Serve Robotics Inc.(US:SERV)2025-11-14 11:03Financial Performance - For the three months ended September 30, 2025, the company generated revenues of $687 thousand, a significant increase from $222 thousand in the same period of 2024, representing a 209% growth [217]. - The net loss for the three months ended September 30, 2025, was $33.0 million, compared to a net loss of $8.0 million for the same period in 2024, indicating a worsening financial position [217]. - As of September 30, 2025, the company had an accumulated deficit of $174.6 million, reflecting ongoing financial challenges since inception [217]. - Revenues increased by $0.47 million to $0.69 million for the three months ended September 30, 2025, compared to $0.22 million for the same period in 2024, representing a 209% increase [219]. - Net loss for the three months ended September 30, 2025, was $33.02 million, compared to a net loss of $7.996 million for the same period in 2024, a 313% increase [219]. Customer Concentration - Sales to Customer A accounted for 43% of total revenue for the three months ended September 30, 2025, down from 78% in the same period of 2024, indicating a shift in customer concentration [202]. - The company faces challenges related to customer concentration, with significant portions of accounts receivable concentrated with a few customers, posing risks to financial stability [205]. Acquisitions and Investments - The company acquired Vayu Robotics, Inc. on August 15, 2025, which was accounted for under the acquisition method of accounting, impacting liquidity [192]. - The company also acquired Voysys AB on April 1, 2025, further expanding its operational capabilities [193]. - Net cash used in investing activities rose significantly to $122.14 million in 2025 from $5.40 million in 2024, driven by the purchase of short-term marketable securities of $107.49 million and incremental robot build construction of $15.4 million [244]. Financing Activities - A securities purchase agreement was entered into on January 7, 2025, resulting in gross proceeds of approximately $80 million from the issuance of 4,210,525 shares at $19.00 per share [194]. - The company’s common stock was approved for listing on The Nasdaq Capital Market under the ticker symbol "SERV" following a public offering that generated net proceeds of approximately $35.8 million [195]. - Net cash provided by financing activities increased to $166.26 million in 2025 from $71.58 million in 2024, mainly from proceeds of $78.8 million from the issuance of common stock [245][246]. Expenses - Cost of revenues rose by $4.69 million to $5.07 million for the three months ended September 30, 2025, compared to $0.38 million for the same period in 2024, due to scale-up costs of $3.96 million [221]. - General and administrative expenses increased by $11.17 million to $13.15 million for the three months ended September 30, 2025, from $1.98 million for the same period in 2024, a 564% increase [222]. - Research and development expenses increased by $8.41 million to $13.41 million for the three months ended September 30, 2025, from $5.01 million for the same period in 2024, reflecting a 168% increase [223]. Cash Flow - Cash and cash equivalents, and marketable securities totaled $210.45 million as of September 30, 2025 [238]. - Net cash used in operating activities was $(50,601) thousand for the nine months ended September 30, 2025, compared to $(15,279) thousand for the same period in 2024 [242]. - Net cash used in operating activities increased to $50.60 million for the nine months ended September 30, 2025, compared to $15.28 million in 2024, primarily due to a net loss increase of $41.02 million [243]. Market Conditions - Inflation and market conditions may impact consumer discretionary spending, which could adversely affect the company's financial results and growth prospects [207]. Company Classification - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to take advantage of an extended transition period for complying with new accounting standards [251]. - The company is classified as a "smaller reporting company," with a market value of stock held by non-affiliates less than $700 million and annual revenue below $100 million [252]. - The company is not required to provide quantitative and qualitative disclosures about market risk as a smaller reporting company [253]. Operational Metrics - Daily Active Robots increased to 312 for the three months ended September 30, 2025, compared to 59 for the same period in 2024 [236]. - Daily Supply Hours increased to 3,781 for the three months ended September 30, 2025, compared to 465 for the same period in 2024 [237]. Accounting Policies - There have been no material changes in critical accounting policies from those disclosed in the Annual Report for the year ended December 31, 2024 [250]. - The company has no off-balance sheet financing arrangements or relationships with unconsolidated entities during the periods presented [249].