth Company - The company is **exempt from this disclosure requirement** due to its status as an Emerging Growth Company[153](index=153&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=23&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None[154](index=154&type=chunk) [Item 3. Default upon Senior Securities](index=23&type=section&id=Item%203.%20Default%20upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[155](index=155&type=chunk) [Item 4. Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - N/A[156](index=156&type=chunk) [Item 5. Other Information](index=23&type=section&id=Item%205.%20Other%20Information) The company reported no other information - None[156](index=156&type=chunk) [Item 6. Exhibits](index=24&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance and certification documents - The exhibits filed include corporate governance documents, specimen certificates, a list of subsidiaries, and required certifications under Sarbanes-Oxley (Rules 13a-14(a)/15d-14(a) and Section 1350)[157](index=157&type=chunk)

Financial Performance - Total revenue for the year ended December 31, 2024, was $807,089, representing a 65.3% increase from $488,520 in 2023[69] - Gross profit for 2024 was $784,390, compared to $471,926 in 2023, indicating a significant improvement in profitability[69] - The net loss for 2024 was $114,261, a reduction from a net loss of $1,113,645 in 2023, showing a positive trend in financial performance[69] - Total revenue increased to $807,089 in 2024, up 65.3% from $488,519 in 2023, driven by growth in environmental services and fee income[97] - Environmental services revenue rose to $686,230 in 2024, compared to $202,723 in 2023, reflecting a substantial increase of 238.5%[97] - Net cash provided by operating activities was $646,290 in 2024, a turnaround from net cash used of $(236,877) in 2023[74] Cash and Assets - Cash and cash equivalents decreased to $114,138 in 2024 from $195,486 in 2023, reflecting a decline of 41.5%[65] - Cash and cash equivalents at the end of 2024 were $309,488, down from $372,286 at the end of 2023[74] - Accounts receivable increased significantly to $180,881 in 2024 from $70,322 in 2023, marking a growth of 157.5%[65] - Total assets remained stable at $15,040,664 in 2024, slightly up from $15,040,123 in 2023[65] - Total stockholders' equity increased to $13,625,724 in 2024 from $11,113,880 in 2023, representing a growth of 22.5%[67] - The company reported an increase in additional paid-in capital to $10,784,754 in 2024 from $9,766,604 in 2023, a rise of 10.4%[67] Liabilities and Debt - The company’s operating lease liabilities decreased to $326,248 in 2024 from $359,738 in 2023, a reduction of 9.3%[65] - The Company has a non-convertible Note Payable to related parties amounting to $1,681,755 as of December 31, 2023, which will no longer be classified as related party in Q1 2024[151] - As of December 31, 2024, total notes payable amounted to $250,000, a decrease from $270,000 in 2023, primarily due to the repayment of MC Mining obligations[152] - The accrued interest on notes payable was $32,470 for 2024, compared to $5,712 in 2023, indicating a significant increase in interest expenses[153] Investments and Acquisitions - The company completed its business combination with Royalty Management Corporation on October 23, 2023, marking a strategic expansion in its operations[76] - The company completed a business combination with Royalty Management Co. on October 31, 2023, resulting in the merger of RMC Sub Inc. with Legacy Royalty, with Legacy Royalty becoming a wholly owned subsidiary of American Acquisition Opportunity Inc. (AMAO) [119] - As of December 31, 2024, total investments in corporations and LLCs amounted to $10,235,925, a slight increase from $10,230,434 in 2023 [122] - The company holds a 41.75% ownership interest in FUB Mineral LLC, with passthrough activity recorded as $5,491 and $13,147 for the years ended December 31, 2024 and 2023, respectively [123] - Total convertible notes receivable increased to $1,430,000 as of December 31, 2024, up from $1,400,000 in 2023 [126] Revenue Recognition and Taxation - The provision for income taxes was deemed to be de minimis for the years ending December 31, 2024 and 2023 [110] - Deferred tax assets included net operating loss carryforwards of $435,983 in 2024, fully reserved, compared to $412,321 in 2023[168] - The effective income tax rate is lower than the federal statutory rate of 21% due to certain deductible expenses[169] Stock and Equity - The Company issued 225,000 stock warrants in 2024, with a weighted average exercise price of $1 and an intrinsic value of $82,878[159] - The Company has $75,971 of unrecognized compensation cost related to unvested stock warrants, expected to be recognized over three years[158] - The Company has a discretionary stock repurchase program approved for up to $2,000,000 of Class A common stock over the next 24 months[156] - The Company is authorized to issue 10,000,000 shares of preferred stock, with 1,607,886 shares issued as Series A Preferred Stock as of December 31, 2024[155] Fair Value Adjustments - The company recorded a fair value adjustment of $(58,828) for public warrants and $(117,036) for private warrants in 2024, compared to adjustments of $157,584 and $117,036, respectively, in 2023[73] - The fair value of the Public Warrants decreased from $157,584 in 2023 to $98,756 in 2024, reflecting a change in valuation inputs[184] - The fair value of the Private Warrants was $117,036 in 2023 and was written down to $0 by the end of 2024[187] Miscellaneous - The Company has a rental income of $2,500 per month from property in Pike County, Kentucky, with a total consideration of $149,150 paid for the rights[137] - The Company has a management contract for a coal mining complex with a fee of $5,000 per month, treated as an indefinite lived asset[138] - The Company has accumulated depreciation of $4,096 on property and equipment, resulting in a net value of $3,832 as of December 31, 2024[145] - The Company has a liability of $381,243 payable to American Resources Corporation for the issuance of Series A Preferred Stock[192] - The Company operates as a single reportable segment focused on investing in assets with near and medium-term income potential[190]

Financial Position - As of June 30, 2024, total current assets amounted to $924,323, an increase from $847,134 as of December 31, 2023, representing an increase of approximately 9%[14] - The company reported cash and cash equivalents of $39,133, down from $195,486 as of December 31, 2023, indicating a decrease of approximately 80%[14] - Total liabilities decreased to $3,087,582 from $3,990,541, reflecting a reduction of about 23%[15] - Stockholders' equity increased to $10,635,840 from $9,620,190, marking an increase of approximately 11%[16] - The company has reported a total of $1,377,733 in retained earnings as of June 30, 2024, down from $1,392,490[16] - The total non-current assets slightly increased to $12,799,099 from $12,763,597, reflecting a growth of about 0.3%[14] - As of June 30, 2024, total cash, cash equivalents, and restricted cash amounted to $225,958, a decrease of 17.2% from $273,030 on June 30, 2023[33] Revenue and Profitability - Total revenue for the three months ended June 30, 2024, was $254,223, a significant increase from $66,363 for the same period in 2023, representing a growth of 282%[18] - Gross profit for the six months ended June 30, 2024, was $248,266, compared to $17,696 for the same period in 2023, indicating a substantial increase of 1,403%[18] - Environmental services revenue for the six months ended June 30, 2024, reached $364,120, up from $51,840 in the same period of 2023, indicating a growth of 600%[36] - The net loss for the three months ended June 30, 2024, was $150,348, a decrease from a net loss of $220,295 for the same period in 2023, reflecting an improvement of 32%[18] - Total operating revenues for the three and six months ended June 30, 2024, were $254,223 and $416,232, respectively, compared to $66,363 and $133,655 for the same periods in 2023, indicating significant growth due to increased volume in RMC Environmental Services[108] - Total net loss for the three and six months ended June 30, 2024, was $-150,348 and $-14,757, compared to $-220,295 and $-494,640 for the same periods in 2023, showing an improvement in financial performance[109] Expenses and Cash Flow - Operating expenses for the three months ended June 30, 2024, totaled $320,218, compared to $113,080 for the same period in 2023, which is an increase of 183%[18] - Cash used in operating activities for the six months ended June 30, 2024, was $639,123, compared to $178,209 for the same period in 2023, indicating a significant increase in cash outflow[21] - Total operating expenses for the three and six months ended June 30, 2024, were $320,218 and $417,864, respectively, up from $113,080 and $274,788 in 2023, primarily due to higher professional fees[108] Shareholder Information - The company has 14,954,504 shares of common stock issued and outstanding as of August 14, 2024, compared to 14,270,761 shares as of December 31, 2023[4] - The weighted average shares outstanding increased to 14,776,176 for the three months ended June 30, 2024, compared to 541,217 for the same period in 2023[18] - The company has issued 14,954,504 shares of Class A Common Stock as of June 30, 2024, up from 14,270,761 shares at the end of 2023, reflecting ongoing capital raising efforts[112] Investments and Financial Strategy - The company completed its merger with Royalty Management Corporation on October 23, 2023, and is focused on investing in assets with near and medium-term income potential[22] - The company has issued shares for the purchase of debt, totaling 460,000 shares, reflecting its strategy to manage financial obligations[20] - The company holds a 41.75% ownership interest in FUB Mineral LLC after an additional investment of $200,000 in February 2022[47] - The company advanced $650,000 to Heart Water Inc. in 2023, with an 8.0% annual interest rate on the unsecured convertible promissory note[52] - The company invested a total of $250,000 in convertible debt of Ferrox Holdings Ltd., which carries a 7.0% annual interest rate[53] - The company has a total of $150,000 in notes receivable as of June 30, 2024, an increase from $100,000 as of December 31, 2023[55] Risk Management and Compliance - The company has not experienced losses on cash accounts exceeding the federally insured limit of $250,000, suggesting effective risk management[28] - The provision for income taxes was deemed de minimis for the three and six month periods ending June 30, 2024, and 2023, indicating minimal tax liabilities[41] - Management believes that the ultimate resolution of various claims and litigation will not have a material adverse impact on the company's financial position[104] Future Outlook and Plans - The company expects to adopt ASU 2023-07 for segment reporting beginning with its fourth quarter ending December 31, 2024, with no anticipated material impact on financial results[45] - The Company has authorized a stock repurchase program of up to $2,000,000 for its Class A common stock over the next 24 months, subject to market conditions[80] - The Company will file a registration statement for Class A common stock from warrants within 20 business days after a Business Combination[89] Warrants and Securities - There are currently 9,154,191 outstanding Warrants to purchase shares of Class A Common Stock, each with an exercise price of $11.50, which may impact future cash flows depending on stock performance[115] - The expected volatility for the warrants is 60.00% and the risk-free rate is 5.15%[94] - The fair value of Public Warrants was $92,453 as of June 30, 2024, down from $157,584 on December 31, 2023[99] - The Private Warrants are non-redeemable and exercisable on a cashless basis, with 3,901,201 outstanding as of June 30, 2024[95] - The exercise price of the warrants may be adjusted if additional Class A common stock is issued below $9.20[92] Lease and Rental Agreements - The company leases land in Pike County, Kentucky, paying $2,000 per month with an initial lease term of 21 years[66] - The rental income from the property in Pike County, Kentucky, is $2,500 per month, with a total consideration of $149,150 paid to the seller[75] - Total Operating Lease Expense for the six months ended June 30, 2024, was $33,449,000, compared to $32,190,000 for the same period in 2023, reflecting a year-over-year increase of 3.9%[69]

Financial Performance - Royalty Management reported a 160% year-over-year increase in revenue, totaling $162,100 for Q1 2024 compared to $62,292 in Q1 2023[1] - Net income for Q1 2024 was $135,180, or $0.01 per share, a significant improvement from a net loss of $274,345, or a loss of $0.38 per share, in the prior year period[13] - 2024 expenses are trending significantly lower than 2023, primarily due to the reduction of one-time merger expenses associated with American Acquisition Opportunity[13] Assets and Liabilities - Total assets increased to $13,709,149 as of March 31, 2024, up from $13,610,731 a year earlier, while total liabilities decreased to $3,603,779 from $3,990,541[13] - Royalty Management's clean balance sheet and strong asset base position the company well for continued growth and value creation in 2024[2] Revenue Generation and Future Projects - The company anticipates Ferrox Holdings' Tivani mining project to generate approximately $8 million in annualized revenue by 2025, with production expected to reach 50,000 tons of run-of-mine ores per year[5] - The company expects additional revenue streams to expand from its portfolio over the next six months, generating free cash flow and positioning for an exciting 2025[6] Cash Flow and Financing Activities - Net Cash Used in Operating Activities was $(580,218) compared to $(228,195) in the previous period, indicating a significant increase in cash outflow[21] - Net Cash Provided by (Used in) Investing Activities decreased to $(91,420) from $2,100,442, reflecting a substantial reduction in cash inflow from investments[21] - Net Cash Provided (Used in) Financing Activities improved to $611,000 from $(2,194,640), showing a positive shift in financing cash flows[21] - Ending Cash balance decreased to $311,648 from $364,773, indicating a decline in available cash[21] - The company reported a withdrawal of cash in the trust account amounting to $2,152,346, which significantly impacted cash flows from investing activities[21] - The company issued shares worth $350,000 in the purchase of debt, contributing to financing activities[21] - The acquisition of Right of Use Assets for Lease Obligations was recorded at $305,380, indicating ongoing investment in operational assets[21] - The company reclassified $1,681,755 of debt from related to non-related parties, which may affect future financial obligations[21] Strategic Initiatives - RMC Environmental Services recorded a record monthly revenue of slightly under $1.0 million for March 2024, covering the majority of the parent company's expenses[5] - The company has initiated a stock repurchase program for up to $2.0 million over the next 24 months, already commencing buy-backs prior to the current "black out" period[5] - The company is focused on acquiring and developing high-value assets in sustainable market environments to build shareholder value[22] Risks and Forward-Looking Statements - Forward-looking statements indicate potential risks associated with the initial public offering, emphasizing the uncertainty in future financial performance[23] - The company is a gold member of CASFER, gaining access to innovative technologies for producing and recycling nitrogen-based fertilizers, with updates on emerging opportunities expected soon[5]