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]
Royalty Management (RMCO) - 2024 Q2 - Quarterly Report