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Serve Robotics Announces Third Quarter 2024 Results

  • Announced plans for geographic expansion into the Dallas Fort Worth metro
  • Completed $32.3 million in capital raise transactions; Cash balance of $50.9 million as of third quarter end
  • Announced agreement to acquire Vebu and its pioneering avocado-processing robot, Autocado

SAN FRANCISCO, Nov. 7, 2024 /PRNewswire/ -- Serve Robotics Inc. (the "Company" or "Serve") (Nasdaq: SERV), a leading autonomous sidewalk delivery company, today announced financial results for the third quarter 2024 ended September 30, 2024.

"During the third quarter we made significant operational and financial progress related to several priorities; laying the foundation for a successful 2025," said Dr. Ali Kashani, Serve's Co-founder and CEO. "Regarding our agreement with Uber Eats to deploy 2,000 robots by year end 2025, we are ahead of schedule with the initial manufacturing and rollout. We remain on track to deploy 2,000 new robots across multiple markets next year. Furthermore, we announced the potential acquisition of Vebu, which brings us into a strategically adjacent service offering, and we initiated partnerships with Wing Aviation and Shack Shack to expand our reach.  Importantly, we successfully raised $32.3 million in new capital to provide financial flexibility and fund our expansion plans."

Second Quarter 2024 and Recent Highlights 

  • Capital Raise Transactions: On July 17, 2024 and August 27, 2024, Serve completed private placement offerings resulting in a total of $32.3 million in net proceeds. As of September 30, 2024, Serve had $50.9 million in cash and zero outstanding debt obligations. Post quarter-end, the company also established and At-the-Market ("ATM") financing program providing further flexibility in capital raising.

  • Operational Performance: Serve averaged 465 daily supply hours during the third quarter 2024, a 108% increase year-over-year and a 21% increase quarter-over-quarter. The Company also achieved a 97% increase in daily active robots year-over-year and a 23% increase quarter-over-quarter.

  • Geographic Expansion: Serve announced its plan for geographic expansion in Los Angeles, as well as entry into the Dallas Fort Worth market. In the coming weeks, Serve will expand its Los Angeles delivery service into the Downtown LA, Sawtelle and Westwood areas, with a delivery fleet deployment expected in Dallas Forth Worth by the end of Q2 2025. Serve will also begin operations in Dallas, expected in the coming weeks in support of our partnership with drone-maker, Wing Aviation.

  • Vebu Acquisition: Today, Serve announced its agreement to acquire the assets of Vebu, Inc. ("Vebu") in an all- stock transaction, subject to customary closing conditions. Vebu's signature robotic product is the Autocado. The acquisition is expected to strengthen Serve's strategic position by providing its restaurant partners with a suite of automation solutions and expanding Serve's offering beyond delivery into back of house automation.

Third Quarter Financial Highlights

  • Third quarter revenue was $0.22 million, including $0.04 million of software service revenue derived from the Company's software services agreement with Magna.

  • As of September 30, 2024, the Company had $50.9 million of cash and cash equivalents.

  • As of September 30, 2024, the Company had 39.6 million shares of common stock outstanding.  

Quarterly Conference Call

Company management will host a conference call and webcast today at 2:00 p.m. PT / 5:00 p.m. ET to discuss the financial  results and provide a corporate update. A live webcast and replay can be accessed from the investor relations page of Serve Robotics' website at Investor Relations — Serve Robotics.

Individuals interested in listening to the conference call may do so by dialing 1 (800) 715-9871 and referencing conference  ID#: 3511636.

About Serve 

Serve develops advanced, AI-powered, low-emissions sidewalk delivery robots that endeavor to make delivery sustainable and economical. Spun off from Uber in 2021 as an independent company, Serve has completed tens of thousands of deliveries for enterprise partners such as Uber Eats and 7-Eleven. Serve has scalable multi-year contracts, including a signed agreement to deploy up to 2,000 delivery robots on the Uber Eats platform across multiple U.S. markets.

For further information about Serve  (Nasdaq: SERV), please visit www.serverobotics.com or follow us on social media via X (Twitter), Instagram, or LinkedIn @serverobotics.

Supplemental Financial Information

The key metrics and financial tables outlined below are metrics that provide management with additional understanding of  the drivers of business performance and the Company's ability to deliver stockholder return. Investors should not place undue reliance on these metrics as indicators of future or expected results. The Company's presentation of these metrics may differ from similarly titled metrics presented by other companies and therefore comparability may be limited.

Table 1: Key Metrics 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

2024

 

June 30,

 2024

 

September 30,

2023

 

September 30,

2024

 

September 30,

 2023

Key Metrics

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

Daily Active Robots (1)

59

 

48

 

30

 

49

 

27

Daily Supply Hours (2)

465

 

385

 

224

 

384

 

188

  

(1)

Daily Active Robots: The Company defines daily active robots as the average number of robots performing daily deliveries during the period.

(2)

Daily Supply Hours: The Company defines daily supply hours as the average number of hours the Company's robots are ready to accept offers and perform daily deliveries during the period.

Table 2: Revenue 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

2024

 

June 30,

2024

 

September 30,

2023

 

September 30,

2024

 

September 30,

2023

Software services

$38,767

 

$296,035

 

$—

 

$1,185,903

 

$—

Delivery services

112,288

 

75,540

 

54,065

 

239,588

 

111,784

Branding fees

70,500

 

140,650

 

8,500

 

211,150

 

53,042

 

$221,555

 

$512,225

 

$62,565

 

$1,636,641

 

$164,826

Forward Looking Statements 

This Serve Robotics Inc. (the "Company") investor presentation contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when we or our management are discussing our beliefs, estimates or expectations. Such statements generally include the words "believes," "plans," "intends," "targets," "may," "could," "should," "will," "expects," "estimates," "suggests," "anticipates," "outlook," "continues," or similar expressions. These statements are not historical facts or guarantees of future performance, but represent management's belief at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside of our control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. Forward-looking statements include, without limitation, statements regarding the Company's partnership with Magna, timing of the Company's robot deployment, the Company's ability to expand to additional markets, capabilities of the Company's robots, outcomes of planned acquisitions, and the Company's timing and ability to scale to commercial production.

The forward-looking statements contained in this investor presentation are also subject to other risks and uncertainties,  including those more fully described in our filings with the Securities and Exchange Commission ("SEC"), including in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations'' in our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Report on Form 10-Q for the three months ended September 30, 2024, and in the Company's subsequent SEC filings. The Company can give no assurance that the plans, intentions, expectations or strategies as reflected in or suggested by those forward-looking statements will be attained or achieved. The forward-looking statements in this presentation are based on information available to the Company as of the date hereof, and the Company disclaims any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this presentation.

Contacts

Media
Aduke Thelwell
Head of Communications & Investor Relations
Serve Robotics
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347-464-8510

Investor Relations
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Serve Robotics Inc.

Unaudited Condensed Consolidated Balance Sheets

As of September 30, 2024 and December 31, 2023

(unaudited)

    
 

September 30,

2024

 

December 31,

2023

ASSETS

   

Current assets: 

   

    Cash

$50,913,133

 

$6,756

    Accounts receivable

13,099

 

2,955

    Inventory

327,363

 

774,349

    Prepaid expenses

3,452,560

 

676,969

    Escrow Receivable

180,000

 

-

      Total current assets

54,886,155

 

1,461,029

Property and equipment, net

5,406,261

 

48,422

Right of use asset

660,286

 

782,439

Security Deposits

512,659

 

512,659

  Total assets

$61,465,361

 

$2,804,549

    

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

   

Current liabilities:

   

    Accounts payable

$3,606,754

 

$2,050,605

    Accrued liabilities

55,440

 

255,849

    Deferred revenue

14,097

 

-

    Note payable, current

 

1,000,000

    Note payable - related party

 

70,000

    Right of use liability, current portion

436,377

 

496,963

    Lease liability, current portion

1,042,093

 

2,363,807

      Total current liabilities

5,154,761

 

6,237,224

Note payable, net of current portion

 

230,933

Restricted stock award liability

 

158,617

Right of use liability

135,181

 

211,181

  Total liabilities

5,289,942

 

6,837,955

    

Stockholders' equity (deficit):

   

    Preferred stock, $0.0001 par value, 10,000,000 shares authorized, no shares issued

      or outstanding as of both September 30, 2024 and December 31, 2023

 

-

    Common stock, $0.0001 par value; 300,000,000 shares authorized, 42,957,446 and

      24,832,814 shares issued and 42,844,956 and 24,508,795 shares outstanding as

      of September 30, 2024 and December 31, 2023 

4,283

 

2,450

Additional paid-in capital

150,577,074

 

64,468,141

Subscription receivable

 

(169,616)

Accumulated deficit

(94,405,938)

 

(68,334,381)

     Total stockholders' equity (deficit)

56,175,419

 

(4,033,406)

  Total liabilities and stockholders' equity (deficit)

$61,465,361

 

$2,804,549

Serve Robotics Inc.

Unaudited Condensed Consolidated Statements of Operations

For the Three and Nine Months Ended September 30, 2024 and 2023; and Three Months Ended June 30, 2024

(unaudited)

          
 

Three Months Ended

 

Nine Months Ended

 

September 30, 2024

 

June 30, 2024

 

September 30, 2023

 

September 30, 2024

 

September 30, 2023

          

Revenues

$221,555

 

$468,375

 

$62,565

 

$1,636,641

 

$164,826

Cost of revenues

377,304

 

326,013

 

572,537

 

1,055,755

 

1,331,165

     Gross profit (loss)

(155,749)

 

142,362

 

(509,972)

 

580,886

 

(1,166,339)

          

Operating expenses:

         

   General and administrative

1,980,087

 

1,873,320

 

1,428,143

 

4,861,478

 

3,414,949

   Operations

917,350

 

871,211

 

558,068

 

2,329,535

 

1,672,403

   Research and development

5,007,985

 

5,787,906

 

2,962,812

 

17,434,332

 

7,171,446

   Sales and marketing

383,902

 

165,612

 

118,793

 

667,750

 

481,511

     Total operating expenses

8,289,324

 

8,698,049

 

5,067,816

 

25,293,095

 

12,740,309

          

Loss from operations

(8,445,073)

 

(8,555,687)

 

(5,577,788)

 

(24,712,209)

 

(13,906,648)

          

Other income (expense), net:

         

   Interest income (expense), net

448,854

 

(260,120)

 

(1,483,390)

 

(1,137,788)

 

(2,021,996)

   Loss on conversion of note payable

-

 

(221,560)

 

(149,000)

 

(221,560)

 

(149,000)

   Change in fair value of simple agreements for future equity

-

 

-

 

(435,794)

 

-

 

(1,672,706)

     Total other income (expense), net

448,854

 

(481,680)

 

(2,068,184)

 

(1,359,348)

 

(3,843,702)

          
          

Provision for income taxes

-

 

-

 

-

 

-

 

-

Net loss

$(7,996,219)

 

$(9,037,367)

 

$(7,645,972)

 

$(26,071,557)

 

$(17,750,350)

          
          

Weighted average common shares outstanding - basic and diluted

40,586,781

 

29,176,370

 

18,528,262

 

33,267,589

 

10,674,991

Net loss per common share - basic and diluted

$(0.20)

 

$(0.62)

 

$(0.41)

 

$(0.78)

 

$(1.66)

Serve Robotics Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2024 and 2023

(unaudited)

    
 

Nine Months Ended

September 30,

 

2024

 

2023

    

Cash flows from operating activities:

   

Net loss

$(26,071,557)

 

$(17,750,350)

Adjustments to reconcile net loss to net cash used in

   

   Depreciation

36,560

 

1,396,919

    Stock-based compensation

9,930,480

 

304,256

    Amortization of debt discount

1,677,942

 

816,715

    Warrants issued with convertible note

-

 

991,000

    Change in fair value of derivative liability

221,560

 

149,000

    Change in fair value of simple agreements for future equity

-

 

1,672,706

    Interest on recourse loan

-

 

(2,797)

    Changes in operating assets and liabilities:

   

       Accounts receivable

(10,144)

 

19,742

       Inventory

446,986

 

(250,459)

       Prepaid expenses

(2,775,591)

 

(517,233)

       Escrow receivable

(180,000)

 

-

       Accounts payable

1,556,149

 

782,454

       Accrued liabilities

(110,870)

 

129,481

       Deferred revenue

14,097

 

-

       Right of use liabilities, net

(14,433)

 

(35,782)

          Net cash used in operating activities

(15,278,821)

 

(12,294,348)

Cash flows from investing activities:

   

Purchase of property and equipment

(5,394,399)

 

(2,493)

       Net cash used in investing activities

(5,394,399)

 

(2,493)

Cash flows from financing activities:

   

Proceeds from issuance of common stock pursuant to

35,849,136

 

-

Proceeds from issuance of pre-funded warrants to

17,115,963

 

-

Proceeds from exercise of warrants

16,324,832

 

-

Proceeds from convertible notes payable

4,844,625

 

2,798,410

Proceeds from exercise of options

86,755

 

-

Proceeds from note payable, net of offering costs

-

 

750,000

Repayments of note payable

(1,250,000)

 

(1,500,000)

Proceeds from note payable, related party

-

 

449,000

Repayments of notes payable, related party

(70,000)

 

(449,000)

Issuance of common stock pursuant to Merger, net of

-

 

10,026,258

Proceeds from simple agreement for future equity

-

 

2,666,953

Repayment of lease liability financing

(1,321,714)

 

(1,658,359)

       Net cash provided by financing activities

71,579,597

 

13,083,262

Net change in cash and cash equivalents

50,906,377

 

786,421

Cash and cash equivalents at beginning of period

6,756

 

2,715,719

Cash and cash equivalents at end of period

$50,913,133

 

$3,502,140

    

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