Company: SERV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001832483-25-000038
Chunk: 75

Company: Serve Robotics Inc. /DE/
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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,TypeFinancial Statement Line Item20252024Operating leaseGeneral and administrative$22,777 $8,863 Operating leaseOperations191,066 59,645 Operating leaseResearch and development68,331 32,231 Total lease costs$282,174 $100,739 Supplemental cash flow information related to leases is as follows:Three Months EndedMarch 31,20252024Cash paid for operating lease liabilities$278,168 $139,077 Right-of-use assets obtained in exchange for operating lease obligations$325,222 $— Supplemental balance sheet information related to leases is as follows:March 31,2025December 31,2024Weighted-average remaining lease term (in years)2.512.65Weighted-average discount rate7.25 %7.24 %Future annual minimum payments under operating leases as of March 31, 2025, are as follows:

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Remainder of 2025$689,361 2026787,794 2027568,553 202885,245 2029— Total undiscounted future cash flows2,130,953 Less: imputed interest(245,230)Total operating lease liabilities$1,885,723 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 March 31, 2025. In April 2025, the Company exercised the option to purchase the assets at the end of the lease for 45% of the original equipment cost.ContingenciesThe Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its business, financial condition or results of operations.

9. SEGMENT INFORMATION

The Company has one operating and reportable segment. A description of how the Company derives revenues is included in Note 2. The Company’s chief executive officer is the Company’s CODM, who reviews financial information on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. The CODM uses