RMCF

RMCF is a $10.2M nano-cap that has lost money every year for five straight years (net income: -$342K, -$5.68M, -$4.17M, -$6.12M, -$4.56M FY2022–FY2026). FY2026 revenue fell 7.0% to $27.5M — the lowest of the five-year window — so the modest 25.5% narrowing of the net loss to -$4.56M is cost management against a shrinking top line, not a growth story. Gross margin is a razor-thin 14.6% and operating margin is still -13.0%, with management explicitly blaming higher raw-material, labor and freight costs plus supply-chain and logistics disruptions that have 'contributed to lower factory, retail and e-commerce sales.' Operating cash flow remains negative (-$1.81M), so the business does not fund itself.

The balance sheet is where this crosses from 'weak' to 'distressed.' Stockholders' equity fell 25% to $5.23M against $15.0M of liabilities (2.87x liabilities/equity), retained earnings deficit widened to -$9.95M, and cash is just $1.22M. Critically, the 10-K discloses the Company was NOT in compliance with the maximum total-liabilities-to-net-worth covenant as of February 28, 2026 under both the RMC Credit Agreement and the new RMCF2 facility, holding only a waiver through August 31, 2026. The RMCF2 loan is a related-party facility from an entity affiliated with the Interim CEO, Jeffrey Geygan, at 12% interest — a punitive rate that signals the company's lack of access to normal capital. That the CEO's own vehicle is the lender of last resort is a red flag about both solvency and independence.