Company: SERV
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001832483-25-000112
Chunk: 113

Company: Serve Robotics Inc. /DE/
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 113
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 leases for office, warehouse space, and cargo vans.Operating lease costs by financial statement line item are as follows (in thousands):Three Months EndedSeptember 30,Nine Months EndedSeptember 30,TypeFinancial Statement Line Item2025202420252024Operating leaseGeneral and administrative26 9 54 26 Operating leaseOperations770 340 1,456 503 Operating leaseResearch and development2 63 76 133 Total lease costs$798 $412 $1,586 $662 Supplemental cash flow information related to leases is as follows (in thousands):Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Cash paid for operating lease liabilities$485 $141 $1,019 $420 Right-of-use assets obtained in exchange for operating lease obligations$1,873 $275 $3,045 $275 Supplemental balance sheet information related to leases is as follows:September 30,2025December 31,2024Weighted-average remaining lease term (in years)3.032.65Weighted-average discount rate7.34 %7.24 %Future annual minimum payments under operating leases as of September 30, 2025, are as follows (in thousands):

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Remainder of 2025$591 20261,692 20271,338 2028473 2029192 Thereafter336 Total undiscounted future cash flows4,622 Less: imputed interest(475)Total operating lease liabilities$4,147 Finance Lease – Failed Sales-LeasebackIn November 2022, the Company entered into a lease agreement with Farnam Capital for its robot assets. As per ASC 842-40-25, the transaction was considered a failed sales-leaseback and therefore the lease was accounted for as a financing agreement. There was no outstanding liability at September 30, 2025. In April 2025, the Company exercised the option to purchase the assets at the end of the lease for $2.25 million.Legal ProceedingsFrom time to time, the Company is a party to litigation and subject to claims incidental to its business. Although the results of litigation and claims cannot be predicted with certainty, the Company currently believes that the final outcome of ongoing matters will not have a material adverse effect on its business. Regardless of the outcome, litigation can have an adverse impact on the Company because of judgment