Revenue and Profitability - Revenue for the six months ended March 31, 2024 increased to $2.272 million, up from $2.054 million in the same period in 2023[16] - Gross profit for the six months ended March 31, 2024 was $1.290 million, compared to $1.146 million in the same period in 2023[16] - Total revenue for the six months ended March 31, 2024, was $2,272 thousand, up from $2,054 thousand in the same period in 2023[48] - Robotics revenue increased to $2,058 thousand in the six months ended March 31, 2024, compared to $2,001 thousand in the same period in 2023, driven by growth in service and leasing revenues[48] - Cloutea, the company's boba tea store utilizing the ADAM robot, generated $158 thousand in revenue since its opening in May 2023[48] Net Loss and Expenses - Net loss for the six months ended March 31, 2024 was $3.868 million, compared to $1.879 million in the same period in 2023[16] - Total operating expenses for the six months ended March 31, 2024 increased to $4.498 million, up from $3.024 million in the same period in 2023[16] - Net loss for the six months ended March 31, 2024 was $3.868 million, compared to $1.879 million in the same period in 2023[24] - The company's net loss attributable to common stockholders widened to $3,868 thousand in the six months ended March 31, 2024, from $1,879 thousand in the same period in 2023[59] - Basic and diluted net loss per share increased to $0.06 in the six months ended March 31, 2024, compared to $0.03 in the same period in 2023[59] Cash and Assets - Cash and cash equivalents as of March 31, 2024 were $8.195 million, a significant increase from $433,000 as of September 30, 2023[14] - Total assets as of March 31, 2024 were $13.221 million, compared to $7.853 million as of September 30, 2023[14] - Cash, cash equivalents, and restricted cash increased from $433,000 at the beginning of the period to $8.195 million at the end of March 2024[24] - The company received $9.278 million from stockholder capital injections during the first half of 2024[24] Liabilities and Equity - Total liabilities as of March 31, 2024 were $3.002 million, slightly down from $3.044 million as of September 30, 2023[14] - Total stockholders' equity as of March 31, 2024 was $10.219 million, up from $4.809 million as of September 30, 2023[14] - The company's short-term loan balance totaled $2,053 thousand as of March 31, 2024, including a $53 thousand loan from Stripe Capital[77] - The company issued a third Note to the Investor with a principal amount of $1,000,000 and a purchase price of $960,000, representing a 4% original issue discount, bearing interest at 8% per annum, and maturing on February 15, 2025[85] - The company issued 259,350 Commitment Shares to the Investor, which may have potential dilutive effects on future earnings per share calculations[86] Research and Development - Research and development expenses for the six months ended March 31, 2024 were $1.247 million, slightly down from $1.272 million in the same period in 2023[16] Sales and Marketing - Sales and marketing expenses for the six months ended March 31, 2024 increased significantly to $787,000, up from $166,000 in the same period in 2023[16] Inventory and Property - Total inventories decreased from $822,000 in September 2023 to $292,000 in March 2024, with raw materials dropping from $164,000 to $58,000 and finished goods from $658,000 to $234,000[39] - Property and equipment, net decreased from $28,000 in September 2023 to $24,000 in March 2024[41] Accounts Receivable and Cash Flow - Accounts receivable adjustments contributed $1.823 million to operating cash flows in the first half of 2024, compared to a $201,000 reduction in the same period of 2023[24] Revenue Recognition and Accounting Standards - Revenue is recognized upon customer acquisition of control, aligning with shipment or delivery dates as per contract terms[45] - The company maintains an emerging growth company status under the JOBS Act, allowing delayed adoption of new accounting standards[29] - The company adopted new accounting standards for leases (ASU 2016-02) and income taxes (ASU 2019-12), with no material impact on financial statements[54][55] Related Party Transactions - The company's related party balances included $171 thousand due from related parties and $90 thousand due to related parties as of March 31, 2024[78] Internal Controls and IT Systems - The company implemented QuickBooks Online to centralize transaction documentation, automate key accounting processes, and enhance data security[135] - The company integrated QuickBooks' inventory management module to improve real-time visibility, reduce calculation errors, and enhance accuracy[135] - The company established more specific controls for SaaS reports to address Complementary User Entity Controls arising from SaaS vendor audits[135] - The company expanded management oversight and controls within its IT systems to enhance IT governance[135] - The company implemented specific controls to ensure the completeness and accuracy of information produced by the entity (IPE), especially spreadsheets used in financial statement preparation[135] - The company improved access management by implementing enhanced controls for internal user access, including provisioning, periodic review, and timely removal[135] - The company evaluated the effectiveness of its ICFR based on the 2013 COSO framework and took decisive actions to address a previously identified material weakness[134] - There were no changes in the company's internal control over financial reporting during the fiscal quarter ended March 31, 2024 that materially affected or are likely to materially affect its internal control over financial reporting[139] Stock Issuance and Agreements - The company issued 2,327,847 new Class B shares during the first quarter of 2024[21] - The company entered into a Standby Equity Purchase Agreement allowing the purchase of up to $50 million of Class B common stock over 24 months, with shares priced at 96% of the lowest VWAP[63] Tax and Financial Reporting - The company recorded zero income tax benefit/expense for both six-month periods ended March 31, 2024 and 2023, with no material uncertain tax positions[61][62] Business Operations and Market Presence - Richtech Robotics operates in over 80 US cities, providing robotic solutions for delivery, cleaning, and food service across various industries[27]
Richtech Robotics (RR) - 2024 Q2 - Quarterly Report