Announced plans for geographic expansion into the Dallas Fort Worth metroCompleted $32.3 million in capital raise transactions; Cash balance of $50.9 million as of third quarter endAnnounced 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
aduke.thelwell@serverobotics.com
347-464-8510
Investor Relations
investor.relations@serverobotics.com
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
View original content to download multimedia:https://www.prnewswire.com/news-releases/serve-robotics-announces-third-quarter-2024-results-302299193.html
SOURCE Serve Robotics Inc.
