Revenue Growth and Performance - Revenue for the three months ended September 30, 2024, was $221,555, compared to $62,565 for the same period in 2023, representing a significant increase[147] - Revenues increased by 254% to $221,555 for the three months ended September 30, 2024, compared to $62,565 for the same period in 2023, driven by growth in delivery and branding revenue[150] - Revenues increased by 893% to $1,636,641 for the nine months ended September 30, 2024, compared to $164,826 for the same period in 2023, primarily due to software services revenue[159] - One customer accounted for 78% of the company's revenue during the three months ended September 30, 2024, and 86% during the same period in 2023[134] - The company's revenue streams include delivery revenues, branding revenues, and software services revenues[142] Net Loss and Financial Performance - Net loss for the three months ended September 30, 2024, was $7,996,219, compared to $7,645,972 for the same period in 2023[147] - Net loss increased by 5% to $7,996,219 for the three months ended September 30, 2024, compared to $7,645,972 for the same period in 2023[150] - Net loss increased by 47% to $26,071,557 for the nine months ended September 30, 2024, compared to $17,750,350 for the same period in 2023[159] - The company's accumulated deficit as of September 30, 2024, was $94,405,938[147] Research and Development Expenses - Research and development expenses increased by 69% to $5,007,985 for the three months ended September 30, 2024, compared to $2,962,812 for the same period in 2023, primarily due to stock-based compensation and headcount increases[150][152] - Research and development expenses increased by 143% to $17,434,332 for the nine months ended September 30, 2024, compared to $7,171,446 for the same period in 2023, driven by stock compensation and headcount expenses[159][163] Capital Raising and Financing Activities - The company issued convertible promissory notes totaling $5,014,500 in January 2024, with net proceeds of $4,844,625[125] - The company completed a public offering on April 17, 2024, issuing 10,000,000 shares at $4.00 per share, resulting in net proceeds of approximately $35.8 million[123] - The company raised $35.8 million in net proceeds from a public offering of 10,000,000 shares of common stock at $4.00 per share on April 17, 2024[171] - The company sold 555,555 pre-funded warrants and 555,555 investor warrants at a combined offering price of $8.9999, generating net proceeds of $18.65 million[174] - Net cash provided by financing activities increased by $58.50 million to $71.58 million for the nine months ended September 30, 2024, driven by proceeds from issuance of common stock, pre-funded warrants, and exercise of warrants[181] - The company repaid a $2.50 million term loan with Silicon Valley Bank in full as of September 30, 2024[182] Cash and Liquidity - The company had $50.91 million in cash and cash equivalents as of September 30, 2024, providing liquidity for operations[170] - Cash and cash equivalents as of September 30, 2024, were $50.91 million[177] - Net cash used in operating activities increased by $2.98 million to $15.28 million for the nine months ended September 30, 2024, primarily due to a larger net loss of $8.00 million[177] - Net cash used in investing activities was $5.39 million for the nine months ended September 30, 2024, mainly due to robot build construction in-process[178] Operational Metrics and Expansion - Daily Active Robots increased to 59 for the three months ended September 30, 2024, compared to 30 for the same period in 2023, reflecting improved operational capacity[168] - Daily Supply Hours increased to 465 for the three months ended September 30, 2024, compared to 224 for the same period in 2023, indicating expanded robot utilization[168] - The company anticipates operating losses in 2024 and 2025 as it scales its robotic fleet and expands into new markets[140] - Supply chain constraints, particularly for semiconductor chips, have increased lead times and costs for robot components[138] - The company entered into an equipment financing lease agreement for robot construction, with total expected costs of $4.46 million[183] Internal Controls and Legal Matters - The company identified material weaknesses in internal control over financial reporting and plans to remediate them by increasing financial personnel capacity and implementing formal policies and procedures[193][194] - The company is an emerging growth company and smaller reporting company, with reduced disclosure obligations[186][187] - No material legal proceedings are pending or threatened against the company[197] Warrant Issuance - The company issued a warrant to Magna to purchase up to 2,145,000 shares of common stock at $0.01 per share, with a fair value of $8,566,184[130][132]
Serve Robotics Inc.(SERV) - 2024 Q3 - Quarterly Report