Richtech Robotics Files Q2 2024 10-Q

TL;DR

Richtech Robotics filed its Q2 10-Q. All systems go.

AI Summary

Richtech Robotics Inc. filed its quarterly report on Form 10-Q for the period ended June 30, 2024. The company, incorporated in Nevada, is involved in general industrial machinery and equipment. Its principal executive offices are located at 4175 Cameron St Ste 1, Las Vegas, NV 89103, with a contact phone number of (866) 236-3835.

Why It Matters

This filing provides investors with an update on Richtech Robotics' financial performance and operational status for the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a standard quarterly filing with no immediate red flags or significant new information presented.

Key Players & Entities

• RICHTECH ROBOTICS INC. (company) — Registrant
• June 30, 2024 (date) — Quarterly period end date
• 0001213900-24-069231 (filing_id) — Accession Number
• 4175 CAMERON ST STE 1 (address) — Principal executive office street
• LAS VEGAS (location) — Principal executive office city
• NV (state) — Principal executive office state
• 89103 (zip_code) — Principal executive office zip
• 8662363835 (phone_number) — Registrant's telephone number

FAQ

Key Financial Figures

• $0.00001 — tered: Class B Common Stock, par value $0.00001 per share RR The Nasdaq Stock Market LL

Filing Documents

• ea0211245-10q_richtech.htm (10-Q) — 553KB
• ea021124501ex31-1_richtech.htm (EX-31.1) — 11KB
• ea021124501ex31-2_richtech.htm (EX-31.2) — 11KB
• ea021124501ex32-1_richtech.htm (EX-32.1) — 5KB
• ea021124501ex32-2_richtech.htm (EX-32.2) — 5KB
• 0001213900-24-069231.txt ( ) — 3351KB
• rr-20240630.xsd (EX-101.SCH) — 28KB
• rr-20240630_cal.xml (EX-101.CAL) — 34KB
• rr-20240630_def.xml (EX-101.DEF) — 146KB
• rr-20240630_lab.xml (EX-101.LAB) — 248KB
• rr-20240630_pre.xml (EX-101.PRE) — 146KB
• ea0211245-10q_richtech_htm.xml (XML) — 327KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1 Item 1.

Financial Statements

Financial Statements 1 Balance Sheets as of June 30, 2024(Unaudited) and September 30, 2023 1 2 5

Notes to Financial Statements

Notes to Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 24 Item 4.

Controls and Procedures

Controls and Procedures 24

OTHER INFORMATION

PART II. OTHER INFORMATION 26 Item 1.

Legal Proceedings

Legal Proceedings 26 Item 1A.

Risk Factors

Risk Factors 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27 Item 3. Defaults Upon Senior Securities 27 Item 4. Mine Safety Disclosures 27 Item 5. Other Information 27 Item 6. Exhibits 27

SIGNATURES

SIGNATURES 28 i CAUTIONARY NOTE REGARDING

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q (this "Report") contains "forward-looking statements" (as defined in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) that reflect our current expectations and views of future events. The forward-looking statements are contained principally in the section of this Report entitled " Management's Discussion and Analysis of Financial Condition and Results of Operations ." Readers are cautioned that significant known and unknown risks, uncertainties and other important factors (including those over which we may have no control and others listed in this Report and in the " Risk Factors " section of our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 ("2023 Annual Report"), as filed with the Securities and Exchange Commission (the "SEC") on March 27, 2024 may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. We have based these forward-looking statements on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our operations and business prospects are always subject to risks and uncertainties including, among others: Our ability to secure raw materials and components to manufacture sufficient quantities of robots to match demand; Our ability to secure enterprise clients and deals in the face of growing competition; Assumptions around the speed of robotic adoption in service environments; Assumptions relati

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements RICHTECH ROBOTICS INC. BALANCE SHEETS (In thousands, except share and per share data) June 30, 2024 September 30, 2023 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 9,201 $ 433 Accounts receivable, (net of allowance for doubtful accounts) 3,127 5,576 Amount due from related parties, current - 134 Inventory 399 822 Prepaid expenses and other current assets 2 17 Total current assets 12,729 6,982 Property and equipment, net 21 28 Deferred tax assets, net - 518 Operating lease right-of-use-assets 603 315 Other assets, non-current 27 10 Total assets $ 13,380 $ 7,853 LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,015 $ 1,126 Amount due to related parties, current - 238 Accrued expenses 33 59 Short-term loan 2,386 845 Tax payables 264 461 Operating lease liabilities, current 196 161 Total current liabilities 3,894 2,890 Operating lease liabilities, non-current 407 154 Total liabilities 4,301 3,044 Commitments and contigencies Stockholders' equity: Class A Common stock, $ 0.0001 par, 100,000,000 shares authorized as of June 30, 2024 and September 30, 2023, 42,153,846 and 44,353,846 shares issued and outstanding as of June 30, 2024 and September 30, 2023, respectively $ - $ - Class B Common stock, $ 0.0001 par, 200,000,000 shares authorized as of June 30, 2024 and September 30, 2023, 27,530,097 and 17,813,000 shares issued and outstanding as of June 30, 2024 and September 30, 2023,respectively. - - Additional Paid-in Capital 14,059 4,608 Retained earnings ( 4,980 ) 201 Total stockholders' equity 9,079 4,809 Total liabilities, preferred stock and stockholder's equity $ 13,380 $ 7,853 See accompanying Notes to Financial Statements. 1 RICHTECH ROBOTICS INC. (In thousands, except share and per share data) Nine months

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Dollars in thousands, unless otherwise stated) NOTE 1: Nature of Business Description of Business Richtech Robotics Inc. ("we", "us", "our", the "Company", or "Richtech"), is a Nevada C-Corporation registered in Nevada. Richtech was converted from Richtech Creative Displays, LLC on June 22, 2022, the predecessor of Richtech established on July 19, 2016 in Nevada. We are a pioneer in service robotic solutions, developing and deploying cutting-edge technology that directly tackles the critical labor shortage plaguing the US service industry. Our diverse suite of solutions, encompassing delivery, commercial cleaning, food & beverage service, and custom development, has been transforming operations in over 80 cities across the United States. From bustling restaurants and hotels to dynamic casinos, senior living facilities, factories, and retail centers, our robots are automating repetitive, time-consuming tasks, allowing businesses to reallocate valuable human capital to higher-level roles. Many of our clients consider our solutions essential for their expansion and growth. We are committed to being a long-term partner, continuously innovating and providing a comprehensive range of solutions that remedy specific challenges and propel our clients' success. Risk and Uncertainties The Company's performance is inherently tied to global business and economic conditions, including interest rates, inflation, capital markets, and overall economic health. These factors, outside of our direct control, can fluctuate significantly and potentially impact our financial results. Adverse changes in these conditions could have a material adverse effect on our business. In addition, we operate in a highly competitive industry with numerous established players boasting extensive resources and well-developed marketing and sales operations. Our ability to compete effectively and gain market share is

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Dollars in thousands, unless otherwise stated) NOTE 2: Summary of Significant Accounting Policies Basis of Presentation These financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP"), pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the financial liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Segment Reporting Operating segments are identified as components of an enterprise about which separate financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. We view our operations and manage our business as one operating segment. Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. We place our cash and cash equivalents in highly liquid instruments with, and in the custody of, financial institutions with high credit ratings. $ 604,500 of our cash and cash equivalents is earmarked for a future investment in a cafe. Once this investment is finalized, the corresponding funds will be reclassified as long-term investments on our balance sheet. Accounts Receivable Accounts receivable primarily consist of trade receivables presented in net of rebates, price protection and an allowance for credit loss. Accounts receivable also include unbilled receivables, which p

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Dollars in thousands, unless otherwise stated) NOTE 2: Summary of Significant Accounting Policies (cont.) Inventory as of June 30, 2024 and September 30, 2023 are as follows: June 30, 2024 September 30, 2023 Raw materials $ 80 $ 164 Finished goods 319 658 Total inventories $ 399 $ 822 Property, and Equipment, net Property and equipment, net, is stated at cost less accumulated depreciation and amortization and is depreciated using the straight-line method over the estimated useful lives of the assets. Estimated useful lives of equipment is two to six years, and leasehold improvements are measured by the shorter of the remaining terms of the leases or the estimated useful economic lives of the improvements. Property and equipment as of June 30, 2024 and September 30, 2023 are as follows: June 30, 2024 September 30, 2023 Furniture, fixtures & equipment $ 65 $ 63 Leasehold improvements 4 4 69 67 Accumulated depreciation ( 48 ) ( 39 ) Property and equipment, net $ 21 $ 28 Depreciation expense for the nine months ended June 30, 2024 and 2023 was $ 9 and $ 6 , respectively Stockholders' Equity According to ASC 505-10-S99-4, changes in the capital structure of a reporting entity due to a stock dividend, stock split or reverse split occurring after the date of the latest reported balance sheet but before the release of the financial statements (or the effective date of the registration statement, whichever is later) should be given retroactive effect in the balance sheet. In such cases, appropriate disclosure should be made of the retrospective treatment and the date the change became effective. For our Statements of Stockholders' Equity, par value per share and the number of shares has been retrospectively restated for the related period in connection with our 4-for-1 forward stock split and concurrent re-designation of our common stock into

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Dollars in thousands, unless otherwise stated) NOTE 2: Summary of Significant Accounting Policies (cont.) Revenue Recognition Our revenue recognition policy adheres to the principle of recognizing revenue when the promised goods or services are transferred to customers, at an amount reflecting the consideration we expect to receive. This principle aligns with the five-step model outlined in the accounting standard ASC 606, we perform the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) we satisfy each performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. Product Revenue We generate revenue through the direct sale of our branded robotic products to customers. We consider customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with our customers. Each contract establishes a single performance obligation: the delivery of our product in accordance with the specified payment and shipping terms. The entire transaction price is allocated to this single performance obligation. Product revenue is recognized upon the customer acquiring control of the product, which aligns with either the shipment or delivery date as stipulated in the contract. Other Revenue Policies Sales, value add, and other taxes collected on behalf of third parties are excluded from revenue. We do not

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