Rocky Mountains Group Faces Steep Losses, Going Concern Doubts

TL;DR

**Rocky Mountains Group is bleeding cash and on the brink; steer clear.**

AI Summary

Rocky Mountains Group Ltd reported a significant decline in revenue and a substantial increase in net loss for the six months ended November 30, 2025. Revenue decreased by 33.3% to $10,000 from $15,005 in the prior year period. The company experienced a net loss of $12,299 for the six months ended November 30, 2025, a stark contrast to the net income of $220 reported for the same period in 2024. Operating expenses rose by 50.8% to $22,299 from $14,785, primarily driven by a 49.9% increase in general and administrative expenses to $21,372. Cash and cash equivalents plummeted by 54.4% from $37,114 as of May 31, 2025, to $16,917 as of November 30, 2025, largely due to negative operating cash flow of $20,197. The company also reported an accumulated deficit of $39,867, up from $27,568 at May 31, 2025, raising substantial doubt about its ability to continue as a going concern.

Why It Matters

This filing reveals a company in a precarious financial state, with declining revenue and mounting losses, which is a red flag for investors. The 'going concern' warning indicates a high risk of insolvency, potentially impacting employees' job security and customers' access to financial literacy services. In a competitive financial education market, Rocky Mountains Group's struggles could lead to market share shifts, benefiting more stable competitors. Investors should be wary of the significant operational challenges and the lack of clear profitability path.

Risk Assessment

Risk Level: high — The company reported an accumulated deficit of $39,867 and negative operating cash flow of $20,197 for the six months ended November 30, 2025. These factors, explicitly stated in the 'Going Concern' note, raise substantial doubt about the company's ability to continue operations within one year.

Analyst Insight

Investors should avoid Rocky Mountains Group Ltd given the severe financial deterioration, including a significant net loss and negative operating cash flow, coupled with the explicit 'going concern' warning. Existing shareholders should consider divesting, as the company's viability is highly questionable without immediate and substantial external financing.

Financial Highlights

revenue

$10,000

net Income

$(12,299)

cash Position

$16,917

revenue Growth

-33.3%

Key Numbers

• $10,000 — Revenue (Decreased by 33.3% for the six months ended November 30, 2025, compared to $15,005 in 2024.)
• $(12,299) — Net Loss (Significant loss for the six months ended November 30, 2025, compared to net income of $220 in 2024.)
• $22,299 — Total Operating Expenses (Increased by 50.8% for the six months ended November 30, 2025, from $14,785 in 2024.)
• $(20,197) — Net Cash Used in Operating Activities (Negative cash flow for the six months ended November 30, 2025, compared to $4,579 provided in 2024.)
• $16,917 — Cash and Cash Equivalents (Decreased by 54.4% from $37,114 as of May 31, 2025.)
• $(39,867) — Accumulated Deficit (Increased from $(27,568) as of May 31, 2025, indicating worsening financial health.)
• 33.3% — Revenue Decrease (Percentage decrease in revenue for the six months ended November 30, 2025.)
• 50.8% — Operating Expense Increase (Percentage increase in total operating expenses for the six months ended November 30, 2025.)

Key Players & Entities

• Rocky Mountains Group Ltd (company) — registrant issuer
• SEC (regulator) — U.S. Securities and Exchanges Commission
• Nevada (company) — state of incorporation
• Auckland, New Zealand (company) — headquarters location
• $10,000 (dollar_amount) — revenue for six months ended November 30, 2025
• $12,299 (dollar_amount) — net loss for six months ended November 30, 2025
• $39,867 (dollar_amount) — accumulated deficit as of November 30, 2025
• $20,197 (dollar_amount) — negative operating cash flow for six months ended November 30, 2025
• 23,200,000 (dollar_amount) — shares of common stock outstanding as of November 30, 2025

FAQ

Risk Factors

• Deteriorating Financial Position [high — financial]: The company's cash and cash equivalents have decreased by 54.4% to $16,917 as of November 30, 2025, from $37,114 as of May 31, 2025. This significant cash burn is primarily driven by negative operating cash flow of $20,197 for the six months ended November 30, 2025. The accumulated deficit has also increased to $39,867, raising substantial doubt about the company's ability to continue as a going concern.
• Rising Operating Expenses [high — financial]: Total operating expenses surged by 50.8% to $22,299 for the six months ended November 30, 2025, compared to $14,785 in the prior year period. A significant portion of this increase is attributed to a 49.9% rise in general and administrative expenses, which reached $21,372. This uncontrolled expense growth, coupled with declining revenue, is exacerbating the company's net loss.
• Declining Revenue [high — financial]: Revenue for the six months ended November 30, 2025, fell by 33.3% to $10,000, down from $15,005 in the same period last year. This substantial revenue decline indicates potential issues with market demand, sales execution, or competitive pressures.
• Increasing Net Loss [high — financial]: The company reported a net loss of $12,299 for the six months ended November 30, 2025, a dramatic shift from the net income of $220 in the prior year period. This widening loss is a direct consequence of the significant revenue decrease and the concurrent rise in operating expenses.

Industry Context

The provided text does not contain specific industry context for Rocky Mountains Group Ltd. Therefore, an analysis of the competitive landscape and industry trends cannot be provided.

Regulatory Implications

The provided text does not contain specific regulatory information. Therefore, an analysis of regulatory risks and compliance cannot be provided.

What Investors Should Do

1. Scrutinize the drivers of the 33.3% revenue decline and the 49.9% increase in general and administrative expenses.
2. Evaluate the company's cash burn rate and its runway based on current cash reserves and negative operating cash flow.
3. Seek clarity on management's strategy to address the going concern issue and reverse the negative financial trends.

Glossary

Accumulated Deficit

The total cumulative net losses of a company that have not been offset by net income or other gains since its inception. It represents a negative balance in retained earnings. (The increasing accumulated deficit to $39,867 indicates a persistent inability of the company to generate profits, raising concerns about its long-term viability.)

Going Concern

A business's ability to continue operating for the foreseeable future without the threat of liquidation. Auditors assess this based on the company's financial health and operational capacity. (The substantial doubt about Rocky Mountains Group Ltd's ability to continue as a going concern, highlighted by its financial performance and cash position, is a critical warning for investors.)

Year-Over-Year Comparison

Rocky Mountains Group Ltd has experienced a significant financial downturn compared to the prior year period. Revenue has plummeted by 33.3%, while operating expenses have surged by 50.8%, leading to a substantial net loss of $12,299 compared to a small net income of $220. The company's cash position has also weakened considerably, decreasing by 54.4%, driven by negative operating cash flow. The accumulated deficit has grown, exacerbating concerns about the company's ability to continue as a going concern.

Filing Documents

• form10-q.htm (10-Q) — 465KB
• ex31-1.htm (EX-31.1) — 16KB
• ex32-1.htm (EX-32.1) — 10KB
• 0001493152-25-029722.txt ( ) — 2770KB
• rmgl-20251130.xsd (EX-101.SCH) — 24KB
• rmgl-20251130_cal.xml (EX-101.CAL) — 33KB
• rmgl-20251130_def.xml (EX-101.DEF) — 59KB
• rmgl-20251130_lab.xml (EX-101.LAB) — 151KB
• rmgl-20251130_pre.xml (EX-101.PRE) — 134KB
• form10-q_htm.xml (XML) — 413KB

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 3 - 4 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 5 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 5 - 6 PART II OTHER INFORMATION 7 ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 7 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 7 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 7 ITEM 4. MINE SAFETY DISCLOSURES 7 ITEM 5. OTHER INFORMATION 7 ITEM 6. EXHIBITS 7

SIGNATURES

SIGNATURES 8 -2- PART I — FINANCIAL INFORMATION ITEM 1. UNAUDITED FINANCIAL STATEMENTS ROCKY MOUNTAINS GROUP LTD BALANCE SHEETS AS OF NOVEMBER 30, 2025 (UNAUDITED) AND MAY 31, 2025 (AUDITED) (CURRENCY EXPRESSED IN UNITED STATES DOLLARS ("US$"), EXCEPT FOR NUMBER OF SHARES) As of As of November 30, 2025 May 31, 2025 (Unaudited) (Audited) ASSETS Current assets Cash and cash equivalents $ 16,917 $ 37,114 Accounts receivable - - Prepayment 4,624 1,199 Total current assets 21,541 38,313 Non-current asset Plant and equipment, net $ 3,036 $ 3,963 Total non-current asset 3,036 3,963 TOTAL ASSETS $ 24,577 $ 42,276 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accrued liabilities $ 3,100 $ 8,500 Total current liabilities 3,100 8,500 Total liabilities $ 3,100 $ 8,500 Stockholders' equity Common stock – Par value $ 0.0001 ; Authorized: 75,000,000 shares; Issued and outstanding: 23,200,000 and 23,200,000 shares of November 30, 2025 and May 31, 2025, respectively $ 2,320 $ 2,320 Additional paid in capital 59,024 59,024 Accumulated deficit ( 39,867 ) ( 27,568 ) Total stockholders' equity $ 21,477 $ 33,776 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 24,577 $ 42,276 The accompanying notes are an integral part of these financial statements. F-1 ROCKY MOUNTAINS GROUP LTD FOR THE THREE AND SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (UNAUDITED) (CURRENCY EXPRESSED IN UNITED STATES DOLLARS ("US$"), EXCEPT FOR NUMBER OF SHARES) Three months ended November 30 Six months ended November 30 2025 2024 2025 2024 Revenue $ 5,000 $ 10,000 $ 10,000 $ 15,005 Operating expenses General and administrative expenses 10,002 7,821 21,372 14,253 Depreciation 463 320 927 532 Total operating expenses 10,465 8,141 22,299 14,785 Loss / Income from operations ( 5,465 ) 1,859 ( 12,299 ) 220 Net loss /

View Full Filing

View this 10-Q filing on SEC EDGAR