Royalty Management (RMCO) - 2025 Q3 - Quarterly Report

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]