Company: SERV
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001832483-25-000089
Chunk: 20

Company: Serve Robotics Inc. /DE/
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, estimated useful lives of property and equipment, impairment of long-lived assets, allocation of overhead costs between cost of revenue and operating expenses and valuation of stock-based compensation. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.Concentrations of Credit RiskFinancial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and marketable securities. The Company generally maintains balances in various operating accounts at financial institutions that management believes to be credit worthy, in amounts that may exceed federally insured limits. 

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The Company has not experienced any losses related to its cash and cash equivalents and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.ConcentrationsA significant portion of our revenue is concentrated with two customers, Magna New Mobility USA, Inc. (“Magna”) and Uber Technologies, Inc. (“Uber”). For the three months ended June 30, 2025 and 2024, sales to Magna accounted for 39% and 63% of our total revenue, respectively.  For the six months ended June 30, 2025 and 2024, sales to Magna accounted for 46% and 81% of our total revenue, respectively. For the three months ended June 30, 2025 and 2024, sales to Uber accounted for 31% and 30% of our total revenue, respectively.  For the six months ended June 30, 2025 and 2024, sales to Uber accounted for 29% and 13% of our total revenue, respectively. As of June 30, 2025, Magna accounted for 81% of our accounts receivable. As of December 31, 2024, Customer C and Uber accounted for 86% and 12% of our accounts receivable, respectively.There are inherent risks whenever a large percentage of total revenues and accounts receivable are concentrated with a limited number of customers. The loss of either or both of these customers could have a negative impact on our results of operations.In addition to