Rocky Mountains Group Plunges into Loss, Faces Going Concern Doubt

TL;DR

**Rocky Mountains Group is bleeding cash and on the brink, avoid at all costs.**

AI Summary

Rocky Mountains Group Ltd reported a significant decline in financial performance for the nine months ended February 28, 2026. Revenue plummeted by 40.17% to $15,000 from $25,105 in the prior year period. Concurrently, the company swung to a net loss of $17,827 for the nine months ended February 28, 2026, a stark contrast to the net income of $3,686 reported for the same period in 2025. This deterioration was primarily driven by a substantial increase in general and administrative expenses, which rose by 53.93% to $31,437 from $20,424. The company's cash and cash equivalents also decreased significantly, falling to $13,449 as of February 28, 2026, from $37,114 as of May 31, 2025, representing a 63.76% reduction. The accumulated deficit expanded to $45,395, and the company reported negative operating cash flow of $23,665, raising substantial doubt about its ability to continue as a going concern.

Why It Matters

This filing reveals a company in distress, with revenue sharply declining and expenses surging, leading to a significant net loss. For investors, the 'going concern' warning is a critical red flag, indicating potential insolvency without further shareholder support or external financing. Employees face job insecurity given the company's deteriorating financial health. Customers might question the long-term viability of a service provider struggling to stay afloat, potentially impacting future business. In the competitive financial literacy seminar market, Rocky Mountains Group's struggles could allow more stable competitors to gain market share, further exacerbating its challenges.

Risk Assessment

Risk Level: high — The company explicitly states 'substantial doubt about the Company's ability to continue as a going concern' due to an accumulated deficit of $45,395 and negative operating cash flow of $23,665 for the nine months ended February 28, 2026. Revenue dropped by 40.17% to $15,000, and net income swung to a loss of $17,827, indicating severe operational and financial instability.

Analyst Insight

Investors should exercise extreme caution and consider divesting any holdings in Rocky Mountains Group Ltd. The 'going concern' warning, coupled with significant revenue decline and increasing losses, suggests a high probability of further financial deterioration or potential bankruptcy. Do not invest until there is clear evidence of a sustainable turnaround and robust financing.

Financial Highlights

debt To Equity

N/A

revenue

$15,000

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

$(17,827)

eps

N/A

gross Margin

N/A

cash Position

$13,449

revenue Growth

-40.17%

Key Numbers

• $15,000 — Revenue (40.17% decrease for nine months ended Feb 28, 2026, from $25,105 in 2025)
• $(17,827) — Net Loss (Swing from $3,686 net income in 2025 to a loss in 2026 for nine months)
• $31,437 — General and Administrative Expenses (53.93% increase for nine months ended Feb 28, 2026, from $20,424 in 2025)
• $13,449 — Cash and Cash Equivalents (63.76% decrease as of Feb 28, 2026, from $37,114 as of May 31, 2025)
• $(23,665) — Negative Operating Cash Flow (For the nine months ended Feb 28, 2026, indicating cash burn)
• $(45,395) — Accumulated Deficit (As of Feb 28, 2026, contributing to going concern doubt)
• 23,200,000 — Common Stock Outstanding (Consistent shares outstanding as of Feb 28, 2026 and May 31, 2025)
• $3,100 — Accrued Liabilities (Decreased from $8,500 as of May 31, 2025)

Key Players & Entities

• Rocky Mountains Group Ltd (company) — registrant issuer
• SEC (regulator) — U.S. Securities and Exchanges Commission
• $15,000 (dollar_amount) — revenue for nine months ended Feb 28, 2026
• $25,105 (dollar_amount) — revenue for nine months ended Feb 28, 2025
• $17,827 (dollar_amount) — net loss for nine months ended Feb 28, 2026
• $3,686 (dollar_amount) — net income for nine months ended Feb 28, 2025
• $31,437 (dollar_amount) — general and administrative expenses for nine months ended Feb 28, 2026
• $20,424 (dollar_amount) — general and administrative expenses for nine months ended Feb 28, 2025
• $13,449 (dollar_amount) — cash and cash equivalents as of Feb 28, 2026
• $45,395 (dollar_amount) — accumulated deficit as of Feb 28, 2026

FAQ

Risk Factors

• Deteriorating Financial Performance and Going Concern [high — financial]: Rocky Mountains Group Ltd experienced a 40.17% revenue decline to $15,000 and a swing to a net loss of $17,827 for the nine months ended February 28, 2026. This, coupled with a 63.76% decrease in cash to $13,449 and negative operating cash flow of $23,665, raises substantial doubt about the company's ability to continue as a going concern.
• Surge in General and Administrative Expenses [high — operational]: General and administrative expenses increased by 53.93% to $31,437 from $20,424 for the nine months ended February 28, 2026. This significant cost escalation, despite a substantial revenue drop, indicates potential inefficiencies or uncontrolled spending.
• Expanding Accumulated Deficit [medium — financial]: The company's accumulated deficit has grown to $45,395 as of February 28, 2026. This ongoing deficit accumulation, driven by persistent losses, further exacerbates concerns about the company's long-term financial viability.

Industry Context

The filing does not provide specific industry context or competitive landscape details for Rocky Mountains Group Ltd. Further research would be needed to understand its market position and industry trends.

Regulatory Implications

The severe financial distress and going concern doubt could trigger increased scrutiny from regulatory bodies. Failure to address these issues could lead to delisting or other enforcement actions.

What Investors Should Do

1. Review the full 10-Q filing for detailed breakdowns of expenses and cash flows to understand the root causes of the performance decline.
2. Assess the company's plan, if any, to address the going concern issue and improve financial performance.
3. Consider the high risk associated with the company's current financial state and the potential for further value erosion.

Key Dates

• 2026-02-28: Nine months ended February 28, 2026 financial results reported — Indicates a significant downturn in revenue and profitability, with a substantial increase in G&A expenses and a sharp decline in cash.
• 2025-05-31: Previous fiscal year-end financial position — Provides a baseline for comparison, highlighting the dramatic decrease in cash and the swing from net income to net loss.

Glossary

Accumulated Deficit

The total cumulative net losses of a company that have not been offset by net income or other gains. (Indicates the company has historically spent more than it has earned, contributing to current financial distress and going concern doubts.)

Going Concern

A business's ability to continue operating for the foreseeable future without the threat of liquidation. (The report explicitly raises substantial doubt about Rocky Mountains Group Ltd's ability to continue as a going concern, a critical warning for investors.)

Operating Cash Flow

The cash generated or used by a company's normal business operations. (Negative operating cash flow of $(23,665) signifies that the company's core business activities are consuming cash, not generating it.)

Year-Over-Year Comparison

Compared to the prior year period, Rocky Mountains Group Ltd has seen a dramatic 40.17% decrease in revenue, a swing from net income to a significant net loss of $(17,827), and a 63.76% reduction in cash reserves. General and administrative expenses have also surged by 53.93%, exacerbating the negative financial trend and raising serious going concern doubts.

Filing Documents

• form10-q.htm (10-Q) — 492KB
• ex31-1.htm (EX-31.1) — 16KB
• ex32-1.htm (EX-32.1) — 9KB
• 0001493152-26-014505.txt ( ) — 2823KB
• rmgl-20260228.xsd (EX-101.SCH) — 24KB
• rmgl-20260228_cal.xml (EX-101.CAL) — 33KB
• rmgl-20260228_def.xml (EX-101.DEF) — 59KB
• rmgl-20260228_lab.xml (EX-101.LAB) — 150KB
• rmgl-20260228_pre.xml (EX-101.PRE) — 134KB
• form10-q_htm.xml (XML) — 430KB

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 FEBRUARY 28, 2026 (UNAUDITED) AND MAY 31, 2025 (AUDITED) (CURRENCY EXPRESSED IN UNITED STATES DOLLARS ("US

View Full Filing

View this 10-Q filing on SEC EDGAR