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]
Royalty Management (RMCO) - 2024 Q4 - Annual Report