Serve Robotics Inc.(SERV) - 2024 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2024, the company generated revenues of $946,711, a significant increase from $40,252 in the same period of 2023, representing a growth of 2,261%[120] - The net loss for the three months ended March 31, 2024, was $9,037,971, compared to a net loss of $5,138,122 for the same period in 2023, indicating an increase in losses of 76.5%[120] - Revenues increased to $946.71 million for the three months ended March 31, 2024, from $40.25 million for the same period in 2023, representing a 2252% increase[122] - Net loss for the period was $9.04 million, compared to a net loss of $5.14 million in the same period in 2023, reflecting a 76% increase in losses[122] Accumulated Deficit and Financial Position - As of March 31, 2024, the company had an accumulated deficit of $77,372,352[120] - Cash and cash equivalents as of March 31, 2024, were $0.43 million, with net cash used in operating activities increasing to $4.08 million from $3.71 million in the prior year[132][137] - The company anticipates needing additional capital to fund operations, including research and development and general administrative expenses[134] Share Issuance and Financing - The company completed a public offering of 10,000,000 shares at a price of $4.00 per share, resulting in net proceeds of approximately $35.7 million[95] - The company entered into a public offering of 10,000,000 shares at a price of $4.00 per share, expected to generate approximately $35.7 million in net proceeds[133] - The company issued convertible promissory notes totaling $5,014,500, resulting in net proceeds of $4,844,625, with a conversion price of $2.42 per share upon closing of the offering[98][99] Customer Concentration and Operational Capacity - One customer accounted for 90% of the company's revenue during the three months ended March 31, 2024, highlighting significant customer concentration risk[105] - Daily active robots increased to 39 from 23, indicating improved operational capacity for deliveries[129] - Daily supply hours increased to 300 from 152, showing enhanced utilization of robot resources[130] Research and Development - Research and development expenses rose to $6.64 million, a 219% increase from $2.08 million in the same period last year, accounting for 80% of total operating expenses[126] - The company anticipates continued operating losses in 2024 and 2025 as it seeks to scale its operations and invest in research and development[111] Operating Expenses - Total operating expenses increased to $8.31 million, a 113% rise from $3.90 million in the same period last year[122] - Interest expense for the period was $1.33 million, primarily related to debt from Silicon Valley Bank[127] Strategic Partnerships and Future Plans - The fair value of the Magna Warrant was determined to be $8,566,184 as of March 31, 2024, indicating the potential value of the strategic partnership with Magna[103] - The company aims to scale its operating fleet by a factor of 10 and expand geographic coverage beyond Los Angeles over the next two years[111] Supply Chain Challenges - The global supply shortage of electrical components has impacted the company's supply chain, leading to increased lead times and costs for manufacturing robots[109]