Company: SERV
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001832483-25-000089
Chunk: 31

Company: Serve Robotics Inc. /DE/
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 intangible asset using 

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a risk-adjusted discount rate that is reflective of the level of risk associated with future estimates associated with the asset group that could be affected by future economic and market conditions. The estimated fair value of the developed technology is also dependent on the selection of the royalty rate used in the valuation method. The total purchase consideration was approximately $5.75 million of cash consideration. The preliminary goodwill of $4.33 million arising from the acquisition is attributed to the expected synergies, including future cost savings, and other benefits expected to be generated. Substantially all of the goodwill recognized is not expected to be deductible for tax purposes.The Company recorded an insignificant amount of acquisition related costs in the six months ended June 30, 2025, representing professional and other direct acquisition costs. These costs are recorded within selling, general, and administrative expense in our unaudited condensed consolidated statements of operations.Certain data necessary to complete the purchase price allocation remains preliminary. The Company expects to complete the purchase price allocation within 12 months of the Closing Date, at which time the purchase price allocation set forth herein may be revised. Any such revisions or changes may be material. The Company utilized widely accepted income-based, market-based, and cost-based valuation approaches to perform the preliminary purchase price allocation. The Company’s preliminary allocation of the purchase price, based on the estimated fair value of the assets acquired and liabilities assumed as of the Closing Date, is as follows (in thousands):Preliminary: April 1, 2025Cash consideration paid$5,170 Escrow amount575 Purchase price5,745 Assets acquired: Cash and cash equivalents111 Other current assets73 Other assets17 Intangible assets1,370 Total identifiable assets acquired1,571 Liabilities assumed:Current liabilities(153)Total identifiable liabilities assumed(153)Fair value of identifiable assets, net of identifiable liabilities assumed$1,418 Goodwill$4,327 The following table summarizes the preliminary fair values of the identified intangible assets acquired (in thousands): Intangible AssetsUseful life (in years)Preliminary fair value at acquisitionDeveloped technology15$980 Customer relationships25255 Trade names10135 16$1,370 

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4. GOODWILL AND INTANGIBLE ASSETS, NET

The changes in the carrying amount of goodwill during the six months ended June 30, 2025 were as follows (in thousands):TotalBalance as of December 31,