Company Reports Total Revenues of Approximately $923,000 for First Quarter 2025, an Increase in Year-over-year by 470% From First Quarter 2024
Total Assets Increased to Approximately $15,723,000 and Total Shareholders’ Equity Increased to Approximately $13,981,000
FISHERS, INDIANA - May 15, 2025 (NEWMEDIAWIRE) - Royalty Management Holding Corporation (Nasdaq: RMCO) (“Royalty Management” “RMCO”, or the “Company”), a forward leaning 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 announce record first quarter results ended March 31, 2025.
Thomas Sauve, Chief Executive Officer of the Company, stated, “First quarter of 2025 exhibits the Company’s progress towards revenue expansion and continued execution of accretive agreements and investments. With first quarter revenue just shy of $1,000,000, we have been able to expand our revenues by about 470% from the same quarter last year, and we see additional upside potential from there. As consistent with our previously stated goals, given our strong balance sheet and low corporate overhead, we are focused on continually evaluating new opportunities as well as maximizing value to our shareholders through growth investments as well as stock buy backs and dividends in the future.”
Tom continued, “We are continuing our stock repurchase program as we feel our share price is undervalued compared to our Company’s fundamental value, and we are paying our first cash dividend to shareholders at the end of the second quarter, a payment that the Board of Directors has authorized to continue for the next four quarters. Through these actions, along with continued progress on our current portfolio holdings and new investments, we are laser focused on creating shareholder value.”
First Quarter 2025 Key Highlights (Unaudited):
- Several portfolio holdings, including NeoRe, TR Mining, FUB Mineral, Ferrox Holdings, and ReElement Technologies (described below), are in the rare earth and critical mineral industries that were deemed by President Trump as being key focuses of the United States Government support, which can result in enhanced exposure and increased value for certain Company investments and holdings.
- Significantly expanded revenues from RMC Environmental Services through the execution of new service contracts in February 2025, reflecting only a portion of the full quarterly revenue of this contract in the first quarter.
- The Company continued its stock repurchases through the purchase of 30,000 more shares of common stock during the first quarter 2025, putting total shares repurchased by the Company at 71,177 shares.
Select Financial Results for First Quarter 2025 (Unaudited):
- For the first quarter of 2025, Royalty Management reported total revenues of $923,223 (approximately $3.7 million total revenues on an annualized basis), as compared with total revenues of $162,100 for the same period in 2024, equating to a 470% increase, period-over-period in revenues.
- Increase in Total Assets of 4.5% quarter over quarter from $15,040,664 to $15,723,265, and an increase of Stockholders’ Equity from $13,981,369 quarter over quarter from $13,625,724.
- The Company incurred a narrow net loss of $58,755 for the year-to-date 2025.
- Total assets were $15,723,265, an increase from $15,040,664 from year end 2024, and shareholder equity of $13,981,369, an increased from $13,625,724 as of year end 2024.
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 select portfolio holdings include:
NeoRe, SpA. – An option to acquire an equity ownership position in the operations of NeoRe’s La Marigen ionic clay project, containing the heavy and light rare earth elements Terbium, Dysprosium, Praseodymium, and Neodymium, among others.
ReElement Technologies Corporation – Sponsored research and royalty agreement to develop low cost novel methods of purification of platinum group metals, silver, and gold from recycled and ore feedstocks. RMCO is sponsoring the research in return for a royalty from the use of the developed technologies.
FUB Mineral LLC, an entity that owns over 2,200 acres of metallurgical (steelmaking) coal property in eastern Kentucky covering two coal seams and located within a mining complex that has processing capabilities and rail loadout.
Greenhouse Technology – The Company has invested into intellectual property that is a key constituent to the next level of indoor agriculture and technology. RMCO receives a royalty based on the sales of this technology and products.
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 typically provides enough revenue and earnings to cover the majority, if not all, of the parent (Royalty Management Holding Corporation) 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 Infrastructure 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 CORPORATION
STATEMENTS OF OPERATIONS (Unaudited)
|
|
|
For the Three Months |
|
|
For the Three Months |
|
||
|
Environmental Services |
|
|
898,334 |
|
|
|
136,020 |
|
|
Fee Income |
|
|
2,389 |
|
|
|
3,580 |
|
|
Rental Income |
|
|
22,500 |
|
|
|
22,500 |
|
|
TOTAL REVENUE |
|
|
923,223 |
|
|
|
162,100 |
|
|
|
||||||||
|
Cost of Revenue |
|
|
(669,900) |
|
|
(2,693) |
||
|
|
||||||||
|
GROSS PROFIT |
|
|
253,323 |
|
|
|
159,407 |
|
|
Intangibles Amortization Expense |
|
|
(14,211) |
|
|
(14,211) |
||
|
Depreciation Expense |
|
|
(396) |
|
|
(396) |
||
|
General and Administrative Expenses |
|
|
(208,733) |
|
|
(125,308) |
||
|
Professional Fees |
|
|
(141,193) |
|
|
(5,694) |
||
|
Total Operating Expenses |
|
|
(364,533) |
|
|
(145,609) |
||
|
|
||||||||
|
NET (LOSS) INCOME FROM OPERATIONS |
|
|
(111,210) |
|
|
13,798 |
|
|
|
|
||||||||
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
Interest Income |
|
|
37,759 |
|
|
|
35,621 |
|
|
Income From Investment |
|
|
2,222 |
|
|
|
1,329 |
|
|
Gain on Warrant Fair Value Adjustment |
|
|
19,436 |
|
|
|
161,155 |
|
|
Interest Expense |
|
|
(6,962) |
|
|
(58,147) |
||
|
Total Other Income |
|
|
52,455 |
|
|
|
139,958 |
|
|
NET (LOSS) INCOME |
|
|
(58,755) |
|
|
153,756 |
|
|
|
Weighted Average Shares Outstanding, Basic and Diluted |
14,938,128 |
14,504,095 | ||||||
|
Basic and Diluted Net Income Per Ordinary Share |
$ |
(0.00) |
$ |
0.01 |
|
|||
The footnotes and additional information present in the Form 10Q filed with the Securities and Exchange Commission for this period are integral to the unaudited condensed consolidated financial statements.
ROYALTY MANAGEMENT HOLDING CORPORATION
BALANCE SHEET (Unaudited)
|
|
|
March 31, 2025 |
|
|
December 31, 2024 |
|
||
|
ASSETS |
|
|
|
|
|
|
||
|
Cash |
|
$ |
132,539 |
|
|
$ |
114,138 |
|
|
Accounts Receivable |
|
|
810,793 |
|
|
|
180,881 |
|
|
Prepaid Insurance |
|
|
- |
|
|
|
3,626 |
|
|
Interest Receivable |
|
|
297,550 |
|
|
|
260,069 |
|
|
Fee Income Receivable |
|
|
211,872 |
|
|
|
194,482 |
|
|
Total Current Assets |
|
|
1,452,754 |
|
|
|
753,196 |
|
|
Investments in Corporations and LLCs |
|
|
10,238,148 |
|
|
|
10,235,925 |
|
|
Convertible Notes Receivable |
|
|
1,430,000 |
|
|
|
1,430,000 |
|
|
Notes Receivable |
|
|
96,922 |
|
|
|
93,422 |
|
|
Due from Related Party |
|
|
316 |
|
|
|
316 |
|
|
Intangible Assets, Net |
|
|
1,958,688 |
|
|
|
1,972,899 |
|
|
Restricted Cash |
|
|
195,350 |
|
|
|
195,350 |
|
|
Tools, Machinery & Equipment, Net |
|
|
3,435 |
|
|
|
3,832 |
|
|
Operating Lease Right-Of-Use Assets, Net |
|
|
347,652 |
|
|
|
355,724 |
|
|
|
||||||||
|
TOTAL ASSETS |
|
$ |
15,723,265 |
|
|
$ |
15,040,664 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
||||||||
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Accounts Payable – Related Party |
|
$ |
- |
|
|
$ |
381,243 |
|
|
Accounts Payable |
|
|
784,451 |
|
|
|
105,326 |
|
|
Due to Related Party |
|
|
- |
|
|
|
1,500 |
|
|
Current Portion of Operating Lease Liabilities |
|
|
34,334 |
|
|
|
33,490 |
|
|
Notes Payable |
|
|
250,000 |
|
|
|
250,000 |
|
|
Accrued Expenses |
|
|
257,300 |
|
|
|
218,377 |
|
|
Total Current Liabilities |
|
|
1,326,085 |
|
|
|
989,936 |
|
|
Operating Lease Liabilities, Net of Current Portion |
|
|
336,491 |
|
|
|
326,248 |
|
|
Fair Value Liability of Public Warrants |
|
|
79,320 |
|
|
|
98,756 |
|
|
Fair Value Liability of Private Warrants |
|
|
- |
|
|
|
- |
|
|
TOTAL LIABILITIES |
|
|
1,741,896 |
|
|
|
1,414,940 |
|
|
COMMITMENTS AND CONTINGENCIES (Note 14) |
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Preferred Stock: $0.0001 par value; 5,000,000 shares authorized, 0 shares issued and outstanding for both March 31, 2025 and December 31, 2024 |
|
|
- |
|
|
|
- |
|
|
Preferred Stock: $0.0001 par value; 5,000,000 shares authorized, 2,045,379 and 1,607,886 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively |
|
|
2,045,379 |
|
|
|
1,607,886 |
|
|
Common Stock: $0.0001 par value; 100,000,000 shares authorized, 14,938,128 and 14,958,817 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively |
|
|
1,498 |
|
|
|
1,496 |
|
|
Treasury Stock: $0.0001 par value; 40,000 and 0 shares, respectively as of March 31, 2025 and December 31, 2024 |
|
|
(4) |
|
|
|
- |
|
|
Additional Paid-In Capital |
|
|
10,761,663 |
|
|
|
10,784,754 |
|
|
Retained Earnings |
|
|
1,172,833 |
|
|
|
1,231,588 |
|
|
Total Stockholders’ Equity |
|
|
13,981,369 |
|
|
|
13,625,724 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
15,723,265 |
|
$ |
15,040,664 |
|
||
The footnotes and additional information present in the Form 10Q filed with the Securities and Exchange Commission for this period are integral to the unaudited condensed consolidated financial statements.
ROYALTY MANAGEMENT HOLDING CORPORATION
STATEMENTS OF CASH FLOWS (Unaudited)
|
|
|
For the Three Months |
|
|
For the Three Months |
|
||
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
||
|
Net (Loss) Income |
|
$ |
(58,755) |
|
$ |
153,756 |
|
|
|
Adjustments to Reconcile Net (Loss) Income to Net Cash Used in Operations |
|
|
|
|
|
|
|
|
|
Amortization Expense of Operating Lease Right-of-Use Assets |
|
|
19,159 |
|
|
|
1,399 |
|
|
Amortization of Intangibles |
|
|
14,211 |
|
|
|
14,211 |
|
|
Depreciation Expense |
|
|
396 |
|
|
|
396 |
|
|
Issuance of Common Shares for Service |
|
|
- |
|
|
|
350,000 |
|
|
Issuance of Preferred Shares for Service |
|
|
56,250 |
|
|
|
- |
|
|
Stock Compensation - Warrants |
|
|
6,906 |
|
|
|
- |
|
|
Fair Value Adjustment of Public Warrants |
|
|
(19,436) |
|
|
(44,119) |
||
|
Fair Value Adjustment of Private Warrants |
|
|
- |
|
|
|
(117,036) |
|
|
Changes in Operating Assets and Liabilities: |
|
|
|
|
|
|
|
|
|
Accounts Receivable |
|
|
(629,912) |
|
|
(67,259) |
||
|
Prepaid Insurance |
|
|
3,626 |
|
|
|
(30,159) |
|
|
Interest Receivable |
|
|
(37,481) |
|
|
(35,459) |
||
|
Fee Income Receivable |
|
|
(17,389) |
|
|
(18,580) |
||
|
Accounts Payable – Related Party |
|
|
(381,243) |
|
|
- |
|
|
|
Accounts Payable |
|
|
679,125 |
|
|
|
(1,319) |
|
|
Due to Related Party |
|
|
(1,500) |
|
|
- |
|
|
|
Accrued Expenses |
|
|
38,923 |
|
|
|
(491,140) |
|
|
Net Cash Used in Operating Activities |
|
|
(327,120) |
|
|
(285,309) |
||
|
|
||||||||
|
Cash Flows from Investing Activities |
|
|
|
|
|
|
|
|
|
Investments in Corporations and LLCs |
|
|
(2,222) |
|
|
(1,329) |
||
|
Investments in Convertible Notes Receivable |
|
|
- |
|
|
|
(15,000) |
|
|
Investments in Notes Receivable |
|
|
(3,500) |
|
|
(20,000) |
||
|
Net Cash Used in Investing Activities |
|
|
(5,722) |
|
|
(36,329) |
||
|
|
||||||||
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
Preferred Shares Issued for Purchase of Debt |
|
|
381,243 |
|
|
|
- |
|
|
Common Shares Repurchased |
|
|
(30,000) |
|
|
- |
|
|
|
Payments on Notes Payable |
|
|
- |
|
|
|
(1,681,755) |
|
|
Proceeds from Notes Payable |
|
|
- |
|
|
|
1,942,755 |
|
|
Net Cash Provided by Financing Activities |
|
|
351,243 |
|
|
|
261,000 |
|
|
|
||||||||
|
Net Change in Cash |
|
|
18,401 |
|
|
|
(60,638) |
|
|
Cash – Beginning of Period |
|
|
309,488 |
|
|
|
372,286 |
|
|
Cash – Ending of Period |
|
$ |
327,889 |
|
|
$ |
311,648 |
|
|
|
||||||||
|
Supplemental Information |
|
|
|
|
|
|
|
|
|
Reclassification of Debt from Related to Non-Related Party |
|
|
- |
|
|
|
1,681,755 |
|
|
Cash Paid for Interest |
|
|
- |
|
|
|
- |
|
|
Cash Paid for Taxes |
|
|
- |
|
|
|
- |
|
The footnotes and additional information present in the Form 10Q filed with the Securities and Exchange Commission for this period are integral to the unaudited condensed consolidated financial statements.
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 a variety of market environments. The model is to acquire and structure cashflow 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.
Royalty Management Holding Corporation Contact:
Thomas Sauve
Chief Executive Officer
www.royaltymgmtcorp.com
(646) 245-2465
SOURCE: Royalty Management Holding Corporation
View the original release on www.newmediawire.com
