10-K: Rocky Mountains Group Ltd. Annual Report 2026

Rocky Mountains Group Ltd. reports a net loss of $23,640 for fiscal year 2026, with ongoing concerns about its ability to continue as a going concern.

Summary

• Rocky Mountains Group Ltd. filed its annual report for the fiscal year ended May 31, 2026.
• The company reported a net loss of $23,640 for the fiscal year, a slight increase from the previous year's loss of $23,635.
• Revenues decreased to $25,000 in fiscal year 2026 from $30,105 in fiscal year 2025.
• General and administrative expenses were $46,787 in fiscal year 2026, down from $52,282 in fiscal year 2025.
• Cash and cash equivalents decreased to $15,131 as of May 31, 2026, from $37,114 as of May 31, 2025.
• The company has an accumulated deficit of $51,208 as of May 31, 2026.
• There are substantial doubts about the company's ability to continue as a going concern.
• The company's operations are primarily funded by revenue and continuing financial support from a shareholder.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this filing negatively due to the continued net loss, declining revenues, significant cash depletion, and the persistent going concern warning, despite a small capital raise.

Positives

• The company's revenue generation through Personal Financial Literacy Seminar (PFL Seminar) services continues.
• General and administrative expenses have decreased year-over-year, indicating some cost management.
• The company has a plan to finance operations through revenue and shareholder support.
• The company has not encountered material cybersecurity incidents during the fiscal year.

Negatives

• The company incurred a net loss of $23,640 for the fiscal year ended May 31, 2026.
• Revenues decreased by approximately 17% to $25,000 in fiscal year 2026 from $30,105 in fiscal year 2025.
• Cash and cash equivalents significantly decreased by $21,983 to $15,131 as of May 31, 2026.
• The company has an accumulated deficit of $51,208 as of May 31, 2026.
• There are substantial doubts about the company's ability to continue as a going concern.
• The company relies on shareholder support for continued operations.
• The company has material weaknesses in its internal controls over financial reporting, including lack of a functioning audit committee and inadequate segregation of duties.

Risks

• The availability and adequacy of cash flow to meet requirements.
• Economic, competitive, demographic, business, and other conditions in local and regional markets.
• Changes or developments in laws, regulations, or taxes in the industry.
• Actions taken or omitted by third parties, including suppliers and competitors.
• Competition in the financial literacy services industry.
• The loss of or failure to obtain necessary licenses or permits.
• Changes in business strategy, capital improvements, or development plans.
• The availability of additional capital to support capital improvements and development.

Future Outlook

The company expects to finance its operations primarily through cash flow from revenue and continuing financial support from a shareholder. Additional funding may be required for growth and strategic objectives, with the shareholder indicating intent and ability to provide such financing, though no assurance of availability or favorable terms can be given.

Management Comments

• The company believes there is enormous opportunity in promoting, and at the same time profiting from, financial literacy in New Zealand.
• We believe that raising financial literacy is a key to empower clients with the financial knowledge and skills to improve their financial well-being.
• Management believes that the material weaknesses in internal controls did not have an effect on our financial results, but acknowledges the risk of future misstatements.
• Management believes that it is more likely than not that deferred tax assets will not be fully realizable in the future.

Industry Context

StockSavvy.ai notes that Rocky Mountains Group Ltd. operates in the financial literacy seminar services sector in New Zealand. This sector is characterized by fragmentation and low barriers to entry, with competition from larger financial institutions that may have product sales as a primary motive. Rocky Mountains Group Ltd. positions itself as independent, aiming to avoid conflicts of interest by not selling specific financial products.

Comparison to Industry Standards

• The company's revenue of $25,000 for fiscal year 2026 is significantly lower than established financial advisory or educational service providers.
• The net loss of $23,640 and accumulated deficit of $51,208 indicate a lack of profitability that would be atypical for mature companies in the financial services sector.
• The reliance on a single customer for 100% of revenue in fiscal year 2026 is a high-risk concentration compared to industry standards where diversification of client base is common.
• The company's operational scale, with only two employees as of May 31, 2026, is considerably smaller than typical financial services firms.

Corporate Governance

Legal Proceedings

• There are currently no pending legal proceedings or claims that are believed to have a material adverse effect on the business, financial condition, or operating results.

Related Party Transactions

• On October 20, 2023, the Company issued 20,000,000 shares of restricted common stock to Mr. Zonghan Wu for $2,000.
• As of May 31, 2026, Zonghan Wu holds 19,300,000 shares of common stock, representing 83.2% ownership.

Stakeholder Impact

• Shareholders face continued dilution risk if further equity financing is pursued to address going concern issues.
• Investors may experience a lack of liquidity for their shares due to the company's current status and potential penny stock classification.
• Employees (currently two) are subject to the company's financial instability and potential need for further funding.

Next Steps

• The company intends to hire additional instructors in the future.
• The company plans to bolster its professional reputation and image via marketing campaigns.
• The company plans to begin a social media campaign utilizing blogs, twitter, Facebook, and LinkedIn.
• The company plans to evaluate and enhance internal control procedures.
• The company plans to hire additional qualified personnel or engage external consultants.
• The company plans to establish a functioning Audit Committee when size and resources permit.

Key Dates

Recommendation

The company's financial situation remains precarious with a going concern warning, declining revenues, and persistent losses. However, the core business of financial literacy has potential, and continued shareholder support offers a lifeline. A 'hold' recommendation reflects the uncertainty and risk, balanced by the possibility of future turnaround if operations and financial controls improve.

Keywords

financial literacy, seminar services, New Zealand, personal finance, going concern, net loss, shareholder support, internal controls