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Serve Robotics Inc. (NASDAQ:SERV), a company specializing in miscellaneous transportation equipment currently valued at $364 million, has terminated a significant sales agreement and made a change to its accounting firm. The company’s stock, which has declined nearly 67% over the past year, continues to show high price volatility. The news comes from a recent SEC filing dated March 4, 2025.According to InvestingPro analysis, Serve Robotics maintains a strong liquidity position with a current ratio of 10.65, indicating robust short-term financial health despite recent market challenges.
On Monday, Serve Robotics concluded its Equity Distribution Agreement with Northland Securities, Inc., B. Riley Securities, Inc., and Ladenburg Thalmann & Co. Inc., which had been in place since November 7, 2024. Under this agreement, the company was authorized to sell shares of its common stock totaling up to $100 million. By the termination date, Serve Robotics had sold approximately 5.7 million shares, resulting in gross proceeds of around $80 million. The company has confirmed that no further sales will be conducted under this agreement and that there are no penalties associated with its termination.
In a separate but related move, Serve Robotics’ Audit Committee decided to replace its independent registered public accounting firm. Effective upon the completion of the audit for the fiscal year ending December 31, 2024, dbbmckennon was dismissed. The audit reports for the fiscal years ending December 31, 2024, and 2023 did not contain any adverse opinions or disclaimers and were not qualified or modified in any way. The company disclosed that during the fiscal years in question and the subsequent interim period through March 4, 2025, there were no disagreements or reportable events, except for material weaknesses previously reported in the company’s annual filings.
Following the dismissal of dbbmckennon, Serve Robotics appointed PricewaterhouseCoopers LLP (PwC) as its new independent registered public accounting firm for the fiscal year ending December 31, 2025. This change is set to take effect immediately after dbbmckennon completes the audit for the fiscal year ended December 31, 2024. Serve Robotics confirmed that it had not consulted PwC on any accounting principles or auditing matters prior to their appointment.
The company’s actions, as detailed in the SEC filing, reflect changes in Serve Robotics’ financial management strategies. While analysts anticipate sales growth of 8.2% for the current year, the company faces challenges with weak gross profit margins of about 13%. The information in this article is based on the SEC filing and financial metrics from InvestingPro, which offers 11 additional key insights about Serve Robotics’ financial outlook and market position.
In other recent news, Serve Robotics Inc. reported fourth-quarter revenue of $170,000, which fell short of analyst expectations. Despite this, the company experienced a significant full-year revenue growth of 773%, reaching $1.8 million as it expanded its operations. Serve Robotics recorded a fourth-quarter adjusted loss of -$0.23 per share and did not provide specific forward guidance figures for comparison against analyst estimates. The company highlighted its operational improvements, including a 94% year-over-year increase in daily supply hours and an 81% rise in daily active robots. Serve Robotics also announced its geographic expansion efforts, launching services in new areas of Los Angeles and planning to enter the Dallas-Fort Worth and Atlanta markets by mid-2025. The company ended the year with $123 million in cash and no debt, raising an additional $91 million in January 2025. CEO Dr. Ali Kashani noted that 2024 was a transformational year, with advancements in delivery capacity and robot design. Serve Robotics partnered with Magna for scale manufacturing and expanded its delivery partnerships.
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