Financial Performance - Total revenue for the three months ended December 31, 2024, was $1,257,000, representing a 13.7% increase from $1,106,000 in the same period of 2023[16] - Gross profit for the same period was $1,134,000, up from $610,000, indicating an increase of 85.7%[16] - Operating expenses increased to $5,032,000 from $2,872,000, a rise of 75% year-over-year[16] - The net loss for the three months ended December 31, 2024, was $3,548,000, compared to a net loss of $2,748,000 in the prior year, reflecting a 29.2% increase in losses[16] - For the three months ended December 31, 2024, the net loss attributable to common stockholders was $3.548 million, with a weighted average of 95,785,054 shares used in computing the loss per share of $0.04[62] - The company reported a net loss of $3,548 thousand for the three months ended December 31, 2024, compared to a net loss of $2,750 thousand in the same period of 2023[84] Cash and Assets - Cash and cash equivalents increased to $19,827,000 as of December 31, 2024, from $14,566,000 at the end of September 2024, a growth of 36.5%[14] - Total assets rose to $51,424,000 as of December 31, 2024, compared to $42,651,000 at the end of September 2024, marking a 20.6% increase[14] - Total inventories increased to $1.396 million as of December 31, 2024, from $1.148 million as of September 30, 2024, with raw materials at $843 thousand and finished goods at $553 thousand[38] - Property and equipment, net increased to $802 thousand as of December 31, 2024, from $738 thousand as of September 30, 2024, with depreciation expenses for the quarter at $9 thousand[40] - Intangible assets, net rose to $9.576 million as of December 31, 2024, compared to $7.620 million as of September 30, 2024, with amortization expenses for the quarter at $499 thousand[42] Capital and Stock - The company reported a significant increase in additional paid-in capital, which rose to $61,366,000 from $49,667,000, an increase of 23.5%[14] - The number of shares issued and outstanding for Class B Common stock increased from 53,795,254 to 67,623,705, reflecting a growth of 25.7%[14] - The company issued 13,828,451 shares of Class B common stock during the quarter ended December 31, 2024, generating total proceeds of $8.064 million from warrant exercises alone[43] - In January 2025, the company issued 3,814,611 shares of Class B common stock, raising approximately $5,149,724.85 from warrant exercises[68] - The company issued warrants to Rodman to purchase an aggregate of 188,986 shares of Class B common stock at an exercise price of $5.00 per share[138] Revenue Streams - The company generates revenue through Robots-as-a-Service (RaaS) offerings, recognizing revenue over time on a monthly basis as services are provided[49] - Product revenue surged to $750 thousand in Q4 2024 from $187 thousand in Q4 2023, reflecting a growth of $563 thousand, or 300%[92] - Service/rental revenue dropped significantly to $133 thousand in Q4 2024 from $799 thousand in Q4 2023, a decline of $666 thousand, or 83.4%[94] - Leasing revenue increased substantially to $138 thousand in Q4 2024 from $13 thousand in Q4 2023, marking a growth of $125 thousand, or 961.5%[95] - Gross profit rose to $1,134 thousand in Q4 2024, up $526 thousand, or 86%, from $609 thousand in Q4 2023, driven by a reduction in cost of revenue[96] - Gross margin improved to 90% in Q4 2024, compared to 55% in Q4 2023, indicating enhanced profitability[97] Operational Developments - The company has implemented its robotic solutions in over 80 cities across the United States, addressing labor shortages in various service sectors[24] - Richtech Robotics Inc. aims to be a long-term partner for clients by providing a range of robotic solutions to enhance operational efficiency[24] - The strategic transition to a Robotics-as-a-Service (RaaS) model aims to generate more predictable and recurring revenue streams, enhancing customer accessibility to advanced technologies[78] - The company opened its first Clouffee & Tea franchise store in February 2025, marking its entry into the automated coffee and tea service market[69] - The company anticipates continued growth in service and leasing revenue as it expands its RaaS offerings and market reach[88] Compliance and Governance - The company will remain an emerging growth company until the earliest of (1) the last day of the first fiscal year following the fifth anniversary of its IPO, (2) total annual gross revenue reaches at least $1.235 billion, or (3) market value of common stock held by non-affiliates exceeds $700 million[28] - The company intends to take advantage of reduced regulatory and reporting requirements as an "emerging growth company" under the JOBS Act[124] - The company is exempt from the provisions of Section 404(b) of the Sarbanes-Oxley Act, which requires an attestation report on internal controls over financial reporting[125] - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2024[128] - There have been no changes in internal control over financial reporting that materially affected the company during the fiscal quarter ended December 31, 2024[130] - The company has implemented comprehensive policies to maintain accurate financial records and ensure GAAP-compliant financial reporting[131] Legal and Settlement - The company agreed to pay ACSS a sum of $430,000 as part of a Settlement Agreement[139] - As of December 31, 2024, the allowance for credit losses was $103 thousand, down from $197 thousand as of September 30, 2024, indicating improved credit risk management[36]
Richtech Robotics (RR) - 2025 Q1 - Quarterly Report