Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Royalty Management Holding Corporation Reports First Quarter 2024 Financial Results and Provides Business Outlook By: ACCESSWIRE May 28, 2024 at 04:15 AM EDT Company reports profitable first quarter of 2024 highlighting its low-cost, low-overhead operating model Company reports a 160% year-over-year increase in revenue and a 149% year-over-year increase in net income Company is well positioned to continue growing its platform of assets and quarterly revenue growth, given clean balance sheet and unique investment opportunities FISHERS, IN / ACCESSWIRE / May 28, 2024 / Royalty Management Holding Corporation (Nasdaq:RMCO) ("Royalty Management" or the "Company"), an innovative royalty company building shareholder value by acquiring and developing high value assets in a variety of resource-driven and emerging technology industries is pleased to announced today its financial results for the first quarter of 2024. Thomas Sauve, Chief Executive Officer of the Company, commented, "We are excited to release our first 2024 first quarterly financial results and to share our business update with our investors as we continue a strong start to the 2024 year with a focus on value creation events and opportunistic growth. Post completion of the merger with American Acquisition Opportunity Inc,, we've looked to focus on the highest value contributors of the business while also establishing a low-cost, low-overhead business model. Our team is motivated by the equity value of the Company and aligned with our shareholders on maximizing this value, as opposed to being simply "hired guns" with salaries. With that in mind, we couldn't be more excited how we are positioned to continue to grow the business given our clean balance sheet and strong asset base. We are pleased with our first quarter and the second quarter is tracking growth compared to first quarter in both revenues and cash flow." Key Highlights Communicated updated production and revenue guidance of its portfolio company, Ferrox Holdings' Tivani mining project containing deposits of Titanium, Iron and Vanadium from which it has commenced production. Upon completion of Ferrox's investment into its crushing and concentration plant, the company anticipates it will be able to increase production and sales to approximately 50,000 tons of run-of-mine ores per year in 2025 and approximately $8 million in annualized revenue, continuing to expand thereafter as the company continues its investment into the deposit and production. Renewed its gold status membership in Texas Tech University's Center for Advancing Sustainable and Distributed Fertilizer Production, or ‘CASFER' organization. As a gold member of CASFER, RMC has access to the technologies and intellectual property developed out of CASFER, in particular the innovative and novel technologies to produce, capture, and recycle nitrogen-based fertilizers from farming activities. Opportunities for Royalty Management to participate in the emerging technologies and patents from CASFER are already occurring, with more Company updates on these opportunities in the near future. Announced that its environmental services business, under the wholly-owned subsidiary, RMC Environmental Services LLC, recorded record monthly revenue of slightly under $1.0 million run rate revenue for the month of March, equating to a positive cash flow run rate equivalent for all of Royalty Management Holding Corporation. Engaged CM3 Advisory as the Company's independent registered public accounting firm. Announced that the Company's Board of Directors voted unanimously to institute a stock repurchase program of Royalty Management Holding Corporation's Class A Common Shares for up to $2.0 million over the next 24 months of which the Company has already commenced the buy-back of stock prior to the start of the current "black out" period. Mr. Sauve continued, "Looking forward to the remainder of 2024, our belief in, and excitement over, the opportunities we have in front of us continues to reach an all-time high. Our current platform of assets are well positioned to generate attractive cash flow and long-term value for the Company and its shareholders alike. RMC Environmental Services continues to operate efficiently and covers the majority of our overall corporate expenses, let alone our other active and cash-flowing investments and projects we are developing towards that goal resulting in bottom line income. Over the next six months we anticipate additional revenue streams to expand from our portfolio and generate free cash flow which will position us well for an exciting 2025." Select Financial Results for First Quarter 2024 For the first quarter of 2024, Royalty Management reported net income of $135,180, or $0.01 per share, as compared with a net income loss of $274,345, or a loss of $0.38 per share, in the prior year period. Total revenues were $162,100 for the first quarter of 2024 compared to revenues of $62,292 during the first quarter of 2023. Total assets were $13,709,149 as of the end of the first quarter of 2024, an increase from $13,610,731 compared to total assets as of the first quarter 2023. Total liabilities were $3,603,779 as of the end of the first quarter of 2024, a decrease from $3,990,542 compared to total assets as of the first quarter 2023, resulting in total stockholders' equity of $10,105,370 as of the end of first quarter 2024. 2024 expenses are trending significantly lower than 2023, which were predominantly related to the one-time merger expenses associated with American Acquisition Opportunity. Select Portfolio Holdings Royalty Management has put together an exciting portfolio of royalty assets which support growing or transitioning industries and to generate near-future royalty and income streams. Some of RMCO's portfolio holdings include: RMC Environmental Service LLC - A wholly-owned, environmental service business line of RMCO that supports residential, municipal and commercial development in and around Hamilton County, Indiana. The company recently announced record revenue for the month of March 2024 which currently covers the majority of all of the parent company's expenses. Ferrox Holdings Ltd. - A majority owner of the Tivani Project; ilmenite, iron, vanadium and phosphate project which is in an advance development stage. It is located in the long-term mining region of the Limpopo Province in South Africa. Ferrox is the holding company for several South African subsidiaries and is focus is on developing mineral resources in Sub Saharan Africa. TR Mining - A high quality, Jamaica-based diversified mineral project with a focus on iron ore, titanium and vanadium with an initial estimated deposit of 212,925,000 tons of raw feedstock with an estimated 106,462,500 tons of ore body, based on an average of 50% magnetic material. The project is part of a Special Exclusive Prospecting License (or "SEPL") that covers an area of approximately 25 permitted square kilometers. TR Mining is 51% owned by American Carbon Corporation and 49% owned by TR Mining & Equipment Limited, where RMC owns a royalty interest from the sale of produced product from the operation. Advanced Magnet Lab, Inc. (AML) - AML is a recognized leader in the development of innovative magnet technologies and magnet-based applications. Today, AML is executing on multiple product development programs including magnet materials and PM-Wire™ based motors and generators for industrial, aerospace and defense. This includes projects funded by large industry, U.S. Department of Energy and U.S. Department of Defense. RMCO has an ownership interest in AML through its participation in their Series A round of capital raising. Center for Advancing Sustainable and Distributed Fertilizer Production (CASFER) - CASFER vision is to enable resilient and sustainable food production by developing next generation, modular, distributed, and efficient technology for capturing, recycling, and producing decarbonized nitrogen-based fertilizers (NBFs). CASFER brings together a diverse leadership and the convergence of a multidisciplinary team drawn from Texas Tech University, Florida A&M University, Georgia Institute of Technology, Case Western Reserve University, and Massachusetts Institute of Technology. RMCO is a gold member of CASFER providing commercial technology rights into one of the fastest growing markets of fertilizer recycling. Heart Water, Inc. - Heart Water offers artisan alkaline rainwater with the aim of saving the depleting water resources. Heart Water is a cloud-harvested, nature-purified, and micro-filtered process, this is the purest alkaline water on the planet. The company has a unique process that utilizes ultraviolet light technology, multi-stage purification, and ozone oxidation, ensuring the naturally purest water available. RMCO owns an equity stake in Heart Water and will collect a royalty interest from each bottle of water that is sold from the facilities constructed by RMC's investment. ROYALTY MANAGEMENT HOLDING CORPORATIONSTATEMENTS OF OPERATIONS (Unaudited) For the three months ended 3/31/2024 For the three months ended 3/31/2023 Environmental Services 136,020 35,100 Fee Income 3,580 9,692 Rental Income 22,500 22,500 TOTAL REVENUE 162,100 67,292 Cost of Revenue (67,660 ) (60,001 ) Total Cost of Revenue (67,660 ) (60,001 ) GROSS PROFIT 94,440 7,291 Amortization Expense Intangibles (18,807 ) (18,807 ) General and Administrative (73,144 ) (99,346 ) Professional Fees (5,694 ) (43,556 ) Total Operating Expenses (97,645 ) (161,709 ) NET LOSS FROM OPERATIONS (3,205 ) (154,418 ) OTHER INCOME (EXPENSE) Interest Income 35,377 100,673 Gain on Warrant Fair Value Adjustment 161,155 - Interest Expense (58,147 ) (220,601 ) Total Other Income (Expense) 138,385 (119,928 ) NET INCOME (LOSS) 135,180 (274,345 ) Weighted average shares outstanding, basic and diluted 14,402,263 726,938 Basic and diluted net income per ordinary share $ 0.01 (0.38 ) ROYALTY MANAGEMENT HOLDING CORPORATIONBALANCE SHEET (Unaudited) ASSETS March 31, December 31, 2024 2023 CURRENT ASSETS Cash $ 124,823 $ 195,486 Accounts Receivable 137,583 70,323 Prepaid Insurance 30,159 - Interest Receivable 439,763 404,548 Fee Income Receivable 195,357 176,777 Total Current Assets 927,685 847,134 Investments in Corporations and LLCs 10,112,852 10,112,852 Convertible Notes Receivable 1,415,000 1,400,000 Notes Receivable 120,000 100,000 Intangible Assets, Net 501,453 520,259 Restricted Cash 186,825 176,800 Operating Lease Right-Of-Use Assets 445,335 453,686 Total Non-Current Assets 12,781,465 12,763,597 TOTAL ASSETS $ 13,709,149 $ 13,610,731 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts Payable - Related Party $ 381,243 $ 381,243 Accounts Payable 94,752 96,071 Current Portion of Operating Lease Liabilities, Net 34,777 33,923 Current Portion of Notes Payable 489,000 - Accrued Expenses 357,146 834,267 Total Current Liabilities 1,356,918 1,345,504 Notes Payable - Related Party, Net - 1,681,755 Operating Lease Liabilities, Net 409,641 418,662 Notes Payable 1,723,755 270,000 Fair Value Liability of Public Warrants 113,465 157,584 Fair Value Liability of Private Warrants - 117,036 Total Non-Current Liabilities 2,246,861 2,645,037 TOTAL LIABILITIES 3,603,779 3,990,541 STOCKHOLDERS' EQUITY Preferred Stock: $0.0001 par value; 10,000,000 shares authorized, 0 shares issued and outstanding for March 31, 2024 and December 31, 2023 - - Common Stock: $0.0001 par value; 100,000,000 shares authorized, 14,504,095 and 14,270,761 shares issued and outstanding for March 31, 2024 and December 31, 2023, respectively 1,450 1,427 Additional Paid-In Capital 8,576,249 8,226,273 Retained Earnings 1,527,670 1,392,490 Total Stockholders' Equity 10,105,369 9,620,190 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,709,149 $ 13,610,731 ROYALTY MANAGEMENT HOLDING CORPORATIONSTATEMENTS OF CASH FLOWS (Unaudited) For the three months ending March 31, For the three months ending March 31, Cash flows from Operating Activities: 2024 2023 Net Income (Loss) $ 135,180 $ (710,809 ) Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operations Amortization of Debt Discount - 115,445 Amortization Expense of Right of Use Assets 184 (1,814 ) Amortization of Intangibles 75,227 18,807 Issuance of Common Shares for Service - 5,000 Fair Value Adjustment of Public Warrants (44,119 ) 47,214 Fair Value Adjustment of Private Warrants (117,036 ) 27,308 Changes in Operating Assets and Liabilities: Accounts Receivable (67,260 ) 39,470 Prepaid Insurance (30,159 ) 100,049 Deposits - (37,461 ) Interest Receivable (35,215 ) (102,378 ) Fee Income Receivable (18,580 ) (69,692 ) Accounts Payable - Related Party - 164,947 Accounts Payable (1,319 ) 127,946 Accrued Expenses (477,122 ) 47,774 Net Cash Used in Operating Activities (580,218 ) (228,195 ) Cash Flows from Investing Activities Withdrawal of Cash in Trust Account - 2,152,346 Withdrawal from Corporations and LLCs - 3,096 Investments in Convertible Notes Receivable (15,000 ) (100,000 ) Investments in Notes Receivable (20,000 ) (100,000 ) Purchases of Intangible Assets (56,420 ) 145,000 Net Cash Provided by (Used in) Investing Activities (91,420 ) 2,100,442 Cash Flows from Financing Activities: Return of Investment Trust Proceeds, Net Underwriting Fees Paid - (2,188,640 ) Shares Issued in Purchase of Debt 350,000 - Proceeds from Notes Payable 261,000 - Payment on Notes Payable - (6,000 ) Net Cash Provided (Used in) Financing Activities 611,000 (2,194,640 ) Net Change in Cash (60,639 ) (322,393 ) Cash - Beginning of Period 372,286 687,166 Cash - Ending of Period $ 311,648 $ 364,773 Supplemental Information Acquisition of Right of Use Assets for Lease Obligations - 305,380 Reclassification of Debt from Related to Non-Related Party 1,681,755 - Cash Paid for Interest - - Cash Paid for Taxes - - About Royalty Management Holding Corporation Royalty Management Holding Corporation (NASDAQ:RMCO) is a royalty company building shareholder value to benefit both its shareholders and communities by acquiring and developing high value assets in sustainable market environments. The business model focuses on acquiring and structuring cashflow and revenue streams around assets that can support the communities by monetizing the current existing cash flow streams while identifying transitionary cash flow from the assets for the future. For more information visit www.royaltymgmtcorp.com. Forward-Looking Statements This press release contains statements that constitute "forward-looking statements," including with respect to the initial public offering. No assurance can be given that the offering discussed above will be completed on the terms described, or at all. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those that will be set forth in the "Risk Factors" section of the Company's registration statement and proxy statement/prospectus to be filed with the SEC. Copies will be available on the SEC's website, www.sec.gov. The information contained in this release is as of the date first set forth above. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law. Investor Contact: RedChip Companies Inc.Robert Foley1-800-RED-CHIP (733-2447)Info@redchip.com Company Contact: Thomas SauveChief Executive Officer(317) 855-9926 SOURCE: Royalty Management Holding Corporation View the original press release on accesswire.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Royalty Management Holding Corporation Reports First Quarter 2024 Financial Results and Provides Business Outlook By: ACCESSWIRE May 28, 2024 at 04:15 AM EDT Company reports profitable first quarter of 2024 highlighting its low-cost, low-overhead operating model Company reports a 160% year-over-year increase in revenue and a 149% year-over-year increase in net income Company is well positioned to continue growing its platform of assets and quarterly revenue growth, given clean balance sheet and unique investment opportunities FISHERS, IN / ACCESSWIRE / May 28, 2024 / Royalty Management Holding Corporation (Nasdaq:RMCO) ("Royalty Management" or the "Company"), an innovative royalty company building shareholder value by acquiring and developing high value assets in a variety of resource-driven and emerging technology industries is pleased to announced today its financial results for the first quarter of 2024. Thomas Sauve, Chief Executive Officer of the Company, commented, "We are excited to release our first 2024 first quarterly financial results and to share our business update with our investors as we continue a strong start to the 2024 year with a focus on value creation events and opportunistic growth. Post completion of the merger with American Acquisition Opportunity Inc,, we've looked to focus on the highest value contributors of the business while also establishing a low-cost, low-overhead business model. Our team is motivated by the equity value of the Company and aligned with our shareholders on maximizing this value, as opposed to being simply "hired guns" with salaries. With that in mind, we couldn't be more excited how we are positioned to continue to grow the business given our clean balance sheet and strong asset base. We are pleased with our first quarter and the second quarter is tracking growth compared to first quarter in both revenues and cash flow." Key Highlights Communicated updated production and revenue guidance of its portfolio company, Ferrox Holdings' Tivani mining project containing deposits of Titanium, Iron and Vanadium from which it has commenced production. Upon completion of Ferrox's investment into its crushing and concentration plant, the company anticipates it will be able to increase production and sales to approximately 50,000 tons of run-of-mine ores per year in 2025 and approximately $8 million in annualized revenue, continuing to expand thereafter as the company continues its investment into the deposit and production. Renewed its gold status membership in Texas Tech University's Center for Advancing Sustainable and Distributed Fertilizer Production, or ‘CASFER' organization. As a gold member of CASFER, RMC has access to the technologies and intellectual property developed out of CASFER, in particular the innovative and novel technologies to produce, capture, and recycle nitrogen-based fertilizers from farming activities. Opportunities for Royalty Management to participate in the emerging technologies and patents from CASFER are already occurring, with more Company updates on these opportunities in the near future. Announced that its environmental services business, under the wholly-owned subsidiary, RMC Environmental Services LLC, recorded record monthly revenue of slightly under $1.0 million run rate revenue for the month of March, equating to a positive cash flow run rate equivalent for all of Royalty Management Holding Corporation. Engaged CM3 Advisory as the Company's independent registered public accounting firm. Announced that the Company's Board of Directors voted unanimously to institute a stock repurchase program of Royalty Management Holding Corporation's Class A Common Shares for up to $2.0 million over the next 24 months of which the Company has already commenced the buy-back of stock prior to the start of the current "black out" period. Mr. Sauve continued, "Looking forward to the remainder of 2024, our belief in, and excitement over, the opportunities we have in front of us continues to reach an all-time high. Our current platform of assets are well positioned to generate attractive cash flow and long-term value for the Company and its shareholders alike. RMC Environmental Services continues to operate efficiently and covers the majority of our overall corporate expenses, let alone our other active and cash-flowing investments and projects we are developing towards that goal resulting in bottom line income. Over the next six months we anticipate additional revenue streams to expand from our portfolio and generate free cash flow which will position us well for an exciting 2025." Select Financial Results for First Quarter 2024 For the first quarter of 2024, Royalty Management reported net income of $135,180, or $0.01 per share, as compared with a net income loss of $274,345, or a loss of $0.38 per share, in the prior year period. Total revenues were $162,100 for the first quarter of 2024 compared to revenues of $62,292 during the first quarter of 2023. Total assets were $13,709,149 as of the end of the first quarter of 2024, an increase from $13,610,731 compared to total assets as of the first quarter 2023. Total liabilities were $3,603,779 as of the end of the first quarter of 2024, a decrease from $3,990,542 compared to total assets as of the first quarter 2023, resulting in total stockholders' equity of $10,105,370 as of the end of first quarter 2024. 2024 expenses are trending significantly lower than 2023, which were predominantly related to the one-time merger expenses associated with American Acquisition Opportunity. Select Portfolio Holdings Royalty Management has put together an exciting portfolio of royalty assets which support growing or transitioning industries and to generate near-future royalty and income streams. Some of RMCO's portfolio holdings include: RMC Environmental Service LLC - A wholly-owned, environmental service business line of RMCO that supports residential, municipal and commercial development in and around Hamilton County, Indiana. The company recently announced record revenue for the month of March 2024 which currently covers the majority of all of the parent company's expenses. Ferrox Holdings Ltd. - A majority owner of the Tivani Project; ilmenite, iron, vanadium and phosphate project which is in an advance development stage. It is located in the long-term mining region of the Limpopo Province in South Africa. Ferrox is the holding company for several South African subsidiaries and is focus is on developing mineral resources in Sub Saharan Africa. TR Mining - A high quality, Jamaica-based diversified mineral project with a focus on iron ore, titanium and vanadium with an initial estimated deposit of 212,925,000 tons of raw feedstock with an estimated 106,462,500 tons of ore body, based on an average of 50% magnetic material. The project is part of a Special Exclusive Prospecting License (or "SEPL") that covers an area of approximately 25 permitted square kilometers. TR Mining is 51% owned by American Carbon Corporation and 49% owned by TR Mining & Equipment Limited, where RMC owns a royalty interest from the sale of produced product from the operation. Advanced Magnet Lab, Inc. (AML) - AML is a recognized leader in the development of innovative magnet technologies and magnet-based applications. Today, AML is executing on multiple product development programs including magnet materials and PM-Wire™ based motors and generators for industrial, aerospace and defense. This includes projects funded by large industry, U.S. Department of Energy and U.S. Department of Defense. RMCO has an ownership interest in AML through its participation in their Series A round of capital raising. Center for Advancing Sustainable and Distributed Fertilizer Production (CASFER) - CASFER vision is to enable resilient and sustainable food production by developing next generation, modular, distributed, and efficient technology for capturing, recycling, and producing decarbonized nitrogen-based fertilizers (NBFs). CASFER brings together a diverse leadership and the convergence of a multidisciplinary team drawn from Texas Tech University, Florida A&M University, Georgia Institute of Technology, Case Western Reserve University, and Massachusetts Institute of Technology. RMCO is a gold member of CASFER providing commercial technology rights into one of the fastest growing markets of fertilizer recycling. Heart Water, Inc. - Heart Water offers artisan alkaline rainwater with the aim of saving the depleting water resources. Heart Water is a cloud-harvested, nature-purified, and micro-filtered process, this is the purest alkaline water on the planet. The company has a unique process that utilizes ultraviolet light technology, multi-stage purification, and ozone oxidation, ensuring the naturally purest water available. RMCO owns an equity stake in Heart Water and will collect a royalty interest from each bottle of water that is sold from the facilities constructed by RMC's investment. ROYALTY MANAGEMENT HOLDING CORPORATIONSTATEMENTS OF OPERATIONS (Unaudited) For the three months ended 3/31/2024 For the three months ended 3/31/2023 Environmental Services 136,020 35,100 Fee Income 3,580 9,692 Rental Income 22,500 22,500 TOTAL REVENUE 162,100 67,292 Cost of Revenue (67,660 ) (60,001 ) Total Cost of Revenue (67,660 ) (60,001 ) GROSS PROFIT 94,440 7,291 Amortization Expense Intangibles (18,807 ) (18,807 ) General and Administrative (73,144 ) (99,346 ) Professional Fees (5,694 ) (43,556 ) Total Operating Expenses (97,645 ) (161,709 ) NET LOSS FROM OPERATIONS (3,205 ) (154,418 ) OTHER INCOME (EXPENSE) Interest Income 35,377 100,673 Gain on Warrant Fair Value Adjustment 161,155 - Interest Expense (58,147 ) (220,601 ) Total Other Income (Expense) 138,385 (119,928 ) NET INCOME (LOSS) 135,180 (274,345 ) Weighted average shares outstanding, basic and diluted 14,402,263 726,938 Basic and diluted net income per ordinary share $ 0.01 (0.38 ) ROYALTY MANAGEMENT HOLDING CORPORATIONBALANCE SHEET (Unaudited) ASSETS March 31, December 31, 2024 2023 CURRENT ASSETS Cash $ 124,823 $ 195,486 Accounts Receivable 137,583 70,323 Prepaid Insurance 30,159 - Interest Receivable 439,763 404,548 Fee Income Receivable 195,357 176,777 Total Current Assets 927,685 847,134 Investments in Corporations and LLCs 10,112,852 10,112,852 Convertible Notes Receivable 1,415,000 1,400,000 Notes Receivable 120,000 100,000 Intangible Assets, Net 501,453 520,259 Restricted Cash 186,825 176,800 Operating Lease Right-Of-Use Assets 445,335 453,686 Total Non-Current Assets 12,781,465 12,763,597 TOTAL ASSETS $ 13,709,149 $ 13,610,731 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts Payable - Related Party $ 381,243 $ 381,243 Accounts Payable 94,752 96,071 Current Portion of Operating Lease Liabilities, Net 34,777 33,923 Current Portion of Notes Payable 489,000 - Accrued Expenses 357,146 834,267 Total Current Liabilities 1,356,918 1,345,504 Notes Payable - Related Party, Net - 1,681,755 Operating Lease Liabilities, Net 409,641 418,662 Notes Payable 1,723,755 270,000 Fair Value Liability of Public Warrants 113,465 157,584 Fair Value Liability of Private Warrants - 117,036 Total Non-Current Liabilities 2,246,861 2,645,037 TOTAL LIABILITIES 3,603,779 3,990,541 STOCKHOLDERS' EQUITY Preferred Stock: $0.0001 par value; 10,000,000 shares authorized, 0 shares issued and outstanding for March 31, 2024 and December 31, 2023 - - Common Stock: $0.0001 par value; 100,000,000 shares authorized, 14,504,095 and 14,270,761 shares issued and outstanding for March 31, 2024 and December 31, 2023, respectively 1,450 1,427 Additional Paid-In Capital 8,576,249 8,226,273 Retained Earnings 1,527,670 1,392,490 Total Stockholders' Equity 10,105,369 9,620,190 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,709,149 $ 13,610,731 ROYALTY MANAGEMENT HOLDING CORPORATIONSTATEMENTS OF CASH FLOWS (Unaudited) For the three months ending March 31, For the three months ending March 31, Cash flows from Operating Activities: 2024 2023 Net Income (Loss) $ 135,180 $ (710,809 ) Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operations Amortization of Debt Discount - 115,445 Amortization Expense of Right of Use Assets 184 (1,814 ) Amortization of Intangibles 75,227 18,807 Issuance of Common Shares for Service - 5,000 Fair Value Adjustment of Public Warrants (44,119 ) 47,214 Fair Value Adjustment of Private Warrants (117,036 ) 27,308 Changes in Operating Assets and Liabilities: Accounts Receivable (67,260 ) 39,470 Prepaid Insurance (30,159 ) 100,049 Deposits - (37,461 ) Interest Receivable (35,215 ) (102,378 ) Fee Income Receivable (18,580 ) (69,692 ) Accounts Payable - Related Party - 164,947 Accounts Payable (1,319 ) 127,946 Accrued Expenses (477,122 ) 47,774 Net Cash Used in Operating Activities (580,218 ) (228,195 ) Cash Flows from Investing Activities Withdrawal of Cash in Trust Account - 2,152,346 Withdrawal from Corporations and LLCs - 3,096 Investments in Convertible Notes Receivable (15,000 ) (100,000 ) Investments in Notes Receivable (20,000 ) (100,000 ) Purchases of Intangible Assets (56,420 ) 145,000 Net Cash Provided by (Used in) Investing Activities (91,420 ) 2,100,442 Cash Flows from Financing Activities: Return of Investment Trust Proceeds, Net Underwriting Fees Paid - (2,188,640 ) Shares Issued in Purchase of Debt 350,000 - Proceeds from Notes Payable 261,000 - Payment on Notes Payable - (6,000 ) Net Cash Provided (Used in) Financing Activities 611,000 (2,194,640 ) Net Change in Cash (60,639 ) (322,393 ) Cash - Beginning of Period 372,286 687,166 Cash - Ending of Period $ 311,648 $ 364,773 Supplemental Information Acquisition of Right of Use Assets for Lease Obligations - 305,380 Reclassification of Debt from Related to Non-Related Party 1,681,755 - Cash Paid for Interest - - Cash Paid for Taxes - - About Royalty Management Holding Corporation Royalty Management Holding Corporation (NASDAQ:RMCO) is a royalty company building shareholder value to benefit both its shareholders and communities by acquiring and developing high value assets in sustainable market environments. The business model focuses on acquiring and structuring cashflow and revenue streams around assets that can support the communities by monetizing the current existing cash flow streams while identifying transitionary cash flow from the assets for the future. For more information visit www.royaltymgmtcorp.com. Forward-Looking Statements This press release contains statements that constitute "forward-looking statements," including with respect to the initial public offering. No assurance can be given that the offering discussed above will be completed on the terms described, or at all. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those that will be set forth in the "Risk Factors" section of the Company's registration statement and proxy statement/prospectus to be filed with the SEC. Copies will be available on the SEC's website, www.sec.gov. The information contained in this release is as of the date first set forth above. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law. Investor Contact: RedChip Companies Inc.Robert Foley1-800-RED-CHIP (733-2447)Info@redchip.com Company Contact: Thomas SauveChief Executive Officer(317) 855-9926 SOURCE: Royalty Management Holding Corporation View the original press release on accesswire.com
Company reports profitable first quarter of 2024 highlighting its low-cost, low-overhead operating model Company reports a 160% year-over-year increase in revenue and a 149% year-over-year increase in net income Company is well positioned to continue growing its platform of assets and quarterly revenue growth, given clean balance sheet and unique investment opportunities FISHERS, IN / ACCESSWIRE / May 28, 2024 / Royalty Management Holding Corporation (Nasdaq:RMCO) ("Royalty Management" or the "Company"), an innovative royalty company building shareholder value by acquiring and developing high value assets in a variety of resource-driven and emerging technology industries is pleased to announced today its financial results for the first quarter of 2024. Thomas Sauve, Chief Executive Officer of the Company, commented, "We are excited to release our first 2024 first quarterly financial results and to share our business update with our investors as we continue a strong start to the 2024 year with a focus on value creation events and opportunistic growth. Post completion of the merger with American Acquisition Opportunity Inc,, we've looked to focus on the highest value contributors of the business while also establishing a low-cost, low-overhead business model. Our team is motivated by the equity value of the Company and aligned with our shareholders on maximizing this value, as opposed to being simply "hired guns" with salaries. With that in mind, we couldn't be more excited how we are positioned to continue to grow the business given our clean balance sheet and strong asset base. We are pleased with our first quarter and the second quarter is tracking growth compared to first quarter in both revenues and cash flow." Key Highlights Communicated updated production and revenue guidance of its portfolio company, Ferrox Holdings' Tivani mining project containing deposits of Titanium, Iron and Vanadium from which it has commenced production. Upon completion of Ferrox's investment into its crushing and concentration plant, the company anticipates it will be able to increase production and sales to approximately 50,000 tons of run-of-mine ores per year in 2025 and approximately $8 million in annualized revenue, continuing to expand thereafter as the company continues its investment into the deposit and production. Renewed its gold status membership in Texas Tech University's Center for Advancing Sustainable and Distributed Fertilizer Production, or ‘CASFER' organization. As a gold member of CASFER, RMC has access to the technologies and intellectual property developed out of CASFER, in particular the innovative and novel technologies to produce, capture, and recycle nitrogen-based fertilizers from farming activities. Opportunities for Royalty Management to participate in the emerging technologies and patents from CASFER are already occurring, with more Company updates on these opportunities in the near future. Announced that its environmental services business, under the wholly-owned subsidiary, RMC Environmental Services LLC, recorded record monthly revenue of slightly under $1.0 million run rate revenue for the month of March, equating to a positive cash flow run rate equivalent for all of Royalty Management Holding Corporation. Engaged CM3 Advisory as the Company's independent registered public accounting firm. Announced that the Company's Board of Directors voted unanimously to institute a stock repurchase program of Royalty Management Holding Corporation's Class A Common Shares for up to $2.0 million over the next 24 months of which the Company has already commenced the buy-back of stock prior to the start of the current "black out" period. Mr. Sauve continued, "Looking forward to the remainder of 2024, our belief in, and excitement over, the opportunities we have in front of us continues to reach an all-time high. Our current platform of assets are well positioned to generate attractive cash flow and long-term value for the Company and its shareholders alike. RMC Environmental Services continues to operate efficiently and covers the majority of our overall corporate expenses, let alone our other active and cash-flowing investments and projects we are developing towards that goal resulting in bottom line income. Over the next six months we anticipate additional revenue streams to expand from our portfolio and generate free cash flow which will position us well for an exciting 2025." Select Financial Results for First Quarter 2024 For the first quarter of 2024, Royalty Management reported net income of $135,180, or $0.01 per share, as compared with a net income loss of $274,345, or a loss of $0.38 per share, in the prior year period. Total revenues were $162,100 for the first quarter of 2024 compared to revenues of $62,292 during the first quarter of 2023. Total assets were $13,709,149 as of the end of the first quarter of 2024, an increase from $13,610,731 compared to total assets as of the first quarter 2023. Total liabilities were $3,603,779 as of the end of the first quarter of 2024, a decrease from $3,990,542 compared to total assets as of the first quarter 2023, resulting in total stockholders' equity of $10,105,370 as of the end of first quarter 2024. 2024 expenses are trending significantly lower than 2023, which were predominantly related to the one-time merger expenses associated with American Acquisition Opportunity. Select Portfolio Holdings Royalty Management has put together an exciting portfolio of royalty assets which support growing or transitioning industries and to generate near-future royalty and income streams. Some of RMCO's portfolio holdings include: RMC Environmental Service LLC - A wholly-owned, environmental service business line of RMCO that supports residential, municipal and commercial development in and around Hamilton County, Indiana. The company recently announced record revenue for the month of March 2024 which currently covers the majority of all of the parent company's expenses. Ferrox Holdings Ltd. - A majority owner of the Tivani Project; ilmenite, iron, vanadium and phosphate project which is in an advance development stage. It is located in the long-term mining region of the Limpopo Province in South Africa. Ferrox is the holding company for several South African subsidiaries and is focus is on developing mineral resources in Sub Saharan Africa. TR Mining - A high quality, Jamaica-based diversified mineral project with a focus on iron ore, titanium and vanadium with an initial estimated deposit of 212,925,000 tons of raw feedstock with an estimated 106,462,500 tons of ore body, based on an average of 50% magnetic material. The project is part of a Special Exclusive Prospecting License (or "SEPL") that covers an area of approximately 25 permitted square kilometers. TR Mining is 51% owned by American Carbon Corporation and 49% owned by TR Mining & Equipment Limited, where RMC owns a royalty interest from the sale of produced product from the operation. Advanced Magnet Lab, Inc. (AML) - AML is a recognized leader in the development of innovative magnet technologies and magnet-based applications. Today, AML is executing on multiple product development programs including magnet materials and PM-Wire™ based motors and generators for industrial, aerospace and defense. This includes projects funded by large industry, U.S. Department of Energy and U.S. Department of Defense. RMCO has an ownership interest in AML through its participation in their Series A round of capital raising. Center for Advancing Sustainable and Distributed Fertilizer Production (CASFER) - CASFER vision is to enable resilient and sustainable food production by developing next generation, modular, distributed, and efficient technology for capturing, recycling, and producing decarbonized nitrogen-based fertilizers (NBFs). CASFER brings together a diverse leadership and the convergence of a multidisciplinary team drawn from Texas Tech University, Florida A&M University, Georgia Institute of Technology, Case Western Reserve University, and Massachusetts Institute of Technology. RMCO is a gold member of CASFER providing commercial technology rights into one of the fastest growing markets of fertilizer recycling. Heart Water, Inc. - Heart Water offers artisan alkaline rainwater with the aim of saving the depleting water resources. Heart Water is a cloud-harvested, nature-purified, and micro-filtered process, this is the purest alkaline water on the planet. The company has a unique process that utilizes ultraviolet light technology, multi-stage purification, and ozone oxidation, ensuring the naturally purest water available. RMCO owns an equity stake in Heart Water and will collect a royalty interest from each bottle of water that is sold from the facilities constructed by RMC's investment. ROYALTY MANAGEMENT HOLDING CORPORATIONSTATEMENTS OF OPERATIONS (Unaudited) For the three months ended 3/31/2024 For the three months ended 3/31/2023 Environmental Services 136,020 35,100 Fee Income 3,580 9,692 Rental Income 22,500 22,500 TOTAL REVENUE 162,100 67,292 Cost of Revenue (67,660 ) (60,001 ) Total Cost of Revenue (67,660 ) (60,001 ) GROSS PROFIT 94,440 7,291 Amortization Expense Intangibles (18,807 ) (18,807 ) General and Administrative (73,144 ) (99,346 ) Professional Fees (5,694 ) (43,556 ) Total Operating Expenses (97,645 ) (161,709 ) NET LOSS FROM OPERATIONS (3,205 ) (154,418 ) OTHER INCOME (EXPENSE) Interest Income 35,377 100,673 Gain on Warrant Fair Value Adjustment 161,155 - Interest Expense (58,147 ) (220,601 ) Total Other Income (Expense) 138,385 (119,928 ) NET INCOME (LOSS) 135,180 (274,345 ) Weighted average shares outstanding, basic and diluted 14,402,263 726,938 Basic and diluted net income per ordinary share $ 0.01 (0.38 ) ROYALTY MANAGEMENT HOLDING CORPORATIONBALANCE SHEET (Unaudited) ASSETS March 31, December 31, 2024 2023 CURRENT ASSETS Cash $ 124,823 $ 195,486 Accounts Receivable 137,583 70,323 Prepaid Insurance 30,159 - Interest Receivable 439,763 404,548 Fee Income Receivable 195,357 176,777 Total Current Assets 927,685 847,134 Investments in Corporations and LLCs 10,112,852 10,112,852 Convertible Notes Receivable 1,415,000 1,400,000 Notes Receivable 120,000 100,000 Intangible Assets, Net 501,453 520,259 Restricted Cash 186,825 176,800 Operating Lease Right-Of-Use Assets 445,335 453,686 Total Non-Current Assets 12,781,465 12,763,597 TOTAL ASSETS $ 13,709,149 $ 13,610,731 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts Payable - Related Party $ 381,243 $ 381,243 Accounts Payable 94,752 96,071 Current Portion of Operating Lease Liabilities, Net 34,777 33,923 Current Portion of Notes Payable 489,000 - Accrued Expenses 357,146 834,267 Total Current Liabilities 1,356,918 1,345,504 Notes Payable - Related Party, Net - 1,681,755 Operating Lease Liabilities, Net 409,641 418,662 Notes Payable 1,723,755 270,000 Fair Value Liability of Public Warrants 113,465 157,584 Fair Value Liability of Private Warrants - 117,036 Total Non-Current Liabilities 2,246,861 2,645,037 TOTAL LIABILITIES 3,603,779 3,990,541 STOCKHOLDERS' EQUITY Preferred Stock: $0.0001 par value; 10,000,000 shares authorized, 0 shares issued and outstanding for March 31, 2024 and December 31, 2023 - - Common Stock: $0.0001 par value; 100,000,000 shares authorized, 14,504,095 and 14,270,761 shares issued and outstanding for March 31, 2024 and December 31, 2023, respectively 1,450 1,427 Additional Paid-In Capital 8,576,249 8,226,273 Retained Earnings 1,527,670 1,392,490 Total Stockholders' Equity 10,105,369 9,620,190 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,709,149 $ 13,610,731 ROYALTY MANAGEMENT HOLDING CORPORATIONSTATEMENTS OF CASH FLOWS (Unaudited) For the three months ending March 31, For the three months ending March 31, Cash flows from Operating Activities: 2024 2023 Net Income (Loss) $ 135,180 $ (710,809 ) Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operations Amortization of Debt Discount - 115,445 Amortization Expense of Right of Use Assets 184 (1,814 ) Amortization of Intangibles 75,227 18,807 Issuance of Common Shares for Service - 5,000 Fair Value Adjustment of Public Warrants (44,119 ) 47,214 Fair Value Adjustment of Private Warrants (117,036 ) 27,308 Changes in Operating Assets and Liabilities: Accounts Receivable (67,260 ) 39,470 Prepaid Insurance (30,159 ) 100,049 Deposits - (37,461 ) Interest Receivable (35,215 ) (102,378 ) Fee Income Receivable (18,580 ) (69,692 ) Accounts Payable - Related Party - 164,947 Accounts Payable (1,319 ) 127,946 Accrued Expenses (477,122 ) 47,774 Net Cash Used in Operating Activities (580,218 ) (228,195 ) Cash Flows from Investing Activities Withdrawal of Cash in Trust Account - 2,152,346 Withdrawal from Corporations and LLCs - 3,096 Investments in Convertible Notes Receivable (15,000 ) (100,000 ) Investments in Notes Receivable (20,000 ) (100,000 ) Purchases of Intangible Assets (56,420 ) 145,000 Net Cash Provided by (Used in) Investing Activities (91,420 ) 2,100,442 Cash Flows from Financing Activities: Return of Investment Trust Proceeds, Net Underwriting Fees Paid - (2,188,640 ) Shares Issued in Purchase of Debt 350,000 - Proceeds from Notes Payable 261,000 - Payment on Notes Payable - (6,000 ) Net Cash Provided (Used in) Financing Activities 611,000 (2,194,640 ) Net Change in Cash (60,639 ) (322,393 ) Cash - Beginning of Period 372,286 687,166 Cash - Ending of Period $ 311,648 $ 364,773 Supplemental Information Acquisition of Right of Use Assets for Lease Obligations - 305,380 Reclassification of Debt from Related to Non-Related Party 1,681,755 - Cash Paid for Interest - - Cash Paid for Taxes - - About Royalty Management Holding Corporation Royalty Management Holding Corporation (NASDAQ:RMCO) is a royalty company building shareholder value to benefit both its shareholders and communities by acquiring and developing high value assets in sustainable market environments. The business model focuses on acquiring and structuring cashflow and revenue streams around assets that can support the communities by monetizing the current existing cash flow streams while identifying transitionary cash flow from the assets for the future. For more information visit www.royaltymgmtcorp.com. Forward-Looking Statements This press release contains statements that constitute "forward-looking statements," including with respect to the initial public offering. No assurance can be given that the offering discussed above will be completed on the terms described, or at all. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those that will be set forth in the "Risk Factors" section of the Company's registration statement and proxy statement/prospectus to be filed with the SEC. Copies will be available on the SEC's website, www.sec.gov. The information contained in this release is as of the date first set forth above. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law. Investor Contact: RedChip Companies Inc.Robert Foley1-800-RED-CHIP (733-2447)Info@redchip.com Company Contact: Thomas SauveChief Executive Officer(317) 855-9926 SOURCE: Royalty Management Holding Corporation View the original press release on accesswire.com
