Q2 Revenue $6.7M, Net Loss $1.3M as 8% Gross Margin Underscores Cash Crunch
RMCF sits 41% above its 52-week low of $0.66.
Summary
Q2 revenue came in at $6.7M with an 8% gross margin, EBITDA of -$700K and a net loss of $1.3M. The thin margin and negative EBITDA mean operations are still burning cash, a serious problem for a company that ended Q1 with just $609K on hand and a reiterated going concern warning. This lands while the board is exploring a sale after receiving third-party interest, disclosed in the August 11 8-K, and after the October 6 sale-leaseback of the Durango HQ to the interim CEO's family for $6.6M that repaid the 12% notes. Those moves bought time but did not fix the underlying economics. The $6M shelf and ATM remain the only disclosed liquidity backstop, and any further drawdowns would be highly dilutive at a sub-$1 share price.
At the time of this announcement, RMCF was trading at $0.93 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $8.8M. The 52-week trading range was $0.66 to $2.99. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.