Wed, May 15, 11:27 AM (220 days ago)
Serve Robotics Inc. reported a significant increase in revenue for Q1 2024, with $946,711 compared to $40,252 in Q1 2023, primarily due to a new software services contract with Magna. However, the company also posted a net loss of $9,037,971, up from $5,138,122 in the previous year. Operating expenses surged to $8,305,722 from $3,900,205, driven by a substantial increase in research and development costs, which included a $4.2 million stock compensation expense related to a warrant issued to Magna. The company completed a public offering in April 2024, raising approximately $35.7 million, which will be used to scale operations and develop technology. Despite these funds, Serve Robotics faces challenges, including customer concentration risks, supply chain constraints, and the need for additional capital to continue operations. The company is focusing on expanding its robotic fleet and entering new markets while addressing material weaknesses in internal controls.