Dive Brief:
- VenHub, an autonomous c-store developer, is facing investigations by stockholder rights law offices Bragar Eagel & Squire and Robbins LLP after reporting fiscal 2025 results in which net losses far exceeded revenues and liabilities were nearly four times greater than assets.
- VenHub emphasized in its response to these investigations that details of its financial situation and warnings about its position were available in public filings. The company also noted that it is not aware of any investigations from the U.S. Securities and Exchange Commission or other government agencies.
- VenHub, which went public earlier this year, said in its annual report in March that if it cannot secure additional short-term capital, it may cease operations.
Dive Insight:
The announcements by Bragar Eagel & Squire and Robbins LLP highlight VenHub’s poor financial performance last year, notably its $864,450 total revenue and a net loss of roughly $62.4 million, as confirmed in its annual report. Besides the significant net loss, both law firms emphasized VenHub’s total liabilities of approximately $13.9 million and working capital deficit of approximately $9.2 million.
“As a public company focused on growth, we view these law-firm publicity releases as meritless and distracting,” said Shahan Ohanessian, CEO of VenHub, in the developer’s announcement. “We have disclosed our financial position transparently, and our focus remains on execution, financing our growth strategy, and building long-term stockholder value.”
VenHub went public via a direct listing on Jan. 30 and closed its first day of trading at $6.42 per share, according to Yahoo! Finance. Nearly six months later, shares on July 27 closed at around 80 cents, or down over 87%.
VenHub currently operates three of its robotics-powered autonomous c-stores in Los Angeles, according to the company website, and has announced agreements with operators in Nevada and Florida. It also opened a second production facility during the spring.
VenHub is not the only autonomous retail company that has faced challenges. Amazon announced in January that it was closing down its Amazon Go and Amazon Fresh locations, which had showcased the company’s Just Walk Out checkout technology. The technology remains in use in a number of sports arenas, airports and college and university campuses.
