RMXI 10-K & 10-Q changes, risk factors and insider trading
Rmx Industries, Inc. · OTC · Services-Computer Programming, Data Processing, Etc. · CIK 1970743 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Comparison not available: Not available: fewer than two 10-K filings on EDGAR to compare..
What changed in the latest 10-Q
Risk Factors
As a “smaller reporting company,” we are not required to provide the information required by this Item.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
New heading “Comparison of the Six Months Ended June 30, 2026 and 2025”
New heading “Operating Expenses”
New heading “Management’s Plans”
Largest changes
As ofsee in full comparisonMarchJune31,30, 2026, the Company had an accumulated deficit of$46,867,022$57,916,272 and cash of$2,022,553$2,161,653 (including $1,913,320 of restricted cash). During the three months endedMarchJune31,30, 2026 and 2025, we had a net loss of$6,028,795$11,049,252 and$4,533,644,$3,130,592, respectively.WeTheestimateCompany has applied for an uplisting of its Class A Common Stock on NYSE American, upon approval of which certain restricted cash and additional committed capital would become available to fund operations. In addition, the Company maintains a Credit Facility providing up to $45.0 million of additional financing, subject to the terms and conditions thereof. Management believes thatwethese sources, together with expected cash proceeds from executed and prospective QuantrusX subscription agreements, will beablesufficient toconduct ourfund planned operationsusing currently available capital resourcesfor at least the nextthreetwelve months. However, availability of the listing-related amounts and the Credit Facility is subject to conditions not entirely within the Company’s control, and substantial doubt about the Company’s ability to continue as a going concern has not been alleviated. We will seek to fund our operations through public offerings, accessing the Credit Facility, private equity offerings, debt financings, and government or other third-party funding. However, the Company may not be able to raise adequate funds for capitalexpenditures,expenditure, working capital and other cash requirements from capital markets on acceptable terms, or at all. Advances from an officer or stockholder may likewise be unavailable. The Company’s failure to raise capital as and when needed and generate significantly higher revenues than operating expenses to achieve profitability would impact its going concern status and would have a negative impact on its financial condition and its ability to pursue its business strategy and continue as a going concern. For further discussion, see “—Liquidity and Capital Resources”.
Management has prepared estimates of operations and believes that sufficient funds will be generated from operations and equity financings to fund our operations and to service our debt obligations for at least the next twelve months.see in full comparisonSinceTheMarchCompany31,has2026,appliedweforhaveanraised $1,360,000 in private placementsuplisting ofunits.itsIfClasswe areAunableCommon Stock on NYSE American, upon approval of which certain restricted cash and additional committed capital would become available toraisefund operations. In addition, the Company maintains a Credit Facility providing up to $45.0 million of additionalfunds,financing,oursubjectcurrentlytoavailablethe terms and conditions thereof. Management believes that these sources, together with expected cashresourcesproceeds from executed and prospective QuantrusX subscription agreements, will be sufficient to fundourplanned operations for at least the nextthreetwelve months. However, availability of the listing-related amounts and the Credit Facility is subject to conditions not entirely within the Company’s control, and substantial doubt about the Company’s ability to continue as a going concern has not been alleviated. In the future, we may require additional cash resources due to changing business conditions, implementation of our strategy to expand our business, or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities. The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.
“The amounts becoming available upon uplisting are conditioned upon approval of the Company’s NYSE American listing application, which is not within the Company’s control, and availability under the Credit Facility is subject to conditions that may not be satisfied. There can be no assurance that the Company’s listing application will be approved, that amounts under the Credit Facility will be available when needed or on acceptable terms, or as to the timing or volume of future customer agreements. …”see in full comparison
see in full comparisonThe accompanying unaudited consolidated financial statements have been prepared assuming that we will continue as a going concern. However, our independent registered public accounting firm has expressed substantial doubt as to our ability to continue as a going concern.While we had cash of$2,022,553$2,161,653 (including $1,913,320 of restricted cash) as ofMarchJune31,30, 2026, we had revenue of$0$1,440 and$26,200,$38,792, a net loss of$6,028,795$17,078,045 and$4,533,644,$7,664,237, and net cash used in operating activities of$570,519$1,812,972 and$1,365,899$2,278,896 for thethreesix months endedMarchJune31,30, 2026 and 2025, respectively. We have incurred losses since our inception, resulting in an accumulated deficit of$46,867,022$57,916,272 as ofMarchJune31,30, 2026, and further losses are anticipated in the development of our business.As a result, there is substantial doubt about our ability to continue as a going concern.
“Our ability to continue as a going concern is dependent upon our ability to generate profitable operations in the future and/or obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they come due. To support our growth and working capital requirements, we have entered into a securities purchase agreement for an up to $50 million contingent financing facility (the “Credit Facility”). …”see in full comparison
“The Company estimates that it will require approximately $4.0 million to fund operations for the twelve months following the issuance of these financial statements. These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued. Management has evaluated whether these conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date these financial statements are issued, as discussed below.”see in full comparison
Full comparison: every changed paragraph (59)
The following discussion and analysis provides information that our management believes is relevant to an assessment and understanding of the Company’s condensed consolidated results of operations and financial condition. The discussion should be read together with the unaudited condensed consolidated financial statements and the accompanying notes to those statements that are included elsewhere in this Quarterly Report on Form 10-Q and the audited financial statements and related notes for the year ended December 31, 2025, included in our Annual Report on Form 1-K filed with the Securities and Exchange Commission (the “SEC”) on February 11, 2026. This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties.
Reverse Stock Split
Unless otherwise noted, the share and per share information in this report have been adjusted to give effect to the one-for-three (1-for-3) reverse stock split of each of the Company’s authorized and issued and outstanding Class A Common Stock and the Company’s authorized and issued and outstanding Class B Common Stock, which became effective as of 5:00 p.m. Eastern Time on July 24, 2026 (the “Reverse Stock Split”).
We use various trademarks, trade names and service
marks in our business, including “VAST™”, “CRISPQuantrusX™”, and associated marks. For convenience, we may not include
the SM, ® or ™ symbols, but such omission is not meant to indicate that we would not protect our intellectual property rights
to the fullest extent allowed by law. Any other trademarks, trade names or service marks referred to in this Quarterly Report on Form
10-Q are the property of their respective owners.
RMX operates a proprietary on-site intelligence platform for customers running physical operations who need to understand what is happening at their location as it happens. Our proprietary platform, QuantrusX™, is designed to ingest video, sensor, and access data generated at the customer’s site and turn it into a continuous, operator-usable picture of that site, delivered as a subscription service supported by Company-owned distributed data center hardware installed at each customer location. Because our platform runs on-site rather than in a remote cloud, we believe it addresses constraints that off-site systems handle poorly: bandwidth limits on transporting video and sensor data at scale, latency requirements for time-sensitive detections, and privacy and continuity expectations for information that customers prefer to keep on their own premises. We refer to the category of intelligence produced by our platform as Real-World Intelligence™, and we believe it addresses a significant and underserved need across sectors that operate physical sites at meaningful scale.
Our foundational technology originated in high-efficiency video compression and transport, developed under the Video Adaptive Systems Technology (VAST™) platform. VAST was originally built to move high-quality video across constrained, low-bandwidth networks — an environment that required extreme efficiency, resilience, and edge-side operation. Through extended field validation across a range of operational environments and network conditions from 2023 through 2025, VAST demonstrated the ability to deliver HD video at bandwidths as low as 200 Kbps, SD video at rates as low as 10 Kbps, direct point-to-point streaming across IP networks, and operation on low size, weight, power, and cost (SWaP-C) hardware. We believe that work established the Company’s technical provenance in edge-oriented data handling and low-latency, resource-constrained operation.
Building on that provenance, we have evolved from a video compression company into a Real-World Intelligence company. In May 2026, we acquired from Apollo Group Enterprises, LLC certain intellectual property assets relating to two software platforms (1) ODIN, AI video intelligence/surveillance system and (2) VSDD/Semaphore-X, AI meeting agent and infrastructure, which accelerated the development of QuantrusX and shifted our business focus from defense environments to enterprise and commercial environments. The demands that exist at the tactical edge — bandwidth scarcity, unreliable connectivity, the need for local decisioning, and the requirement to move only meaningful information back to central systems — we believe are now appearing at scale across enterprise and commercial environments as artificial intelligence (AI), computer vision, and sensor networks proliferate. Our current focus is on translating that capability into a broadly deployable enterprise and commercial platform, delivered through QuantrusX.
QuantrusX is RMX’s Real-World Intelligence platform designed to bring intelligence to the customer’s site — the campuses, facilities, and operational environments where the data is created — and to deliver that intelligence continuously. QuantrusX incorporates VAST as an underlying video and data-transport capability rather than as a separately marketed product line, alongside proprietary internal intelligence assets that support model refinement and low-latency reasoning at the site.
As we scale QuantrusX deployments across our customer base, they are designed to collectively form a Company-operated distributed data center — a network of computing hardware physically located at each customer’s site rather than in a remote cloud facility. We refer to the architectural layer that binds these deployments together as the “Intelligence Fabric”. Each QuantrusX deployment is expected to produce a strand of Real-World Intelligence at the customer’s location; the Intelligence Fabric is meant to weave those strands together at aggregate scale. We believe the Intelligence Fabric is more valuable than the sum of the individual strands, because it is designed to strengthen through use across the entire deployed base.
In June 2026, the Company completed its inaugural QuantrusX deployment at a training and operations facility in Texas, generating the Company’s first commercial platform revenue. We intend to build from that reference deployment into additional enterprise and commercial Real-World Intelligence environments.
In 2024, the Company achieved quotation on the OTCQB® Venture Market of OTC Markets Group, Inc. under the symbol “RMXI,” with trading beginning in January 2025. The Company is preparing for a planned senior exchange uplisting.
RMX is a technology company focused on securing
and optimizing the data continuum. We develop and deliver video compression solutions built on our proprietary platforms, including VAST™
(Video Adaptive Systems Technology).
Our primary business focus is the development
and delivery of resilient and secure internet communications technologies (ICTs) that enhance customer experiences with high-quality and
low-latency video. Our core product line of video encoder appliances and virtual management appliances are designed to function in austere,
industrial, and virtual environments to deliver highly reliable streaming video and situational awareness, with wieldiness and ease of
use for non-technical customers. Our goal is to deliver unquestionably secure video content at the highest possible quality to meet customers’
needs for trustworthy and verifiable high-definition video.
Our technology was originally developed to meet
the demanding needs of defense and government operations, where bandwidth and reliability constraints made video transmission extremely
difficult. We believe VAST has the potential to set a new benchmark for tactical video communications, enabling high-quality video across
ultra-low-bandwidth connections, and we are actively advancing it toward broad adoption as a trusted, mission-ready solution across defense
and government programs.
Today, the same challenges we first addressed
in defense are appearing at scale across industries. The rapid growth of artificial intelligence (AI) and computer vision has created
unprecedented demand for moving, storing, and processing visual data. We see this as a pivotal moment; networks and data centers were
not designed for this level of data intensity and efficiency gains are critical to keep pace.
RMX is working to address these pressures by securing
and compressing the data continuum, helping intelligence flow more efficiently from the edge to the core. We believe this will enable
faster, more sustainable and more resilient systems across multiple sectors, from telecom and cloud to mining, healthcare, and beyond.
As of MarchJune 31,30, 2026, the Company had an accumulated
deficit of $46,867,022$57,916,272 and cash of $2,022,553$2,161,653 (including $1,913,320 of restricted cash). During the three months ended MarchJune 31,30, 2026
and 2025, we had a net loss of $6,028,795$11,049,252 and $4,533,644,$3,130,592, respectively. WeThe estimateCompany has applied for an uplisting of its Class A Common Stock on NYSE American, upon approval of which certain restricted cash and additional committed capital would become available to fund operations. In addition, the Company maintains a Credit Facility providing up to $45.0 million of additional financing, subject to the terms and conditions thereof. Management believes that wethese sources, together with expected cash proceeds from executed and prospective QuantrusX subscription agreements, will be ablesufficient to conduct ourfund planned operations
using currently available capital resources for at least the next threetwelve months. However, availability of the listing-related amounts and the Credit Facility is subject to conditions not entirely within the Company’s control, and substantial doubt about the Company’s ability to continue as a going concern has not been alleviated. We will seek to fund our operations through public offerings, accessing
the Credit Facility, private equity offerings, debt financings, and government or other third-party funding. However, the Company may
not be able to raise adequate funds for capital expenditures,expenditure, working capital and other cash requirements from capital markets on acceptable
terms, or at all. Advances from an officer or stockholder may likewise be unavailable. The Company’s failure to raise capital as
and when needed and generate significantly higher revenues than operating expenses to achieve profitability would impact its going concern
status and would have a negative impact on its financial condition and its ability to pursue its business strategy and continue as a going
concern. For further discussion, see “—Liquidity and Capital Resources”.
On April 1, 2026, we terminated our offering of
up to 2,857,142 units, with each unit consisting of (i) one share of Class A Common Stock, and (ii) one warrant to purchase one share
of Class A Common Stock, at an offering price of $3.50 per unit, for maximum gross proceeds of $9,999,997, on a best efforts basis pursuant
to Regulation A under Section 3(b) of the Securities Act, for Tier 2 offerings (the “Reg A Offering”). We sold 356,035 units
for gross proceeds of $1,246,122.50 through the last closing of the Reg A Offering, which occurred on October 30, 2025.
On April 16, 2026, Basestones, Inc. converted
its 1,000,000 shares of Class B Common Stock into 1,000,000 shares of Class A Common Stock.
On AprilJuly 17,22, 2026, wethe Company conducted a closing of an
ongoinga private placement of units, with each unit consisting of an unsecured 18% promissory note and a five-year warrant to purchase
shares of Class A Common Stock, and entered into certaina subscription agreementsagreement with a number ofan accredited investorsinvestor as defined in Section
2(a)(15) of the Securities Act of 1933, as amended (the “Securities Act”),Act, and Rule 501 promulgated thereunder, in reliance
upon the exemption contained in Section 4(a)(2) of the Securities Act, and Rule 506(b) of Regulation D promulgated thereunder, and applicable
state securities laws. Pursuant to the agreements,agreement, we sold 54.41 unitsunit at a price of $25,000 per unit for gross proceeds of $1,360,000
$25,000 and issued 2,720,00016,667 warrants with an exercise price of $0.50$1.50 per share.
On July 24, 2026, the Company executed the Reverse Stock Split. Unless otherwise noted, the share and per share information in this report have been adjusted to give effect to the Reverse Stock Split.
In April 2026, certain investors from our private
placements of units, consisting of unsecured promissory notes and five-year warrants to purchase shares of Class A Common Stock, exercised
their warrants. These exercises converted $500,000 of principal and $65,260 of accrued interest, totaling $565,260, into equity, resulting
in the issuance of 565,260 shares of Class A Common Stock at a weighted average exercise price of $1.00.
On May 8, 2026, we entered into an intellectual
property purchase agreement with Apollo Group Enterprises, LLC (“Apollo”), pursuant to which we will acquire all of Apollo’s
right, title and interest in and to certain intellectual property assets in consideration for issuing Apollo 1,500,000 shares of Class
A Common Stock (the “Consideration Shares”). The closing shall occur no later than May 17, 2026, at which time we shall issue
the Consideration Shares and Apollo shall deliver title to the intellectual property assets.
Comparison of the Three Months Ended March
31,June 30, 2026 and 2025
Our revenue was $1,440 and $12,592 for the three months ended June 30, 2026 and 2025, respectively, representing a decrease of 89%. For the three months ended June 30, 2026, revenue activity reflected the early commercialization of QuantrusX: the Company invoiced $28,064 to customers, recognized $1,440 as revenue during the period, and deferred the remaining $26,624 for future recognition ($9,128 current, $17,496 long-term) as the related performance obligations under the deployment are satisfied. For the three months ended June 30, 2025, revenue was derived from limited historical software and service activity under the Company’s prior positioning.
Revenue
for the three months ended March 31, 2026 and 2025 was $0 and $26,200, respectively. The
Company did not recognize any revenue during the three months ended March 31, 2026, as it continued to focus on the development and commercialization
of its platform and pursuit of scalable proof of concepts.
Our operating expenses were $2,667,286 and $3,248,188 for the three months ended
March 31,June 30, 2026 and 2025, were $1,026,936 and $2,673,303,
respectively, representing a decrease of 62%.18%. The decrease was due to employee compensation including options, research and development
expenses, marketing expenses and professional services provided to the Company.
Our net loss was $11,049,252 and $3,130,592 for the three months ended March
31,June 30, 2026 and 2025, wasrespectively, $6,028,795 and $4,533,644, respectively,
representing an increase of 33%.253%. The increase in net loss was mainly due to conversion of warrants, debt discount amortization, derivative
expenses and loss from operations.
Comparison of the Six Months Ended June 30, 2026 and 2025
Revenue
Our revenue was $1,440 and $38,792 for the six months ended June 30, 2026 and 2025, respectively, representing a decrease of 96%. For the six months ended June 30, 2026, revenue activity reflected the early commercialization of QuantrusX: the Company invoiced $28,064 to customers, recognized $1,440 as revenue during the period, and deferred the remaining $26,624 for future recognition ($9,128 current, $17,496 long-term) as the related performance obligations under the deployment are satisfied. For the six months ended June 30, 2025, revenue was derived from limited historical software and service activity under the Company’s prior positioning.
Operating Expenses
Our operating expenses were $3,694,220 and $5,921,491 for the six months ended June 30, 2026 and 2025, respectively, representing a decrease of 38%. The decrease was due to employee compensation including options, research and development expenses, marketing expenses and professional services provided to the Company.
Net Loss
Our net loss was $17,078,045 and $7,664,237 for the six months ended June 30, 2026 and 2025, respectively, representing an increase of 123%. The increase was mainly due to conversion of warrants, debt discount amortization, derivative expenses and loss from operations.
As of MarchJune 31,30, 2026, the Company had an accumulated
deficit of $46,867,022$57,916,272 and cash of $2,022,553$2,161,653 (including $1,913,320 of restricted cash). During the three months ended MarchJune 31,30, 2026
and 2025, we had a net loss of $6,028,795$11,049,252 and $4,533,644,$3,130,592, respectively. To date, we have financed our operations primarily through revenue
generated from sales of our securities.
Management has prepared estimates of operations
and believes that sufficient funds will be generated from operations and equity financings to fund our operations and to service our debt
obligations for at least the next twelve months. SinceThe MarchCompany 31,has 2026,applied wefor havean raised $1,360,000 in private placementsuplisting of units.its IfClass we
areA unableCommon Stock on NYSE American, upon approval of which certain restricted cash and additional committed capital would become available to raisefund operations. In addition, the Company maintains a Credit Facility providing up to $45.0 million of additional funds,financing, oursubject currentlyto availablethe terms and conditions thereof. Management believes that these sources, together with expected cash resourcesproceeds from executed and prospective QuantrusX subscription agreements, will be sufficient to fund ourplanned operations for at least
the next threetwelve months. However, availability of the listing-related amounts and the Credit Facility is subject to conditions not entirely within the Company’s control, and substantial doubt about the Company’s ability to continue as a going concern has not been alleviated. In the future, we may require additional cash resources due to changing business conditions, implementation of
our strategy to expand our business, or other investments or acquisitions we may decide to pursue. If our own financial resources are
insufficient to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit
facilities. The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would
result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our
operations. Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds
on terms favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.
The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis under which we are expected to be able to realize our assets and satisfy our liabilities in the normal course of business.
The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.
The accompanying unaudited consolidated financial
statements have been prepared assuming that we will continue as a going concern. However, our independent registered public accounting
firm has expressed substantial doubt as to our ability to continue as a going concern. While we had cash of $2,022,553$2,161,653 (including $1,913,320
of restricted cash) as of MarchJune 31,30, 2026, we had revenue of $0$1,440 and $26,200,$38,792, a net loss of $6,028,795$17,078,045 and $4,533,644,$7,664,237, and net cash used
in operating activities of $570,519$1,812,972 and $1,365,899$2,278,896 for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively. We have incurred
losses since our inception, resulting in an accumulated deficit of $46,867,022$57,916,272 as of MarchJune 31,30, 2026, and further losses are anticipated
in the development of our business. As a result, there is substantial doubt about our ability to continue as a going concern.
The Company estimates that it will require approximately $4.0 million to fund operations for the twelve months following the issuance of these financial statements. These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued. Management has evaluated whether these conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date these financial statements are issued, as discussed below.
Management’s Plans
The Company has applied for an uplisting of its Class A Common Stock on NYSE American. Upon approval of such uplisting, a total of approximately $5.0 million will become available to the Company, consisting of (i) the release of the $1.9 million of restricted cash currently reflected on the Company’s balance sheet, and (ii) an approximate $3.0 million deposit to be made by an institutional investor (the “Investor”) pursuant to the executed securities purchase agreement between the Company and the Investor. Of the approximately $5.0 million, approximately $3.0 million will be immediately unrestricted and available for general corporate purposes, with the remainder becoming available upon satisfaction of the conditions set forth in the Investor agreements. In addition, the Company maintains a contingent financing facility with the Investor providing for up to $45.0 million of additional financing (the “Credit Facility”), pursuant to the securities purchase agreement and subject to the terms and conditions thereof, which management believes would be available to fund any shortfall in the Company’s working capital requirements.
In June 2026, the Company commenced commercial deployment of its QuantrusX edge intelligence platform. The Company’s commercial model provides for fixed-fee, prepaid multi-year subscription arrangements, under which contract consideration is collected at or near contract inception and recognized as revenue ratably over the subscription term. Accordingly, executed customer agreements generate cash proceeds in advance of revenue recognition. The Company executed its initial multi-year prepaid QuantrusX subscription agreement in June 2026 and maintains an active pipeline of prospective customers, which management expects to contribute to liquidity over the next twelve months.
The amounts becoming available upon uplisting are conditioned upon approval of the Company’s NYSE American listing application, which is not within the Company’s control, and availability under the Credit Facility is subject to conditions that may not be satisfied. There can be no assurance that the Company’s listing application will be approved, that amounts under the Credit Facility will be available when needed or on acceptable terms, or as to the timing or volume of future customer agreements. Accordingly, management has concluded that these plans do not alleviate the substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Our ability to continue as a going concern is
dependent upon our ability to generate profitable operations in the future and/or obtain the necessary financing to meet our obligations
and repay our liabilities arising from normal business operations when they come due. To support our growth and working capital requirements,
we have entered into a securities purchase agreement for an up to $50 million contingent financing facility (the “Credit Facility”).
Management has assessed the terms and conditions of the Credit Facility and determined that access to funding is probable and sufficient
to support our operational plan.
There are uncertainties surrounding these issues, and the unaudited condensed consolidated financial statements do not reflect any changes regarding the recoverability or classification of asset values, nor do they address potential adjustments to the amounts or classification of liabilities that could arise if the Company cannot continue operating as a going concern.
Net cash used in operating activities was $570,519
$1,812,972 and $1,365,899$2,278,896 for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively. For the threesix months ended MarchJune 31,30, 2026, net cash used
in operating activities resulted from a net loss of $6,028,795,$17,078,045, stocks, options and warrants issued for various services of $186,625,$1,917,290, notes
payable discount amortization and loss on conversion of $4,847,899,notes payable of $13,468,479, depreciation and amortization of $15,308,$122,945, an increase in accounts receivable of $28,064, an increase in deferred revenue of $26,624, an increase in prepaid expenses of $849, an increase in ROU asset, net of $66,694, an increase in accounts payable and accrued expenses of $252,614,$21,180, an increase in ROU liabilities of $67,870, and an increase in interest payable
of $154,141 and others of $1,689.$339,394. For the threesix months ended MarchJune 31,30, 2025, net cash used in operating activities resulted from a net loss
of $4,533,644$7,664,236, stocks, options and warrants issued for various services of $1,482,440,$3,667,533, notes payable discount amortization and conversion of $1,804,290,
$1,615,738, depreciation and amortization of $15,308,$30,725, a decrease in prepaid expenses of $15,210, a decrease in accounts payable and accrued expenses of $212,307,$95,595, and an increase in interest payable of $67,904 and others of $16,310.$151,729.
Net cash provided by (used in) investing activities
was $0 and $0 for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively.
Net cash provided by financing activities was $1,951,553 and $2,027,932 for the six months ended June 30, 2026 and 2025, respectively. For the six months ended June 30, 2026, financing activities consisted of $1,980,000 in proceeds from notes payable, partially offset by $28,447 of principal and interest repayments on notes payable. For the six months ended June 30, 2025, financing activities consisted of $1,900,000 in proceeds from notes payable and $127,932 in proceeds from the Company’s Regulation A offering.
Net cash provided by financing activities was
$570,000 and $1,418,156 for the three months ended March 31, 2026 and 2025, respectively, and resulted from the sale of Class A Common
Stock, the Regulation A offering, the sale of convertible notes, and the sale of units, consisting of unsecured promissory notes and five-year
warrants.
During the threesix months ended MarchJune 31,30, 2026 and
2025, we had contractual obligations associated with management consultants in which we paid out $212,500$625,000 and $190,000,$580,000, respectively.
The Company’s unaudited condensed consolidated financial statements and related notes include all the accounts of the Company and its wholly owned subsidiaries. They have been prepared in accordance with U.S. GAAP. All intercompany transactions have been eliminated in consolidation.
ASC 718, “Compensation – Stock Compensation”, prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the unaudited condensed consolidated financial statements based on their grant date fair values. That expense is recognized over the period when an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period) or the straight-line attribution method. Under 718-10-30-20D the determination of whether a valuation method is reasonable, or whether an application of a valuation method is reasonable, shall be made based on the facts and circumstances as of the measurement date.
The Company has adopted revenue recognition policies for its principal revenue types, including subscription and license fees, usage-based fees, professional and other services, and hardware. Prior to fiscal year 2026, the Company's revenue was derived from software license, hardware, and professional services activity. Beginning in the second quarter of 2026, the Company introduced QuantrusX, an edge intelligence platform, and revenue has since primarily consisted of QuantrusX subscription fees; other revenue streams described below have not been material during the periods presented. See Note 2 to the unaudited condensed consolidated financial statements.
Deferred revenue represents amounts invoiced or received from customers in advance of the Company satisfying its related performance obligations under ASC 606, Revenue from Contracts with Customers. Deferred revenue is recognized as revenue as the Company transfers control of the promised products or services to the customer. The current portion of deferred revenue represents amounts expected to be recognized as revenue within twelve months of the balance sheet date; the long-term portion represents amounts expected to be recognized beyond twelve months, based on the performance and delivery terms of the underlying contracts.
The Company determines the amount of revenue to be recognized through the application of the following steps:
The Company had revenue of $0 and $26,200 for
the three months ended March 31, 2026 and 2025, respectively.
Management does not believe any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying unaudited condensed consolidated financial statements.
RMXI insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 0 filings. Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
No Form 4 stock transactions in this period.
Well-known investors holding RMXI (13F)
None of the 59 investors we track reported a position in their latest 13F.