Royalty Management (RMCO) - 2025 Q4 - Annual Report

Financial Performance - Total revenue for the year ended December 31, 2025, was $4,949,916, a significant increase from $807,089 in 2024, representing a growth of approximately 512%[70] - The gross profit for 2025 was $804,777, compared to $784,390 in 2024, indicating a slight increase of about 2.5%[70] - The net loss for the year 2025 was $726,890, compared to a net loss of $114,261 in 2024, reflecting a deterioration in financial performance[70] - The operating loss for the Company in 2025 was reported at $(293,617), an improvement from $(312,358) in 2024[195][196] - Total operating expenses for 2025 were $1,098,394, slightly higher than $1,096,748 in 2024, indicating stable cost management[197][199] - The company reported interest income of $157,198 in 2025, up from $152,123 in 2024, suggesting improved financial income streams[197][199] Assets and Liabilities - Cash and cash equivalents increased to $133,064 in 2025 from $114,138 in 2024, showing a growth of approximately 16.6%[66] - Total assets rose to $16,652,523 in 2025, up from $15,040,664 in 2024, marking an increase of about 10.7%[68] - Total liabilities increased to $2,966,716 in 2025 from $1,414,940 in 2024, representing a significant rise of approximately 109%[68] - Total cash, cash equivalents, and restricted cash at the end of 2025 amounted to $328,414, up from $309,488 in 2024[89] Shareholder Information - The company reported a weighted average of 14,979,672 shares outstanding in 2025, compared to 14,958,817 shares in 2024, indicating a slight increase in shares[72] - The Company has authorized 100,000,000 shares of common stock, with 15,149,705 shares issued and outstanding as of December 31, 2025, compared to 14,958,817 shares in 2024, indicating a growth of about 1.3%[156] - The Company has 2,232,879 shares of preferred stock issued or outstanding, an increase from 1,607,886 shares in 2024, representing a growth of approximately 38.7%[155] - The Company declared dividends of $112,191 in 2025, compared to no dividends declared in 2024[69] - A dividend of $0.0025 per share was declared for each quarterly period from June 30, 2025, through June 30, 2026, totaling $37,852 paid to shareholders[200] Investments and Income - The company anticipates future royalty income from investments in various mining projects, real estate, and technologies, primarily in eastern Kentucky, Indiana, and Limpopo, South Africa[100] - The company recorded total investments in corporations and LLCs of $10,248,661 as of December 31, 2025, slightly up from $10,235,925 in 2024[120] - The company has a 41.75% ownership interest in FUB Mineral LLC, with passthrough activity recorded as $12,736 in 2025, up from $5,491 in 2024[122] - The company holds a 9.9% ownership interest in Ferrox Holdings Ltd., which focuses on mining operations in South Africa[123] - The Company has rental income of $2,500 per month from property in Pike County, Kentucky, with a total consideration of $149,150 paid for the rights[139] Stock and Compensation - Stock-based compensation for board members includes 25,000 warrants at an exercise price of $1.00 per share, with a vesting term of three years[105] - The total stock-based compensation expense for warrants to directors was $27,626 for the year ended December 31, 2025, compared to $6,906 in 2024, reflecting an increase of approximately 300%[159] - The Company has $41,437 of unrecognized compensation cost related to unvested stock warrants as of December 31, 2025, down from $75,971 in 2024, indicating a decrease of approximately 45.4%[160] Tax and Regulatory Matters - The provision for income taxes was deemed de minimis for the years ending December 31, 2025, and 2024[112] - The Company has no uncertain tax positions and has recognized any interest and penalties related to uncertain tax positions through its income tax expense[109] - The effective income tax rate is lower than the U.S. federal statutory rate of 21% due to certain expenses being deductible for tax purposes but not for financial reporting[170] Market and Operational Insights - The expected volatility for the Company's warrants increased to 35.61% in 2025 from 25.02% in 2024, indicating a higher risk perception in the market[178] - The Company plans to leverage its power infrastructure to support digital currency operations, including hosting or managing mining activities[193] - The Company is involved in various claims and litigation, but management believes the resolution will not materially impact its financial position[185] - The Company operates in segments including Corporate, RMC, RMCES, and Vault, with all revenue-generating activities concentrated in eastern Kentucky, Indiana, and Limpopo, South Africa[187][189]