SERV Serve Robotics Inc

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 15, 2024

 

 

 

SERVE ROBOTICS INC.

(Exact Name of Registrant as Specified in Charter)

 

Delaware		000-56237		85-3844872
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

730 Broadway Redwood City, CA		94063
(Address of Principal Executive Offices)		(Zip Code)

 

(818) 860-1352

(Registrant’s telephone number, including area code)

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.0001 per share		SERV		The Nasdaq Capital Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). 

 

Emerging growth company ☒

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On May 15, 2024, Serve Robotics Inc. (the “Company”) announced its financial results for the three months ended March 31, 2024. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

Item 7.01. Regulation FD Disclosure.

 

On May 15, 2024, the Company made available on its website a revised Company investor presentation. A copy of the presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K.

 

The information in this Form 8-K (including Exhibits 99.1 and 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) List of Exhibits.

 

Exhibit Number		Description
99.1		Press release, dated May 15, 2024
99.2		Investor Presentation, dated May 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	Serve Robotics Inc.
Dated: May 15, 2024	/s/ Ali Kashani
	Ali Kashani
	Chief Executive Officer and Director

 

 

2

 

Exhibit 99.1 

 

 

 Serve Robotics Announces First Quarter 2024 Results and Provides Corporate Update

 

●

Revenue of $0.95 million; 124% sequential growth in delivery and branding revenue

 

●

Signed agreement with Magna International for a long-term licensing partnership and exclusive contract manufacturing of Serve robots

 

●

Post quarter-end, successfully uplisted to the Nasdaq Capital Market with concurrent $40 million equity offering

 

●

Continued focus on deploying 2,000 robots under Uber Eats contract

 

SAN FRANCISCO, May 15, 2024 — Serve Robotics Inc. (the “Company” or “Serve”) (Nasdaq:SERV), a leading autonomous sidewalk delivery company, today announced financial results for the three months ended March 31, 2024 and provided a corporate update.

 

“The Company delivered improvements in our operational key metrics and fundamentals, including a 97% increase in daily supply hours and a 70% increase in daily active robots, when compared to the first quarter of last year. These improvements were achieved while our costs to service delivery and branding revenue remained steady. This is a testament to our employees’ execution on Serve’s mission to reduce the cost of last-mile transportation, and highlight our dedication to scaling our operations infrastructure. Our core technology continues to be validated by our partners, as evidenced through our recent agreements with Magna International, and we continue to see strong demand for our robots to be deployed into existing and new markets. We are also very excited to continue our growth through the completion of our $40 million underwritten public offering, supported by our strategic investors Uber and Nvidia, and our recent listing on Nasdaq,” said Ali Kashani, Serve’s Cofounder and CEO. “We look forward to executing on the milestones within our strategic plan, which we intend to provide to stockholders in the coming months.”

 

Serve’s near-term strategic focus remains executing its plan to develop, manufacture, and deploy a fleet of 2,000 autonomous robots on the Uber Eats platform through 2025. The proceeds from the Company’s underwritten public offering in April 2024 allowed Serve to unlock procurement commitments, initiate final design-for-manufacturing reviews, and conduct further validation testing in advance of full-scale commercial production.

 

Serve’s long-term vision remains to deploy robots in adjacent delivery and transportation verticals within multiple markets.

 

First Quarter 2024 and Recent Highlights

 

●

Public Market Debut: The Company commenced listing on the OTCQB on March 7, 2024. Following the end of our first quarter, the Company completed an uplisting to the Nasdaq Capital Market, and began trading on the Nasdaq Capital Market under the ticker symbol “SERV” on April 18, 2024. This uplisting enabled the completion of a public equity offering generating $40.0 million in gross proceeds.

 

●

Strategic Investments: Participation in the offering included $4.5 million of new investment from one of Serve’s largest stockholders and strategic partners, Postmates, LLC, a wholly-owned subsidiary of Uber Technologies Inc (NYSE: UBER). Long-term technology partner NVIDIA (Nasdaq: NVDA) also participated in a $2.5 million investment round closed on January 2, 2024.

 

 

 

 

●

Operational Performance: Serve averaged 300 daily supply hours during the first quarter 2024, a 97% increase compared to first quarter 2023, and a 15% increase compared to fourth quarter 2023. The Company also achieved a 70% increase in daily active robots for the first quarter 2024 compared to first quarter 2023, and 15% increase compared to fourth quarter 2023.

 

●

Magna Collaboration: Serve entered into a Master Services Agreement (“MSA”) with Magna International Inc. (“Magna”) (TSX: MG; NYSE: MGA), one of the world’s largest automotive suppliers. Included in the MSA was both a statement of work for services to be provided by Serve, and a licensing agreement in which the Company licensed its autonomous technology software to accelerate Magna’s development into new products within the robotics and logistics space.

 

○

Manufacturing: On April 24, 2024, the Magna MSA was expanded through the establishment of a new production and purchase agreement wherein Magna became the exclusive contract manufacturer of Serve’s delivery robots.

 

First Quarter Financial Highlights

 

●

First quarter revenue was $0.95 million including $0.85 million of software service revenue derived from the Company’s agreement with Magna. The Company expects to recognize the remaining $0.35 million in the second quarter 2024.

 

●

As of March 31, 2024, the Company had $0.43 million of cash and cash equivalents. As of April 30, 2024, the Company had approximately $34.2 million of cash and cash equivalents, after including proceeds from its April 2024 public offering.

 

●

As of March 31, 2024, the Company had 24.6 million shares of common stock outstanding. As of May 13, 2024, following the share issuance from the Company’s April 2024 public offering, the Company had 37.1 million shares of common stock outstanding, and 42.2 million shares on a fully diluted basis.

 

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
		March 31,
		2024				2023
Key Metrics		(Unaudited)				(Unaudited)
Daily Active Robots (1)			39				23
Daily Supply Hours (2)			300				152

 

(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.

 

 

 

 

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 March 31, 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 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.

 

 

 

Serve Robotics Inc.

Condensed Consolidated Balance Sheet (unaudited)

 

		March 31,				December 31,
		2024				2023
ASSETS
Current assets:
Cash		$	427,482			$	6,756
Accounts receivable			266,030				2,955
Inventory			736,535				774,349
Prepaid expenses			629,610				676,969
Deferred offering costs			973,491				-
Total current assets			3,033,148				1,461,029
Property and equipment, net			33,839				48,422
Right of use asset			668,462				782,439
Deposits			512,659				512,659
Total assets		$	4,248,108			$	2,804,549
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable		$	1,725,064			$	2,050,605
Accrued liabilities			1,151,158				255,849
Deferred revenue			68,899				-
Note payable, current			1,000,000				1,000,000
Note payable - related party			-				70,000
Convertible notes payable, net of debt discount			4,549,395				-
Derivative liability			1,489,000				-
Right of use liability, current portion			474,649				496,963
Lease liability, current portion			2,335,796				2,363,807
Total current liabilities			12,793,961				6,237,224
Note payable, net of current portion			-				230,933
Restricted stock award liability			154,630				158,617
Right of use liability			105,643				211,181
Total liabilities			13,054,234				6,837,955
Commitments and contingencies (Note 10)
Stockholders’ equity (deficit):
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, no shares issued or outstanding as of both March 31, 2024 and December 31, 2023			-				-
Common stock, $0.0001 par value; 300,000,000 shares authorized, 24,957,814 and 24,832,814 shares issued and 24,633,795 and 24,508,795 shares outstanding as of both March 31, 2024 and December 31, 2023			2,462				2,450
Additional paid-in capital			68,729,393				64,468,141
Subscription receivable			(165,629	)			(169,616	)
Accumulated deficit			(77,372,352	)			(68,334,381	)
Total stockholders’ equity (deficit)			(8,806,126	)			(4,033,406	)
Total liabilities and stockholders’ equity (deficit)		$	4,248,108			$	2,804,549

 

 

 

Serve Robotics Inc.

Condensed Consolidated Statement of Operations  (unaudited)

 

		Three Months Ended
		March 31,
		2024				2023
Revenues		$	946,711			$	40,252
Cost of revenues			352,438				367,261
Gross profit (loss)			594,273				(327,009	)
Operating expenses:
General and administrative			1,008,071				1,015,987
Operations			540,974				521,687
Research and development			6,638,441				2,082,949
Sales and marketing			118,236				279,582
Total operating expenses			8,305,722				3,900,205
Loss from operations			(7,711,449	)			(4,227,214	)
Other income (expense), net:
Interest expense, net			(1,326,522	)			(41,744	)
Change in fair value of simple agreements for future equity			-				(869,164	)
Total other income (expense), net			(1,326,522	)			(910,908	)
Provision for income taxes			-				-
Net loss		$	(9,037,971	)		$	(5,138,122	)
Weighted average common shares outstanding - basic and diluted			24,556,343				6,708,450
Net loss per common share - basic and diluted		$	(0.37	)		$	(0.77	)

 

 

 

 

Serve Robotics Inc.

Condensed Consolidated Statement of Cash Flows (unaudited)

 

		Three Months Ended
		March 31,
		2024				2023
Cash flows from operating activities:
Net loss		$	(9,037,971	)		$	(5,138,122	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation			17,923				465,640
Stock-based compensation			4,255,432				93,943
Amortization of debt discount			1,212,836				4,000
Change in fair value of simple agreements for future equity			-				869,164
Interest on recourse loan			3,987				(1,202	)
Changes in operating assets and liabilities:
Accounts receivable			(263,075	)			8,626
Inventory			37,814				(4,704	)
Prepaid expenses			47,359				(33,643	)
Accounts payable			(325,541	)			64,191
Accrued liabilities			(82,168	)			(30,239	)
Deferred revenue			68,899				-
Right of use liabilities, net			(13,875	)			(11,063	)
Net cash used in operating activities			(4,078,380	)			(3,713,409	)
Cash flows from investing activities:
Purchase of property and equipment			(3,340	)			-
Net cash used in investing activities			(3,340	)			-
Cash flows from financing activities:
Proceeds from simple agreement for future equity			-				2,666,953
Proceeds from convertible notes payable			4,844,625				-
Exercise of warrants			5,832				-
Repayments of note payable			(250,000	)			(250,000	)
Repayments of notes payable, related party			(70,000	)			-
Repayment of lease liability financing			(28,011	)			(552,786	)
Net cash provided by financing activities			4,502,446				1,864,167
Net change in cash and cash equivalents			420,726				(1,849,242	)
Cash and cash equivalents at beginning of period			6,756				2,715,719
Cash and cash equivalents at end of period		$	427,482			$	866,477
Supplemental disclosure of cash flow information:
Cash paid for income taxes		$	-			$	-
Cash paid for interest		$	35,892			$	40,630
Supplemental disclosure of non-cash investing and financing activities:
Vested restricted stock purchased with recourse notes		$	-			$	3,436
Deferred offering costs included in accounts payable		$	973,491			$	-

 

 

 

About Serve Robotics

 

Backed by Uber and NVIDIA, Serve Robotics 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.

  

Media

 

Aduke Thelwell

Head of Communications & Investor Relations

Serve Robotics

aduke.thelwell@serverobotics.com

347-464-8510

 

Investors

 

CORE IR

investor.relations@serverobotics.com

 

 

 7

Exhibit 99.2

 

Robotic Last Mile Delivery May 2024

Disclaimer FORWARD LOOKING STATEMENTS This Serve Robotics Inc. (the “Company”) investor presentation 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 investor presentation 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 March 31, 2024, and in the Company’s subsequent SEC filings. The Company 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 presentation are based on information available to the Company as of the date hereof, and the Company disclaims any obligation to update any forward - looking statements, except as required by law. These forward - looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this presentation. INDUSTRY AND MARKET DATA In this presentation, the Company relies on and refers to information and statistics regarding the sectors in which the Company competes and other industry data. the Company obtained this information and statistics from third - party sources, including reports by market research firms. Although the Company believes these sources are reliable, the Company has not independently verified the information and does not guarantee its accuracy and completeness. The Company has supplemented this information where necessary with information from discussions with customers and the Company’s own internal estimates, taking into account publicly available information about other industry participants and the Company’s management’s best view as to information that is not publicly available. TRADEMARKS AND TRADE NAMES The Company owns or has rights to various trademarks, service marks and trade names that it uses in connection with the operation of its business. This presentation also contains trademarks, service marks and trade names of third parties, which are the property of their respective owners The use or display of third parties’ trademarks, service marks. trade names or products in this presentation is not intended in. and does not imply. a relationship with the Company or an endorsement or sponsorship by or of the Company. Solely for convenience, the trademarks. service marks and trade names referred to in this presentation may appear without the ©, or SM symbols, but such references are not intended to indicate, in any way, that the Company will not assert, to the fullest extent under applicable law, its rights or the right of the applicable licensor in these trademarks, service marks and trade names. 2

Rapid progress in robotics and artificial intelligence (AI) can help reduce our reliance on cars ● U.S. drivers killed 20 pedestrians each day in 2021 1 ● Private cars & vans caused ~10% of global energy - related CO 2 emissions in 2022 2 ● Tailwinds accelerating robot adoption include: advances in AI, faster & cheaper compute, cheaper sensors and ubiquitous data connectivity, as well as labor shortages, wage inflation & new worker classification laws 1. “Share the Road: It’s Everyone’s Responsibility” ( NHTSA, 2023 ) 2. “Cars and Vans” ( IEA , 202 2 ) Why move 2 lb burritos… in 2 ton cars? 3

$450B by 2030: The untapped market for robotic & drone delivery 1 Delivery is in hyper - growth, but costs prevent profits: ● +200% — DoorDash revenue growth (2020 to 2023) ● +235% — DoorDash cost of revenue increase (2020 to 2023) AI - powered robots are on a mission to make last mile delivery profitable: ● 2.5 miles — Median distance of food deliveries in the United States 2 ● $1.00 — Expected average cost of last mile delivery by Serve robots with increased autonomy and adoption 3 1. TAM calculation sourced from ARK ( Big Ideas 2024 ) and Company estimates 2. Internal historical delivery data 3. Internal financial projections model 4

Veterans in AI, robotics, last mile ● VP at Postmates. Co - founder/CTO at Neurio (acq. Generac) ● Ph.D. in Robotics (UBC) ● 15 patents Ali Kashani , Ph.D. CEO ● Director at Postmates ● Staff engineer at Postmates ● Founding engineer at Postmates X Dmitr y Demeshchuk Software ● Director, Postmates. Head of Product, Anki. BigCommerce Lead, EA ● 17+ years leading product in, robotics, marketplaces, video games M J Bur k Chun Product ● VP Corp Dev at GoDaddy. Serial entrepreneur: UpCounsel (acq. LinkedIn), Webs (acq. Vistaprint), Jaxtr ● Graduate of Yale Law & Stanford Toura j Parang President & COO ● SVP Hardware at Latch. VP Hardware at GoPro. Lead engineer at Apple. ● BS in Engineering (U of Sheffield) Eua n Abraham Hardware Bria n Read CFO ● Controller at Apptronik Inc. ● Global Controller at REE Automotive; Asst. Global Controller at Coherent ● Certified Public Accountant (CPA) Rajes h Radhakrishnan Autonomy ● Director at Ghost Autonomy; Head of ML at John Deere. Founding engineer at Blue River (acq. John Deere) ● MS in Computer Science (UT Arlington) 5

Backed by industry leaders Largest strategic investor (>$12M to date). Technical partner since 2018. Investor ($11.5M to date). Largest shareholder & commercial partner. Early investor. German food delivery platform in EU & Asia. Early investor. First convenience store partner (13,000 stores in US/Canada). 6

Recent Highlights $40 million new capital Uplisted to Nasdaq with concurrent $ 40 M equity offering, including participation from Uber (NYSE : UBER) subsidiary Postmates LLC . Capital supplements January investment from technology partner NVIDIA Magna partnership Signed agreement for licensing and manufacturing partnership Revenue growth Q 1 2024 revenue of $ 0 . 95 million, including 124 % sequential growth in delivery and branding revenue, and $ 0 . 85 million in software service revenue related to our Magna agreement 7

Phase 1 completed: 1 market, 300 restaurants 8 25% MoM growth 24 months of rapid increase in deliveries since early 2022 Up to 99.94% reliability delivery completion 10x better than drivers, with roughly 0.5 failed delivery per 1,000 Over 50,000 deliveries in L.A. 100 robots for deliveries & R&D Serve’s delivery volume in Los Angeles 1 1. All figures based on internal historical delivery data Serve’s Los Angeles Fleet

Next phase: 2000 robots under contract with We have signed one of the largest contracts in the AV industry with Uber Eats. Full 2,000 - robot deployment is expected in 2025 . Our fleet is already integrated into Uber, helping grow to new markets more efficiently and achieve high levels of robot utilization. Beyond L.A., expansion markets under consideration include: ● Los Angeles (coverage expansion) ● San Diego (new deployment) ● Dallas (new deployment) ● Vancouver, BC (new deployment) 9

Autonomous Urban Robots Autonomous Vehicles Drones Range Safety Risk Regulations Commercialization Short Distance Low Permitted Launched Medium Distance High Restricted R&D Long Distance High Restricted R&D Delivery robots target a large market segment with clear path to scale Delivery is multi - modal: 10

We know delivery With unique insights from inception inside a delivery platform, we believe we have: ● Unique AI - powered robots ● Unique fleet operations ● Unique go - to - market strategy All - terrain 7 mph top speed 13 gallons of cargo, holds up to 4 pizzas All day battery Touch - screen interface Full - stack AV sensors Level 4 autonomy Redundant connectivity Built for Urban Delivery Using Proprietary Data (Postmates X) 11

Our AI - powered robots are on a mission to make urban delivery profitable : High Autonomy Level 4 - capable fleet High Safety & Reliability Low rate of failure thanks to advanced hardware & software, and redundant sensing & AI Superior Economics Lower delivery cost due to underlying forces High Utilization Scaling on a major delivery platform High Efficiency Purpose - built for operation at scale We believe we are market leaders in urban robotic delivery 12

We are among the first AV companies to bring Level 4 delivery robots to market Level 2 & 3 — R.C. Robots ● Humans always in the loop to maintain safe operation ● Safety risk due to reliance on data networks and human drivers ● Poor economics, hard to scale, and low barrier to entry Level 4 — Serve Robots ● No human in the loop for safety, within designated Operational Design Domain (ODD) ● Safety via redundancy ● Compelling economics, and strong moat through deep tech ● Regulatory tailwinds Level 5 — 100% Self - Driving ● No human in the loop at any time ● Not commercially viable today ● Strong regulatory headwinds ● Capital intensive Level 4 autonomy commercialized 13

Robots have more diverse revenue opportunities than couriers Out - of - home (“OOH”) ads have supplemented our delivery revenue. Monetizing unique robot capabilities such as ads & data, as well as licensing the underlying technology, make robots more profitable than couriers. 14

We have a playbook for capital - efficient growth We have a proven model to finance building large fleets without high capex: 1. Financial partner The financial partner, as lessor, provides upfront capital for robots 2. Contract manufacturer Magna Int’l (tier 1 auto supplier) is Serve’s exclusive contract manufacturer 15

The unbundling of cars 16 1. 25m horses in the U.S. in 1920 ( USDA ) versus 283m vehicles in 2022 ( US FHWA ) After the invention of automobiles, the U.S. went from 25 million horses (1920s) to 283 million cars (2020s), or >11 vehicles replacing each horse, according to some reports 1 . We believe the development of specialized, efficient robots in the future has the potential to lead to similar proliferation of robots for every car.

Serve as a platform Magna International has licensed our technology to accelerate development of its new robotic products As a leading urban robotic delivery company, we believe we are well - positioned to become a platform of choice for companies building new non - competing robots and services for complex public spaces. We believe this provides us with an additional monetization opportunity. 17

2.5% Gas Vehicle 100% 20% Electric Vehicle Relative Energy Consumption Per Km 2 : With global adoption, we believe delivery robots could reduce CO2 emissions by approximately 762 Mt annually, while also providing more convenience to consumers. 18 Robots could reduce global emissions by ~2% Annually 1 1. Estimated using internal data and 2022 global emissions from the Global Carbon Project 2. Transportation Research Part D: Transport and Environment ( Vol 85, 2020 )

Public Market Debut ● Completed uplisting to Nasdaq Capital Market , commenced trading under ticker “SERV” on April 18 ● Public equity offering generated $40.0 million in gross proceeds Q1 2024 Financial Results ● Q1 revenue: ○ $0.95 million , including $0.85 million of software service revenue derived from agreement with Magna. ○ Remaining $0.35 million of Magna software service revenue expected to be recognized in Q2. ● Cash and cash equivalents: ○ $0.43 million as of March 31 ○ $34.2 million as of April 30 , after proceeds from April public offering ● Common stock: ○ 24.6 million shares outstanding as of March 31 ○ 37.1 million shares outstanding as of May 13 (and 42.2 million shares outstanding on a fully diluted basis), following share issuance from April public offering Financial Update 19

Thank you!

v3.24.1.1.u2

Cover	May 15, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 15, 2024
Entity File Number	000-56237
Entity Registrant Name	SERVE ROBOTICS INC.
Entity Central Index Key	0001832483
Entity Tax Identification Number	85-3844872
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	730 Broadway
Entity Address, City or Town	Redwood City
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94063
City Area Code	818
Local Phone Number	860-1352
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	SERV
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false

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