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): November 7, 2024
(Exact Name of Registrant as Specified in Charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (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:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
The | ||||||||||||||
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 November 7, 2024, Serve Robotics Inc. (the “Company”) announced its financial results for the nine months ended September 30, 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 November 7, 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 | ||||||||
| 99.2 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
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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: November 7, 2024 | /s/ Ali Kashani | ||||
| Ali Kashani | |||||
| Chief Executive Officer and Director | |||||
Dated: November 7, 2024 | /s/ Brian Read | ||||
| Brian Read | |||||
| Chief Financial Officer and Director | |||||
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Exhibit 99.1
Serve Robotics Announces Third Quarter 2024 Results
•Announced plans for geographic expansion into the Dallas Fort Worth metro
•Completed $32.3 million in capital raise transactions; Cash balance of $50.9 million as of third quarter end
•Announced agreement to acquire Vebu and its pioneering avocado-processing robot, Autocado
SAN FRANCISCO, November 7, 2024 — Serve Robotics Inc. (the “Company” or “Serve”) (Nasdaq: SERV), a leading autonomous sidewalk delivery company, today announced financial results for the third quarter 2024 ended September 30, 2024.
"During the third quarter we made significant operational and financial progress related to several priorities; laying the foundation for a successful 2025," said Dr. Ali Kashani, Serve's Co-founder and CEO. "Regarding our agreement with Uber Eats to deploy 2,000 robots by year end 2025, we are ahead of schedule with the initial manufacturing and rollout. We remain on track to deploy 2,000 new robots across multiple markets next year. Furthermore, we announced the potential acquisition of Vebu, which brings us into a strategically adjacent service offering, and we initiated partnerships with Wing Aviation and Shack Shack to expand our reach. Importantly, we successfully raised $32.3 million in new capital to provide financial flexibility and fund our expansion plans."
Second Quarter 2024 and Recent Highlights
•Capital Raise Transactions: On July 17, 2024 and August 27, 2024, Serve completed private placement offerings resulting in a total of $32.3 million in net proceeds. As of September 30, 2024, Serve had $50.9 million in cash and zero outstanding debt obligations. Post quarter-end, the company also established and At-the-Market ("ATM") financing program providing further flexibility in capital raising.
•Operational Performance: Serve averaged 465 daily supply hours during the third quarter 2024, a 108% increase year-over-year and a 21% increase quarter-over-quarter. The Company also achieved a 97% increase in daily active robots year-over-year and a 23% increase quarter-over-quarter.
•Geographic Expansion: Serve announced its plan for geographic expansion in Los Angeles, as well as entry into the Dallas Fort Worth market. In the coming weeks, Serve will expand its Los Angeles delivery service into the Downtown LA, Sawtelle and Westwood areas, with a delivery fleet deployment expected in Dallas Forth Worth by the end of Q2 2025. Serve will also begin operations in Dallas, expected in the coming weeks in support of our partnership with drone-maker, Wing Aviation.
•Vebu Acquisition: Today, Serve announced its agreement to acquire the assets of Vebu, Inc. (“Vebu”) in an all-stock transaction, subject to customary closing conditions. Vebu's signature robotic product is the Autocado. The acquisition is expected to strengthen Serve’s strategic position by providing its restaurant partners with a suite of automation solutions and expanding Serve’s offering beyond delivery into back of house automation.
Third Quarter Financial Highlights
•Third quarter revenue was $0.22 million, including $0.04 million of software service revenue derived from the Company’s software services agreement with Magna.
•As of September 30, 2024, the Company had $50.9 million of cash and cash equivalents.
•As of September 30, 2024, the Company had 39.6 million shares of common stock outstanding.
Quarterly Conference Call
Company management will host a conference call and webcast today at 2:00 p.m. PT / 5:00 p.m. ET to discuss the financial results and provide a corporate update. A live webcast and replay can be accessed from the investor relations page of Serve Robotics’ website at Investor Relations — Serve Robotics.
Individuals interested in listening to the conference call may do so by dialing 1 (800) 715-9871 and referencing conference ID#: 3511636.
About Serve
Serve 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.
For further information about Serve (Nasdaq: SERV), please visit www.serverobotics.com or follow us on social media via X (Twitter), Instagram, or LinkedIn @serverobotics.
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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 | Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||
| Key Metrics | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||
Daily Active Robots (1) | 59 | 48 | 30 | 49 | 27 | ||||||||||||||||||||||||
Daily Supply Hours (2) | 465 | 385 | 224 | 384 | 188 | ||||||||||||||||||||||||
(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.
Table 2: Revenue
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||
Software services | $ | 38,767 | $ | 296,035 | $ | — | $ | 1,185,903 | $ | — | |||||||||||||||||||
| Delivery services | 112,288 | 75,540 | 54,065 | 239,588 | 111,784 | ||||||||||||||||||||||||
| Branding fees | 70,500 | 140,650 | 8,500 | 211,150 | 53,042 | ||||||||||||||||||||||||
| $ | 221,555 | $ | 512,225 | $ | 62,565 | $ | 1,636,641 | $ | 164,826 | ||||||||||||||||||||
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, capabilities of the Company’s robots, outcomes of planned acquisitions, 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 September 30, 2024, and in the Company’s subsequent SEC filings. The Company can give
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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.
Contacts
Media
Aduke Thelwell
Head of Communications & Investor Relations
Serve Robotics
aduke.thelwell@serverobotics.com
347-464-8510
Investor Relations
investor.relations@serverobotics.com
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Serve Robotics Inc.
Unaudited Condensed Consolidated Balance Sheets
As of September 30, 2024 and December 31, 2023
(unaudited)
| September 30, 2024 | December 31, 2023 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash | $ | 50,913,133 | $ | 6,756 | |||||||
| Accounts receivable | 13,099 | 2,955 | |||||||||
| Inventory | 327,363 | 774,349 | |||||||||
| Prepaid expenses | 3,452,560 | 676,969 | |||||||||
| Escrow Receivable | 180,000 | - | |||||||||
| Total current assets | 54,886,155 | 1,461,029 | |||||||||
| Property and equipment, net | 5,406,261 | 48,422 | |||||||||
| Right of use asset | 660,286 | 782,439 | |||||||||
| Security Deposits | 512,659 | 512,659 | |||||||||
| Total assets | $ | 61,465,361 | $ | 2,804,549 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 3,606,754 | $ | 2,050,605 | |||||||
| Accrued liabilities | 55,440 | 255,849 | |||||||||
| Deferred revenue | 14,097 | - | |||||||||
| Note payable, current | — | 1,000,000 | |||||||||
| Note payable - related party | — | 70,000 | |||||||||
| Right of use liability, current portion | 436,377 | 496,963 | |||||||||
| Lease liability, current portion | 1,042,093 | 2,363,807 | |||||||||
| Total current liabilities | 5,154,761 | 6,237,224 | |||||||||
| Note payable, net of current portion | — | 230,933 | |||||||||
| Restricted stock award liability | — | 158,617 | |||||||||
| Right of use liability | 135,181 | 211,181 | |||||||||
| Total liabilities | 5,289,942 | 6,837,955 | |||||||||
| Stockholders’ equity (deficit): | |||||||||||
| Preferred stock, $0.0001 par value, 10,000,000 shares authorized, no shares issued or outstanding as of both September 30, 2024 and December 31, 2023 | — | - | |||||||||
| Common stock, $0.0001 par value; 300,000,000 shares authorized, 42,957,446 and 24,832,814 shares issued and 42,844,956 and 24,508,795 shares outstanding as of September 30, 2024 and December 31, 2023 | 4,283 | 2,450 | |||||||||
| Additional paid-in capital | 150,577,074 | 64,468,141 | |||||||||
| Subscription receivable | — | (169,616) | |||||||||
| Accumulated deficit | (94,405,938) | (68,334,381) | |||||||||
| Total stockholders’ equity (deficit) | 56,175,419 | (4,033,406) | |||||||||
| Total liabilities and stockholders’ equity (deficit) | $ | 61,465,361 | $ | 2,804,549 | |||||||
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Serve Robotics Inc.
Unaudited Condensed Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2024 and 2023; and Three Months Ended June 30, 2024
(unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||
| Revenues | $ | 221,555 | $ | 468,375 | $ | 62,565 | $ | 1,636,641 | $ | 164,826 | |||||||||||||||||||
| Cost of revenues | 377,304 | 326,013 | 572,537 | 1,055,755 | 1,331,165 | ||||||||||||||||||||||||
| Gross profit (loss) | (155,749) | 142,362 | (509,972) | 580,886 | (1,166,339) | ||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||
| General and administrative | 1,980,087 | 1,873,320 | 1,428,143 | 4,861,478 | 3,414,949 | ||||||||||||||||||||||||
| Operations | 917,350 | 871,211 | 558,068 | 2,329,535 | 1,672,403 | ||||||||||||||||||||||||
| Research and development | 5,007,985 | 5,787,906 | 2,962,812 | 17,434,332 | 7,171,446 | ||||||||||||||||||||||||
| Sales and marketing | 383,902 | 165,612 | 118,793 | 667,750 | 481,511 | ||||||||||||||||||||||||
| Total operating expenses | 8,289,324 | 8,698,049 | 5,067,816 | 25,293,095 | 12,740,309 | ||||||||||||||||||||||||
| Loss from operations | (8,445,073) | (8,555,687) | (5,577,788) | (24,712,209) | (13,906,648) | ||||||||||||||||||||||||
| Other income (expense), net: | |||||||||||||||||||||||||||||
| Interest income (expense), net | 448,854 | (260,120) | (1,483,390) | (1,137,788) | (2,021,996) | ||||||||||||||||||||||||
| Loss on conversion of note payable | - | (221,560) | (149,000) | (221,560) | (149,000) | ||||||||||||||||||||||||
| Change in fair value of simple agreements for future equity | - | - | (435,794) | - | (1,672,706) | ||||||||||||||||||||||||
| Total other income (expense), net | 448,854 | (481,680) | (2,068,184) | (1,359,348) | (3,843,702) | ||||||||||||||||||||||||
| Provision for income taxes | - | - | - | - | - | ||||||||||||||||||||||||
| Net loss | $ | (7,996,219) | $ | (9,037,367) | $ | (7,645,972) | $ | (26,071,557) | $ | (17,750,350) | |||||||||||||||||||
| Weighted average common shares outstanding - basic and diluted | 40,586,781 | 29,176,370 | 18,528,262 | 33,267,589 | 10,674,991 | ||||||||||||||||||||||||
| Net loss per common share - basic and diluted | $ | (0.20) | $ | (0.62) | $ | (0.41) | $ | (0.78) | $ | (1.66) | |||||||||||||||||||
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Serve Robotics Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2024 and 2023
(unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | $ | (26,071,557) | $ | (17,750,350) | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Depreciation | 36,560 | 1,396,919 | |||||||||
| Stock-based compensation | 9,930,480 | 304,256 | |||||||||
| Amortization of debt discount | 1,677,942 | 816,715 | |||||||||
| Warrants issued with convertible note | - | 991,000 | |||||||||
| Change in fair value of derivative liability | 221,560 | 149,000 | |||||||||
| Change in fair value of simple agreements for future equity | - | 1,672,706 | |||||||||
| Interest on recourse loan | - | (2,797) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (10,144) | 19,742 | |||||||||
| Inventory | 446,986 | (250,459) | |||||||||
| Prepaid expenses | (2,775,591) | (517,233) | |||||||||
| Escrow receivable | (180,000) | - | |||||||||
| Accounts payable | 1,556,149 | 782,454 | |||||||||
| Accrued liabilities | (110,870) | 129,481 | |||||||||
| Deferred revenue | 14,097 | - | |||||||||
| Right of use liabilities, net | (14,433) | (35,782) | |||||||||
| Net cash used in operating activities | (15,278,821) | (12,294,348) | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchase of property and equipment | (5,394,399) | (2,493) | |||||||||
| Net cash used in investing activities | (5,394,399) | (2,493) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from issuance of common stock pursuant to offering, net of offering costs | 35,849,136 | - | |||||||||
| Proceeds from issuance of pre-funded warrants to purchase common stock in connection with private placement, net of issuance costs | 17,115,963 | - | |||||||||
| Proceeds from exercise of warrants | 16,324,832 | - | |||||||||
| Proceeds from convertible notes payable | 4,844,625 | 2,798,410 | |||||||||
| Proceeds from exercise of options | 86,755 | - | |||||||||
| Proceeds from note payable, net of offering costs | - | 750,000 | |||||||||
| Repayments of note payable | (1,250,000) | (1,500,000) | |||||||||
| Proceeds from note payable, related party | - | 449,000 | |||||||||
| Repayments of notes payable, related party | (70,000) | (449,000) | |||||||||
| Issuance of common stock pursuant to Merger, net of offering costs | - | 10,026,258 | |||||||||
| Proceeds from simple agreement for future equity | - | 2,666,953 | |||||||||
| Repayment of lease liability financing | (1,321,714) | (1,658,359) | |||||||||
| Net cash provided by financing activities | 71,579,597 | 13,083,262 | |||||||||
| Net change in cash and cash equivalents | 50,906,377 | 786,421 | |||||||||
| Cash and cash equivalents at beginning of period | 6,756 | 2,715,719 | |||||||||
| Cash and cash equivalents at end of period | $ | 50,913,133 | $ | 3,502,140 | |||||||
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Robotic Last Mile Delivery November 2024 Exhibit 99.2
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, capabilities of the Company’s robots, outcomes of planned acquisitions, 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 September 30, 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 CO2 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, 2022) Why move 2 lb burritos… in 2 ton cars? 3
https://youtu.be/n9MJorTjpxU
$450B by 2030: The untapped market for robotic & drone delivery 1 1. TAM calculation sourced from ARK (Big Ideas 2024) and Company estimates 2. Internal historical delivery data 3. Internal financial projections model 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 5
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 Dmitry Demeshchuk Software ● Director, Postmates. Head of Product, Anki. BigCommerce Lead, EA ● 17+ years leading product in, robotics, marketplaces, video games MJ Burk Chun Product ● VP Corp Dev at GoDaddy. Serial entrepreneur: UpCounsel (acq. LinkedIn), Webs (acq. Vistaprint), Jaxtr ● Graduate of Yale Law & Stanford Touraj Parang President & COO ● SVP Hardware at Latch. VP Hardware at GoPro. Lead engineer at Apple. ● BS in Engineering (U of Sheffield) Euan Abraham Hardware Brian Read CFO ● Controller at Apptronik Inc. ● Public Finance roles at REE Automotive and Coherent ● PricewaterCoopers; Certified Public Accountant (CPA) 6 Rajesh 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) Rajesh 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)
Investments by… 7 Technical partner since 2018.Largest shareholder & commercial partner. German food delivery platform in EU & Asia. First convenience store partner (13,000 stores in US/Canada).
Recent highlights 8 Delivery growth & operational expansion ● Q3 2024 saw 21% increase in average supply hours and 23% increase in daily active robots ● Expanding Los Angeles operations into Downtown LA, Sawtelle and Westwood ● New delivery partnerships with Shake Shack and Wing $35 million additional capital ● Completed two private placement transactions in July and August 2024 with single institutional investor Vebu acquisition ● Announced agreement to acquire the assets of Vebu Inc. in all-stock transaction, including Vebu's signature product, the Autocado robot.
Track record of growth: 1 market, 400+ restaurants 9 20% MoM growth 34 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
2000 robots under contract with 10 We have signed one of the largest contracts in the AV industry with Uber Eats. Full 2,000-robot deployment expected by the end of 2025. Our fleet is already integrated into Uber, helping grow to new markets more efficiently and achieve high utilization ● Los Angeles (expansion): ○ At least 250 robots by end of Q1 2025 ○ New neighborhoods include Downtown LA, Sawtelle and Westwood ● Expansion markets (new deployment): ○ Entering Dallas–Fort Worth by end of Q2 2025
Design Design phase is complete for third generation robot. Engineering, validation, and test (“EVT”) units have completed validation and testing phase, and are completing certification. Manufacturing Magna secured as contract manufacturer. First robots rolled off manufacturing assembly line in October 2024. Materials procured from global supply chain network and full scale manufacturing is underway. Deployment Goal: Deploy 2,000 robots by EOY 2025. At least 250 additional robots in Los Angeles expected by the end of Q1 2025. One new major metro by the end of Q2 2025. New markets under consideration include San Diego, Dallas, and Vancouver. Scaled Operation Goal: Improve operational performance and efficiency in new geographies over time. At full utilization, each robot expected to pay for itself in under one year. Generate consistent improvements to robot placement, autonomy software, and operations. Phased 2,000-robot rollout on track ✓ COMPLETED ONGOING ON TRACK TO COME
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 11 mph top speed Redundant connectivity All day battery Touch-screen interface Full-stack AV sensors Level 4 autonomy 15 gallons cargo Holds 4x 16” pizzas Built for Urban Delivery Using Proprietary Data (Postmates X) 12
GEN2 5x more brain power with Nvidia Jetson Orin and Ouster REV7 Lidar for ultra-fast decisions. Advanced collision avoidance and enhanced emergency braking for next-level safety. 40% faster stops for quick reaction times, even in busy environments. Extended 14-hour operations with 67% more battery capacity and 15% more cargo space. 60% faster top speeds and a smoother ride. Built tough to handle diverse weather and terrain conditions. 50% reduced cost. The Gen3: Our Fastest, Smartest, Most Reliable Robot Yet Faster Top Speeds, Boosting Range, and Slashing Costs by 50% Top Speed Weather Range Cargo 7 mph (2.5 m/s) 32 to 104F/Light Rain 23 miles (10 hours) 13 gal, 4x 14” pizzas GEN3 11 mph (4.9 m/s) -4 to 113F/Heavy Rain 48 miles (14 hours) 15 gal, 4x 16” pizzas
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 Autonomy Level 4-capable fleet 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 Our AI-powered robots are on a mission to make urban delivery profitable: 14
Autonomous Urban Robots Autonomous Vehicles Drones Range Short Distance Medium Distance Long Distance Safety Risk Low High High Regulations Permitted Restricted Restricted Commercialization Launched R&D R&D Delivery robots target a large market segment with clear path to scale Delivery is multi-modal: 15
Proprietary and confidential. All rights reserved. Serve and Wing Aviation Partnering to Expand Reach ● Serve robots enable pick-up in dense urban areas, as Wing drones expand Serve delivery radius ● We expect robot-to-drone solution will enable fast, affordable restaurant delivery over 6 mile radius ● More Info https://youtu.be/KRLXHqxsRbM
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. 17
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. 18
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 19
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 20
The unbundling of cars 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. 1. 25m horses in the U.S. in 1920 (USDA) versus 283m vehicles in 2022 (US FHWA) 21
2.5% 100% Gas Vehicle 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. 22 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)
Capital Markets Update ● Total of $80.0 million in financing completed in 2024 ○ January: Issued $5.0 million convertible notes ○ April: Completed $40.0 million public offering and uplisted to Nasdaq Capital Market ○ July: Closed $15.0 million private placement transaction ○ August: Closed $20.0 million private placement transaction Q3 2024 Financial Update ● Q3 revenue of $0.2 million, continued growth within core delivery and branding revenues ● Cash and cash equivalents: ○ $50.9 million as of September 30, 2024 ○ Free cash flow, calculated as cash flow used in operations minus capital expenditures, was negative $10.1 million and included approximately $6.9 million related to manufacturing costs ○ Repaid secured term loan, bringing balance to zero as of September 30, 2024 ● Share Count: ○ 42.8 million shares outstanding as of September 30, 2024 ■ We expect the weighted-average share count for calculation of basic and diluted EPS in Q4 2024 to be approximately 46 million, subject to any relevant adjustments Financial Update 23
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Appendix: Key Metrics & Revenue 25 97% increase in YoY Daily Active Robots 108% increase in YoY Daily Supply Hours Q3 Total Revenue increased 254% YoY