Company: SERV
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001832483-25-000112
Chunk: 104

Company: Serve Robotics Inc. /DE/
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 104
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 Company recorded stock-based compensation pertaining to vesting of restricted common stock and RSUs of $6.60 million and $1.00 million, respectively. During the nine months ended September 30, 2025 and 2024, the Company recorded stock-based compensation pertaining to vesting of restricted common stock and RSUs of $14.46 million and $1.92 million, respectively.The following table summarizes restricted common stock and RSU activity for the nine months ended September 30, 2025: Restricted Common StockRestricted Stock UnitsNumber of SharesWeighted Average Grant Date Fair Value Per ShareNumber of SharesWeighted Average Grant Date Fair Value Per ShareNonvested as of December 31, 2024996,799$0.38 5,362,326$7.49 Granted-- 3,562,12510.45 Assumed in Vayu Acquisition-- 493,9709.71 Vested(539,915)0.01 (1,759,877)6.64 Forfeited(50,946)- (114,142)9.43 Nonvested as of September 30, 2025405,938$0.06 7,544,402$8.93 Performance-Based Restricted Stock UnitsIn August 2025, the Company granted PRSUs. The PRSUs will vest or commence vesting upon achievement of the Milestone by the Milestone Date. In addition, the PRSUs may also subject to a continuous service condition. On the Milestone Date, approximately 66% of the PRSUs will vest, and the remaining 34% of PRSUs will vest over 2.5 years following the Milestone Date. The total grant date fair value of the PRSUs was $13.98 million, which is expected to be recognized at a point in time when achievement of the Milestone is considered probable, using management's best estimates, which consider the inherent risk and uncertainty regarding the future outcomes of the performance conditions.As of September 30, 2025, the components that comprise the Milestone have not been fully established, and therefore, probability is unable to be reasonably determined. Thus, the Company does not consider the achievement of the Milestone to be probable as of September 30, 2025. Accordingly, as of September 30, 2025, the Company does not recognize stock-based compensation expense, as defined by ASC 718. As of September