Richtech Robotics (RR) - 2025 Q3 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements Financial statements for the nine months ended June 30, 2025, reflect significant asset growth, slight revenue decline, and a widened net loss driven by increased expenses Consolidated Balance Sheets As of June 30, 2025, total assets surged to $107.3 million, driven by cash and short-term investments, with stockholders' equity increasing significantly from stock issuances Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | September 30, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $32,893 | $14,566 | | Short term investment | $52,616 | $15,940 | | Total current assets | $88,851 | $33,046 | | Total assets | $107,329 | $42,651 | | Liabilities & Equity | | | | Total current liabilities | $739 | $455 | | Total liabilities | $1,378 | $913 | | Total stockholders' equity | $105,951 | $41,738 | Consolidated Statements of Operations For the nine months ended June 30, 2025, revenue slightly decreased, gross profit improved, but a significant surge in general and administrative expenses led to a widened net loss of $12.2 million Statement of Operations Summary (in thousands) | Metric | Nine Months ended June 30, 2025 | Nine Months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue, net | $3,601 | $3,715 | | Gross profit | $2,723 | $2,304 | | Total operating expenses | $16,067 | $6,407 | | Loss from operations | $(13,344) | $(4,103) | | Net loss attributable to the Company | $(12,160) | $(5,181) | | Basic and diluted net loss per share | $(0.11) | $(0.07) | Quarterly Statement of Operations Summary (in thousands) | Metric | Three Months ended June 30, 2025 | Three Months ended June 30, 2024 | | :--- | :--- | :--- | | Revenue, net | $1,177 | $1,443 | | Gross profit | $876 | $1,014 | | Loss from operations | $(4,507) | $(895) | | Net loss attributable to the Company | $(4,063) | $(1,313) | Consolidated Statements of Cash Flows For the nine months ended June 30, 2025, cash and cash equivalents increased by $18.3 million, primarily driven by $71.1 million from financing activities, offsetting operational and investing outflows Cash Flow Summary (in thousands) | Cash Flow Activity | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $(11,197) | $(2,121) | | Net cash used in investing activities | $(41,532) | $135 | | Net cash used in financing activities | $71,056 | $10,754 | | Net change in cash and cash equivalents | $18,327 | $8,768 | Notes to Consolidated Financial Statements Notes detail the company's service robotic solutions business, key accounting policies including RaaS revenue recognition, and successful At-The-Market (ATM) offerings raising significant capital - The company provides service robotic solutions, including delivery, cleaning, and food & beverage services, deployed in over 80 U.S. cities[29] - The company executed an At-The-Market (ATM) offering, issuing 23,682,395 shares of Class B common stock for net proceeds of approximately $50.8 million[48][51] - Revenue from Robots-as-a-Service (RaaS) is recognized over time on a monthly basis as services are provided[55] - Subsequent to quarter end, as of August 11, 2025, the company issued an additional 11,226,521 shares under the ATM program, receiving net proceeds of approximately $21.8 million[70] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management attributes revenue decline to a RaaS model shift, explains widened net loss by increased G&A expenses, and highlights improved liquidity from successful stock offerings Overview and Recent Developments Recent developments include joining the NVIDIA Connect program, purchasing a new 20,000 sq. ft. headquarters for $4.1 million, and inclusion in the Russell 2000® and 3000® Indexes - In July 2025, the company joined the NVIDIA Connect program, gaining access to developer resources and training[73] - On May 15, 2025, the company purchased a new 20,000 sq. ft. property in Las Vegas for $4.1 million to serve as its new headquarters and expand assembly operations[75] - The company was added to the FTSE Russell 2000® and Russell 3000® Indexes in June 2025[76] Results of Operations For the nine months ended June 30, 2025, revenue decreased due to a RaaS model shift, gross profit increased, but surging G&A expenses led to significant operating and net losses - The year-over-year revenue decrease is attributed to a strategic shift to a Robots-as-a-Service (RaaS) model, focusing on recurring revenue over one-time sales[82] Revenue Breakdown (in thousands) | Revenue Stream | Nine Months ended June 30, 2025 | Nine Months ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Product revenue | $1,567 | $1,252 | $315 | | Service/rental revenue | $1,151 | $1,510 | $(359) | | Leasing revenue | $380 | $604 | $(224) | | Total Revenue | $3,601 | $3,715 | $(114) | - Cost of revenue for the nine-month period decreased by 37.7% year-over-year, primarily due to capitalizing robot costs under the leasing model instead of expensing them as COGS[88] - General and administrative expenses for the nine-month period increased by $10.1 million (268.7%) year-over-year, driven by higher personnel costs, professional fees, and new office costs[99][106] - Investment income of $1.1 million was generated in the first nine months of fiscal 2025, compared to zero in the prior year, due to investing proceeds from stock issuances in short-term CDs and U.S. Treasury bills[103][104] Liquidity and Capital Resources As of June 30, 2025, liquidity significantly improved, with cash and cash equivalents totaling $32.9 million, primarily due to $48.6 million from stock issuances and $9.2 million from warrant exercises Cash and Cash Equivalents (in millions) | Date | Amount | | :--- | :--- | | June 30, 2025 | $32.9 | | September 30, 2024 | $14.6 | - The increase in cash was driven by $71.1 million in net cash from financing activities, partially offset by $11.2 million used in operations and $41.5 million used in investing[109] Item 3. Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, Richtech Robotics Inc. is not required to provide this disclosure - Disclosure is not required for smaller reporting companies[116] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The company's Certifying Officers concluded that disclosure controls and procedures were effective as of June 30, 2025[118] - No material changes occurred during the fiscal quarter ended June 30, 2025, affecting internal control over financial reporting[120] PART II. OTHER INFORMATION Item 1. Legal Proceedings A civil action was filed against the company in June 2025, seeking over $600,000 for breach of contract and fraud, which management believes is without merit - A civil lawsuit was filed against the company in June 2025, seeking damages in excess of $600,000 for claims including breach of contract and fraud[123] - Management believes the claims lack merit and does not anticipate a material adverse impact on the company's financials[124] Item 1A. Risk Factors As a smaller reporting company, this section is not required, and no material changes to previously disclosed risk factors have occurred - As a smaller reporting company, disclosure of risk factors in the 10-Q is not required, and no material changes to previously disclosed risk factors have occurred[125] Other Items (Items 2, 3, 4, 5) The company reported no unregistered sales of equity securities, no defaults upon senior securities, no mine safety disclosures, and no Rule 10b5-1 trading arrangement changes - Item 2: No unregistered sales of equity securities[126] - Item 3: No defaults upon senior securities[127] - Item 5: No directors or Section 16 officers adopted or terminated a Rule 10b5-1 trading arrangement[129] Item 6. Exhibits This section lists exhibits filed with the report, including agreements for property purchase, ATM offering, product sales, and officer certifications - Exhibits filed include the At The Market Offering Agreement, a Purchase and Sale Agreement for property, and officer certifications required by the Sarbanes-Oxley Act[132]