The discrepancy centers on the improper valuation of liabilities linked to warrants issued throughout 2024 and 2025. Richtech also identified errors in its accounting for a 2024 standby equity purchase agreement with YA II PN and the treatment of restricted stock awards granted in December 2025. These accounting lapses came to light during an audit conducted by the company’s new independent firm, CBIZ CPAs, which flagged the issues while examining results for the quarter ended March 31.

Investors reacted sharply to the disclosure, driving the stock down to $1.91 in Friday's early session. This latest decline exacerbates a difficult year for the robotics firm, which had already seen its market value drop 29% since the start of 2025.