Company: SERV
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001832483-25-000089
Chunk: 33

Company: Serve Robotics Inc. /DE/
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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407—7,407Total$106,000 $66,631 $— $172,631 There were no Level 1, 2 or 3 assets or liabilities as of December 31, 2024. The fair value of the Company’s Level 1 financial instruments is based on quoted market prices for identical instruments in active markets. The fair value of the Company’s Level 2 fixed income securities is obtained from independent pricing services, which may use quoted market prices for identical or comparable instruments in less active markets or model driven valuations using observable market data or inputs corroborated by observable market data.Assets Measured at Fair Value on a Non-Recurring BasisDerivative LiabilityIn connection with the issuance of the Company’s convertible notes, the Company recorded a derivative liability (see Note 8). The estimated fair value of the derivative liability was recorded using significant unobservable measures and other fair value inputs and is therefore classified as a Level 3 financial instrument.The fair value of the derivative liability was valued using a probability-weighted scenario analysis utilizing the terms of the notes under the with-or-without method. The Company determined a 100% probability of conversion into equity as the notes were converted into shares of the Company’s common stock upon the Offering in April 2024.Upon the Offering in April 2024, all the convertible notes, including principal and accrued interest, were converted into 2,104,562 shares of the Company’s common stock. Accordingly, the related derivative liability was converted into additional paid-in capital.

6. MARKETABLE SECURITIES

The following tables summarize the cost or amortized cost, gross unrealized gain, gross unrealized loss, and fair value of the Company’s cash equivalents and marketable securities (in thousands):

16

June 30, 2025Cost or Amortized CostUnrealizedEstimated Fair ValueGainsLossesCash equivalentsMoney market funds$97,318 $— $— $97,318 Commercial Paper6,481 — — 6,481 U.S. Treasury securities2,201 — — 2,201 Short-term marketable securitiesCommercial paper31,748 — (16)31,732 Corporate bonds27,515 — (23)27,492 U.S. Treasury securities7,413 — (6)7,407 Total$172,676 $— $(45)$172,631 For marketable securities with unrealized