Serve Robotics Inc. /DE/

Previous wording

A significant portion of our revenue is concentrated with two customers, Magna and Uber. For the three months ended March 31, 2025 and 2024, sales to Magna and Uber accounted for 83% and 95% of our total revenue, respectively. There are inherent risks whenever a large percentage of total revenues are concentrated with a limited number of customers. The loss of one or either of these customers could have a negative impact on our planned operations.

Current wording

There are inherent risks whenever a large percentage of total revenues and accounts receivable are concentrated with a limited number of customers. The loss of either or both of these customers could have a negative impact on our planned operations.

Previous wording

Operations. Operations consists of lease expense for facilities and certain field operations personnel to support fleet services. The Company considers these expenses to be indirect costs to deliver fleet services.

Current wording

Operations. Operations consist of lease expense for facilities and certain field operations personnel to support fleet services. The Company considers these expenses to be indirect costs to deliver fleet services.

Previous wording

For the three months ended March 31, 2025 and 2024, we generated revenues of $440,465 and $946,711, respectively, and reported a net loss of $13,216,292 and $9,037,971, respectively.

Current wording

For the three months ended June 30, 2025 and 2024, we generated revenues of $642 thousand and $468 thousand, respectively, and reported net losses of $20.8 million and $9.0 million, respectively.

Previous wording

As noted in our condensed consolidated financial statements, as of March 31, 2025, we had an accumulated deficit of $120,741,725.

Current wording

As noted in our unaudited condensed consolidated financial statements, as of June 30, 2025, we had an accumulated deficit of $141.6 million.

Previous wording

The following table summarizes our operating results as reflected in our unaudited statements of operations during the three months ended March 31, 2025 and 2024, respectively, and provides information regarding the dollar and percentage increase (or decrease) during such periods.

Current wording

The following table summarizes our operating results as reflected in our unaudited statements of operations during the three months ended June 30, 2025 and 2024, respectively, and provides information regarding the dollar and percentage increase (or decrease) during such periods (in thousands).

Previous wording

Cost of revenues increased $1.56 million to $1.91 million for the three months ended March 31, 2025, compared with $0.35 million for the same period in 2024, due to costs related to scale-up of our fleet and launch related costs in new markets of $1.33 million.

Current wording

Cost of revenues increased $3.18 million to $3.50 million for the three months ended June 30, 2025, compared with $0.33 million for the same period in 2024, due to costs related to scale-up of our fleet and launch related costs in new markets of $2.80 million.

Previous wording

General and administrative expenses increased $3.74 million to $4.75 million for the three months ended March 31, 2025, from $1.01 million for the same period in 2024, due to an increase in stock-based compensation expense of $1.82 million and $0.87 million from growth due to employee headcount.

Current wording

General and administrative expenses increased $6.20 million to $8.08 million for the three months ended June 30, 2025, from $1.87 million for the same period in 2024, due primarily to an increase in stock-based compensation expense of $1.63 million, $1.06 million from growth due to employee headcount and finance lease purchases of $2.25 million.

Previous wording

Interest income increased $1.78 million to $1.79 million for the three months ended March 31, 2025, from income of $0.01 million for the same period in 2024 as a result interest earned from cash on hand.

Current wording

Interest income increased $1.50 million to $1.79 million for the three months ended June 30, 2025, from income of $0.30 million for the same period in 2024 as a result of interest earned from cash on hand and marketable securities.

Previous wording

Interest expense and amortization decreased $1.33 million to none for the three months ended March 31, 2025, from the expense of $1.34 million for the same period in 2024, as the prior period expense was related to amortization of debt discount.

Current wording

Interest expense and amortization decreased $0.56 million to zero for the three months ended June 30, 2025, from the expense of $0.56 million for the same period in 2024, as the prior period expense was related to amortization of debt discount.

Previous wording

Revenues decreased $0.51 million to $0.44 million for the three months ended March 31, 2025, compared to $0.95 million for the same period in 2024. The decrease is due to a decrease in software services revenue, which may be inconsistent in the future. As a result of a larger fleet, the Company recognized increases in fleet services revenues of $0.12 million to $0.21 million for the three months ended March 31, 2025, compared to $0.10 million for the same period in 2024.

Current wording

Revenues decreased $0.33 million to $1.08 million for the six months ended June 30, 2025, compared to $1.42 million for the same period in 2024. The decrease is due to a decrease in software services revenue, which may be inconsistent in the future. As a result of a larger fleet, the Company recognized increases in fleet services revenues of $0.27 million to $0.54 million for the six months ended June 30, 2025, compared to $0.27 million for the same period in 2024.

Previous wording

Operations expenses increased $1.13 million to $1.67 million for the three months ended March 31, 2025, from $0.54 million for the same period in 2024, due to an increase in infrastructure and facility costs of $0.32 million from expansion locations, expanded workforce of $0.09 million, the remaining fleet financing costs of $0.19 million and software costs of $0.17 million.

Current wording

Operations expenses increased $2.38 million to $3.79 million for the six months ended June 30, 2025, from $1.41 million for the same period in 2024, due to an increase in infrastructure and facility costs of $1.06 million from expansion locations, expanded workforce of $0.32 million, and the remaining fleet financing costs of $0.19 million.

Previous wording

Research and development expenses increased $0.24 million for the three months ended March 31, 2025 to $6.88 million, compared to $6.64 million for the same period in 2024, due to an increase of headcount of $1.61 million, consulting expenses of $0.21 million and depreciation of $0.23 million, offset by a decrease in stock-based compensation expense of $2.31 million.

Current wording

Research and development expenses increased $3.57 million for the six months ended June 30, 2025 to $16.00 million, compared to $12.43 million for the same period in 2024, due to an increase of headcount expenses of $4.07 million, consulting expenses of $0.46 million, depreciation of $0.71 million, and software expenses of $0.61 million, offset by a decrease in stock-based compensation expense of $3.01 million.

Previous wording

As of March 31, 2025, we had current assets of $199.97 million and current liabilities of $5.26 million, which included $197.76 million in cash and cash equivalents. Cash and cash equivalents consisted of cash on deposit with banks as well as an institutional money market account.

Current wording

As of June 30, 2025, our principal sources of liquidity were cash and cash equivalents, and marketable securities of $183.33 million, which consisted of $116.70 million in cash and cash equivalents and $66.63 million in marketable securities. Cash and cash equivalents consisted of cash on deposit with banks as well as an institutional money market account. Marketable securities consisted of commercial paper, corporate bonds, U.S. government agency securities and U.S. Treasury securities.

Previous wording

We have generated significant operating losses from our operations as reflected in our accumulated deficit of $120.74 million as of March 31, 2025. We have historically funded our operations from issuance of equity and debt securities, including our initial public offering in April 2024. To execute on our strategic initiatives to continue to grow our business, we may incur operating losses and generate negative cash flows from operations in the future, and as a result, we may require additional capital resources. We believe our existing cash and cash equivalents will be sufficient to meet our working capital and capital expenditures needs for at least the next 12 months.

Current wording

We have generated significant operating losses from our operations as reflected in our accumulated deficit of $141.59 million as of June 30, 2025. We have historically funded our operations from issuance of equity and debt securities, including our initial public offering in April 2024 and subsequent equity issuances. To execute on our strategic initiatives to continue to grow our business, we may incur operating losses and generate negative cash flows from operations in the future, and as a result, we may require additional capital resources. We believe our existing cash and cash equivalents and marketable securities will be sufficient to meet our working capital and capital expenditures needs for at least the next 12 months.

Previous wording

As of March 31, 2025, our cash and cash equivalents were $197.76 million. The following table shows a summary of our cash flows for the periods:

Current wording

The following table shows a summary of our cash flows for the periods (in thousands):

Previous wording

Net cash used in operating activities was $9.46 million and $4.08 million for the three months ended March 31, 2025 and 2024, respectively. The increase of $5.38 million primarily consisted of an increased net loss of $4.18 million, adjusted for certain non-cash items, which primarily includes an increase of $0.46 million of depreciation expense, offset by decreases of $0.38 million of non-cash stock-based compensation expense and $1.21 million of amortization of debt discount.

Current wording

Net cash used in operating activities was $25.43 million and $9.82 million for the six months ended June 30, 2025 and 2024, respectively. The increase of $15.61 million primarily consisted of an increased net loss of $15.99 million, adjusted for certain non-cash items, which primarily includes an increase of $1.26 million of depreciation and amortization expense, offset by decreases of $0.54 million of non-cash stock-based compensation expense and $1.68 million of amortization of debt discount.

Previous wording

Net cash used in investing activities was $3.30 million and none for the three months ended March 31, 2025 and 2024, respectively. The increase of $3.30 million was mainly due to robot build construction in-process.

Current wording

Net cash used in investing activities was $81.93 million and $0.80 million for the six months ended June 30, 2025 and 2024, respectively. The increase of $81.14 million was primarily due to the purchase of short-term marketable securities of $66.3 million, incremental robot build construction in-process of $8.7 million, and the purchase of a newly acquired business for $5.6 million.

Previous wording

Net cash provided by financing activities was $87.26 million and $4.50 million for the three months ended March 31, 2025 and 2024, respectively. The increase of $82.75 million primarily consisted of proceeds from issuance of common stock pursuant to securities purchase, net of offering costs of $75.85 million, and proceeds from the exercise of warrants of $11.78 million, partially offset by a decrease in proceeds received from convertible notes of $4.84 million.

Current wording

Net cash provided by financing activities was $100.80 million and $39.39 million for the six months ended June 30, 2025 and 2024, respectively. The increase of $61.40 million primarily consisted of proceeds from issuance of the Company’s common stock pursuant to securities purchases, net of offering costs of $40.00 million, proceeds from the issuance of the Company’s common stock pursuant to 2025 Equity Disbursement Agreement, net of offering costs of $13.5 million, and proceeds from the exercise of warrants of $11.37 million, partially offset by a decrease in proceeds received from convertible notes of $4.84 million.

Previous wording

In March 2022, we entered into a term loan with Silicon Valley Bank for gross proceeds of $2.50 million with a maturity date of March 1, 2025. The loan accrues interest at the greater of 3.25% per annum or prime rate. Principal payments commenced on October 1, 2022, and the loan was repaid in full as of March 31, 2025.

Current wording

In March 2022, we entered into a term loan with Silicon Valley Bank for gross proceeds of $2.50 million and the loan was repaid in full as of September 30, 2024.

Previous wording

In June 2022, we entered into an equipment financing lease agreement with Farnam Street commencing November 2022, for the cost of building robots, calling for 24 monthly payments of approximately $0.19 million based on an expected total cost of $4.46 million of robot parts and manufacturing costs. In December 2023, the agreement was modified to require three monthly repayments of approximately $0.03 million each and 12 monthly repayments of approximately $0.19 million each, subject to certain terms and effective in January 2024.

Current wording

In June 2022, we entered into an equipment financing lease agreement with Farnam Street commencing November 2022, for the cost of building robots, calling for 24 monthly payments of approximately $0.19 million based on an expected total cost of $4.46 million of robot parts and manufacturing costs. In December 2023, the agreement was modified to require three monthly repayments of approximately $0.03 million each and 12 monthly repayments of approximately $0.19 million each, subject to certain terms and effective in January 2024. There was no outstanding liability as of June 30, 2025. In April 2025, the Company exercised the option to purchase the assets at the end of the lease for $2.25 million.