RICHTECH ROBOTICS INC. Income Taxes Disclosure

NOTE 8: Income Taxes

 

The Company’s financial statements include a total state tax expense of $2 on a loss before income taxes of approximately $15,754 for the years ended September 30, 2025. A reconciliation of the difference between the (expense)/benefit for income taxes and income taxes at the statutory U.S. federal income tax rate is as follows (in thousands, except amounts pertaining to rate which are shown as a percentage): 

 

		Year ended September 30, 2025
Federal Statutory Rate			21.00	%
Effect of:
Change in Valuation Allowance			-23.20	%
RTP & Deferred True-up			-0.03	%
Change in Rate			0.22	%
State Tax Benefit (Net of Fed)			2.09	%
M&E			-0.10	%
TX Franchise tax			0.00	%
Others			0.00	%
Total provision effective rate			-0.01	%

 

The components of deferred tax assets and liabilities are as follows (in thousands): 

 

		September 30, 2025
Deferred tax assets relating to:
Net Operating loss carryforwards		$	4,254
Research & development tax credit carryforward			7
174 Expenses			889
Right of Use Liability			169
Other deferred tax assets			364
Total gross deferred tax assets			5,683
Deferred tax liabilities relating to:
Right of Use Asset			169
Fixed Asset			13
Other deferred tax liabilities			-
Total Gross deferred tax liabilities			182
Deferred assets less liabilities			5,501
Less: valuation allowance			(5,501	)
Net deferred tax asset (liability)		$	-

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income (losses) and projections for future taxable income (losses) over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will not realize the benefits of these deductible differences in the future. The Company had the following federal net operating loss carryforward and research activities credits as of September 30, 2025 (in thousands): 

 

Year incurred		Net Operating Loss				Research Activities Credit
2023			219				7.33
2024			6,269				-
2025			12,205