Company: SERV
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001832483-25-000112
Chunk: 51

Company: Serve Robotics Inc. /DE/
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 51
---
Performance-Based Restricted StockNumber of SharesWeighted Average Grant Date Fair ValueNonvested as of December 31, 2024-$- Granted1,440,001$9.71 Nonvested as of September 30, 20251,440,001$9.71 WarrantsThe following is a summary of warrants for the nine months ended September 30, 2025: Warrants Weighted Average Exercise PriceOutstanding as of December 31, 20243,340,011$6.56 Granted4,000,00010.36 Exercised(2,260,717)5.12 Forfeited—— Outstanding as of September 30, 20255,079,294$10.18    Exercisable as of September 30, 20255,079,294$10.18 The weighted-average remaining term of the warrants outstanding was 7.44 years as of September 30, 2025.Magna WarrantOn February 1, 2024, Serve entered into a Master Services Agreement (the “MSA”) with Magna, retroactively effective as of January 15, 2024.In connection with the strategic partnership with Magna, on February 7, 2024, the Company issued to Magna a warrant (the “Magna Warrant”) to purchase up to 2,145,000 shares of the Company’s common stock (the “Magna Warrant Shares”), subject to at an exercise price of $0.01 per share. The Magna Warrant was issued pursuant to a production agreement executed in connection with the MSA between the parties in April 2024 whereby Magna will assist the Company in assembly of robotic delivery vehicles.The Magna Warrant is exercisable in two equal tranches: (i) the first tranche became exercisable in May 2024; and (ii) the second tranche became exercisable in December 2024. As of June 30, 2025, the Magna Warrant has been fully exercised into shares of the Company’s common stock. All warrants were fully vested and the Company recognized $8.6 million in stock-based compensation expense pertaining to these warrants as of December 31, 2024, based on the vesting conditions noted above. The Company recorded the expense to research and development expense in the consolidated statements of operations for the year ended December 31, 2024.KV WarrantsIn