- Manufacturing activities commenced on 2,000-robot fleet
deployment following entry into manufacturing agreement with Magna
and amendment to lidar supply agreement with Ouster
- Cash position bolstered by proceeds of $40 million equity offering, as well as
post-quarter $15 million private
placement transaction
SAN
FRANCISCO, Aug. 13, 2024 /PRNewswire/ -- Serve
Robotics Inc. (the "Company" or "Serve") (Nasdaq: SERV), a leading
autonomous sidewalk delivery company, today announced financial
results for the second quarter 2024 ended June 30, 2024.
"We are pleased to report another strong quarter, extending our
30-month track record of double-digit month-over-month growth and
improvements in key operational metrics," said Dr.
Ali Kashani, Serve's Co-founder and CEO. "This quarter, we
expanded into Koreatown in Los
Angeles, signed important agreements with Magna
International Inc. ("Magna") and expanded on our supply
agreement with Ouster Inc. ("Ouster"), and appointed our Chief
Hardware & Manufacturing Officer to spearhead our fleet
expansion efforts. I am particularly pleased to announce that Serve
has completed the design of our third-generation robot.
Looking ahead, we are focused on executing Serve's fleet expansion
plan to deploy at least 250 additional robots in Los Angeles by the end of Q1 2025. We believe
our continued execution of this plan through year end 2025 will
position Serve to deploy all 2,000 robots under our Uber Eats
agreement, which at full utilization is expected to generate
$60 to $80
million in run-rate revenue annually."
Second Quarter 2024 and Recent Highlights
- Public Offering & Follow-on Transaction: On
April 18, 2024, Serve completed a
successful public equity offering, which generated $40.0 million in gross proceeds, and through
which Serve's common stock began trading on The Nasdaq Capital
Market under the ticker symbol "SERV". Post quarter-end, the
company also completed a private placement transaction with gross
proceeds of $15.0 million.
- Operational Performance: Serve averaged 385 daily supply
hours during the second quarter 2024, a 106% increase
year-over-year and a 28% increase quarter-over-quarter. The Company
also achieved an 85% increase in daily active robots year-over-year
and a 23% increase quarter-over-quarter.
- Los Angeles Expansion: In June
2024, Serve announced the expansion of its delivery
operations into Koreatown and began onboarding new local merchants
through its partnership with Uber Eats. The coverage
expansion represents execution of Serve's long-term plan to
broaden its geographic reach in Los
Angeles and across the U.S.
- Manufacturing activities commenced following Magna and
Ouster agreements: In the second quarter Serve commenced
manufacturing activities on its 2,000-robot fleet, led by
Euan Abraham, the Company's newly
promoted Chief Hardware & Manufacturing Officer. Serve also
entered into a purchase and production agreement with Magna, under
which Magna will become the contract manufacturer of Serve's
delivery robots, and signed an amendment expanding its supply
agreement with Ouster to equip its next-generation robots with
upgraded sensors for enhanced performance.
Second Quarter Financial Highlights
- Second quarter revenue was $0.47
million, including $0.30
million of software service revenue derived from the
Company's software services agreement with Magna. As forecasted,
Serve's services contract with Magna was significantly completed
during the second quarter, and the Company does not anticipate
material software services revenue in Q3 2024.
- As of June 30, 2024, the Company
had $28.8 million of cash and cash
equivalents.
- As of June 30, 2024, the Company
had 36.5 million shares of common stock outstanding, and 42.6
million shares outstanding on a fully diluted basis. Following the
Company's July 2024 private
placement, the Company had approximately 48.2 million shares
outstanding on a fully diluted basis.
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's website at investors.serverobotics.com.
Individuals interested in listening to the conference call may
do so by dialing (646) 968-2525 and referencing conference ID#:
1640108.
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
|
|
Six Months
Ended
|
|
June 30,
2024
|
|
March 31,
2024
|
|
June 30,
2023
|
|
June 30,
2024
|
|
June 30,
2023
|
Key
Metrics
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Daily Active Robots
(1)
|
48
|
|
39
|
|
23
|
|
44
|
|
25
|
Daily Supply Hours
(2)
|
385
|
|
300
|
|
152
|
|
342
|
|
169
|
(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
|
|
Six Months
Ended
|
|
June 30,
2024
|
|
March
31,
|
|
June 30,
2023
|
|
June 30,
2024
|
|
June 30,
2023
|
Revenue
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Software
services
|
$
296,035
|
|
$
851,101
|
|
$
-
|
|
$
1,147,136
|
|
$
-
|
Delivery
services
|
75,540
|
|
51,760
|
|
32,467
|
|
127,300
|
|
57,719
|
Branding
fees
|
96,800
|
|
43,850
|
|
29,542
|
|
140,650
|
|
44,542
|
|
$
468,375
|
|
$
946,711
|
|
$
62,009
|
|
$
1,415,086
|
|
$
102,261
|
Forward Looking Statements
This press release 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, and the Company's timing
and ability to scale to commercial production.
The forward-looking statements contained in this release 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 June 30, 2024 that will be
filed following this earnings release, and in our subsequent SEC
filings. We 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 release are based on information
available 3 to us as of the date hereof, and we disclaim any
obligation to update any forward-looking statements, except as
required by law. These forward-looking statements should not be
relied upon as representing our views as of any date subsequent to
the date of this press release.
Contacts
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 June 30, 2024 and December 31, 2023
(unaudited)
|
|
|
June 30,
2024
|
|
December 31,
2023
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash
|
28,780,034
|
|
$
6,756
|
Accounts
receivable
|
93,132
|
|
2,955
|
Inventory
|
709,289
|
|
774,349
|
Prepaid
expenses
|
1,119,995
|
|
676,969
|
Escrow
Receivable
|
180,000
|
|
-
|
Total current
assets
|
30,882,450
|
|
1,461,029
|
Property and equipment,
net
|
819,244
|
|
48,422
|
Right of use
asset
|
552,143
|
|
782,439
|
Deposits
|
512,659
|
|
512,659
|
Total
assets
|
32,766,496
|
|
$
2,804,549
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
1,387,559
|
|
$
2,050,605
|
Accrued
liabilities
|
46,079
|
|
255,849
|
Deferred
revenue
|
52,863
|
|
-
|
Note payable,
current
|
750,000
|
|
1,000,000
|
Note payable - related
party
|
—
|
|
70,000
|
Right of use liability,
current portion
|
413,800
|
|
496,963
|
Lease liability,
current portion
|
1,617,224
|
|
2,363,807
|
Total current
liabilities
|
4,267,525
|
|
6,237,224
|
Note payable, net of
current portion
|
—
|
|
230,933
|
Restricted stock award
liability
|
—
|
|
158,617
|
Right of use
liability
|
35,230
|
|
211,181
|
Total
liabilities
|
4,302,755
|
|
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 June 30, 2024 and December 31,
2023
|
—
|
|
-
|
Common stock, $0.0001
par value; 300,000,000 shares authorized, 36,642,064 and 24,832,814
shares issued and 36,529,574 and 24,508,795 shares outstanding as
of both June 30, 2024 and December 31, 2023
|
3,651
|
|
2,450
|
Additional paid-in
capital
|
114,869,809
|
|
64,468,141
|
Subscription
receivable
|
—
|
|
(169,616)
|
Accumulated
deficit
|
(86,409,719)
|
|
(68,334,381)
|
Total
stockholders' equity (deficit)
|
28,463,741
|
|
(4,033,406)
|
Total
liabilities and stockholders' equity (deficit)
|
$
32,766,496
|
|
$
2,804,549
|
Serve Robotics
Inc.
Unaudited Condensed Consolidated Statements of
Operations
For the Three and Six Months Ended June 30, 2024 and 2023; and
Three Months Ended March 31, 2024
(unaudited)
|
|
|
Three Month
Ended
|
|
Six Months
Ended
|
|
June 30,
2024
|
|
March 31,
2024
|
|
June 30,
2023
|
|
June 30,
2024
|
|
June 30,
2023
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
468,375
|
|
$
946,711
|
|
$
62,009
|
|
$
1,415,086
|
|
$
102,261
|
Cost of
revenues
|
326,013
|
|
352,438
|
|
391,367
|
|
678,451
|
|
758,628
|
Gross profit
(loss)
|
142,362
|
|
594,273
|
|
(329,358)
|
|
736,635
|
|
(656,367)
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
1,873,320
|
|
1,008,071
|
|
970,819
|
|
2,881,392
|
|
1,986,806
|
Operations
|
871,211
|
|
540,974
|
|
592,648
|
|
1,412,185
|
|
1,114,335
|
Research and
development
|
5,787,906
|
|
6,638,441
|
|
2,125,685
|
|
12,426,347
|
|
4,208,634
|
Sales and
marketing
|
165,612
|
|
118,236
|
|
83,136
|
|
283,848
|
|
362,718
|
Total
operating expenses
|
8,698,049
|
|
8,305,722
|
|
3,772,288
|
|
17,003,772
|
|
7,672,493
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(9,055,688)
|
|
(7,711,449)
|
|
(4,101,646)
|
|
(16,267,137)
|
|
(8,328,860)
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net:
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
(260,120)
|
|
(1,326,522)
|
|
(496,862)
|
|
(1,586,642)
|
|
(538,606)
|
Change in fair
value of derivative liability
|
(221,560)
|
|
-
|
|
-
|
|
(221,560)
|
|
-
|
Change in fair
value of simple agreements for future equity
|
-
|
|
-
|
|
(367,748)
|
|
-
|
|
(1,236,912)
|
Total other
income (expense), net
|
(481,680)
|
|
(1,326,522)
|
|
(864,610)
|
|
(1,808,202)
|
|
(1,775,518)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Net
loss
|
$
(9,037,367)
|
|
$
(9,037,971)
|
|
$
(4,966,256)
|
|
$
(18,075,339)
|
|
$
(10,104,378)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic and diluted
|
33,795,009
|
|
24,556,343
|
|
6,678,372
|
|
29,176,370
|
|
6,678,372
|
Net loss per common
share - basic and diluted
|
$
(0.27)
|
|
$
(0.37)
|
|
$
(0.74)
|
|
$
(0.62)
|
|
$
(1.51)
|
Serve Robotics
Inc.
Unaudited Condensed Consolidated Statements of Cash
Flows
For the Six Months Ended June 30, 2024 and 2023
(unaudited)
|
|
|
Six Months
Ended
June 30,
|
|
2024
|
|
2023
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
(18,075,338)
|
|
$
(10,104,378)
|
Adjustments to
reconcile net loss to net cash used in
|
|
|
|
Depreciation
|
27,500
|
|
931,279
|
Stock-based
compensation
|
7,735,469
|
|
200,872
|
Amortization of
debt discount
|
1,677,942
|
|
466,706
|
Loss on
conversion of note payable
|
221,560
|
|
-
|
Change in fair
value of simple agreements for future equity
|
-
|
|
1,236,912
|
Interest on
recourse loan
|
|
|
(2,504)
|
Changes in
operating assets and liabilities:
|
|
|
|
Accounts
receivable
|
(90,177)
|
|
23,697
|
Inventory
|
65,060
|
|
(4,704)
|
Prepaid
expenses
|
(443,026)
|
|
16,253
|
Escrow
receivable
|
(180,000)
|
|
-
|
Accounts
payable
|
(663,046)
|
|
704,870
|
Accrued
liabilities
|
(120,232)
|
|
(36,045)
|
Deferred
revenue
|
52,863
|
|
-
|
Right of use
liabilities, net
|
(28,818)
|
|
(23,163)
|
Net cash used in operating
activities
|
(9,820,242)
|
|
(6,590,205)
|
Cash flows from
investing activities:
|
|
|
|
Purchase of property
and equipment
|
(798,322)
|
|
-
|
Net cash used in
investing activities
|
(798,322)
|
|
-
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from simple
agreement for future equity
|
-
|
|
2,666,953
|
Proceeds from
convertible notes payable
|
4,844,625
|
|
2,798,410
|
Proceeds from note
payable, related party
|
-
|
|
399,000
|
Exercise of
warrants
|
5,907
|
|
-
|
Exercise of
options
|
8,757
|
|
-
|
Proceeds from issuance
of common stock pursuant to offering, net of offering
costs
|
35,849,136
|
|
-
|
Repayments of note
payable
|
(500,000)
|
|
(500,000)
|
Repayments of notes
payable, related party
|
(70,000)
|
|
-
|
Deferred offering
costs
|
-
|
|
(352,617)
|
Repayment of lease
liability financing
|
(746,583)
|
|
(1,118,348)
|
Net cash provided
by financing activities
|
39,391,842
|
|
3,893,398
|
Net change in cash
and cash equivalents
|
28,773,277
|
|
(2,696,807)
|
Cash and cash
equivalents at beginning of period
|
6,756
|
|
2,715,719
|
Cash and cash
equivalents at end of period
|
$
28,780,033
|
|
$
18.912
|
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SOURCE Serve Robotics Inc.