Company: SERV
Filing Date: 2025-03-06
Form Type: S-3
Source: 0001213900-25-021234
Chunk: 56

Company: Serve Robotics Inc. /DE/
Filing Date: 2025-03-06
Form: S-3
Chunk 56
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 or our existing cash in ways that ultimately increase the value of your investment. If we do not invest or apply the net proceeds
from this offering or our existing cash and cash equivalents in ways that enhance stockholder value, we may fail to achieve expected business
and financial results, which could cause our stock price to decline. Pending their use, we may invest the net proceeds from this offering
in short-term, investment-grade, interest-bearing securities. These investments may not yield a favorable return to our stockholders.

Sale of our common stock by existing stockholders, or the perception that these sales may occur, especially by our directors, executive officers or significant stockholders, may cause our stock price to decline.

If our existing stockholders, in particular our directors, executive
officers or other affiliates, sell substantial amounts of our common stock in the public market, or are perceived by the public market
as intending to sell, the trading price of our common stock could decline. In addition, sales of these shares of our common stock could
impair our ability to raise capital, should we wish to do so. We cannot predict the timing or amount of future sales of our common stock
by existing stockholders, but such sales, or the perception that such sales could occur, may adversely affect prevailing market prices
for our common stock.

Purchasers in this offering will experience immediate and substantial dilution in the book value of their investment.

The price per share of our common stock being offered may be higher
than the net tangible book value per share of our outstanding common stock prior to this offering. Assuming that an aggregate of 17,857,143
shares of our common stock are sold at a price of $8.40 per share, the last reported sale price of our common stock on Nasdaq on March
4, 2025, for aggregate gross proceeds of approximately $150,000,000, new investors in this offering would incur immediate dilution of
$4.39 per share. For a more detailed discussion of the foregoing, see the section entitled “Dilution” below. To the extent
outstanding stock options or warrants are exercised, there will be further dilution to new investors. In addition, to the extent we need
to raise additional capital in the future, and we issue shares of our common stock or securities convertible or exchangeable for our common
stock, our then existing stockholders may experience dilution and the new securities may have rights senior to those of our common stock
offered in