RICHTECH ROBOTICS INC
For the period ended Dec 31, 2024. Filed Feb 14, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2024 · Filed Feb 14, 2025
RR$0.89+6.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-15.
0001213900-24-069231
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-31; filed 2025-02-14.
0001213900-25-014251
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 72 previous paragraphs and 82 current paragraphs.
29 unchanged; 13 reworded; 39 added; 30 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 14 previous and 28 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (39)
Current report
Key Business Highlights for the First Quarter of Fiscal Year 2025
Current report
Our first One Kitchen store opened within a Walmart location near Chicago. This innovative concept features our AI-powered robot, ADAM, as the centerpiece of the customer experience. One Kitchen offers a unique and interactive dining experience, showcasing the potential of our robotic technology to transform the food service industry. We anticipate opening additional One Kitchen stores near Atlanta and San Diego in late spring 2025.
Current report
Our first Clouffee & Tea store opened its doors in February 2025, marking our entry into the rapidly growing market for automated coffee and tea service. Clouffee & Tea combines our advanced robotics technology with a curated selection of premium beverages, creating a unique and engaging customer experience. We are confident in the potential of this brand and plan to open additional Clouffee & Tea locations in the coming months.
Current report
Recent Developments
Current report
On October 25, 2024, we received a notice from Nasdaq notifying us that, because the closing bid price for our Class B common stock had fallen below $1.00 per share for 30 consecutive business days, we no longer complied with the minimum bid price requirement for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2). Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), we were provided an initial compliance period of 180 calendar days, or until April 23, 2025, to regain compliance with the minimum bid price requirement. On January 6, 2024, we received a notice from Nasdaq that we had regained compliance with the minimum bid price requirement and the matter is closed.
Current report
In January 2025, we received warrant exercise notices from three investors, collectively exercising an aggregate of 3,814,611 warrants. As a result, we issued an aggregate of 3,814,611 shares of Class B common stock and received aggregate proceeds of $5,149,724.85. Rodman was paid a fee equal to 7% of the gross proceeds of the warrant exercises, pursuant to the Rodman Engagement Letter.
Current report
On February 10, 2025, we entered into a warrant exercise inducement offer letter with a holder of Existing Warrants exercisable for an aggregate of 2,699,797 shares of its Class B common stock, to exercise its Existing Warrants at the existing exercise price of $1.35 per share, generating gross proceeds of approximately $3,644,726 before deducting financial advisory fees. In consideration for the immediate exercise of the Existing Warrants, we issued to such holder 2,699,797 Inducement Warrants with an exercise price of $4.00 per share, which are immediately exercisable and valid for five years from issuance. The shares of Class B common stock underlying the Inducement Warrants are entitled to registration rights. In connection with the Armistice Warrant Inducement, and pursuant to the Rodman Engagement Letter, Rodman was paid a fee equal to 7% of the gross proceeds of the Existing Warrant exercises and will be entitled to 7% of the proceeds from any exercise of the Inducement Warrants. In addition, we issued to Rodman warrants to purchase an aggregate of 188,986 shares of Class B common stock at an exercise price of $5.00 per share, which are immediately exercisable and valid for five years from issuance, pursuant to the Rodman Engagement Letter.
Current report
On February 13, 2025, we entered into a Settlement Agreement with ACSS, pursuant to which the parties agreed to mutually release and all claims against each other arising out of that certain engagement letter, dated as of July 2, 2024, by and between the Company and ACSS. Pursuant to the Settlement Agreement, we agreed to pay to ACSS a sum of $430,000.
Current report
For the three months ended December 31, 2024, total revenue was $1,257 thousand, compared to $1,106 thousand for the same period in 2023, reflecting an increase of $151 thousand, or 14%. This positive performance is primarily attributed to the strategic expansion of our service and leasing offerings, particularly our RaaS model.
Current report
The RaaS model allows us to provide our advanced robotic solutions to a wider range of customers by reducing the barrier to entry associated with high upfront costs. Instead of requiring customers to purchase the robots outright, the RaaS model allows them to lease the robots and pay for their use on a subscription basis. This not only makes our cutting-edge automation technology more accessible to businesses with limited capital budgets but also aligns with the growing trend towards subscription-based services across various industries.
Current report
We believe this strategic shift towards RaaS offers several key advantages:
Current report
The positive impact of our RaaS model is already evident in our results for the quarter ended December 31, 2024, and we anticipate continued growth in service and leasing revenue as we further expand our RaaS offerings and market reach. We are confident that this strategic initiative, combined with our commitment to innovation and customer service, will strengthen our position in the rapidly evolving robotics market.
Current report
Cost of revenue saw a substantial decrease in the three months ended December 31, 2024, dropping to $123 thousand compared to $497 thousand in the same period of 2023. This significant reduction of $374 thousand, or 75%, is primarily attributed to the ongoing transition towards the RaaS model and favorable changes in our product costs.
Current report
Under the RaaS model, we lease our robots to customers rather than selling them outright. This shift in revenue recognition has a direct impact on cost of revenue. When a robot is leased, the associated costs are not immediately recognized in full. Instead, they are spread out over the lease term, resulting in a lower cost of revenue in the current period.
Current report
In addition to the impact of RaaS, we also benefited from lower product costs during the quarter. Due to the increase in robot volume, we were able to negotiate better pricing with our suppliers, which resulted in a reduction in the cost of goods sold for our product sales.
Current report
To provide a clearer understanding of the dynamics affecting our revenue and cost of revenue, below is the breakdown of our revenue streams:
Current report
Product Revenue: Product revenue increased significantly, from $187 thousand in the quarter ended December 31, 2023 to $750 thousand in the quarter ended December 31, 2024. This growth reflects a growing demand for our robotic solution.
Current report
Service/Rental Revenue: Service and rental revenue decreased significantly, from $799 thousand in the quarter ended December 31, 2023 to $133 thousand in the quarter ended December 31, 2024. This decline is primarily due to the ongoing shift towards the RaaS model, as customers transition from service and rental agreements to leasing arrangements.
Current report
Leasing Revenue: Leasing revenue increased substantially, from $13 thousand in the quarter ended December 31, 2023 to $138 thousand in the quarter ended December 31, 2024. This growth highlights the successful adoption of our RaaS model and the increasing popularity of leasing arrangements among our customers.
Current report
Gross profit reached $1,134 thousand in the three months ended December 31, 2024, compared to $609 thousand for the same period in 2023, marking a substantial increase of $526 thousand, or 86%. This strong performance is primarily driven by the considerable reduction in cost of revenue, which we discussed earlier.
Current report
The gross margin, which represents the percentage of revenue remaining after deducting cost of revenue, also saw a notable improvement. In the quarter ended December 31, 2024, the gross margin was 90%, compared to 55% in the quarter ended December 31, 2023. This higher gross margin indicates enhanced profitability and operational efficiency.
Current report
The strategic shift towards the RaaS model has played a key role in driving this improvement. As a higher proportion of revenue comes from leasing arrangements, the cost of revenue is spread out over the lease term, resulting in a lower cost of revenue and a higher gross margin in the current period.
Current report
Additionally, the decrease in product costs due to favorable negotiations with suppliers further contributed to the improvement in gross profit and gross margin.
Current report
This strong gross profit performance provides a solid foundation for our continued growth and profitability. As we further expand our RaaS offerings and optimizes our cost structure, we anticipate continued improvement in gross profit and gross margin in the coming quarters.
Current report
Sales and marketing expenses decreased substantially in the period ended December 31, 2024, falling from $595 thousand in December 31, 2023 to $245 thousand in December 31, 2025. This represents a decrease of $350 thousand, or 59%.
Current report
This significant decrease is primarily due to the success of our referral program and other cost-saving measures. Our referral program incentivizes existing customers to refer new customers, generating high-quality leads at a lower cost than traditional advertising. This strategy has allowed us to reduce our overall spending on marketing and advertising while maintaining a strong pipeline of potential customers.
Current report
In addition to the referral program, we have also implemented other cost-saving measures in our sales and marketing operations. We have streamlined our marketing processes, leveraged digital marketing channels more effectively, and focused on targeted campaigns that deliver higher returns on investment. These initiatives have allowed us to reduce our overall spending while maintaining the effectiveness of our sales and marketing efforts.
Current report
We are also investing in new sales and marketing tools and technologies to improve our efficiency and effectiveness. This includes implementing a customer relationship management system to better manage customer interactions and track sales leads, as well as investing in marketing automation software to streamline our marketing campaigns and personalize customer communications.
Current report
Furthermore, we are expanding our sales and marketing team to support our growth initiatives. We have hired experienced sales professionals with expertise in the robotics industry, as well as marketing specialists with a proven track record of success in promoting technology solutions. We believe that this investment in human capital will enable us to reach a wider audience and build stronger relationships with our customers.
Current report
Finally, we are actively exploring new partnerships and collaborations to expand our market reach and promote our robotic solutions. This includes partnering with industry associations, participating in trade shows and conferences, and collaborating with other technology companies to offer integrated solutions to our customers.
Current report
We believe that our continued investment in sales and marketing, combined with our focus on cost optimization and strategic partnerships, will enable us to achieve our growth objectives and solidify our position as a leader in the robotics market.
Current report
General and administrative expenses were $4,301 thousand and $1,443 thousand for the three months ended December 31, 2024 and 2023, respectively. The $2,858 thousand increase, or 198%, was primarily due to two key factors:
Current report
In addition to these two primary factors, other contributing factors to the increase in general and administrative (“G&A”) expenses include:
Current report
While the increase in G&A expenses is a natural consequence of our growth and transition to becoming a public company, we are committed to managing these expenses effectively. We are actively implementing cost optimization measures, streamlining processes, and leveraging technology to improve efficiency and control costs.
Current report
We believe that our strategic investments in human capital, infrastructure, and compliance are essential to support our long-term growth objectives. As we continue to scale our operations and expand our market presence, we anticipate that G&A expenses will continue to increase, but we are committed to managing these costs prudently and ensuring that they align with our overall financial performance.
Current report
Total other income was $329 thousand for the three months ended Decembers 31, 2024, the total other expense was $486 thousand for the three months ended December 31, 2023. The $815 thousand, or 168%, net decrease in total other income was primarily due to two key factors:
Current report
The combination of higher investment income and lower interest expenses has significantly enhanced our non-operating income, contributing positively to our overall financial results.
Current report
Our primary sources of liquidity are cash and cash equivalents, which consist of cash on hand and short-term investments that are readily convertible to cash. As of December 31, 2024, our cash and cash equivalents totaled $19.8 million. This represents about 5.2 million increase from $14.6 million at the end of the prior fiscal year. The substantial increase in our cash position is primarily attributable to the net proceeds of $9.2 million received from the issuance of new shares. These proceeds significantly strengthened our balance sheet and provided us with financial flexibility to invest in our growth initiatives, including the expanding our R&D team, purchase of property and equipment to support our expanding operations. This increase was partially offset by cash used in operating activities, primarily due to our net loss and investments in working capital.
Current report
Net cash used for investing activities was $375 thousand for the three months ended December 31, 2024, primarily due to $175 thousand on purchase of long-term investments and $127 thousand on short-term investments.
Removed paragraphs (30)
Previous report
Our product family was designed to provide labor-intensive businesses with robotic automation solutions. Hospitality is the most labor-intensive industry, which is why we have deployed our robots across restaurants, hotels, casinos, hospitals, bars, event spaces, and senior living homes. The market is currently in the phase where end-users and system integrators are still gaining experience in adoption and implementation of nonindustrial service robots. In North America, the primary driver for adoption will be the ongoing trend to automate menial or non-value-adding-tasks. These tasks include cleaning, transport and delivery, and food preparation.
Previous report
To further support our clients in optimizing the use of ADAM robots and enhancing the efficiency of their operations, we established a wholly-owned subsidiary, Alphamax Management LLC, in June 2024. Alphamax Management LLC provides business management and operational services to help our clients better integrate robots into their workflow. This initiative will initially focus on our partnerships with Ghost Kitchens, beginning with the Ghost Kitchen inside the Walmart in Dawsonville, GA, and the One Kitchen restaurant in a Walmart in Rockford, IL. We expect this business service to generate a steady and growing revenue stream, reflecting its impact in our financial results over the upcoming quarters.
Previous report
Notes:
Previous report
For the nine months ended June 30, 2024 and 2023, our overall robotics revenue was approximately $3,366 thousand and $3,171 thousand, respectively. The increase of approximately $195 thousand, or 7%, was brought on primarily by our increased service revenue of approximately $1,252 thousand, or 485% and leasing revenue of $458 thousand, or 314%, partially offset by the decrease in product revenue of approximately $1,515 thousand, or 55%. We are currently upgrading our product line to ensure we remain at the forefront of robotics technology. The Robotics as a Service (RaaS) model allows us to build stronger customer relationships, generate recurring revenue streams, and potentially achieve higher margins through premium services. We anticipate a temporary decrease in product sales during this transition to a RaaS model, which we expect to last for the remainder of this year. This will be mitigated by the launch of our new product line later this year.
Previous report
For the three months ended June 30, 2024 and 2023, our gross revenue was $1,443 thousand and $1,310 thousand, respectively, the increase was mainly due to the increase in Service and ClouTea revenue, partially offset by the decrease in product revenue.
Previous report
In the quarter ended June 30, 2024, we achieved significant progress in our commercial robot business development. Specifically, the deployment of our ADAM robot at Ghost Kitchens in Dawsonville, Georgia, marked the beginning of a planned expansion to 240 locations across the United States. ADAM’s advanced AI capabilities are set to improve operational efficiency and customer experience by automating beverage preparation, thereby addressing key challenges in the hospitality sector, such as consistency and labor shortages.
Previous report
Additionally, we launched Medbot, an elevator-enabled medical delivery robot, to enhance operational efficiency in healthcare facilities. Medbot’s secure, 24/7 medication delivery services address the critical shortage of pharmacy staff, reduce operational costs, and improve patient care. This initiative highlights our commitment to utilizing robotic technology to streamline operations and improve service quality in various sectors.
Previous report
We believe these advancements highlight the strategic value of our robotic solutions, establishing them as key drivers of future revenue growth. Our continuous innovations in both the hospitality and healthcare sectors are expected to play a pivotal role in the company’s financial performance and market expansion.
Previous report
Cost of revenue, net, was approximately $1,411 thousand and approximately $1,520 thousand for the nine months ended June 30, 2024 and 2023, respectively. The approximately $109 thousand decrease, or 7%, was primarily due to the increase of our robotics service revenue in 2024. Robotic service revenue has a higher margin compared to other revenue streams. Cost of revenue, net, was approximately $429 thousand and $612 thousand for the three months ended June 30, 2024 and 2023, respectively. The approximately $183 thousand decrease was also primarily due to the increase of our robotics service revenue in 2024.
Previous report
Gross profit as a percentage of total revenue was approximately 62% for the nine months ended June 30, 2024 compared to approximately 55% for the nine months ended June 30, 2023. Gross profit as a percentage of total revenue was approximately 70% for the three months ended June 30, 2024 compared to approximately 53% for the nine months ended June 30, 2023.
Previous report
Research and Development Expenses
Previous report
Research and development expenses were approximately $1,633 thousand for the nine months ended June 30, 2024, representing an increase of $44 thousand compared to the same period in 2023. Research and development expenses were approximately $386 thousand for the three months ended June 30, 2024, representing an increase of $69 thousand compared to the same period in 2023. This increase reflects our ongoing efforts to optimize R&D spending while continuing to invest in developing innovative new products.
Previous report
Sales and marketing expenses were approximately $1,024 thousand for the nine months ended June 30, 2024, increased by approximately $808 thousand, or 375%, compared to $216 thousand for the prior year period. Sales and marketing expenses were approximately $237 thousand for the three months ended June 30, 2024, increased by approximately $187 thousand, or 375%, compared to $50 thousand for the prior year period. The increase in marketing costs was primarily due to our increased expenditure in large screen advertisement and social media marketing for our products in November and December 2023.
Previous report
General and administrative expenses were approximately $3,750 thousand for the nine months ended June 30, 2024, increased by approximately $1,219 thousand, or 48%, compared to $2,531 thousand for the prior year period. General and administrative expenses were approximately $1,286 thousand for the three months ended June 30, 2024, increased by approximately $342 thousand, or 36%, compared to $944 thousand for the prior year period. The increase for both period was primarily due to an increase in professional service fees and related expenses to maintain a public company status.
Previous report
Total other expenses were approximately $761 thousand for the nine months ended June 30, 2024, increased by approximately $710 thousand, compared to $51 thousand for the prior year period. Total other expenses were approximately $100 thousand for the three months ended June 30, 2024, increased by approximately $51 thousand, compared to $51 thousand for the prior year period. The net increase in total other expenses for both periods was primarily due to the interest expense incurred within the nine months ended June 30, 2024. In February, March and April 2024, we issued three Notes to the Investor, totaling $3,000,000, in connection with the Standby Equity Purchase Agreement. In April 2024, we issued 259,350 Commitment Shares to the Investor, settling the outstanding balance of approximately $2,053,000 on the Notes. The Notes were fully repaid in July 2024.
Previous report
Income Tax Benefit/(Expense)
Previous report
Income tax expense was $317 thousand and zero for the nine months ended June 30, 2024, and 2023, respectively. The increase in 2024 was due in part to the annual income tax amount owed to the states and the federal government, and in part to the reversal of a portion of our Deferred Tax Asset (“DTA”). This reversal was triggered by a change in our forecast, indicating a lower likelihood of future taxable income. The DTA was initially established due to prior net operating losses.
Previous report
We believe that our existing cash as of the date of this Report will fund our current operating plans through at least the next twelve months from the date of this Report. We had operating cash outflows of $2,121 thousand for the nine months ended June 30, 2024 and $2,265 thousand for the nine months ended June 30, 2023, our working capital is in net asset position with $8,835 thousand as of June 30, 2024 and $4,092 thousand as of September 30, 2023. In addition, if needed, we expect to finance our future cash needs within the next twelve months from the date of this Report through founder investment, public or private equity or debt financings, third-party (including government) funding and marketing and distribution arrangements, the financing arrangements described above, as well as other collaborations, strategic alliances and licensing arrangements, or any combination of these approaches. If we raise additional funds through further issuances of equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any new equity securities we issue could have rights, preferences, and privileges superior to those of holders of our common stock, including shares of common stock sold in this offering.
Previous report
On February 15, 2024, we entered into a Standby Equity Purchase Agreement (the “Purchase Agreement”) with YA II PN, Ltd. (the “Investor”), pursuant to which the Investor has agreed to purchase up to $50 million of the Company’s shares of Class B common stock over the course of 24 month period.
Previous report
The price of shares to be issued under the Purchase Agreement will be 96% of the lowest volume weighted average price (the “VWAP”) of the Company’s Class B common stock for the three trading days immediately following the delivery of each Advance notice by the Company (the “Pricing Period”). Each purchase by the Investor (an “Advance”) is subject to a daily limit of 100% of the average daily trading volume of our Class B common stock, as reported by Bloomberg L.P., during the five trading days preceding our notice.
Previous report
With respect to each Advance, the Company has the option to notify the Investor of a minimum acceptable price (“MAP”) by specifying the amount within an Advance notice. During any trading day within a Pricing Period, two conditions will trigger an automatic reduction to the amount of the Advance by one-third: either (i) the VWAP of the Class B common stock is below the MAP specified in the Advance notice, or (ii) there is no VWAP available (each such day, an “Excluded Day”). On each Excluded Day, an automatic one-third reduction is applied to the specified Advance amount in the Advance notice and that day will be excluded from the Pricing Period.
Previous report
Each Advance is subject to certain limitations, including that the Investor cannot purchase any shares that would result in it beneficially owning more than 4.99% of the Company’s outstanding voting power of number of shares of Class B common stock at the time of an Advance or acquiring more than 19.99% of the Company’s outstanding shares of Class B common stock as of the date of the Purchase Agreement (the “Exchange Cap”). The Exchange Cap will not apply under certain circumstances, including, where the Company has obtained stockholder approval to issue in excess of the Exchange Cap in accordance with the rules of The Nasdaq Stock Market (“Nasdaq”) or such issuances do not require stockholder approval under Nasdaq’s “minimum price rule.”
Previous report
The Purchase Agreement will terminate automatically on the earlier of February 16, 2025 or when the Investor has purchased an aggregate of $50 million of the Company’s shares of Class B common stock. The Company has the right to terminate the Purchase Agreement upon five trading days’ prior written notice to the Investor, subject to certain conditions.
Previous report
In connection with and subject to the satisfaction of certain conditions set forth in the Purchase Agreement, upon the request of the Company, the Investor will pre-advance to the Company up to $3,000,000 of the $50,000,000 commitment amount (a “Pre-Advance”), with each Pre-Advance to be evidenced by a convertible promissory note (each, a “Note”). The first Pre-Advance, in the principal amount of $1,000,000, was advanced on February 15, 2024. The second Pre-Advance, in the principal amount of $1,000,000, was advanced on March 18, 2024. The third Pre-Advance, in the principal amount of $1,000,000, was advanced on April 15, 2024. Each Note is subject to a 4% discount to the principal amount of such Note.
Previous report
Each Note will accrue interest on the outstanding principal balance at the rate of 8% per annum and has a maturity date of February 15, 2024 (as may be extended at the option of the Investor). Beginning in May 2024, the Company was required to pay, on a monthly basis, one-nineth of the outstanding principal amount of each Note, together with accrued and unpaid interest, either (i) in cash or (ii) by submitting an Advance notice pursuant to the Purchase Agreement and selling the Investor shares, or any combination of (i) or (ii) as determined by the Company. The initial repayment is due 90 days after the issuance of the first Note, followed by subsequent payments due every 30 days after the previous payment. Unless otherwise agreed to by the Investor, any funds received by the Company pursuant to the Purchase Agreement for the sale of shares will first be used to satisfy any payments due under an outstanding Note.
Previous report
At the election of the Investor, all or a portion of the principal, interest, or other amounts outstanding under each Note (the “Conversion Amount”) may be converted into shares of Common Stock (the “Conversion Shares”), equal to: (x) the Conversion Amount, divided by (y) the Conversion Price. “Conversion Price” is defined as (i) $6.00 per share of Class B common stock, provided however, on May 28, 2024 (the “Reset Date”), the Conversion Price shall be adjusted (downwards only) to equal the average of the daily VWAPs for the 5 consecutive trading days immediately prior to the Reset Date, if such price is lower than the Conversion Price then in effect. The Conversion Shares are entitled to the registration rights set forth in the Purchase Agreement.
Previous report
On March 14, 2024, the Company and the Investor entered into a letter agreement (the “Letter Agreement”) to amend the terms of each Note as follows: (i) the Company may redeem early a portion or all amounts (including principal and accrued and unpaid interest) outstanding under the Note with at least 10 trading days’ prior written notice by the Company to the Investor. The outstanding principal balance being redeemed by the Company shall be subject to a 10% cash redemption premium. After receipt of the Redemption Notice, the Investor shall have 10 trading days to elect to convert all or any portion of the Note; and (ii) the Conversion Price shall not be lower than $1.50 per share of Class B common stock.
Previous report
The Company paid a subsidiary of the Investor a structuring fee in the amount of $25,000 and in April 2024, issued to the Investor 259.350 shares of Class B common stock (the “Commitment Shares”) as a commitment fee. The Company and the Investor made certain representations and warranties to each other that are customary for transactions similar to this one, subject to specified exceptions and qualifications. Each of the Company and the Investor also agreed to indemnify the other.
Previous report
The foregoing descriptions of the Purchase Agreement and the Notes and the transactions contemplated thereby are qualified in their entirety by reference to the full text of the Purchase Agreement and the Notes, a copy or a form of which are attached hereto as Exhibits 10.1 and 4.1, respectively, each of which is incorporated herein in its entirety by reference.
Previous report
Comparison of the nine months ended June 30, 2024 and 2023
Reworded paragraphs (13)
Previous wording
We are a leading provider of service robotic solutions by developing, manufacturing, and deploying novel products that address the growing need for automation in the service industry. We develop and provide service automation solutions that directly address the labor shortage problem affecting the US service industry. Our solutions include delivery, commercial cleaning, food & beverage service, and customization and development service, which has been implemented in more than 80 cities across the United States in restaurants, hotels, casinos, senior living homes, factories and retail centers. Our solutions automate repetitive and time-consuming tasks which allows clients to reallocate labor hours to more value-creating roles. Many of our clients see our robotic solutions as crucial to expanding and scaling their businesses.
Current wording
We are a leading provider of service robotic solutions by developing, manufacturing, and deploying novel products that address the growing need for automation in the service industry. We develop, manufacture, and deploy cutting-edge robots that streamline operations, enhance efficiency, and alleviate labor shortages across a diverse range of sectors, including restaurants, hotels, casinos, senior living facilities, and retail centers. Our commitment to technological advancement and customer-centric solutions has positioned us as a key player in the rapidly evolving robotics landscape.
Previous wording
Comparison of the nine and three months ended June 30, 2024 and 2023
Current wording
Comparison of the three months ended December 31, 2024 and 2023
Previous wording
The following table summarizes our results of operations (in thousands) for the nine months and three ended June 30, 2024 and 2023, together with the dollar change in those items from period to period:
Current wording
The following table summarizes our results of operations (in thousands) for the three month ended December 31, 2024 and 2023, together with the dollar change in those items from period to period:
Previous wording
The total revenue for the nine months ended June 30, 2024, and 2023, was approximately $3,715 thousand and $3,364 thousand, respectively. The approximate $351 thousand, or 11%, increase in revenue in the nine months ended June 30, 2024 was a combined result of our continuous expansion of customer base and changing of our sales mode. Our revenue (in thousands) by product for the nine months ended June 30 is shown below:
Current wording
Our Revenue (in thousands) for the three months ended December 31, 2024 and 2023 is shown below:
Previous wording
The following table summarizes our cash flow information (in thousands) for nine months ended June 30, 2024 and 2023, together with the dollar change in those items from period to period:
Current wording
The following table summarizes our cash flow information (in thousands) for the three months ended December 31, 2024 and 2023, together with the dollar change in those items from period to period:
Previous wording
Net cash used in operating activities for the nine months ended June 30, 2023 was $2,265 thousand, primarily due to a net loss of $2,543 thousand and an increase of $268 thousand in net operating assets and liabilities. The cash flow impact from changes in net operating assets and liabilities was primarily driven by decrease in inventory of $687 thousand and increases in current operating lease liabilities of $81 thousand, partially offset by increases in accounts receivable of $70 thousand and prepaid expenses and other current assets of $162 thousand, and a decrease in accounts payable of $51 thousand, tax payable of $73 thousand, and non-current operating lease liabilities of $75 thousand.
Current wording
Net cash used in operating activities for the three months ended December 31, 2024 was $3,598 thousand, primarily due to a net loss of $3,569 thousand an decrease of $30 thousand in net operating assets and liabilities. The cash flow impact from changes in net operating assets and liabilities was primarily driven by decrease in accounts receivable of $755 thousand and inventory of $248 thousand, partially offset by increase in accounts payable of $380 thousand.
Previous wording
Net cash used in operating activities for the nine months ended June 30, 2024 was approximately $2,121 thousand, primarily due to a net loss of approximately $5,181 thousand offset by an increase of approximately $3,060 thousand in net operating assets and liabilities. The cash flow impact from changes in net operating assets and liabilities was primarily driven by decreases in accounts receivable of approximately $2,448 thousand, decreases in deferred tax assets of $518 thousand and inventory of approximately $424 thousand, partially offset by the increase in tax payable of $197 thousands and accounts payable of $111 thousand.
Current wording
Net cash used in operating activities for the three months ended December 31, 2023 was approximately $1,212 thousand, primarily due to a net loss of approximately $2,748 thousand and an increase of approximately $1,539 thousand in net operating assets and liabilities. The cash flow impact from changes in net operating assets and liabilities was primarily driven by decreases in accounts receivable of approximately $2,432 thousand and inventory of approximately $167 thousand, partially offset by decreases in accounts payable of approximately $1,066 thousand.
Previous wording
Net cash used for investing activities was approximately $135 thousand and approximately $11 thousand for the nine months ended June 30, 2024 and 2023, respectively. These amounts consisted of the cash used for lending to related parties slightly offset by sales of property in both periods.
Current wording
Net cash used for investing activities was $28 thousand for the three months ended December 31, 2023, primarily due to $28 thousand on cash used for lending to related parties.
Previous wording
Net cash provided by financing activities totaled approximately $10,754 thousand for the nine months ended June 30, 2024. We raised approximately $9,278 thousand from issuance of Class B common stock and obtained short-term loans in the form of convertible Notes totaling $3 million from the Investor, as discussed above.
Current wording
Net cash provided by financing activities totaled $9,240 thousand for the year ended December 31, 2024. We received $9,244 thousand from issuance of common stock.
Previous wording
Net cash provided by financing activities totaled $2,517 thousand for the nine months ended June 30,2023. We raised $2,120 thousand from issuance of ordinary shares, received proceeds of $200 thousand from related party debt, and obtained $459 loans from third parties, offset by $140 thousand payment of related party debt and $122 thousand payment of loans from third parties.
Current wording
Net cash provided by financing activities totaled approximately $8,339 thousand for the three months ended December 31, 2023. We raised approximately $9,286 thousand from issuance of ordinary shares, offset by approximately $152 thousand payment of related party debt and approximately $795 thousand payment of short-term loans.
Previous wording
Other than as disclosed elsewhere in this registration statement, particularly with respect to government regulations relating to nicotine and cannabis, we are not aware of any trends, uncertainties, demands, commitments, or events that are reasonably likely to have a material effect on our net revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.
Current wording
Other than as disclosed elsewhere in this registration statement, we are not aware of any trends, uncertainties, demands, commitments, or events that are reasonably likely to have a material effect on our net revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.
Previous wording
See Note 2 to our unaudited financial statements included elsewhere in this Form 10-Q for more information.
Current wording
See Note 2 to our unaudited financial statements included elsewhere in this Report for more information.
Previous wording
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and 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. Management bases its estimates on historical experience, market and other conditions, and various other assumptions it believes to be reasonable. See Note 2 to our audited financial statements included elsewhere in this Form 10-Q for more information.
Current wording
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and 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. Management bases its estimates on historical experience, market and other conditions, and various other assumptions it believes to be reasonable. See Note 2 to our audited financial statements included elsewhere in this Report for more information.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Comparison of the three months ended December 31, 2024 and 2023