Company: ARAI
Filing Date: 2025-03-24
Form Type: S-1/A
Source: 0001641172-25-000350
Chunk: 214

Company: Arrive AI Inc.
Filing Date: 2025-03-24
Form: S-1/A
Chunk 214
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ITY INCENTIVE PLAN (Continued)

The following is a summary of share options (on a post-reverse split basis) vested and exercisable at December 31, 2023:

| Share   
 Options |        |     | Weighted       
 Average        
 Exercise Price |      |     | Weighted                                 
 Average Remaining Contractual Life-Years |     |     |       Aggregate 
 Intrinsic Value |
|:--------|-------:|:----|:---------------|-----:|:----|:-----------------------------------------|----:|:----|----------------:|
|         | 72,051 |     | $              | 0.84 |     |                                          | 8.6 |     |        $776,998 |

The following is a summary of the changes in nonvested share options (on a post-reverse split basis) as of December 31, 2023:

| NONVESTED SHARE OPTIONS - 
 DECEMBER                  
 31, 2022                  |     | Share   
 Options |       - |   |     | Weighted              
 Average               
 Grant Date Fair Value |     - |
|:--------------------------|:----|:--------|--------:|:--|:----|:----------------------|------:|
| Granted                   |     |         | 569,331 |   |     |                       | 10.80 |
| Vested                    |     |         | (72,051 | ) |     |                       | 10.80 |
| NONVESTED SHARE           
 OPTIONS -                 
 DECEMBER 31, 2023         |     |         | 497,280 |   |     | $                     | 10.80 |

The weighted average grant date fair value of stock options issued during the year ended December 31, 2023 was $10.80 per share (as adjusted for the 1-for-4 reverse split). As of December 31, 2023, there was $5,375,246 unrecognized compensation expense related to nonvested stock options to be recognized over the remaining vesting period. No options were exercised during the year ended December 31, 2023.

13. RESEARCH AND DEVELOPMENT CREDITS

Under the Internal Revenue Service (IRS) Form 6765, the Company is eligible to claim a credit related to research and development expenses. The research credit is generally allowed for expenses paid or incurred for qualified research. Qualified research means research for which expenses may be treated as section 174 expenses.