Serve Robotics Inc.(US:SERV)2025-05-08 20:03Financial Performance - For the three months ended March 31, 2025, the company generated revenues of $440,465, a decrease of 53.6% compared to $946,711 for the same period in 2024[148]. - The net loss for the three months ended March 31, 2025, was $13,216,292, compared to a net loss of $9,037,971 for the same period in 2024, representing a 46.5% increase in losses[148]. - Revenues decreased by $506,246 to $440,465 for the three months ended March 31, 2025, compared to $946,711 for the same period in 2024, primarily due to a decrease in software services revenue[150]. - Cost of revenues increased by $1,556,335 to $1,908,773 for the three months ended March 31, 2025, compared to $352,438 for the same period in 2024, driven by scale-up costs of the fleet and launch-related costs in new markets[151]. - General and administrative expenses rose by $3,741,881 to $4,749,952 for the three months ended March 31, 2025, from $1,008,071 for the same period in 2024, largely due to increased stock-based compensation[152]. - Net loss increased by $4,178,321 to $13,216,292 for the three months ended March 31, 2025, compared to a net loss of $9,037,971 for the same period in 2024[150]. - Net cash used in operating activities was $9,462,814 for the three months ended March 31, 2025, compared to $4,078,380 for the same period in 2024, reflecting a significant increase in operating losses[164]. - The accumulated deficit as of March 31, 2025, was $120.74 million, indicating significant historical operating losses[160]. Customer Concentration - Sales to Magna and Uber accounted for 83% and 95% of total revenue for the three months ended March 31, 2025, and 2024, respectively, indicating significant customer concentration risk[137]. Financing Activities - The company entered into a securities purchase agreement on January 7, 2025, to issue 4,210,525 shares at $19.00 per share, raising approximately $80 million in gross proceeds[129]. - The company completed a public offering on April 17, 2024, resulting in net proceeds of approximately $35.8 million and listing on The Nasdaq Capital Market under the ticker symbol "SERV"[130]. - Net cash provided by financing activities was $87,255,296 for the three months ended March 31, 2025, compared to $4,502,446 for the same period in 2024, primarily from common stock issuance[166]. Operational Capacity - Daily Active Robots increased to 73 in Q1 2025 from 39 in Q1 2024, reflecting improved operational capacity[157]. - Daily Supply Hours increased to 648 in Q1 2025 from 300 in Q1 2024, indicating enhanced utilization of robots for deliveries[158]. Strategic Partnerships and Challenges - The company has developed an AI-powered robotics mobility platform focused on last-mile delivery, with a strategic partnership with Magna to enhance its service offerings[131][132]. - The company faces challenges including fluctuating demand for last-mile delivery, inflation impacts on consumer spending, and potential supply chain constraints affecting robot production[136][138][140]. Intellectual Property - The company relies on patented and proprietary information for its operations, emphasizing the importance of intellectual property protection[139]. Merger and Acquisition - The merger with Serve was treated as a recapitalization and reverse acquisition, with Serve considered the acquirer for accounting purposes[124].