RICHTECH ROBOTICS INC.
For the period ended Mar 31, 2025. Filed May 14, 2025.
View on SEC.govAbout this filing
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.
Mar 31, 2025 · Filed May 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 2024-12-31; filed 2025-02-14.
0001213900-25-014251
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-14.
0001213900-25-043386
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 82 previous paragraphs and 74 current paragraphs.
19 unchanged; 9 reworded; 46 added; 51 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 28 previous and 29 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 (46)
Current report
In February 2025, we also launched our first Clouffee & Tea store, introducing our own robotic coffee and tea concept. We plan to expand this brand with additional locations in the coming months.
Current report
For the six months ended March 31, 2025, net revenue increased by $152 thousand, or approximately 6.7%, to $2,424 thousand, compared to $2,272 thousand for the same period in 2024.
Current report
For the three months ended March 31, 2025, net revenue increased slightly by $2 thousand, or approximately 0.2%, to $1,167 thousand, compared to $1,165 thousand for the same period in 2024.
Current report
The overall increase in revenue is primarily attributable to the continued positive impact of our Robots-as-a-Service (RaaS) model and the ongoing expansion of Alphamax Management LLC, a wholly-owned subsidiary of the Company (“Alphamax”).
Current report
Cost of revenue, net, decreased significantly for both the six and three months ended March 31, 2025:
Current report
For the six months ended March 31, 2025, cost of revenue, net, decreased by $405 thousand, or approximately 41.2%, to $577 thousand, compared to $982 thousand for the same period in 2024.
Current report
For the three months ended March 31, 2025, cost of revenue, net, decreased by $31 thousand, or approximately 6.4%, to $454 thousand, compared to $485 thousand for the same period in 2024.
Current report
This overall decrease is primarily attributable to the continued transition towards our Robots-as-a-Service (RaaS) model.
Current report
**Product Revenue:**Product revenue increased substantially for both periods, indicating continued strong demand for our robotic solutions:
Current report
**Service/Rental Revenue:**Service/Rental revenue decreased significantly, reflecting the ongoing strategic shift towards our RaaS model:
Current report
**Leasing Revenue:**Leasing revenue showed a notable increase over the six-month period, demonstrating the growing adoption of our RaaS model:
Current report
Gross profit increased significantly for both the six and three months ended March 31, 2025:
Current report
For the six months ended March 31, 2025, gross profit increased by $557 thousand, or approximately 43.2%, to $1,847 thousand, compared to $1,290 thousand for the same period in 2024.
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For the three months ended March 31, 2025, gross profit increased by $32 thousand, or approximately 4.7%, to $712 thousand, compared to $680 thousand for the same period in 2024.
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This improvement in gross profit is directly related to the decrease in cost of revenue, net, as discussed in the preceding section.
Current report
The substantial increase in gross profit for the six months ended March 31, 2025, is primarily due to shift in our sales mix towards higher-margin RaaS offerings. A relatively less increase in gross profit for the three months ended March 31, 2025 compared to the same period in 2024 is due to the timing of a key customer’s transition from pilot phase to a signed Master Services Agreement in April 2025, resulting in the deferral of related deployments and revenue to future periods.
Current report
Research and development expenses
Current report
Research and development expenses decreased substantially for both the six and three months ended March 31, 2025:
Current report
For the six months ended March 31, 2025, research and development expenses decreased by $443 thousand, or approximately 35.5%, to $804 thousand, compared to $1,247 thousand for the same period in 2024.
Current report
For the three months ended March 31, 2025, research and development expenses decreased by $93 thousand, or approximately 22.5%, to $320 thousand, compared to $413 thousand for the same period in 2024.
Current report
The decrease in research and development expenses is primarily due to: completion of major development projects. The Company completed several major development projects during the latter part of 2024, which has resulted in a reduction in hardware-related R&D spending in the first half of 2025.
Current report
Sales and marketing expenses showed mixed trends for the six and three months ended March 31, 2025:
Current report
For the six months ended March 31, 2025, sales and marketing expenses decreased by $172 thousand, or approximately 21.8%, to $615 thousand, compared to $787 thousand for the same period in 2024.
Current report
For the three months ended March 31, 2025, sales and marketing expenses increased by $178 thousand, or approximately 92.7%, to $370 thousand, compared to $192 thousand for the same period in 2024.
Current report
The overall trend reflects a shift in the timing of our sales and marketing activities.
Current report
The decrease in sales and marketing expenses for the six months ended March 31, 2025, is primarily due to:
Current report
The increase in sales and marketing expenses for the three months ended March 31, 2025, is primarily due to:
Current report
We are continuously evaluating the effectiveness of our sales and marketing investments to ensure they align with our strategic objectives and drive sustainable revenue growth.
Current report
General and administrative expenses increased substantially for both the six and three months ended March 31, 2025:
Current report
For the six months ended March 31, 2025, general and administrative expenses increased by $6,801 thousand, or approximately 275.9%, to $9,265 thousand, compared to $2,464 thousand for the same period in 2024.
Current report
For the three months ended March 31, 2025, general and administrative expenses increased by $3,942 thousand, or approximately 386.5%, to $4,962 thousand, compared to $1,021 thousand for the same period in 2024.
Current report
The increase in general and administrative expenses for the current period was primarily driven by the following factors:
Current report
Settlement expenses: A significant portion of the increase was attributable to a settlement reached with AC Sunshine Securities LLC (“ACSS”). As disclosed in the Settlement Agreement dated February 13, 2025, the Company agreed to pay $430 thousand to ACSS to resolve a dispute related to a prior engagement letter. This amount is included in general and administrative expenses for the period.
Current report
Increased personnel costs: Increased salaries expenses related to hiring additional personnel to support our growth. This expansion includes key hires in engineering, finance and accounting, legal and compliance, and human resources.
Current report
Professional fees: Higher professional fees for external services such as legal counsel, independent auditors, and consulting engagements. These increased fees are related to compliance with public company reporting requirements and ongoing legal matters. The legal fees related to the ACSS settlement are included in this line item.
Current report
Interest expenses
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Net: Interest expenses, net, decreased significantly for both the six and three months ended March 31, 2025.
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For the six months ended March 31, 2025, interest expenses, net, decreased by $651 thousand to $(9 thousand), compared to $(660 thousand) for the same period in 2024.
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For the three months ended March 31, 2025, interest expenses, net, decreased by $169 thousand to $(5 thousand), compared to $(174 thousand) for the same period in 2024. This decrease is primarily due to repayment of debt.
Current report
Investment Income
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Removed paragraphs (51)
Previous report
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
We believe this strategic shift towards RaaS offers several key advantages:
Previous 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.
Previous report
Our Revenue (in thousands) for the three months ended December 31, 2024 and 2023 is shown below:
Previous 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.
Previous 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.
Previous report
To provide a clearer understanding of the dynamics affecting our revenue and cost of revenue, below is the breakdown of our revenue streams:
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Additionally, the decrease in product costs due to favorable negotiations with suppliers further contributed to the improvement in gross profit and gross margin.
Previous 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.
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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%.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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:
Previous report
In addition to these two primary factors, other contributing factors to the increase in general and administrative (“G&A”) expenses include:
Previous report
Other Income (Expense)
Previous 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:
Previous 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.
Previous report
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 report
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 report
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.
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Contractual Obligations
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We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.
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Trend Information
Previous report
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.
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Reworded paragraphs (9)
Previous wording
Key Business Highlights for the First Quarter of Fiscal Year 2025
Current wording
Key Business Highlights for the Second Quarter of Fiscal Year 2025
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Comparison of the three months ended December 31, 2024 and 2023
Current wording
Comparison of the six months ended March 31, 2025 and 2024
Previous 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:
Current wording
The following table summarizes our results of operations (in thousands) for the six months and the three months ended March 31, 2025 and 2024, together with the dollar change in those items from period to period:
Previous wording
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 wording
Under the RaaS model, we recognize revenue from leasing our robots to customers, rather than from outright sales. This shift impacts the timing of cost recognition. When a robot is leased, certain upfront costs, which would have been recognized immediately under a sales model, are instead recognized over the lease term. This results in lower cost of revenue in the current periods. We expect the RaaS model to continue to influence our cost of revenue in future periods as it becomes a larger portion of our business.
Previous wording
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 wording
We are committed to carefully managing our general and administrative expenses while ensuring we have the necessary resources to support the company’s growth and meet our obligations. 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. 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.
Previous wording
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 wording
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 March 31, 2025, our cash and cash equivalents totaled $11.1 million. This represents about 3.5 million decrease 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 exercise and issuance of warrants. These proceeds significantly strengthened our balance sheet and provided us with financial flexibility to invest in our growth initiatives, including 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.
Previous 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.
Current wording
In the prior-year period, changes in net operating assets and liabilities resulted in a larger net outflow of approximately $1,325 thousand, primarily driven by a decrease in accounts receivable of $1,823 thousand and a decrease in inventory of $530 thousand, partially offset by an increase in accounts payable of $969 thousand. Non-cash adjustments to reconcile net loss to net cash used in operating activities for the current period included depreciation and amortization of $730 thousand.
Previous wording
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.
Current wording
Net cash used for investing activities was $15,130 thousand for the six months ended March 31, 2025, primarily due to $14,773 thousand on purchase of short-term investments and $241 thousand on long-term investments.
Previous 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.
Current wording
Net cash provided by financing activities totaled approximately $10,339 thousand for the six months ended March 31, 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 $2 million from the Investor.
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Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
Comparison of the three months ended December 31, 2024 and 2023
Previous report — wording carried elsewhere
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: