EX-99.1 2 serv-20241021xex991earning.htm EX-99.1 Document

Exhibit 99.1
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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, November 7, 2024 — 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.


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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.
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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, 2024June 30, 2024September 30, 2023September 30, 2024September 30, 2023
Key Metrics(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Daily Active Robots (1)
5948304927
Daily Supply Hours (2)
465385224384188
(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 EndedNine Months Ended
September 30, 2024June 30, 2024September 30, 2023September 30, 2024September 30, 2023
Software services
$38,767 $296,035 $— $1,185,903 $— 
Delivery services112,288 75,540 54,065 239,588 111,784 
Branding fees70,500 140,650 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
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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
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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 receivable13,099 2,955 
Inventory327,363 774,349 
Prepaid expenses3,452,560 676,969 
Escrow Receivable180,000 - 
Total current assets54,886,155 1,461,029 
Property and equipment, net5,406,261 48,422 
Right of use asset660,286 782,439 
Security Deposits512,659 512,659 
Total assets$61,465,361 $2,804,549 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable$3,606,754 $2,050,605 
Accrued liabilities55,440 255,849 
Deferred revenue14,097 - 
Note payable, current— 1,000,000 
Note payable - related party— 70,000 
Right of use liability, current portion436,377 496,963 
Lease liability, current portion1,042,093 2,363,807 
Total current liabilities5,154,761 6,237,224 
Note payable, net of current portion— 230,933 
Restricted stock award liability— 158,617 
Right of use liability135,181 211,181 
Total liabilities5,289,942 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, 20234,283 2,450 
Additional paid-in capital150,577,074 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 

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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 EndedNine Months Ended
September 30, 2024June 30, 2024September 30, 2023September 30, 2024September 30, 2023
Revenues$221,555 $468,375 $62,565 $1,636,641 $164,826 
Cost of revenues377,304 326,013 572,537 1,055,755 1,331,165 
Gross profit (loss)(155,749)142,362 (509,972)580,886 (1,166,339)
 
Operating expenses: 
General and administrative1,980,087 1,873,320 1,428,143 4,861,478 3,414,949 
Operations917,350 871,211 558,068 2,329,535 1,672,403 
Research and development5,007,985 5,787,906 2,962,812 17,434,332 7,171,446 
Sales and marketing383,902 165,612 118,793 667,750 481,511 
Total operating expenses8,289,324 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), net448,854 (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), net448,854 (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 diluted40,586,78129,176,370 18,528,26233,267,58910,674,991
Net loss per common share - basic and diluted$(0.20)$(0.62)$(0.41)$(0.78)$(1.66)

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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,
20242023
Cash flows from operating activities:
Net loss$(26,071,557)$(17,750,350)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation36,560 1,396,919 
Stock-based compensation9,930,480 304,256 
Amortization of debt discount1,677,942 816,715 
Warrants issued with convertible note- 991,000 
Change in fair value of derivative liability221,560 149,000 
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 
Inventory446,986 (250,459)
Prepaid expenses(2,775,591)(517,233)
Escrow receivable(180,000)- 
Accounts payable1,556,149 782,454 
Accrued liabilities(110,870)129,481 
Deferred revenue14,097 - 
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 offering, net of offering costs35,849,136 - 
Proceeds from issuance of pre-funded warrants to purchase common stock in connection with private placement, net of issuance costs17,115,963 - 
Proceeds from exercise of warrants16,324,832 - 
Proceeds from convertible notes payable4,844,625 2,798,410 
Proceeds from exercise of options86,755 - 
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 offering costs- 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 activities71,579,597 13,083,262 
Net change in cash and cash equivalents50,906,377 786,421 
Cash and cash equivalents at beginning of period6,756 2,715,719 
Cash and cash equivalents at end of period$50,913,133 $3,502,140 
   
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