Financial Performance - The company reported a net loss of $2,067,222 for the year ended December 31, 2023, compared to a net income of $1,199,503 in 2022[36]. - Total income for the year ended December 31, 2023, was $361,624, a significant increase from $172,686 in 2022, representing a growth of 109.8%[100]. - Net loss from operations improved to $(1,686,907) in 2023 compared to $(2,253,243) in 2022, reflecting a decrease in losses of 25.1%[100]. - The company reported a net loss of $(2,067,223) for 2023, contrasting with a net income of $1,199,503 in 2022[100]. - Basic and diluted net income per ordinary share was $(0.14) in 2023, compared to $1.64 in 2022[100]. Operating Expenses - Total operating expenses for the year ended December 31, 2023, were $2,048,531, a decrease of 44% compared to $3,647,578 in 2022[32]. - Operating expenses decreased to $2,048,531 in 2023 from $3,647,578 in 2022, a reduction of 43.9%[100]. Assets and Liabilities - Total liabilities decreased to $3,990,542 as of December 31, 2023, down 53% from $8,542,465 in 2022, primarily due to the conversion of convertible notes payable[33]. - As of December 31, 2023, total assets decreased to $13,610,731 from $20,257,417 in 2022, representing a decline of approximately 32.9%[96]. - Total current assets were reported at $265,809, down from $681,955 in 2022, indicating a decrease of about 61.0%[95]. - Total current liabilities increased to $1,345,504 from $1,009,949 in 2022, reflecting an increase of approximately 33.3%[98]. - Total long-term liabilities decreased significantly from $7,532,516 in 2022 to $2,645,037 in 2023, a reduction of about 64.9%[98]. - The company has convertible notes payable of $0 as of December 31, 2023, compared to $2,187,512 in 2022, indicating a complete elimination of this liability[89]. - The company reported a total of $520,259 in intangible assets as of December 31, 2023, down from $740,487 in 2022, a decrease of approximately 29.7%[96]. Cash Flow and Investments - Cash provided in investing activities was $6,861,858 for the year ended December 31, 2023, compared to $96,856,662 in 2022[37]. - The company advanced $650,000 in 2023 for convertible promissory notes related to Heart Water Inc.[78]. - The company holds convertible notes receivable totaling $1,150,000 as of December 31, 2023, up from $350,000 in 2022[103]. - The company issued shares worth $984,227 in connection with a merger during the year[37]. - The company has a rental income of $2,500 per month from a related party, with a total consideration of $149,150 for the rights to receive this income[92]. Shareholder Equity - The company’s shareholders' equity decreased to $9,620,190 in 2023 from $4,217,641 in 2022, an increase of approximately 128.5%[98]. Tax and Regulatory Matters - The provision for income taxes was deemed to be de minimis for the year ending December 31, 2023[52]. - The effective income tax rate is lower than the U.S. federal statutory rate of 21% due to certain deductible expenses[139]. Going Concern and Future Plans - The Company has raised substantial doubt about its ability to continue as a going concern due to significant operating losses[129]. - The Company is committed to filing a registration statement with the SEC within 20 business days after the closing of a Business Combination[189]. Miscellaneous - The company entered into a Honey Royalty Agreement, receiving $1.00 per pound of salable honey sold from purchased apiaries, indicating a new revenue stream[85]. - The Company has no off-balance sheet arrangements as of December 31, 2023[155]. - The Company has granted a right of first refusal to a representative for future public and private equity and debt offerings for a period of 24 months from the closing of a business combination[200].
Royalty Management (RMCO) - 2023 Q4 - Annual Report