Richtech Robotics (RR) - 2024 Q1 - Quarterly Report

Financial Performance - Net revenue increased to $1,106 thousand in Q4 2023, up from$946 thousand in Q4 2022[16] - Net loss widened to $2,748 thousand in Q4 2023 compared to$1,202 thousand in Q4 2022[16] - Total operating expenses rose to $2,872 thousand in Q4 2023 from$1,701 thousand in Q4 2022[16] - Total revenue for the three months ended December 31, 2023, was $1,106 thousand, compared to$946 thousand in the same period in 2022[47] - Robotics revenue increased from $936 thousand in 2022 to$999 thousand in 2023, driven by service revenue growth[47] - Cloutea, the boba tea store, generated $61 thousand in revenue since its opening in May 2023[47] - Net loss attributable to common stockholders increased to$2.748 million in Q4 2023 from $1.202 million in Q4 2022, representing a 129$(0.04) in Q4 2023 compared to $(0.02) in Q4 2022[59] - Total revenue increased by 20$1.106 million in Q4 2023 from $946 thousand in Q4 2022, driven by a 244$999 thousand in Q4 2023, with service revenue increasing by $567 thousand (244$426 thousand (69%)[78] - Cost of revenue increased by $50 thousand (11$496 thousand in Q4 2023, driven by higher robotics service revenue[79] - Gross profit margin improved to 61% in Q4 2023 from 53% in Q4 2022, primarily due to higher-margin robotics service revenue[80] - R&D expenses remained stable at $834 thousand in Q4 2023, with an anticipated increase of 20-30$516 thousand (653%) to $595 thousand in Q4 2023 due to increased advertising and social media marketing[81] - General and administrative expenses rose by$676 thousand (88%) to $1,443 thousand in Q4 2023, mainly due to professional service fees for maintaining public company status[82] - Total other expense increased by$485 thousand (48,500%) to $486 thousand in Q4 2023, driven by interest expenses from short-term loans[83] Cash Flow and Financing - Cash and cash equivalents decreased from$7,535 thousand to $433 thousand between December 31, 2023, and September 30, 2023[14] - Net cash provided by financing activities was$8,339 thousand in Q4 2023, compared to $1,489 thousand in Q4 2022[23] - The company entered into ten short-term loan agreements totaling$1.853 million in 2023, with a remaining balance of $50 thousand as of December 31, 2023[63] - Operating cash outflows were$1,212 thousand in Q4 2023, with working capital at $10,665 thousand as of December 31, 2023[85] - Net cash provided by financing activities totaled$8,339 thousand in Q4 2023, primarily from the issuance of ordinary shares[91] Assets and Liabilities - Accounts receivable decreased from $5,576 thousand to$3,144 thousand between September 30, 2023, and December 31, 2023[14] - Total assets increased to $12,311 thousand as of December 31, 2023, from$7,853 thousand as of September 30, 2023[14] - Total liabilities rose to $3,044 thousand as of September 30, 2023, from$964 thousand as of December 31, 2023[14] - Stockholders' equity increased to $11,347 thousand as of December 31, 2023, from$4,809 thousand as of September 30, 2023[14] - Accounts receivable include unbilled receivables expected to be billed and collected within twelve months[35] - Allowance for doubtful accounts was $165 as of December 31, 2023, and$333 as of September 30, 2023[36] - Total inventories decreased from $822 thousand in September 2023 to$654 thousand in December 2023[38] - Property and equipment, net, decreased from $28 thousand in September 2023 to$24 thousand in December 2023[40] Operational Highlights - The company operates in over 80 cities across the United States, providing robotic solutions for various industries[26] - Cloutea, the company's boba tea store utilizing the ADAM robot, generated $61 thousand in revenue since its opening in May 2023[77] - The company anticipates increased general and administrative expenses due to costs associated with being a public company, including compliance, insurance, and investor relations[75] - Inflationary pressures and rising interest rates are expected to impact component costs, profit margins, and future borrowing costs[75] Accounting and Compliance - Cash and cash equivalents are placed in highly liquid instruments with financial institutions having high credit ratings[34] - Research and development costs are expensed as incurred, primarily consisting of employee-related expenses and facilities costs[49] - The company adopted new lease accounting standards effective January 1, 2022, recognizing right-of-use assets and lease liabilities[53] - Operating lease costs increased to$90 thousand in Q4 2023 from $37 thousand in Q4 2022, with total future minimum lease payments of$280 thousand as of December 31, 2023[69] - The company identified a material weakness in IT controls over third-party systems relevant to financial reporting[105] - Management is implementing remediation measures to address the material weakness in internal controls over financial reporting[109] - No litigation currently pending or contemplated against the company, its officers, or directors[115] - No material changes to previously disclosed risk factors as of the report date[116] - No unregistered sales of equity securities or use of proceeds reported[117] - No defaults upon senior securities reported[118] - Mine safety disclosures are not applicable to the company[119] - No other information disclosed in the report[120] - Exhibits filed include certifications under the Sarbanes-Oxley Act and Inline XBRL documents[122] - Certifications furnished under Section 906 of the Sarbanes-Oxley Act[123] - Report signed by Zhenwu Huang, CEO, and Zhenqiang Huang, CFO, on February 14, 2024[127] Stock and Equity - The company registered 6,000,000 shares of Class B common stock for its Employee Stock Option Plan, expected to be granted and effective in March 2024[71]