Robot Consulting (LAWR) Registration Filing summary

Company overview and business model

• Provides cloud-based human resource management software (Labor Robot) and digital transformation services for small and medium-sized businesses in Japan.

• Expanding into legal technology and metaverse solutions, including upcoming products like Robot Lawyer and Junior Lawyer X.

• Revenue streams include software sales, e-learning, software installation, and previously, advertising and outsourcing services.

• Major distribution partnerships, notably with Nac, enhance market reach but yield lower margins.

• Business model leverages government grants and subsidies to incentivize adoption.

Financial performance and metrics

• Revenue for the six months ended September 30, 2024: JPY 354 million ($2.47 million), up 127% YoY.

• Net loss for the same period: JPY 277.7 million ($1.94 million); accumulated deficit as of September 30, 2024: JPY 1.53 billion ($10.6 million).

• Fiscal year ended March 31, 2024: revenue JPY 693 million ($4.58 million), net loss JPY 662 million ($4.38 million).

• Gross profit margin improved due to higher-margin services; SG&A expenses increased due to headcount and IPO-related costs.

• Company has a going concern risk due to recurring losses and accumulated deficit.

Use of proceeds and capital allocation

• Estimated net proceeds of $7.1 million (or $8.4 million with full over-allotment) at $4.00 per ADS.

• 35% for recruiting and expanding headcount, 30% for R&D, 10% for equipment and facilities, 25% for working capital and general corporate purposes.

• No proceeds from the resale of shares by the selling shareholder.