Financial Performance - Total operating revenues for Q3 2024 were $145,633, an increase from $122,816 in Q3 2023, primarily due to higher volume in RMC Environmental Services[128]. - Total cost of revenues for Q3 2024 was $5,460, up from $3,420 in Q3 2023, reflecting increased operational volume[129]. - Total operating expenses for Q3 2024 reached $302,959, compared to $186,532 in Q3 2023, driven by higher general and administrative expenses[130]. - Total net loss for Q3 2024 was $112,471, a decrease from a net loss of $251,324 in Q3 2023, indicating improved financial performance[132]. Liquidity and Capital Structure - Cash and cash equivalents as of September 30, 2024, totaled $145,367, providing liquidity for operational needs[140]. - The company has issued 14,932,918 shares of Class A Common Stock as of September 30, 2024, up from 14,270,761 shares at the end of 2023[136]. - There are 9,154,191 outstanding Warrants with an exercise price of $11.50, which may impact future capital raising efforts[139]. - The company does not expect liquidity issues in the next 12 months, indicating a stable financial outlook[133]. Strategic Developments - The business combination with Royalty Management Corporation was completed on October 23, 2023, marking a significant strategic shift for the company[127]. Internal Controls and Compliance - The management concluded that the disclosure controls and procedures were not effective due to insufficient staff performing accounting and reporting functions[148]. - The Company’s financial statements may fluctuate quarterly due to the recurring fair value measurement of Private Warrants, which could result in material non-cash gains or losses[153]. - There were no changes in internal control over financial reporting during the fiscal quarter of 2024 that materially affected the internal control[150]. - The SEC's statement regarding SPAC warrants led the Company to classify Private Warrants as derivative liabilities measured at fair value on the balance sheet[152]. - The management believes that the financial statements presented are materially correct despite the identified control deficiencies[148]. - The Company does not expect its disclosure controls and procedures to prevent all errors and fraud due to inherent limitations[149]. - The management conducted an evaluation of the effectiveness of disclosure controls and procedures for the period ending September 30, 2024[147]. - The Company is not required to include disclosures about market risk as it is classified as a smaller reporting company[151]. Legal and Regulatory Matters - There were no legal proceedings reported during the period[151]. - The Company has no unregistered sales of equity securities or defaults upon senior securities[153].
Royalty Management (RMCO) - 2024 Q3 - Quarterly Report