Robot Consulting (LAWR) Registration Filing summary

Company overview and business model

• Provides cloud-based human resource management software (Labor Robot) and digital transformation consulting, with plans to expand into legal technology and metaverse services.

• Labor Robot assists SMEs with HR, payroll, accounting, and government grant/subsidy applications, connecting users to Certified Consultants.

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

• Distribution relies on a network of agents and a major partnership with Nac, a listed Japanese conglomerate.

• Plans to launch AI-powered Robot Lawyer and expand into the U.S. legal tech market via a partnership with CJK Group.

Financial performance and metrics

• Revenue for the six months ended September 30, 2024: JPY354.0 million ($2.47 million), up 127% YoY; net loss JPY277.7 million ($1.94 million).

• Fiscal year ended March 31, 2024: revenue JPY693.1 million ($4.58 million), up 729% YoY; net loss JPY662.0 million ($4.38 million).

• Gross profit margin improved as cost of revenue decreased despite higher sales.

• Accumulated deficit as of September 30, 2024: JPY1.53 billion ($10.6 million).

• Auditor's report expresses substantial doubt about ability to continue as a going concern.

Use of proceeds and capital allocation

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

• Planned allocation: 35% to recruiting, 30% to R&D, 10% to equipment/facilities, 25% to working capital and general corporate purposes.