0001144204-18-063993.txt : 20181211 0001144204-18-063993.hdr.sgml : 20181211 20181211105815 ACCESSION NUMBER: 0001144204-18-063993 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 51 CONFORMED PERIOD OF REPORT: 20180630 FILED AS OF DATE: 20181211 DATE AS OF CHANGE: 20181211 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RMR Industrials, Inc. CENTRAL INDEX KEY: 0001556179 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS BUSINESS SERVICES [7380] IRS NUMBER: 460750094 STATE OF INCORPORATION: NV FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-55402 FILM NUMBER: 181228039 BUSINESS ADDRESS: STREET 1: 9301 WILSHIRE BLVD. STREET 2: SUITE 312 CITY: BEVERLY HILLS STATE: CA ZIP: 90210 BUSINESS PHONE: 310-492-5010 MAIL ADDRESS: STREET 1: 9301 WILSHIRE BLVD. STREET 2: SUITE 312 CITY: BEVERLY HILLS STATE: CA ZIP: 90210 FORMER COMPANY: FORMER CONFORMED NAME: ONLINE YEARBOOK DATE OF NAME CHANGE: 20120813 10-Q 1 tv507743_10q.htm FORM 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

For the quarterly period ended June 30, 2018

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

For the transition period from _____________ to _____________

Commission file number: 0-55402

RMR Industrials, Inc.

(Exact name of registrant as specified in its charter)

Nevada	46-0750094
(State or jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

4601 DTC Blvd., Suite 130

Denver, CO 80237

(Address of principal executive offices)

(310) 492-5010

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ¨ No x

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ¨ No x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of "large accelerated filer,” “accelerated filer," “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer x	Smaller reporting company x
Emerging growth company x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

As of December 11, 2018, the registrant had 35,785,858 shares of Class A Common Stock and 3,027,712 shares of Class B Common Stock outstanding.

RMR INDUSTRIALS, INC.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

The statements contained in this Quarterly Report on Form 10-Q that are not historical facts are "forward-looking statements." Forward-looking statements may include our statements regarding our goals, beliefs, strategies, objectives, plan, including product and service developments, future financial conditions, results or projections or current expectations. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as "believes," "estimates," "intends," "plan" "expects," "may," "will," "should," "predicts," "anticipates," "continues," or "potential," or the negative thereof or other variations thereon or comparable terminology, and similar expressions are intended to identify forward-looking statements. We remind readers that forward-looking statements are merely predictions and therefore inherently subject to uncertainties and other factors and involve known and unknown risks that could cause the actual results, performance, levels of activity, or our achievements, or industry results, to be materially different from any future results, performance, levels of activity, or our achievements, or industry results, expressed or implied by such forward-looking statements. Such forward-looking statements appear in Item 2 - "Management's Discussion and Analysis of Financial Condition and Results of Operations," as well as elsewhere in this Quarterly Report.

Our management has included projections and estimates in this Form 10-Q, which are based primarily on management’s experience in the industry, assessments of our results of operations, discussions and negotiations with third parties and a review of information filed by our competitors with the SEC or otherwise publicly available. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Unless otherwise specified or required by context, as used in this Quarterly Report, the terms "we," "our," "us" and the "Company" refer collectively to RMR Industrials, Inc., its wholly-owned subsidiaries, RMR Logistics, Inc., RMR Industrial Minerals, Inc., and Rail Land Company, LLC, and its majority-owned subsidiary RMR Aggregates, Inc. The term "fiscal year" refers to our fiscal year ending March 31. Unless otherwise indicated, the term "common stock" refers to shares of our Class A Common Stock and Class B Common Stock.

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States generally accepted accounting principles (U.S. GAAP).

RMR INDUSTRIALS, INC.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION

ITEM 1.	FINANCIAL STATEMENTS	4

ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	5

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	6

ITEM 4.	CONTROLS AND PROCEDURES	6

PART II – OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS	7

ITEM 1A.	RISK FACTORS	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

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

RMR INDUSTRIALS, INC.

INDEX TO UNAUDITED FINANCIAL STATEMENTS

June 30, 2018

	Page(s)
Unaudited Consolidated Balance Sheets as of June 30, 2018 and March 31, 2018	F-1

Unaudited Consolidated Statements of Operations for the three months ended June 30, 2018 and 2017	F-2

Unaudited Consolidated Statements of Cash Flows for the three months ended June 30, 2018 and 2017	F-3

Notes to Unaudited Consolidated Financial Statements	F-4

RMR Industrials, Inc.

Consolidated Balance Sheets

	June 30, 2018			March 31, 2018
	(Unaudited)
ASSETS
Current assets
Cash	$	2,166,867		$	814,621
Accounts receivable		105,974			79,630
Inventory		28,695			54,290
Prepaid expenses		46,424			48,844
Restricted cash		98,241			196,181
Total current assets		2,446,201			1,193,566

Property, plant, and equipment, net		3,946,899			3,826,512
Land under development		3,840,759			3,594,928
Asset retirement obligation, net		40,725			41,283
Intangible assets, net		41,000			41,000
Other noncurrent assets		26,832			26,830
Total assets	$	10,342,416		$	8,724,119

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable	$	585,463		$	607,635
Accounts payable, related party		201,566			201,566
Accrued liabilities		113,319			114,361
Accrued liabilities, related party		1,925,000			2,290,000
Capital lease payable, current		37,014			40,045
Equipment loan payable, current		169,217			183,545
Total current liabilities		3,031,579			3,437,152

Note payable, net of discount		2,478,688			2,247,213
Capital lease payable, noncurrent		24,270			31,101
Equipment loan payable, noncurrent		252,043			283,128
Deferred rent		13,574			14,717
Accrued reclamation liability		52,664			51,409
Total liabilities		5,852,818			6,064,720

Stockholders' Deficit
Preferred Stock, $0.001 par value, 50,000,000 shares authorized; none issued and outstanding		-			-
Class A Common Stock, $0.001 par value; 2,000,000,000 shares authorized; 35,785,858 shares issued and outstanding		35,786			35,786
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized; 3,223,007 and 2,868,967 shares issued and 2,913,007 and 2,703,967 outstanding on June 30, 2018 and March 31, 2018, respectively		3,223			2,869
Additional paid-in capital		33,705,677			30,237,968
Noncontrolling interest		(262,713	)		(188,207	)
Accumulated deficit		(28,992,375	)		(27,429,017	)
Total stockholders’ deficit	$	4,489,598		$	2,659,399

Total liabilities and stockholders’ deficit	$	10,342,416		$	8,724,119

The accompanying notes are an integral part of these financial statements.

F-1

RMR Industrials, Inc.

Consolidated Statements of Operations (Unaudited)

	For the three months ended June 30, 2018			For the three months ended June 30, 2017
	(Unaudited)			(Unaudited)

Revenue	$	329,614		$	228,679
Cost of goods sold		319,854			191,020
Gross profit		9,760			37,659
Selling, general and administrative		1,411,849			1,148,988
Loss from operations		(1,402,089	)		(1,111,329	)
Interest (expense) income, net		(235,775	)		(163,809	)
Loss before income tax provision		(1,637,864	)		(1,275,138	)
Income tax expense		-			(1,600	)
Net loss		(1,637,864	)		(1,276,738	)
Add: Net loss attributed to noncontrolling interest		(74,506	)		(50,454	)
Net loss attributable to RMR Industrials, Inc.	$	(1,563,358	)	$	(1,226,284	)

Basic and diluted loss attributable to RMR Industrials, Inc. per common share	$	(.35	)	$	(.41	)

Weighted average shares outstanding		4,555,817			3,003,418

The accompanying notes are an integral part of these consolidated financial statements.

F-2

RMR Industrials, Inc.

Consolidated Statements of Cash Flows (Unaudited)

	Three months ended June 30, 2018			Three months ended June 30, 2017
	(Unaudited)			(Unaudited)
Cash flow from operating activities
Net loss	$	(1,637,864	)	$	(1,276,738	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization expense		85,806			75,696
Stock-based compensation		344,594			68,876
Amortization of debt discount		165,671			96,652
Deferred rent		(1,143	)		7,862
Paid-in-kind interest		65,804			59,566
Changes in operating assets and liabilities
Accounts receivable		(26,343	)		(20,493	)
Prepaid expenses		2,420			(21,596	)
Inventory		25,595			-
Restricted cash		97,940			-
Deposits		(2	)		(25,000	)
Accounts payable		(22,172	)		119,156
Accounts payable, related parties		-			250,000
Accrued liabilities		(1,042	)		(4,771	)
Accrued liabilities, related parties		(365,000	)		297,500
Net cash used in operating activities		(1,265,736	)		(373,290	)

Purchase of property, plant and equipment		(450,211	)		-
Purchase of intangibles and other assets		-			(152,102	)
Net cash used in investing activities		(450,211	)		(152,102	)

Payments on equipment loan		(45,413	)		(50,016	)
Payments on capital leases		(9,862	)		(12,158	)
Proceeds from shareholder deposit		-			(1,400,000	)
Proceeds from issuance of Class B common stock		3,123,468			700,000
Net cash provided by (used in) financing activities		3,068,193			(762,174	)

Net increase (decrease) in cash		1,352,246			(1,287,566	)

Cash at beginning of period		814,621			1,608,094
Cash at end of period	$	2,166,867		$	320,528

Supplemental cash flow information
Cash paid for interest	$	4,452		$	585
Cash paid for income taxes	$	-		$	1,600

The accompanying notes are an integral part of these consolidated financial statements.

F-3

RMR INDUSTRIALS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2018

NOTE A – FORMATION, CORPORATE CHANGES, AND MATERIAL MERGERS AND ACQUISITIONS

Online Yearbook was incorporated in the State of Nevada on August 6, 2012. Online Yearbook was a development stage company with the principal business objective of developing and marketing an online yearbook.

On November 17, 2014, Rocky Mountain Resource Holdings, LLC, a Nevada limited liability company (the “Purchaser”) became the majority shareholder of Online Yearbook, by acquiring 5,200,000 shares of common stock of Online Yearbook (the “Shares”), or 69.06% of the issued and outstanding shares of common stock, pursuant to stock purchase agreements with Messrs. El Maraana and Salah Blal. The Shares were acquired for an aggregate purchase price of $357,670. The Purchaser was the source of the funds used to acquire the Shares. In connection with Online Yearbook’s receipt of approval from the Financial Industry Regulatory Authority (“FINRA”), effective December 8, 2014, Online Yearbook amended its Articles of Incorporation to change its name from “Online Yearbook” to “RMR Industrials, Inc.”

RMR Industrials, Inc. (the “Company” or “RMRI”) is dedicated to operating industrial assets in the United States which include minerals, materials, and services. Our vision is to become a key provider of industrial materials and services in the Rocky Mountain region. We have a strategy to own operate, develop, acquire and vertically integrate complementary industrial businesses.

On February 27, 2015 (the “Closing Date”), the Company entered into and consummated a merger transaction pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) by and among the Company, OLYB Acquisition Corporation, a Nevada corporation and wholly owned subsidiary of the Company (“Merger Sub”), and RMR IP, Inc., a Nevada corporation (“RMR IP”). In accordance with the terms of Merger Agreement, on the Closing Date, Merger Sub merged with and into RMR IP (the “Merger”), with RMR IP surviving the Merger as our wholly owned subsidiary.

For financial reporting purposes, the Merger represented a “reverse merger” rather than a business combination and RMR IP was deemed to be the accounting acquirer in the transaction. Consequently, the assets and liabilities and the historical operations that will be reflected in the Company’s financial statements post-Merger are those of RMR IP. The Company’s assets, liabilities and results of operations have been consolidated with the assets, liabilities and results of operations of RMR IP after consummation of the Merger, and the historical financial statements of the Company before the Merger were replaced with the historical financial statements of RMR IP before the Merger in all post-Merger filings with the SEC.

On July 28, 2016, we formed RMR Aggregates, Inc., a Colorado corporation (“RMR Aggregates”), as our wholly-owned subsidiary. RMR Aggregates was formed to hold assets whose primary focus is the mining and processing of industrial minerals for the manufacturing, construction, and agriculture sectors. These minerals include limestone, aggregates, marble, silica, barite, and sand.

On October 12, 2016, RMR Aggregates acquired substantially all of the assets from CalX Minerals, LLC, a Colorado limited liability company (“CalX”) through an Asset Purchase Agreement. Pursuant to the terms of the Asset Purchase Agreement, RMR Aggregates agreed to purchase, and CalX agreed to sell, substantially all of the assets associated with the business of operating the Mid-Continent Limestone Quarry on 41 BLM unpatented placer mining claims in Garfield County, Colorado, including the mining claims, improvements, access rights, water rights, equipment, inventory, contracts, permits, certain intellectual property rights, and other tangible and intangible assets associated with the limestone mining operation.

On January 3, 2017, we amended the Articles of Incorporation of RMR IP, Inc. to rename the corporation to RMR Logistics, Inc. (“RMR Logistics”). RMR Logistics operates as a wholly-owned subsidiary of the Company to provide transportation and logistics services.

Basis of Presentation and Consolidation

The accompanying unaudited consolidated financial statements for the period ended June 30, 2018 have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information in accordance with Securities and Exchange Commission (SEC) Regulation S-X rule 8-03. The unaudited consolidated financial statements include the financial condition and results of operations of our wholly-owned subsidiary, RMR Logistics Inc. and Rail Land Company, LLC as well as our majority-owned subsidiary RMR Aggregates, where intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the unaudited consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of June 30, 2018 and the results of operations and cash flows for the periods then ended. The financial data and other information disclosed in these notes to the interim consolidated financial statements related to the period are unaudited.

F-4

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of significant accounting policies of the Company is presented to assist in understanding the Company’s consolidated financial statements. The accounting policies presented in these footnotes conform to accounting principles generally accepted in the United States of America (“GAAP”) and have been consistently applied in the preparation of the accompanying consolidated financial statements. These consolidated financial statements and notes are representations of the Company’s management who are responsible for their integrity and objectivity.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that impact the reported amounts of assets, liabilities, and expenses, and disclosure of contingent assets and liabilities in the financial statements and accompanying notes. Actual results could materially differ from those estimates. Management considers many factors in selecting appropriate financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including: expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from those estimated amounts and assumptions used in the preparation of the financial statements.

Revenue Recognition

Performance obligations are contractual promises to transfer or provide a distinct good or service for a stated price. The Company’s product sales agreements are single-performance obligations that are satisfied at a point in time. Revenue from product sales are recognized when control of the promised good is transferred to the customer, and the performance obligation is met, typically when the product is shipped. Revenue includes product sales of limestone, aggregate materials and other transportation charges to customers, net of discounts, allowances or taxes, as applicable.

Cost of Goods Sold

Cost of goods sold is comprised of both fixed and variable costs, including materials and supplies, labor, delivery, repairs and maintenance, utilities and other overhead costs associated with our product sales.

Segment Reporting

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business as one operating segment.

Cash and Cash Equivalents

The Company considers all highly liquid securities with original maturities of three months or less at the date of purchase to be cash equivalents. As of June 30, 2018, the Company had cash of $2,166,867 and no cash equivalents. The Company may occasionally maintain cash balances in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”). The amounts are held with major financial institutions and are monitored by management to mitigate credit risk.

Inventory

Inventory, which primarily represents finished goods, packaging and fuel are valued at the lower of cost (average) or market. Total gross inventories at June 30, 2018 were $28,695.

Other noncurrent assets

Other noncurrent assets consist of two security deposits in connection with our office leases in Denver and Los Angeles.

Impairment of Long-Lived Assets

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. Factors considered include:

•

Significant changes in the operational performance or manner of use of acquired assets or the strategy for our overall business,

•

Significant negative market conditions or economic trends, and

•

Significant technological changes or legal factors which may render the asset obsolete.

F-5

The Company evaluated long-lived assets based upon an estimate of future undiscounted cash flows. Recoverability of these assets is measured by comparing the carrying value to the future net undiscounted cash flows expected to be generated by the asset. An impairment loss is recognized when the carrying value exceeds the undiscounted future cash flows estimated to result from the use and eventual disposition of the asset. Future net undiscounted cash flows include estimates of future revenues and expenses which are based on projected growth rates. The Company continually uses judgment when applying these impairment rules to determine the timing of the impairment tests, the undiscounted cash flows used to assess impairments and the fair value of a potentially impaired asset.

Fair Value Measurements

The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories:

- Level 1: Quoted market prices in active markets for identical assets or liabilities

- Level 2: Observable market-based inputs or inputs that are corroborated by market data

- Level 3: Unobservable inputs that are not corroborated by market data

Accounting for Asset Retirement Obligations and Accrued Reclamation Liability

The Company provides for obligations associated with the retirement of long-lived assets and the associated asset retirement costs. The fair value of a liability for an asset retirement obligation is recognized in the period in which it is identified, if a reasonable estimate of fair value can be made. The associated fair value of asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. Costs are estimated in current dollars, inflated until the expected time of payment, using an inflation rate of 2.15%, and then discounted back to present value using a credit-adjusted rate of reflect the Company’s credit rating.

Net Loss per Common Share

Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period, without consideration for the potentially dilutive effects of converting stock options or restricted stock purchase rights outstanding. Diluted net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period and the potential dilutive effects of stock options or restricted stock purchase rights outstanding during the period determined using the treasury stock method. There are no such anti-dilutive common share equivalents outstanding as June 30, 2018 which were excluded from the calculation of diluted loss per common share.

Income Taxes

The Company accounts for income taxes under the asset and liability method, which requires, among other things, that deferred income taxes be provided for temporary differences between the tax bases of the Company's assets and liabilities and their financial statement reported amounts. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

A valuation allowance is recorded by the Company when it is more likely than not that some portion or all of a deferred tax asset will not be realized. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, and ongoing prudent and feasible tax planning strategies in assessing the amount of the valuation allowance. When the Company establishes or reduces the valuation allowance against its deferred tax assets, its provision for income taxes will increase or decrease, respectively, in the period such determination is made.

Additionally, the Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized upon settlement. Accordingly, the Company establishes reserves for uncertain tax positions. The Company has not recognized interest or penalties in its statement of operations and comprehensive loss since inception.

F-6

Recent Accounting Pronouncements

In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, which narrows the definition of a business. This ASU provides a screen to determine whether a group of assets constitute a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated as acquisitions. If the screen is not met, this ASU (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output and (2) removes the evaluation of whether a market participant could replace missing elements. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The adoption of this ASU is not expected to have a material impact on the consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which will result in lessees recognizing most leases on the balance sheet. Lessees are required to disclose more quantitative and qualitative information about their leases than current U.S. GAAP requires. The ASU is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are beginning to compile all operating and capital leases to assess the impact of adopting this standard.

Management believes recently issued accounting pronouncements will have no impact on the financial statements of the Company.

NOTE C – ACCOUNTS RECEIVABLE

Accounts Receivable at June 30, 2018 was $105,974 compared to $79,630 at March 31, 2018. The increase is due to an increase in production and product demand. No allowance is recorded, as all items are current.

NOTE D – INVENTORY

Inventory, which primarily represents finished goods, packaging and fuel are valued at the lower of cost (average) or net realizable value.

	June 30, 2018		March 31, 2018

Blasted Rock	$	20,162	$	37,157
Finished Goods		2,048		3,180
Packaging		4,895		9,614
Propane and Fuel		1,590		4,339
Total	$	28,695	$	54,290

NOTE E – GOING CONCERN

The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company does not have significant cash or other current assets, nor does it have an established source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern.

F-7

The Company’s net loss and working capital deficit raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements for the three months ended June 30, 2018 do not include any adjustments to reflect the possible future effects of the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company’s ability to continue as a going concern. The Company may never become profitable, or if it does, it may not be able to sustain profitability on a recurring basis.

Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading, or seeking protection from creditors pursuant to laws or regulations. Accordingly, assets and liabilities are recorded on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the business plan and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.

During the next year, the Company’s foreseeable cash requirements will relate to continual development of the operations of its business, maintaining its good standing and making the requisite filings with the Securities and Exchange Commission, and the payment of expenses associated with research and development. The Company may experience a cash shortfall and be required to raise additional capital.

Historically, it has mostly relied upon funds from the sale of shares of stock and from acquiring loans to finance its operations and growth. Management may raise additional capital through future public or private offerings of the Company’s stock or through loans from private investors, although there can be no assurance that it will be able to obtain such financing. The Company’s failure to do so could have a material and adverse effect upon it and its shareholders.

In the past year, the Company funded operations by using cash proceeds received through the issuance of common stock. For the coming year, the Company plans to continue to fund the Company through debt and securities sales and issuances until the Company generates enough revenues through the operations as stated above.

NOTE F – NOTE PAYABLE

On October 3, 2016, the Company entered into a Note Purchase Agreement (the “Note Purchase Agreement”) with RMR Aggregates, Inc., and Central Valley Administrators Inc., a Nevada corporation (“CVA”). Pursuant to the terms of the Note Purchase Agreement, RMR Aggregates sold to CVA, and CVA purchased from RMR Aggregates, a 10% promissory note in an aggregate principal amount of $2,250,000 (the “Note”). The Note has a maturity date of October 3, 2018, and accrues interest at a rate of 10% per annum.

Under the terms of the Note Purchase Agreement, RMR Aggregates also agreed to issue 20,000 shares of common stock of RMR Aggregates (the “RMRA Shares”) to CVA, which represents 20% of RMR Aggregates’ total issued and outstanding common stock. CVA shall have the right, at any time, to convert the RMRA Shares into shares of Class B common stock of the Company, at a ratio of 1 share of RMRA Shares being converted into 7.5 shares of the Company’s Class B common stock. RMR Aggregates will also have the right, at any time after October 3, 2017 and after the Note is no longer outstanding, to call the RMRA Shares in exchange for shares of Class B common stock of the Company using the same ratio; provided, however, that the amount of RMRA Shares that may be called in exchange for shares of the Company’s Class B common stock shall be limited to the extent necessary to ensure that, following such exercise, CVA and its affiliates will not beneficially own in excess of 4.99% of the Company’s total issued and outstanding common stock.

The Note Purchase Agreement provides, among other things, that CVA shall have a liquidation right upon an event of default arising from the failure by RMR Aggregates to repay the outstanding principal amount of the Note on the maturity date, meaning CVA can cause RMR Aggregates to sell its assets until it repays the outstanding amount due under the Note. RMR Aggregates shall have the right to call the Note at any time at par plus accrued interest thereunder.

The conversion feature in the Note Purchase Agreement was valued at $769,000 and recorded as a discount to the CVA Note. The carrying value of the CVA Note at June 30, 2018:

Principal value	$	2,250,000
Accrued interest		426,148
Unamortized debt discount		(197,460	)
Note payable, net	$	2,478,688

F-8

NOTE G – EQUIPMENT LOAN AND CAPITAL LEASE PAYABLE

The Company has entered into various equipment loans with an equipment manufacturer in connection with the CalX acquisition, pursuant to which we acquired equipment with an aggregate principal value of approximately $582,709. The equipment loans require payments over 12 months at a fixed interest rate from 1.99% to 4.78%. The Company’s obligations under these contracts are collateralized by the equipment purchased.

The Company also has a capital lease agreement, which was assumed in connection with the CalX acquisition. The capital lease has a remaining term of 18 months for mining equipment, which is included as part of property, plant and equipment. Depreciation related to capital lease assets is included in depreciation expense.

Future payments on capital lease obligations are as follows:

Fiscal year ended June 30:

2019	$	40,446
2020		20,838
Total future minimum lease payments	$	61,284

NOTE H – TRANSACTIONS WITH RELATED PARTIES

Since inception, the Company accrued $201,566 in amounts owed to related parties for services performed or reimbursement of costs on behalf of the Company. In addition, the Company has accrued $1,925,000 for unpaid officers’ compensation expense in accordance with consulting agreements with our Chief Executive Officer and President. Under the terms of each consulting agreement, each consultant shall serve as an executive officer to the Company and receive monthly compensation of $35,000. The consulting agreements may be terminated by either party for breach or upon thirty days prior written notice.

NOTE I – SHAREHOLDERS’ DEFICIT

Reverse Stock Split

On September 4, 2015, the Company implemented a reverse stock split of all of its authorized and issued and outstanding shares of Class B Common Stock in ratio of one-for-twenty. All historical and per share amounts have been adjusted to reflect the reverse stock split.

Preferred Stock

The Company has authorized 50,000,000 shares of preferred stock for issuance. At June 30, 2018, no preferred stock was issued and outstanding.

Common Stock

The Company has authorized 2,100,000,000 shares of common stock for issuance, including 2,000,000,000 shares of Class A Common Stock, 100,000,000 shares of Class B Common Stock. At June 30, 2018, the Company had 35,785,858 shares issued and outstanding of Class A Common Stock and 3,223,007 and 2,913,007 shares issued and outstanding of Class B Common Stock, respectively.

F-9

The holders of Class A Common Stock will have the right to vote on all matters on which stockholders have the right to vote. The holders of Class B Common Stock will have the right to vote solely on matters where the vote of such holders is explicitly required under Nevada law. The holders of Class A Common Stock and Class B Common stock will have equal distribution rights, provided that distributions in securities shall be made in either identical securities or securities with similar voting characteristics. The holders of Class A Common Stock and Class B Common Stock will be entitled to receive identical per-share consideration upon a merger, conversion or exchange of the Company with another entity, and will have equal rights upon dissolutions, liquidation or winding-up.

During the three months ended June 30, 2018, accredited investors exercised warrants to purchase 209,040 shares of Class B Common Stock at exercise prices of $14.00-$17.00 for which the Company received $3,123,681 in gross proceeds.

NOTE J – SELLING GENERAL AND ADMINISTRATIVE COSTS

Selling general and administrative costs for the three month period increased from $1,148,988 in June of 2017 to $1,411,849 in June of 2018. Increases in salaries, employee benefits and consulting fees were primarily responsible for this increase.

NOTE K – INTEREST EXPENSE

The interest expense for the three months ended June 30, 2018 is the result of a note payable of $2,250,000 entered into October 3, 2016.

NOTE L – SUBSEQUENT EVENTS

In July 2018, Rail Land Company exercised an option to purchase a 150 acre parcel of real property located in Bennett, Colorado. Rail Land Company completed the purchase of the land parcel on July 20, 2018. The acreage is being included in the entitlement and rezoning process for the development of the Rail Park. In July 2018, Rail Land Company entered into a Right of Way Agreement with a midstream Oil & Gas Company, granting a non-exclusive easement and right of way to construct and operate natural gas and oil pipelines under the Rail Park property.

Subsequent to June 30, 2018, accredited investors purchasers exercised warrants to purchase 114,705 shares of the Company’s Class B common stock at an exercise price of $10.00-$17.00. During the same period, RMR Aggregates entered into a subscription agreement with an accredited investor to issue and sell RMR Aggregates common stock. The Company used proceeds from the sale and available cash for the repayment of outstanding indebtedness.

On October 3, 2018, RMR Aggregates used proceeds from the sale of common stock and available cash for the repayment of CVA’s Note principal outstanding balance.

F-10

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with our consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q. Forward looking statements are statements not based on historical information and which relate to future operations, strategies, financial results or other developments. Forward-looking statements are based upon estimates, forecasts, and assumptions that are inherently subject to significant business, economic, and competitive uncertainties and contingencies, many of which are beyond our control and many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward-looking statements made by us, or on our behalf. We disclaim any obligation to update forward-looking statements.

Overview

We were incorporated in the State of Nevada on August 6, 2012 under the name “Online Yearbook” with the principal business objective of developing and marketing online yearbooks for schools, companies, and government agencies.

On November 17, 2014, Rocky Mountain Resource Holdings, Inc. (“RMRH”) became our majority shareholder by acquiring 5,200,000 shares of our common stock (the “Shares”), or 69.06% of the issued and outstanding shares of our common stock, pursuant to stock purchase agreements with Messrs. El Maraana and Salah Blal, our former officers and directors. The Shares were acquired for an aggregate purchase price of $357,670.

On December 8, 2014, we changed our name to “RMR Industrials, Inc.” in connection with the change in our business plan.

On February 27, 2015 (the “Closing Date”), we entered into and consummated a merger transaction pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) by and among the Company, OLYB Acquisition Corporation, a Nevada corporation and wholly owned subsidiary of the Company (“Merger Sub”) and RMR IP, Inc., a Nevada corporation (“RMR IP”). In accordance with the terms of Merger Agreement, on the Closing Date, Merger Sub merged with and into RMR IP (the “Merger”), with RMR IP surviving the Merger as our wholly-owned subsidiary. Chad Brownstein and Gregory M. Dangler are directors of the Company and co-owners of RMRH, which was the majority shareholder of the Company prior to the Merger. Additionally, Messrs. Brownstein and Dangler were indirect controlling shareholders and directors of RMR IP prior to the Merger. As such, the Merger was among entities under the common control of Messrs. Brownstein and Dangler.

On October 12, 2016, pursuant to an Asset Purchase Agreement with CalX Minerals, LLC, a Colorado limited liability company (“CalX”), we completed the purchase of substantially all of the assets associated with the business of operating the Mid-Continent Limestone Quarry on 41 BLM unpatented placer mining claims in Garfield County, Colorado. CalX assets include the mining claims, improvements, access rights, water rights, equipment, inventory, contracts, permits, certain intellectual property rights, and other tangible and intangible assets associated with the limestone mining operation. The acquisition of these CalX assets will promote the development and implementation of the Company’s limestone mining operations in Colorado.

During January 2018, the Company formed Rail Land Company, LLC (“Rail Land Company”) as a wholly-owned subsidiary to acquire and develop a rail terminal and services facility (“Rail Park”). Rail Land Company purchased a 470-acre parcel of real property located in Bennett, Colorado on February 1, 2018. Additionally, Rail Land Company entered into Option Agreements to purchase 150 acres of real property and a total of 250 acres of mineral rights in Bennett, Colorado. The acreage is in the process of being entitled and rezoned for the development of the Rail Park. The Company’s development of the Rail Park is intended to expand the Company’s customer base for our products by utilizing rail freight capabilities to reach customers in the greater Denver area and by expanding our business to include rail transportation solutions and services.

Results of Operations

Comparison of the Three-Month Periods Ended June 30, 2018 and June 30, 2017

Revenues

Our revenues for the three-month period ended June 30, 2018 were $329,614 compared to $228,679 in the prior year.

Cost of Goods Sold

Our cost of goods sold for the three-month period ended June 30, 2018 was $319,854 compared to $191,020 in the prior year.

Operating Expenses

Our operating expenses for the three-month period ended June 30, 2018 were $1,411,849. This compares to operating expenses for the three-month period ended June 30, 2017 of $1,148,988. Operating expenses consisted of overhead costs related to mining operations, consulting services from related parties, public company costs, salaries and wages, and depreciation and amortization.

Interest Expense (Income), net

Our interest expense, net for the three-month period ended June 30, 2018 was $235,775, compared to $163,809 of interest expense for the three-month period ended June 30, 2017. The increase in interest expense was attributed to a $2,250,000 note payable issued to an accredited investor in October 2016. This note payable was paid off on October 3, 2018.

Net Loss Attributable to RMR Industrials, Inc.

Our net loss for the three-month period ended June 30, 2018 was $1,563,358. This compares to a net loss for the three-month period ended June 30, 2017 of $1,226,284. The comparative increases in net loss were due to increases in our operating and interest expenses, as described above.

Liquidity and Capital Resources

As of June 30, 2018, we had current assets of $2,446,201, total current liabilities of $3,031,579 and a working capital deficit of $585,378. We have incurred an accumulated loss of $28,992,375 since inception. Our independent auditors issued an audit opinion for our financial statements for the fiscal year ended March 31, 2018, which includes a statement expressing substantial doubt as to our ability to continue as a going concern due to our limited liquidity and our lack of revenues.

We will be seeking additional capital to execute our business plan and reach positive cash flow from operations. Our base monthly expenses are $100,000 per month. As evidence by approximately $2.1 million of our current liabilities being owed to related parties, we have relied historically on related parties to sustain the Company’s operations. In order to successfully execute our business plan, the net proceeds of a $10-20 million offering will be required to finance our planned acquisition and for general working capital purposes.

We do not generate adequate cash flows to support our existing operations. Moreover, the historical and existing capital structure is not adequate to fund our planned growth. Our current cash requirements are significant due to our business plan which will depend on future acquisitions. We anticipate generating losses through 2018. We anticipate that we will be able to raise sufficient amounts of working capital in the near term through debt or equity offerings as may be required to meet short-term obligations.

Other than as stated above, we currently do not have any arrangements for additional financing and we may not be able to obtain financing when required. Our future is dependent upon our ability to obtain financing, a successful marketing and promotion program, and, further in the future, achieving a profitable level of operations. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments. We will require additional funds to maintain our reporting status with the SEC and remain in good standing with the state of Nevada. There are no assurances that we will be able to raise the required working capital on terms favorable, or that such working capital will be available on any terms when needed. Any failure to secure additional financing may force us to modify our business plan. In addition, we cannot be assured of profitability in the future.

Going Concern

We have incurred net losses since our inception on October 15, 2014 through June 30, 2018 totaling $28,992,375 and have completed the preliminary stages of our business plan. We anticipate incurring additional losses and will depend on additional financing in order to meet our continuing obligations and ultimately, to attain profitability. Our ability to obtain additional financing, whether through the issuance of additional equity or through the assumption of debt, is uncertain. Accordingly, our independent auditors’ report on our financial statements for the fiscal year ended March 31, 2018 includes an explanatory paragraph regarding concerns about our ability to continue as a going concern, including additional information contained in the notes to our financial statements describing the circumstances leading to this disclosure. The financial statements do not include any adjustments that might result from the uncertainty about our ability to continue our business.

Recently Issued Accounting Pronouncements

We do not expect the adoption of any recently issued accounting pronouncements to have a significant impact on our net results of operations, financial position, or cash flows.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not Required

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, we conducted an evaluation, under the supervision and with the participation of our Chief Executive Officer and Vice President of Accounting of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based upon this evaluation, our Chief Executive Officer and Vice President of Accounting concluded that our disclosure controls and procedures were not effective due to the material weakness described below.

In light of the material weaknesses described below, we performed additional analysis and other post-closing procedures to ensure that our consolidated financial statements were prepared in accordance with generally accepted accounting principles. Accordingly, we believe that the consolidated financial statements included in this report fairly present, in all material respects, our financial condition, results of operations and cash flows for the periods presented.

Material Weakness and Related Remediation Initiatives

Set forth below is a summary of the various significant deficiencies that caused management to conclude that we had the material weakness in our disclosure controls and procedures. Through the efforts of management, external consultants, and our directors, we have developed a specific action plan to remediate the material weaknesses. We expect to implement these various action plans during the next fiscal year. If we are able to complete these action plans in a timely manner, we anticipate that all control deficiencies and material weaknesses will be remediated by March 31, 2019.

Our principal executive officer and principal financial officer concluded that as of June 30, 2018, the following material weaknesses existed:

Due to the Company’s budget constraints, the Company’s accounting department does not maintain the number of accounting personnel (either in-house or external) necessary to ensure more complete and effective financial reporting controls. Due to this situation, we did not perform timely and sufficient internal or external review of our current fiscal year financial reporting which resulted in untimely financial statement filings.

Remediation of Internal Control Deficiencies and Expenditures

It is reasonably possible that, if not remediated, one or more of the material weaknesses described above could result in a material misstatement in our reported financial statements that might result in a material misstatement in a future annual or interim period. We are developing specific action plans for this material weakness, which include hiring qualified accounting personnel and establishing a formal audit committee. We are uncertain at this time of the costs to remediate all of the above listed material weakness.

Through these steps, we believe that we are addressing the deficiencies that affected our internal control over financial reporting as of June 30, 2018. Because the remedial actions may require hiring of additional personnel, and relying extensively on manual review and approval, the successful operation of these controls for at least several quarters may be required before management may be able to conclude that the material weaknesses have been remediated. We intend to continue to evaluate and strengthen our internal control over financial reporting systems. These efforts require significant time and resources. If we are unable to establish adequate internal control over financial reporting systems, we may encounter difficulties in the audit or review of our financial statements by our independent registered public accounting firm, which in turn may have a material adverse effect on our ability to prepare financial statements in accordance with GAAP and to comply with our SEC reporting obligations.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting, as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act, during the fiscal quarter ended June 30, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

Not required.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

In September 2018, RMR Aggregates entered into a subscription agreement with an accredited investor to issue and sell RMR Aggregates common stock. The Company used the proceeds from the sale and available cash for the repayment of outstanding indebtedness. The sale and issuance of shares was exempt from the registration requirements of the Securities Act pursuant to the exemption for transactions by an issuer not involved in any public offerings under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Information regarding mine safety violations is included in Exhibit 95 to this quarterly report.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Number	Exhibit Description
3.1	Amended and Restated Articles of Incorporation, as amended (incorporated by reference to our Quarterly Report on Form 10-Q filed on August 15, 2016).
3.2	Amended and Restated Bylaws (incorporated by reference to our Current Report on Form 8-K filed on February 27, 2015).
31.1*	Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of the Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of the Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
95*	Mine Safety Disclosures
101*	Interactive Data Files

Filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	RMR Industrials, Inc.

DATED: December 11, 2018	By:	/s/ Heidi Kelly
	Heidi Kelly
	Vice President of Accounting
	(Principal Financial Officer and Principal Accounting Officer)

EX-31.1 2 tv507743_ex31-1.htm EXHIBIT 31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a)

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Chad Brownstein, certify that:

I have reviewed this Quarterly Report of RMR Industrials, Inc. for the period ended June 30, 2018.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its subsidiaries, is made known to us by others within those entities, particularly during the period in which the report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design of operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: December 11, 2018	By:	/s/ Chad Brownstein
	Chad Brownstein
	Chief Executive Officer (Principal Executive Officer)

EX-31.2 3 tv507743_ex31-2.htm EXHIBIT 31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a)

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Heidi Kelly, certify that:

I have reviewed this Quarterly Report of RMR Industrials, Inc. for the period ended June 30, 2018.

(a)

(b)

(c)

(d)

(a)

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: December 11, 2018

By:

/s/ Heidi Kelly

Heidi Kelly

Vice President

(Principal Financial Officer and Principal Accounting Officer)

EX-32.1 4 tv507743_ex32-1.htm EXHIBIT 32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of RMR Industrials, Inc. (the “Company”) for the period ended June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

	1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

By: /s/ Chad Brownstein
Chad Brownstein
Chief Executive Officer (Principal Executive Officer)

Date: December 11, 2018

EX-32.2 5 tv507743_ex32-2.htm EXHIBIT 32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

	1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

By: /s/ Heidi Kelly
Heidi Kelly
Vice President of Accounting (Principal Financial Officer and Principal Accounting Officer)

Date: December 11, 2018

EX-95 6 tv507743_ex95.htm EXHIBIT 95

Exhibit 95

Mine Safety Disclosures

The operation of the Company’s aggregate mine is subject to regulation by MSHA under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). MSHA inspects the Company’s mine on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Whenever MSHA issues a citation or order, it also generally proposes a civil penalty, or fine, related to the alleged violation. Citations or orders can be contested and appealed, and as part of that process, are often reduced in severity and amount, and are sometimes dismissed.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), the Company is required to present information regarding certain mining safety and health citations which MSHA has issued with respect to its aggregates mining operations in its periodic reports filed with the Securities and Exchange Commission (the “SEC”). In evaluating this information, consideration should be given to factors such as: (i) the number of citations and orders will vary depending on the size of the quarry or mine and type of operations (underground or surface), (ii) the number of citations issued will vary from inspector to inspector and location to location, and (iii) citations and orders can be contested and appealed, and in that process, may be reduced in severity and amount, and are sometimes dismissed.

The Company presents the following items regarding certain mining safety and health matters for the three months ended June 30, 2018:

•

Total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a mine safety or health hazard under section 104 of the Mine Act for which the Company received a citation from MSHA (hereinafter, “Section 104 S&S Citations”). If MSHA determines that a violation of a mandatory health or safety standard is reasonably likely to result in a reasonably serious injury or illness under the unique circumstance contributed to by the violation, MSHA will classify the violation as a “significant and substantial” violation (commonly referred to as a “S&S” violation). MSHA inspectors will classify each citation or order written as a “S&S” violation or not.

•

Total number of orders issued under section 104(b) of the Mine Act (hereinafter, “Section 104(b) Orders”). These orders are issued for situations in which MSHA determines a previous violation covered by a Section 104(a) citation has not been totally abated within the prescribed time period, so a further order is needed to require the mine operator to immediately withdraw all persons (except certain authorized persons) from the affected area of a quarry or mine.

•

Total number of citations and orders for unwarrantable failure of the mine operator to comply with mandatory health or safety standards under Section 104(d) of the Mine Act (hereinafter, “Section 104(d) Citations and Orders”). These violations are similar to those described above, but the standard is that the violation could significantly and substantially contribute to the cause and effect of a safety or health hazard, but the conditions do not cause imminent danger, and the MSHA inspector finds that the violation is caused by an unwarranted failure of the operator to comply with the health and safety standards.

•

Total number of flagrant violations under section 110(b)(2) of the Mine Act (hereinafter, “Section 110(b)(2) Violations”). These violations are penalty violations issued if MSHA determines that violations are “flagrant”, for which civil penalties may be assessed. A “flagrant” violation means a reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury.

•

Total number of imminent danger orders issued under section 107(a) of the Mine Act (hereinafter, “Section 107(a) Orders”). These orders are issued for situations in which MSHA determines an imminent danger exists in the quarry or mine and results in orders of immediate withdrawal of all persons (except certain authorized persons) from the area of the quarry or mine affected by its condition until the imminent danger and the underlying conditions causing the imminent danger no longer exist.

•

Total Dollar Value of MSHA Assessments Proposed. These are the amounts of proposed assessments issued by MSHA with each citation or order for the time period covered by the report. Penalties are assessed by MSHA according to a formula that considers a number of factors, including the mine operator’s history, size, negligence, gravity of the violation, good faith in trying to correct the violation promptly, and the effect of the penalty on the operator’s ability to continue in business.

•

Total Number of Mining-Related Fatalities. Mines subject to the Mine Act are required to report all fatalities occurring at their facilities unless the fatality is determined to be “non-chargeable” to the mining industry. The final rules of the SEC require disclosure of mining-related fatalities at mines subject to the Mine Act. Only fatalities determined by MSHA not to be mining-related may be excluded.

•

Receipt of written notice from MSHA of a pattern (or a potential to have such a pattern) of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of other mine health or safety hazards under section 104(e) of the Mine Act. If MHSA determines that a mine has a “pattern” of these types of violations, or the potential to have such a pattern, MSHA is required to notify the mine operator of the existence of such a thing.

•

Legal Actions Pending as of the Last Day of Period.

•

Legal Actions Initiated During Period.

•

Legal Actions Resolved During Period.

The Federal Mine Safety and Health Review Commission (the “Commission”) is an independent adjudicative agency that provides administrative trial and appellate review of legal disputes arising under the Mine Act. The cases may involve, among other questions, challenges by operators to citations, orders and penalties they have received from MSHA, or complaints of discrimination by miners under Section 105 of the Mine Act. The table below shows that as of June 30, 2018, the number of legal actions pending before the Commission, along with the number of legal actions initiated before the Commission during the year as well as resolved during the quarter. In addition, the table below includes a footnote to the column for legal actions before the Commission pending as of the last day of the period, which footnote breaks down that total number of legal actions pending by categories according to the type of proceeding in accordance with various categories established by the Procedural Rules of the Commission.

Location

MSHA ID

Section

104 S&S

Citations

(#)

Section

104(b)

Orders

(#)

Section

104(d)

Citations

and

Orders

(#)

Section

110(b)(2)

Violations

(#)

Section

107(a)

Orders

(#)

Total

Dollar

Value of

MSHA

Assessment/

$ Proposed

Total

Number

Mining

Related

Fatalities

(#)

Received

Notice of

Pattern

Violation

Under

Section

104(e)

(yes/no)

Received

Notice of

Potential

to have

Pattern

under

Section

104(e)

(yes/no)

Citation Contests

Pending

as of

Last

Day of

Period

(#)

Citation Contests

Instituted

During

Period

(#)

Citation Contests

Resolved

During

Period

(#)

Mid-Continent Quarry

0504954

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<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The conversion feature in the Note Purchase Agreement was valued at $769,000 and recorded as a discount to the CVA Note. The carrying value of the CVA Note at June 30, 2018:</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="text-align:center;"><table style="border: none; border-collapse: collapse; margin-bottom: 0in; width: 80%; margin-top: 0in;;margin : 0px auto;;text-align:left;"><tr><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;width: 82.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Principal value</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;width: 1.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;width: 1.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;width: 15.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">2,250,000</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;width: 1.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Accrued interest</div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">426,148</div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Unamortized debt discount</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: solid #000000 1.0pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: solid #000000 1.0pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">(197,460</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">)</div></div></td></tr><tr><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 2.5pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Note payable, net</div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 2.5pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: double #000000 2.5pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="background: #ffffff;border-bottom: double #000000 2.5pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">2,478,688</div></div></td><td style="background: rgb(255, 255, 255); border-width: initial; border-style: none; border-color: initial; padding: 0px 0px 1.5pt; vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr></table><div style="clear:both;"></div><div style="clear:both;"></div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

2250000

426148

197460

2478688

769000

<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">NOTE D – INVENTORY</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Inventory, which primarily represents finished goods, packaging and fuel are valued at the lower of cost (average) or net realizable value.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="text-align:center;"><table style="border: none; border-collapse: collapse; margin-bottom: 0in; width: 80%; margin-top: 0in;;margin : 0px auto;;text-align:left;"><tr><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="2" style="border-bottom: solid #000000 1.0pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: center; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">June 30, 2018</div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="2" style="border-bottom: solid #000000 1.0pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: center; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">March 31, 2018</div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="2" style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="2" style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: center; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 74.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Blasted Rock</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 1.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 1.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 10.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">20,162</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 1.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 1.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 1.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 10.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">37,157</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 1.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Finished Goods</div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">2,048</div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">3,180</div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Packaging</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">4,895</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">9,614</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Propane and Fuel</div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: solid #000000 1.0pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: solid #000000 1.0pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">1,590</div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: solid #000000 1.0pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: solid #000000 1.0pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">4,339</div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 2.5pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Total</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 2.5pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: double #000000 2.5pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="background: #cceeff;border-bottom: double #000000 2.5pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">28,695</div></div></td><td style="background: rgb(204, 238, 255); border-width: initial; border-style: none; border-color: initial; padding: 0px 0px 1.5pt; vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 2.5pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: double #000000 2.5pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="background: #cceeff;border-bottom: double #000000 2.5pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">54,290</div></div></td><td style="background: rgb(204, 238, 255); border-width: initial; border-style: none; border-color: initial; padding: 0px 0px 1.5pt; vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr></table><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Inventory, which primarily represents finished goods, packaging and fuel are valued at the lower of cost (average) or net realizable value.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="text-align:center;"><table style="border: none; border-collapse: collapse; margin-bottom: 0in; width: 80%; margin-top: 0in;;margin : 0px auto;;text-align:left;"><tr><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="2" style="border-bottom: solid #000000 1.0pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: center; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">June 30, 2018</div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="2" style="border-bottom: solid #000000 1.0pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: center; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">March 31, 2018</div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="2" style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="2" style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: center; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 74.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Blasted Rock</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 1.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 1.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 10.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">20,162</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 1.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 1.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 1.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 10.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">37,157</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;width: 1.0%;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Finished Goods</div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">2,048</div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">3,180</div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Packaging</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">4,895</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">9,614</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Propane and Fuel</div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: solid #000000 1.0pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: solid #000000 1.0pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">1,590</div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: solid #000000 1.0pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #ffffff;border-bottom: solid #000000 1.0pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">4,339</div></div></td><td style="background: #ffffff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 1.0pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 2.5pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Total</div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 2.5pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: double #000000 2.5pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="background: #cceeff;border-bottom: double #000000 2.5pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">28,695</div></div></td><td style="background: rgb(204, 238, 255); border-width: initial; border-style: none; border-color: initial; padding: 0px 0px 1.5pt; vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 2.5pt;padding-left: 0;padding-right: 0;padding-top: 0;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="background: #cceeff;border-bottom: double #000000 2.5pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="background: #cceeff;border-bottom: double #000000 2.5pt;border-left: none;border-right: none;border-top: none;padding-bottom: 0pt;padding-left: 0;padding-right: 0;padding-top: 0pt;vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: right; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">54,290</div></div></td><td style="background: rgb(204, 238, 255); border-width: initial; border-style: none; border-color: initial; padding: 0px 0px 1.5pt; vertical-align: bottom;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr></table><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-right: 0.69in; margin-top: 0px; text-indent: 0.38in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">A summary of significant accounting policies of the Company is presented to assist in understanding the Company’s consolidated financial statements. The accounting policies presented in these footnotes conform to accounting principles generally accepted in the United States of America (“GAAP”) and have been consistently applied in the preparation of the accompanying consolidated financial statements. These consolidated financial statements and notes are representations of the Company’s management who are responsible for their integrity and objectivity.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Use of Estimates</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;"> </div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that impact the reported amounts of assets, liabilities, and expenses, and disclosure of contingent assets and liabilities in the financial statements and accompanying notes. Actual results could materially differ from those estimates. Management considers many factors in selecting appropriate financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including: expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from those estimated amounts and assumptions used in the preparation of the financial statements.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: -0.01in; margin-left: 0.01in;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Revenue Recognition</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: -0.01in; margin-left: 0.01in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: -0.01in; margin-left: 0.01in;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Performance obligations are contractual promises to transfer or provide a distinct good or service for a stated price. The Company’s product sales agreements are single-performance obligations that are satisfied at a point in time. Revenue from product sales are recognized when control of the promised good is transferred to the customer, and the performance obligation is met, typically when the product is shipped. Revenue includes product sales of limestone, aggregate materials and other transportation charges to customers, net of discounts, allowances or taxes, as applicable.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: -0.01in; margin-left: 0.01in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: -0.01in; margin-left: 0.01in;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Cost of Goods Sold</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: -0.01in; margin-left: 0.01in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: -0.01in; margin-left: 0.01in;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Cost of goods sold is comprised of both fixed and variable costs, including materials and supplies, labor, delivery, repairs and maintenance, utilities and other overhead costs associated with our product sales.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: -0.01in; margin-left: 0.01in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Segment Reporting</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;"> </div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business as one operating segment.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.31in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">  </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Cash and Cash Equivalents</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;"> </div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The Company considers all highly liquid securities with original maturities of three months or less at the date of purchase to be cash equivalents. As of June 30, 2018, the Company had cash of $2,166,867 and no cash equivalents. The Company may occasionally maintain cash balances in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”). The amounts are held with major financial institutions and are monitored by management to mitigate credit risk.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Inventory</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Inventory, which primarily represents finished goods, packaging and fuel are valued at the lower of cost (average) or market. Total gross inventories at June 30, 2018 were $28,695.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.31in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Other noncurrent assets</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;"> </div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Other noncurrent assets consist of two security deposits in connection with our office leases in Denver and Los Angeles.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Impairment of Long-Lived Assets</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. Factors considered include:</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.43in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="text-align:left;"><table style="border: none; border-collapse: collapse; margin-bottom: 0.001pt; width: 100%; table-layout: fixed;"><tr><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;width: 36pt;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;width: 18pt;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">•</div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: justify; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Significant changes in the operational performance or manner of use of acquired assets or the strategy for our overall business,</div></div></td></tr></table><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="text-align:left;"><table style="border: none; border-collapse: collapse; margin-bottom: 0.001pt; width: 100%; table-layout: fixed;"><tr><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;width: 36pt;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;width: 18pt;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">•</div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: justify; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Significant negative market conditions or economic trends, and</div></div></td></tr></table><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="text-align:left;"><table style="border: none; border-collapse: collapse; margin-bottom: 0.001pt; width: 100%; table-layout: fixed;"><tr><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;width: 36pt;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;width: 18pt;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">•</div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: justify; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Significant technological changes or legal factors which may render the asset obsolete.</div></div></td></tr></table><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; background: none;"> </div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The Company evaluated long-lived assets based upon an estimate of future undiscounted cash flows. Recoverability of these assets is measured by comparing the carrying value to the future net undiscounted cash flows expected to be generated by the asset. An impairment loss is recognized when the carrying value exceeds the undiscounted future cash flows estimated to result from the use and eventual disposition of the asset. Future net undiscounted cash flows include estimates of future revenues and expenses which are based on projected growth rates. The Company continually uses judgment when applying these impairment rules to determine the timing of the impairment tests, the undiscounted cash flows used to assess impairments and the fair value of a potentially impaired asset.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">  </div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Fair Value Measurements</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories:</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">- Level 1: Quoted market prices in active markets for identical assets or liabilities</div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">- Level 2: Observable market-based inputs or inputs that are corroborated by market data</div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">- Level 3: Unobservable inputs that are not corroborated by market data</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;">  </div></div><div style="color: rgb(0, 0, 0); font: 10pt 'times new roman', times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-right: 0px; margin-bottom: 0pt; text-align: left;"><div style="font-style:italic;display:inline;">Accounting for Asset Retirement Obligations and Accrued Reclamation Liability</div></div><div style="color: rgb(0, 0, 0); font: 10pt "times new roman", times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; text-align: left; background: none;"> </div><div style="color: rgb(0, 0, 0); font: 10pt 'times new roman', times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-right: 0px; margin-bottom: 0pt; text-align: left;">The Company provides for obligations associated with the retirement of long-lived assets and the associated asset retirement costs. The fair value of a liability for an asset retirement obligation is recognized in the period in which it is identified, if a reasonable estimate of fair value can be made. The associated fair value of asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. Costs are estimated in current dollars, inflated until the expected time of payment, using an inflation rate of 2.15%, and then discounted back to present value using a credit-adjusted rate of reflect the Company’s credit rating.</div><div style="color: rgb(0, 0, 0); font: 10pt "times new roman", times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; text-align: left; background: none;"> </div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Net Loss per Common Share</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;"> </div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period, without consideration for the potentially dilutive effects of converting stock options or restricted stock purchase rights outstanding. Diluted net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period and the potential dilutive effects of stock options or restricted stock purchase rights outstanding during the period determined using the treasury stock method. There are no such anti-dilutive common share equivalents outstanding as June 30, 2018 which were excluded from the calculation of diluted loss per common share.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Income Taxes</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;"> </div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The Company accounts for income taxes under the asset and liability method, which requires, among other things, that deferred income taxes be provided for temporary differences between the tax bases of the Company's assets and liabilities and their financial statement reported amounts. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">A valuation allowance is recorded by the Company when it is more likely than not that some portion or all of a deferred tax asset will not be realized. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, and ongoing prudent and feasible tax planning strategies in assessing the amount of the valuation allowance. When the Company establishes or reduces the valuation allowance against its deferred tax assets, its provision for income taxes will increase or decrease, respectively, in the period such determination is made.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.38in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Additionally, the Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized upon settlement. Accordingly, the Company establishes reserves for uncertain tax positions. The Company has not recognized interest or penalties in its statement of operations and comprehensive loss since inception.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; text-indent: 0.5in; background: none;"> </div><div style="color: rgb(0, 0, 0); font: 10pt 'times new roman', times, serif; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin: 0pt 0px;"><div style="font-style:italic;display:inline;">Recent Accounting Pronouncements</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; text-indent: 0.5in; background: none;"> </div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">In January 2017, the FASB issued ASU No. 2017-01, <div style="font-style:italic;display:inline;">Clarifying the Definition of a Business,</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"> which narrows the definition of a business. This ASU provides a screen to determine whether a group of assets constitute a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated as acquisitions. If the screen is not met, this ASU (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output and (2) removes the evaluation of whether a market participant could replace missing elements. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The adoption of this ASU is not expected to have a material impact on the consolidated financial statements.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">In February 2016, the FASB issued ASU No. 2016-02, </div><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Leases</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">, which will result in lessees recognizing most leases on the balance sheet. Lessees are required to disclose more quantitative and qualitative information about their leases than current U.S. GAAP requires. The ASU is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are beginning to compile all operating and capital leases to assess the impact of adopting this standard. </div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; background: none;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">Management believes recently issued accounting pronouncements will have no impact on the financial statements of the Company.</div></div> <table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

-235775

-163809

<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Use of Estimates</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;"> </div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that impact the reported amounts of assets, liabilities, and expenses, and disclosure of contingent assets and liabilities in the financial statements and accompanying notes. Actual results could materially differ from those estimates. Management considers many factors in selecting appropriate financial accounting policies and controls, and in developing the estimates and assumptions that are used in the preparation of these financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including: expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from those estimated amounts and assumptions used in the preparation of the financial statements.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

<div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: -0.01in; margin-left: 0.01in;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Revenue Recognition</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: -0.01in; margin-left: 0.01in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: -0.01in; margin-left: 0.01in;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Performance obligations are contractual promises to transfer or provide a distinct good or service for a stated price. The Company’s product sales agreements are single-performance obligations that are satisfied at a point in time. Revenue from product sales are recognized when control of the promised good is transferred to the customer, and the performance obligation is met, typically when the product is shipped. Revenue includes product sales of limestone, aggregate materials and other transportation charges to customers, net of discounts, allowances or taxes, as applicable.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

<div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: -0.01in; margin-left: 0.01in;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Cost of Goods Sold</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: -0.01in; margin-left: 0.01in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: -0.01in; margin-left: 0.01in;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Cost of goods sold is comprised of both fixed and variable costs, including materials and supplies, labor, delivery, repairs and maintenance, utilities and other overhead costs associated with our product sales.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Segment Reporting</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;"> </div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business as one operating segment.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Cash and Cash Equivalents</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;"> </div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The Company considers all highly liquid securities with original maturities of three months or less at the date of purchase to be cash equivalents. As of June 30, 2018, the Company had cash of $2,166,867 and no cash equivalents. The Company may occasionally maintain cash balances in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”). The amounts are held with major financial institutions and are monitored by management to mitigate credit risk.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Inventory</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Inventory, which primarily represents finished goods, packaging and fuel are valued at the lower of cost (average) or market. Total gross inventories at June 30, 2018 were $28,695.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Other noncurrent assets</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;"> </div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Other noncurrent assets consist of two security deposits in connection with our office leases in Denver and Los Angeles.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Impairment of Long-Lived Assets</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. Factors considered include:</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.43in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="text-align:left;"><table style="border: none; border-collapse: collapse; margin-bottom: 0.001pt; width: 100%; table-layout: fixed;"><tr><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;width: 36pt;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;width: 18pt;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">•</div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: justify; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Significant changes in the operational performance or manner of use of acquired assets or the strategy for our overall business,</div></div></td></tr></table><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="text-align:left;"><table style="border: none; border-collapse: collapse; margin-bottom: 0.001pt; width: 100%; table-layout: fixed;"><tr><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;width: 36pt;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;width: 18pt;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">•</div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: justify; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Significant negative market conditions or economic trends, and</div></div></td></tr></table><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="text-align:left;"><table style="border: none; border-collapse: collapse; margin-bottom: 0.001pt; width: 100%; table-layout: fixed;"><tr><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;width: 36pt;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal; background: none; margin-bottom: 0px; margin-top: 0px;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;width: 18pt;"><div style="font-family: "times new roman", serif; font-size: 10pt; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">•</div></div></td><td style="border-bottom: none;border-left: none;border-right: none;border-top: none;padding-bottom: 0;padding-left: 0;padding-right: 0.8pt;padding-top: 0;vertical-align: top;"><div style="font-family: "times new roman", serif; font-size: 10pt; text-align: justify; line-height: normal;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Significant technological changes or legal factors which may render the asset obsolete.</div></div></td></tr></table><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div><div style="clear:both;"></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; background: none;"> </div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The Company evaluated long-lived assets based upon an estimate of future undiscounted cash flows. Recoverability of these assets is measured by comparing the carrying value to the future net undiscounted cash flows expected to be generated by the asset. An impairment loss is recognized when the carrying value exceeds the undiscounted future cash flows estimated to result from the use and eventual disposition of the asset. Future net undiscounted cash flows include estimates of future revenues and expenses which are based on projected growth rates. The Company continually uses judgment when applying these impairment rules to determine the timing of the impairment tests, the undiscounted cash flows used to assess impairments and the fair value of a potentially impaired asset.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

85806 75696

25000

-1400000

3123468

700000

9614 4895

-0.35

-0.41

4555817

<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Fair Value Measurements</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;"> </div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories:</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">- Level 1: Quoted market prices in active markets for identical assets or liabilities</div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">- Level 2: Observable market-based inputs or inputs that are corroborated by market data</div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">- Level 3: Unobservable inputs that are not corroborated by market data</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

<div style="color: rgb(0, 0, 0); font: 10pt 'times new roman', times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-right: 0px; margin-bottom: 0pt; text-align: left;"><div style="font-style:italic;display:inline;">Accounting for Asset Retirement Obligations and Accrued Reclamation Liability</div></div><div style="color: rgb(0, 0, 0); font: 10pt "times new roman", times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0px; margin-right: 0px; margin-bottom: 0px; text-align: left; background: none;"> </div><div style="color: rgb(0, 0, 0); font: 10pt 'times new roman', times, serif; letter-spacing: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin-top: 0pt; margin-right: 0px; margin-bottom: 0pt; text-align: left;">The Company provides for obligations associated with the retirement of long-lived assets and the associated asset retirement costs. The fair value of a liability for an asset retirement obligation is recognized in the period in which it is identified, if a reasonable estimate of fair value can be made. The associated fair value of asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. Costs are estimated in current dollars, inflated until the expected time of payment, using an inflation rate of 2.15%, and then discounted back to present value using a credit-adjusted rate of reflect the Company’s credit rating.</div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> 0.0215

150

<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Net Loss per Common Share</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;"> </div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period, without consideration for the potentially dilutive effects of converting stock options or restricted stock purchase rights outstanding. Diluted net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period and the potential dilutive effects of stock options or restricted stock purchase rights outstanding during the period determined using the treasury stock method. There are no such anti-dilutive common share equivalents outstanding as June 30, 2018 which were excluded from the calculation of diluted loss per common share.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

3223007

2868967

2913007

2703967

<div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Income Taxes</div></div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="white-space: pre-line; font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;"> </div></div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">The Company accounts for income taxes under the asset and liability method, which requires, among other things, that deferred income taxes be provided for temporary differences between the tax bases of the Company's assets and liabilities and their financial statement reported amounts. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">A valuation allowance is recorded by the Company when it is more likely than not that some portion or all of a deferred tax asset will not be realized. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, and ongoing prudent and feasible tax planning strategies in assessing the amount of the valuation allowance. When the Company establishes or reduces the valuation allowance against its deferred tax assets, its provision for income taxes will increase or decrease, respectively, in the period such determination is made.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.38in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">Additionally, the Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized upon settlement. Accordingly, the Company establishes reserves for uncertain tax positions. The Company has not recognized interest or penalties in its statement of operations and comprehensive loss since inception.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

<div style="color: rgb(0, 0, 0); font: 10pt 'times new roman', times, serif; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration-style: initial; text-decoration-color: initial; margin: 0pt 0px;"><div style="font-style:italic;display:inline;">Recent Accounting Pronouncements</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-align: justify; text-indent: 0.5in; background: none;"> </div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">In January 2017, the FASB issued ASU No. 2017-01, <div style="font-style:italic;display:inline;">Clarifying the Definition of a Business,</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"> which narrows the definition of a business. This ASU provides a screen to determine whether a group of assets constitute a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated as acquisitions. If the screen is not met, this ASU (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output and (2) removes the evaluation of whether a market participant could replace missing elements. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The adoption of this ASU is not expected to have a material impact on the consolidated financial statements.</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: 'times new roman', 'serif';font-size: 10pt;margin-bottom: 0;margin-top: 0;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">In February 2016, the FASB issued ASU No. 2016-02, </div><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;">Leases</div></div><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); letter-spacing: 0px; top: 0px;;display:inline;">, which will result in lessees recognizing most leases on the balance sheet. Lessees are required to disclose more quantitative and qualitative information about their leases than current U.S. GAAP requires. The ASU is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are beginning to compile all operating and capital leases to assess the impact of adopting this standard. </div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; text-indent: 0.5in; background: none;"><div style="font-family: "times new roman", serif; font-size: 10pt; color: rgb(0, 0, 0); background: none; text-decoration: none; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: "times new roman", serif; font-size: 10pt; margin-bottom: 0px; margin-top: 0px; background: none;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">Management believes recently issued accounting pronouncements will have no impact on the financial statements of the Company.</div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>

37014

40045

169217

183545

iso4217:USD xbrli:shares xbrli:pure utr:acre iso4217:USD xbrli:shares

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Assets Total assets Land Under Development Land under development Carrying amount of Land under development Intangible Assets, Net (Excluding Goodwill) Intangible assets, net Other Assets, Noncurrent Other noncurrent assets Liabilities and Equity [Abstract] LIABILITIES AND STOCKHOLDERS' DEFICIT Liabilities, Current [Abstract] Current liabilities Accounts Payable, Current Accounts payable Due to Related Parties, Current Accounts payable, related party Accrued Liabilities, Current Accrued liabilities Other Accrued Liabilities, Current Accrued liabilities, related party Loans Payable, Current Equipment loan payable, current Capital Lease Obligations, Current Capital lease payable, current Stockholders' Equity Attributable to Parent [Abstract] Stockholders' Deficit Preferred Stock, Value, Issued Preferred Stock, $0.001 par value, 50,000,000 shares authorized; none issued and outstanding Common Stock, Value, Issued Common Stock Additional Paid in Capital Additional paid-in capital Retained Earnings (Accumulated Deficit) Accumulated deficit Stockholders' Equity Attributable to Noncontrolling Interest Noncontrolling interest Liabilities, Current Total current liabilities Notes Payable, Noncurrent Note payable, net of discount Note payable, net Capital Lease Obligations, Noncurrent Capital lease payable, noncurrent EquipmentLoanPayable Equipment loan payable, noncurrent Carrying value of the Equipment loan payable at the end of the period Mine Reclamation and Closing Liability, Noncurrent Accrued reclamation liability Liabilities Total liabilities Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest Total stockholders' deficit Deferred Rent Credit, Noncurrent Deferred rent Liabilities and Equity Total liabilities and stockholders' deficit Common Stock, Par or Stated Value Per Share Common Stock, Shares Authorized Common stock, shares authorized Common Stock, Shares, Issued Common Stock, Shares, Issued Common Stock, Shares, Outstanding Preferred Stock, Par or Stated Value Per Share Preferred Stock, Shares Authorized Preferred Stock, Shares Issued Preferred Stock, Shares Outstanding Income Statement [Abstract] Revenues Revenue Cost of Goods and Services Sold Cost of goods sold Gross Profit Gross profit Selling, General and Administrative Expense Selling, general and administrative Operating Income (Loss) Loss from operations Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest Loss before income tax provision Income Tax Expense (Benefit) Income tax expense Net Income (Loss), Including Portion Attributable to Noncontrolling Interest Net loss Net loss Net Income (Loss) Attributable to Noncontrolling Interest Add: Net loss attributed to noncontrolling interest Net Income (Loss) Attributable to Parent Net loss attributable to RMR Industrials, Inc. Earnings Per Share, Basic and Diluted Basic and diluted loss attributable to RMR Industrials, Inc. per common share Weighted Average Number of Shares Outstanding, Basic and Diluted Weighted average shares outstanding Interest Income (Expense), Net Interest (expense) income, net Statement of Cash Flows [Abstract] Equity Components [Axis] Equity Component [Domain] Net Cash Provided by (Used in) Operating Activities [Abstract] Cash flow from operating activities Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] Adjustments to reconcile net loss to net cash used in operating activities Increase (Decrease) in Operating Capital [Abstract] Changes in operating assets and liabilities Increase (Decrease) in Accounts Receivable Accounts receivable Increase (Decrease) in Prepaid Expense Prepaid expenses Increase (Decrease) in Inventories Inventory Increase (Decrease) in Accounts Payable Accounts payable Increase (Decrease) in Accounts Payable, Related Parties Accounts payable, related parties Increase (Decrease) in Accrued Liabilities Accrued liabilities Increase Decrease In Accrued Liabilities Related Parties Accrued liabilities, related parties The increase (decrease) during the reporting period in the obligations due for goods and services provided by the following types of related parties: a parent company and its subsidiaries, subsidiaries of a common parent, an entity and trust for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of the entities' management, an entity and its principal owners, management, or member of their immediate families, affiliates, or other parties with the ability to exert significant influence. Increase (Decrease) in Deposit Assets Deposits Increase (Decrease) in Restricted Cash Restricted cash Depreciation, Amortization And Accretion Expenses Depreciation and amortization expense The aggregate expense recognized in the current period that allocates the cost of tangible assets, intangible assets, or accretion expenses to periods that benefit from use of the assets. Share-based Compensation Stock-based compensation Amortization of Debt Discount (Premium) Amortization of debt discount Paid-in-Kind Interest Paid-in-kind interest Adjustments of Deferred Rent Deferred rent Amount of deferred rent adjusted during the year to reconcile net income(loss). Supplemental Cash Flow Information [Abstract] Supplemental cash flow information Interest Paid, Net Cash paid for interest Income Taxes Paid Cash paid for income taxes Net Cash Provided by (Used in) Operating Activities Net cash used in operating activities Payments to Acquire Property, Plant, and Equipment Purchase of property, plant and equipment Purchase Of Intangibles And Other Assets Purchase of intangibles and other assets Payments to acquire intangibles and other assets. Net Cash Provided by (Used in) Investing Activities Net cash used in investing activities Payments On Equipment Loan Payments on equipment loan Repayments made for equipment loan. Proceeds from (Repayments of) Related Party Debt Proceeds from shareholder deposit Net Cash Provided by (Used in) Financing Activities Net cash provided by (used in) financing activities Cash and Cash Equivalents, Period Increase (Decrease) Net increase (decrease) in cash Proceeds Repayments from Longterm Capital Lease Obligations Payments on capital leases The cash inflow from proceeds received from lessor related to a long-term capital lease obligation. And the cash outflow for the obligation for a lease meeting the criteria for capitalization (with maturities exceeding one year or beyond the operating cycle of the entity, if longer) Proceeds from Issuance of Common Stock Proceeds from issuance of Class B common stock Proceeds from Issuance of Common Stock Business Combinations [Abstract] Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] Accounting Policies [Abstract] Significant Accounting Policies [Text Block] Accounts Receivable, Net [Abstract] Loans, Notes, Trade and Other Receivables Disclosure [Text Block] Inventory, Net [Abstract] Inventory Disclosure [Text Block] Going Concern [Abstract] Going Concern [Text Block] The entire disclosure for going concern. Debt Disclosure [Abstract] Debt Disclosure [Text Block] Disclosure Text Block Supplement [Abstract] Debt and Capital Leases Disclosures [Text Block] Related Party Transactions [Abstract] Related Party Transactions Disclosure [Text Block] Stockholders' Equity Note [Abstract] Stockholders' Equity Note Disclosure [Text Block] Selling, General and Administrative Expense [Abstract] Selling General And Administrative Costs Disclosure [Text Block] The entire disclosure for selling, general and administrative costs disclosure. Interest Expense, Debt [Abstract] Interest Expense Disclosure [Text Block] The entire disclosure for interest expense. Subsequent Events [Abstract] Subsequent Events [Text Block] Use of Estimates, Policy [Policy Text Block] Revenue Recognition, Policy [Policy Text Block] Segment Reporting, Policy [Policy Text Block] Cash and Cash Equivalents, Policy [Policy Text Block] Inventory, Policy [Policy Text Block] Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] Asset Retirement obligations and Accrued reclamation Liability [Policy Text Block] Asset Retirement Obligations and Accrued Reclamation Liability [Policy Text Block] Disclosure of accounting policy for accounting for asset retirement obligations and accrued reclamation liability. Fair Value of Financial Instruments, Policy [Policy Text Block] Earnings Per Share, Policy [Policy Text Block] Income Tax, Policy [Policy Text Block] New Accounting Pronouncements, Policy [Policy Text Block] Cost of Sales, Policy [Policy Text Block] Other noncurrent assets [Policy Text Block] Disclosure of accounting policy for other noncurrent assets. Schedule of Inventory, Current [Table Text Block] Schedule of Debt [Table Text Block] Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] Organization, Consolidation and Presentation of Financial Statements [Abstract] Formation Corporate Changes and Material Mergers And Acquisitions [Table] Related Party [Axis] Related Party [Domain] Rocky Mountain Resource Holdings LLC [Member] Formation Corporate Changes and Material Mergers And Acquisitions [Line Items] Business Acquisition, Equity Interest Issued or Issuable, Number of Shares Business Acquisition, Percentage of Voting Interests Acquired Business Combination, Consideration Transferred, Equity Interests Issued and Issuable Concentration Risk Benchmark [Axis] Concentration Risk Benchmark [Domain] Concentration Risk Type [Axis] Concentration Risk Type [Domain] Inflation Rate It represents Percentage of inflation rate. Inventory, Finished Goods, Gross Finished Goods Inventory Packaging Packaging It represents amount of inventory packaging. Inventory Propane and Fuel Propane and Fuel Gross amount, as of the balance sheet date, of fuel used in transportation. Inventory Blasted Rock Blasted Rock It represents amount of inventory of Blasted Rock Legal Entity [Axis] Entity [Domain] Central Valley Administrators Inc [Member] Long-term Debt, Type [Axis] Long-term Debt, Type [Domain] Promissory Note [Member] Debt Instrument, Face Amount Principal value Interest Payable Noncurrent Accrued interest Carrying value as of the balance sheet date of [accrued] noncurrent interest payable on all forms of debt, including trade payables, that has been incurred and is unpaid. Debt Instrument, Unamortized Discount, Noncurrent Unamortized debt discount Note Purchase Agreement [Member] Debt Conversion Description [Axis] Debt Conversion, Name [Domain] RMR Aggregates Shares [Member] Range [Axis] Range [Domain] Maximum [Member] Debt Instrument, Convertible, Beneficial Conversion Feature EX-101.PRE 12 rmri-20180630_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 13 R1.htm IDEA: XBRL DOCUMENT

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Jun. 30, 2018	Dec. 11, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Registrant Name	RMR Industrials, Inc.
Entity Central Index Key	0001556179
Current Fiscal Year End Date	--03-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	RMRI
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Small Business	true
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		35,785,858
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		3,027,712

XML 14 R2.htm IDEA: XBRL DOCUMENT

Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Mar. 31, 2018
Current assets
Cash	$ 2,166,867	$ 814,621
Accounts receivable	105,974	79,630
Inventory	28,695	54,290
Prepaid expenses	46,424	48,844
Restricted cash	98,241	196,181
Total current assets	2,446,201	1,193,566
Property, plant, and equipment, net	3,946,899	3,826,512
Land under development	3,840,759	3,594,928
Asset retirement obligation, net	40,725	41,283
Intangible assets, net	41,000	41,000
Other noncurrent assets	26,832	26,830
Total assets	10,342,416	8,724,119
Current liabilities
Accounts payable	585,463	607,635
Accounts payable, related party	201,566	201,566
Accrued liabilities	113,319	114,361
Accrued liabilities, related party	1,925,000	2,290,000
Capital lease payable, current	37,014	40,045
Equipment loan payable, current	169,217	183,545
Total current liabilities	3,031,579	3,437,152
Note payable, net of discount	2,478,688	2,247,213
Capital lease payable, noncurrent	24,270	31,101
Equipment loan payable, noncurrent	252,043	283,128
Deferred rent	13,574	14,717
Accrued reclamation liability	52,664	51,409
Total liabilities	5,852,818	6,064,720
Stockholders' Deficit
Preferred Stock, $0.001 par value, 50,000,000 shares authorized; none issued and outstanding	0	0
Additional paid-in capital	33,705,677	30,237,968
Noncontrolling interest	(262,713)	(188,207)
Accumulated deficit	(28,992,375)	(27,429,017)
Total stockholders' deficit	4,489,598	2,659,399
Total liabilities and stockholders' deficit	10,342,416	8,724,119
Common Class A [Member]
Stockholders' Deficit
Common Stock	35,786	35,786
Common Class B [Member]
Stockholders' Deficit
Common Stock	$ 3,223	$ 2,869

XML 15 R3.htm IDEA: XBRL DOCUMENT

Consolidated Balance Sheets [Parenthetical] - $ / shares	Jun. 30, 2018	Mar. 31, 2018
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Class A [Member]
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common stock, shares authorized	2,000,000,000	2,000,000,000
Common Stock, Shares, Issued	35,785,858	35,785,858
Common Stock, Shares, Outstanding	35,785,858	35,785,858
Common Class B [Member]
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	3,223,007	2,868,967
Common Stock, Shares, Outstanding	2,913,007	2,703,967

XML 16 R4.htm IDEA: XBRL DOCUMENT

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Revenue	$ 329,614	$ 228,679
Cost of goods sold	319,854	191,020
Gross profit	9,760	37,659
Selling, general and administrative	1,411,849	1,148,988
Loss from operations	(1,402,089)	(1,111,329)
Interest (expense) income, net	(235,775)	(163,809)
Loss before income tax provision	(1,637,864)	(1,275,138)
Income tax expense		(1,600)
Net loss	(1,637,864)	(1,276,738)
Add: Net loss attributed to noncontrolling interest	(74,506)	(50,454)
Net loss attributable to RMR Industrials, Inc.	$ (1,563,358)	$ (1,226,284)
Basic and diluted loss attributable to RMR Industrials, Inc. per common share	$ (0.35)	$ (0.41)
Weighted average shares outstanding	4,555,817	3,003,418

XML 17 R5.htm IDEA: XBRL DOCUMENT

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Cash flow from operating activities
Net loss	$ (1,637,864)	$ (1,276,738)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization expense	85,806	75,696
Stock-based compensation	344,594	68,876
Amortization of debt discount	165,671	96,652
Deferred rent	(1,143)	7,862
Paid-in-kind interest	65,804	59,566
Changes in operating assets and liabilities
Accounts receivable	(26,343)	(20,493)
Prepaid expenses	2,420	(21,596)
Inventory	25,595	0
Restricted cash	97,940	0
Deposits	(2)	(25,000)
Accounts payable	(22,172)	119,156
Accounts payable, related parties	0	250,000
Accrued liabilities	(1,042)	(4,771)
Accrued liabilities, related parties	(365,000)	297,500
Net cash used in operating activities	(1,265,736)	(373,290)
Purchase of property, plant and equipment	(450,211)	0
Purchase of intangibles and other assets	0	(152,102)
Net cash used in investing activities	(450,211)	(152,102)
Payments on equipment loan	(45,413)	(50,016)
Payments on capital leases	(9,862)	(12,158)
Proceeds from shareholder deposit	0	(1,400,000)
Proceeds from issuance of Class B common stock	3,123,468	700,000
Net cash provided by (used in) financing activities	3,068,193	(762,174)
Net increase (decrease) in cash	1,352,246	(1,287,566)
Cash at beginning of period	814,621	1,608,094
Cash at end of period	2,166,867	320,528
Supplemental cash flow information
Cash paid for interest	4,452	585
Cash paid for income taxes	$ 0	$ 1,600

XML 18 R6.htm IDEA: XBRL DOCUMENT

FORMATION, CORPORATE CHANGES, AND MATERIAL MERGERS AND ACQUISITIONS

3 Months Ended

Jun. 30, 2018

Business Combinations [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE A – FORMATION, CORPORATE CHANGES, AND MATERIAL MERGERS AND ACQUISITIONS

Basis of Presentation and Consolidation

XML 19 R7.htm IDEA: XBRL DOCUMENT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

Revenue Recognition

Cost of Goods Sold

Segment Reporting

Cash and Cash Equivalents

Inventory

Inventory, which primarily represents finished goods, packaging and fuel are valued at the lower of cost (average) or market. Total gross inventories at June 30, 2018 were $28,695.

Other noncurrent assets

Other noncurrent assets consist of two security deposits in connection with our office leases in Denver and Los Angeles.

Impairment of Long-Lived Assets

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. Factors considered include:

•

Significant changes in the operational performance or manner of use of acquired assets or the strategy for our overall business,

•

Significant negative market conditions or economic trends, and

•

Significant technological changes or legal factors which may render the asset obsolete.

Fair Value Measurements

- Level 1: Quoted market prices in active markets for identical assets or liabilities

- Level 2: Observable market-based inputs or inputs that are corroborated by market data

- Level 3: Unobservable inputs that are not corroborated by market data

Accounting for Asset Retirement Obligations and Accrued Reclamation Liability

Net Loss per Common Share

Income Taxes

Recent Accounting Pronouncements

In January 2017, the FASB issued ASU No. 2017-01,

Clarifying the Definition of a Business,

which narrows the definition of a business. This ASU provides a screen to determine whether a group of assets constitute a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated as acquisitions. If the screen is not met, this ASU (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output and (2) removes the evaluation of whether a market participant could replace missing elements. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The adoption of this ASU is not expected to have a material impact on the consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02,

Leases

, which will result in lessees recognizing most leases on the balance sheet. Lessees are required to disclose more quantitative and qualitative information about their leases than current U.S. GAAP requires. The ASU is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are beginning to compile all operating and capital leases to assess the impact of adopting this standard.

Management believes recently issued accounting pronouncements will have no impact on the financial statements of the Company.

XML 20 R8.htm IDEA: XBRL DOCUMENT

ACCOUNTS RECEIVABLE

3 Months Ended

Jun. 30, 2018

Accounts Receivable, Net [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE C – ACCOUNTS RECEIVABLE

Accounts Receivable at June 30, 2018 was $105,974 compared to $79,630 at

March 31, 2018.

The increase is due to an increase in production and product demand. No allowance is recorded, as all items are current.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

XML 21 R9.htm IDEA: XBRL DOCUMENT

INVENTORY

3 Months Ended

Jun. 30, 2018

Inventory, Net [Abstract]

Inventory Disclosure [Text Block]

NOTE D – INVENTORY

Inventory, which primarily represents finished goods, packaging and fuel are valued at the lower of cost (average) or net realizable value.

	June 30, 2018		March 31, 2018

Blasted Rock	$	20,162	$	37,157
Finished Goods		2,048		3,180
Packaging		4,895		9,614
Propane and Fuel		1,590		4,339
Total	$	28,695	$	54,290

XML 22 R10.htm IDEA: XBRL DOCUMENT

GOING CONCERN

3 Months Ended

Jun. 30, 2018

Going Concern [Abstract]

Going Concern [Text Block]

NOTE E – GOING CONCERN

XML 23 R11.htm IDEA: XBRL DOCUMENT

NOTE PAYABLE

3 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

NOTE F – NOTE PAYABLE

The conversion feature in the Note Purchase Agreement was valued at $769,000 and recorded as a discount to the CVA Note. The carrying value of the CVA Note at June 30, 2018:

Principal value	$	2,250,000
Accrued interest		426,148
Unamortized debt discount		(197,460	)
Note payable, net	$	2,478,688

XML 24 R12.htm IDEA: XBRL DOCUMENT

EQUIPMENT LOAN AND CAPITAL LEASE PAYABLE

3 Months Ended

Jun. 30, 2018

Disclosure Text Block Supplement [Abstract]

Debt and Capital Leases Disclosures [Text Block]

NOTE G – EQUIPMENT LOAN AND CAPITAL LEASE PAYABLE

Future payments on capital lease obligations are as follows:

Fiscal year ended June 30:

2019	$	40,446
2020		20,838
Total future minimum lease payments	$	61,284

XML 25 R13.htm IDEA: XBRL DOCUMENT

TRANSACTIONS WITH RELATED PARTIES

3 Months Ended

Jun. 30, 2018

NOTE H – TRANSACTIONS WITH RELATED PARTIES

XML 26 R14.htm IDEA: XBRL DOCUMENT

SHAREHOLDERS' DEFICIT

3 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE I – SHAREHOLDERS’ DEFICIT

Reverse Stock Split

Preferred Stock

The Company has authorized 50,000,000 shares of preferred stock for issuance. At June 30, 2018, no preferred stock was issued and outstanding.

Common Stock

shares issued and outstanding of Class A Common Stock and 3,223,007 and 2,913,007 shares issued and outstanding of Class B Common Stock, respectively.

XML 27 R15.htm IDEA: XBRL DOCUMENT

SELLING GENERAL AND ADMINISTRATIVE COSTS

3 Months Ended

Jun. 30, 2018

Selling, General and Administrative Expense [Abstract]

Selling General And Administrative Costs Disclosure [Text Block]

NOTE J – SELLING GENERAL AND ADMINISTRATIVE COSTS

XML 28 R16.htm IDEA: XBRL DOCUMENT

INTEREST EXPENSE

3 Months Ended

Jun. 30, 2018

Interest Expense, Debt [Abstract]

Interest Expense Disclosure [Text Block]

NOTE K – INTEREST EXPENSE

The interest expense for the three months ended June 30, 2018 is the result of a note payable of $2,250,000 entered into October 3, 2016.

XML 29 R17.htm IDEA: XBRL DOCUMENT

SUBSEQUENT EVENTS

3 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE L – SUBSEQUENT EVENTS

Subsequent to June 30, 2018,

accredited investors purchasers exercised warrants to

purchase 114,705 shares of the Company’s Class B common stock at an exercise price of $10.00-$17.00. During the same period, RMR Aggregates entered into a subscription agreement with an accredited investor to issue and sell RMR Aggregates common stock. The Company used proceeds from the sale and available cash for the repayment of outstanding indebtedness.

On October 3, 2018, RMR Aggregates used proceeds from the sale of common stock and available cash for the repayment of CVA’s Note principal outstanding balance.

XML 30 R18.htm IDEA: XBRL DOCUMENT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Cost of Sales, Policy [Policy Text Block]

Cost of Goods Sold

Segment Reporting, Policy [Policy Text Block]

Segment Reporting

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

Inventory, Policy [Policy Text Block]

Inventory

Inventory, which primarily represents finished goods, packaging and fuel are valued at the lower of cost (average) or market. Total gross inventories at June 30, 2018 were $28,695.

Other noncurrent assets [Policy Text Block]

Other noncurrent assets

Other noncurrent assets consist of two security deposits in connection with our office leases in Denver and Los Angeles.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of Long-Lived Assets

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. Factors considered include:

•

Significant changes in the operational performance or manner of use of acquired assets or the strategy for our overall business,

•

Significant negative market conditions or economic trends, and

•

Significant technological changes or legal factors which may render the asset obsolete.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value Measurements

- Level 1: Quoted market prices in active markets for identical assets or liabilities

- Level 2: Observable market-based inputs or inputs that are corroborated by market data

- Level 3: Unobservable inputs that are not corroborated by market data

Asset Retirement Obligations and Accrued Reclamation Liability [Policy Text Block]

Accounting for Asset Retirement Obligations and Accrued Reclamation Liability

Earnings Per Share, Policy [Policy Text Block]

Net Loss per Common Share

Income Tax, Policy [Policy Text Block]

Income Taxes

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

In January 2017, the FASB issued ASU No. 2017-01,

Clarifying the Definition of a Business,

In February 2016, the FASB issued ASU No. 2016-02,

Leases

Management believes recently issued accounting pronouncements will have no impact on the financial statements of the Company.

XML 31 R19.htm IDEA: XBRL DOCUMENT

INVENTORY (Tables)

3 Months Ended

Jun. 30, 2018

Inventory, Net [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventory, which primarily represents finished goods, packaging and fuel are valued at the lower of cost (average) or net realizable value.

	June 30, 2018		March 31, 2018

Blasted Rock	$	20,162	$	37,157
Finished Goods		2,048		3,180
Packaging		4,895		9,614
Propane and Fuel		1,590		4,339
Total	$	28,695	$	54,290

XML 32 R20.htm IDEA: XBRL DOCUMENT

NOTE PAYABLE (Tables)

3 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

The conversion feature in the Note Purchase Agreement was valued at $769,000 and recorded as a discount to the CVA Note. The carrying value of the CVA Note at June 30, 2018:

Principal value	$	2,250,000
Accrued interest		426,148
Unamortized debt discount		(197,460	)
Note payable, net	$	2,478,688

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EQUIPMENT LOAN AND CAPITAL LEASE PAYABLE (Tables)

3 Months Ended

Jun. 30, 2018

Disclosure Text Block Supplement [Abstract]

Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]

Future payments on capital lease obligations are as follows:

Fiscal year ended June 30:

2019	$	40,446
2020		20,838
Total future minimum lease payments	$	61,284

XML 34 R22.htm IDEA: XBRL DOCUMENT

FORMATION, CORPORATE CHANGES AND MATERIAL MERGERS AND ACQUISITIONS (Details Textual) - Rocky Mountain Resource Holdings LLC [Member]	1 Months Ended
	Nov. 17, 2014 USD ($) shares
Formation Corporate Changes and Material Mergers And Acquisitions [Line Items]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares \| shares	5,200,000
Business Acquisition, Percentage of Voting Interests Acquired	69.06%
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable \| $	$ 357,670

XML 35 R23.htm IDEA: XBRL DOCUMENT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($)	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Mar. 31, 2017
Cash	$ 2,166,867	$ 814,621	$ 320,528	$ 1,608,094
Inventory, Net	$ 28,695	$ 54,290
Inflation Rate	2.15%

XML 36 R24.htm IDEA: XBRL DOCUMENT

ACCOUNTS RECEIVABLE (Details Textual) - USD ($)	Jun. 30, 2018	Mar. 31, 2018
Accounts Receivable, Net, Current	$ 105,974	$ 79,630

XML 37 R25.htm IDEA: XBRL DOCUMENT

INVENTORY (Details) - USD ($)	Jun. 30, 2018	Mar. 31, 2018
Blasted Rock	$ 20,162	$ 37,157
Finished Goods	2,048	3,180
Packaging	4,895	9,614
Propane and Fuel	1,590	4,339
Total	$ 28,695	$ 54,290

XML 38 R26.htm IDEA: XBRL DOCUMENT

NOTE PAYABLE (Details) - USD ($)	Jun. 30, 2018	Mar. 31, 2018	Oct. 03, 2016
Principal value			$ 2,250,000
Note payable, net	$ 2,478,688	$ 2,247,213
Central Valley Administrators Inc [Member] \| Promissory Note [Member]
Principal value	2,250,000		$ 2,250,000
Accrued interest	426,148
Unamortized debt discount	(197,460)
Note payable, net	$ 2,478,688

XML 39 R27.htm IDEA: XBRL DOCUMENT

NOTE PAYABLE (Details Textual)	Oct. 03, 2016 USD ($) shares	Jun. 30, 2018 USD ($)
Debt Instrument, Face Amount	$ 2,250,000
Note Purchase Agreement [Member]
Debt Instrument, Convertible, Beneficial Conversion Feature	$ 769,000
Note Purchase Agreement [Member] \| Maximum [Member]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	4.99%
Note Purchase Agreement [Member] \| RMR Aggregates Shares [Member]
Percentage Of Issued And Outstanding Common Stock	20.00%
Debt Instrument, Convertible, Number of Equity Instruments	20,000
Promissory Note [Member] \| Central Valley Administrators Inc [Member]
Debt Instrument, Face Amount	$ 2,250,000	$ 2,250,000
Debt Instrument, Maturity Date	Oct. 03, 2018
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Common Class B [Member] \| Note Purchase Agreement [Member]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right \| shares	7.5

XML 40 R28.htm IDEA: XBRL DOCUMENT

EQUIPMENT LOAN AND CAPITAL LEASE PAYABLE (Details)	Jun. 30, 2018 USD ($)
2019	$ 40,446
2020	20,838
Total future minimum lease payments	$ 61,284

XML 41 R29.htm IDEA: XBRL DOCUMENT

EQUIPMENT LOAN AND CAPITAL LEASE PAYABLE (Details Textual)	3 Months Ended
	Jun. 30, 2018 USD ($)
Maximum [Member] \| Equipmemnt Loan [Member]
Debt Instrument, Term	12 months
Debt Instrument, Interest Rate, Stated Percentage	4.78%
Minimum [Member] \| Equipmemnt Loan [Member]
Debt Instrument, Interest Rate, Stated Percentage	1.99%
Equipment [Member]
Capital Leased Assets, Gross	$ 582,709
Capital Lease Agreement [Member]
Capital Lease Remaining Term	18 months

XML 42 R30.htm IDEA: XBRL DOCUMENT

TRANSACTIONS WITH RELATED PARTIES (Details Textual)	3 Months Ended
TRANSACTIONS WITH RELATED PARTIES (Details Textual)	Jun. 30, 2018 USD ($)
Related Party Transaction [Line Items]
Accrued Liabilities	$ 201,566
Industrial Management LLC [Member]
Related Party Transaction [Line Items]
Management Fee, Description	annual cash management fee in an amount equal to the greater of 2% of the Company’s annual gross revenues or $1,000,000
Officer [Member]
Related Party Transaction [Line Items]
Officers' Compensation	$ 35,000
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Accrued Salaries, Current	$ 1,925,000

XML 43 R31.htm IDEA: XBRL DOCUMENT

SHAREHOLDERS' DEFICIT (Details Textual) - USD ($)	3 Months Ended
SHAREHOLDERS' DEFICIT (Details Textual) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018
Preferred Stock, Shares Authorized	50,000,000		50,000,000
Proceeds from Issuance of Common Stock	$ 3,123,468	$ 700,000
Minimum [Member]
Sale of Stock, Price Per Share	$ 14.00
Maximum [Member]
Sale of Stock, Price Per Share	$ 17.00
Common Stock [Member]
Preferred Stock, Shares Authorized	2,100,000,000
Proceeds from Issuance of Common Stock	$ 3,123,681
Sale of Stock, Number of Shares Issued in Transaction	209,040
Common Class A [Member]
Common Stock, Shares Authorized	2,000,000,000		2,000,000,000
Common Stock, Shares, Issued	35,785,858		35,785,858
Common Stock, Shares, Outstanding	35,785,858		35,785,858
Common Class B [Member]
Common Stock, Shares Authorized	100,000,000		100,000,000
Common Stock, Shares, Issued	3,223,007		2,868,967
Common Stock, Shares, Outstanding	2,913,007		2,703,967

XML 44 R32.htm IDEA: XBRL DOCUMENT

SELLING GENERAL AND ADMINISTRATIVE COSTS (Details Textual) - USD ($)	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Selling, General and Administrative Expense	$ 1,411,849	$ 1,148,988

XML 45 R33.htm IDEA: XBRL DOCUMENT

INTEREST EXPENSE (Details Textual)	Oct. 03, 2016 USD ($)
Debt Instrument, Face Amount	$ 2,250,000

XML 46 R34.htm IDEA: XBRL DOCUMENT

SUBSEQUENT EVENTS (Details Textual) - Subsequent Event [Member]	Jul. 31, 2018 a $ / shares shares
Real Property [Member]
Subsequent Event [Line Items]
Area of Land \| a	150
Common Class B [Member]
Subsequent Event [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights \| shares	114,705
Common Class B [Member] \| Minimum [Member]
Subsequent Event [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 10.00
Common Class B [Member] \| Maximum [Member]
Subsequent Event [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 17.00