Company: SERV
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001832483-25-000112
Chunk: 40

Company: Serve Robotics Inc. /DE/
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 Merger Sub II LLC, a Delaware limited liability company and the Company’s direct wholly-owned subsidiary (“Merger Sub II”), Vayu Robotics, Inc., a Delaware corporation (“Vayu”) and certain of Vayu’s securityholders (the “Vayu Merger Agreement”). Pursuant to the Vayu Merger Agreement, on August 15, 2025 (the “Vayu Closing Date”), (i) Merger Sub I merged with and into Vayu, with Vayu surviving as a direct wholly-owned subsidiary of the Company and (ii) Vayu subsequently merged with and into Merger Sub II, with Merger Sub II surviving the merger. In connection with the closing of the transactions contemplated by the Vayu Merger Agreement, the Company acquired all of the issued and outstanding equity of Vayu, which was accounted for under the acquisition method of accounting. Vayu is a pioneer in urban robot navigation using large-scale AI models, and the Company’s acquisition of Vayu supports the adoption of advanced AI-driven autonomy by integrating Vayu’s foundation model technology and simulation capabilities.The total fair value of consideration paid in connection with the acquisition of Vayu consisted of the following (in thousands):

15

SharesPer ShareTotal ConsiderationCash paid for outstanding shares of Vayu common and preferred stock, as adjusted for working capital$2,278 Company common shares issued to Vayu common and preferred stockholders1,539,906$9.71 14,952Company warrants issued to Vayu SAFE holder, Khosla Ventures4,000,000$5.41 21,640Replacement equity awards attributable to pre-combination service734$39,604The Company allocated the fair value of the purchase price consideration to the tangible assets acquired and liabilities assumed, based on estimated fair values. The excess purchase price over those fair values is recorded as goodwill.  The Company’s valuation assumptions of acquired assets and assumed liabilities require significant estimates with respect to intangible assets. The acquired company’s intangible assets are comprised of developed technology. The estimated fair value of the developed technology was determined using the cost method, which estimates the value of an asset based on the current cost to replace or reproduce it, adjusted for physical deterioration, functional obsolescence, and economic factors. This method reflects the amount a market participant would need to invest to create an asset of comparable utility, considering current technology and development costs.The total purchase consideration was approximately $39.60