Company: ARAI
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0001641172-25-013826
Chunk: 10

Company: Arrive AI Inc.
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 which determine the fair value of warrants, including the warrants’ expected terms and the price volatility of the
underlying stocks. The Company calculates the fair value of warrants granted by using the Black-Scholes pricing model with the following
assumptions:

Expected
Volatility: The Company estimated volatility for warrants by evaluating the average historical volatility of a peer group of companies
for the period immediately preceding the warrant for a term that is approximately equal to the warrants’ expected terms.

Expected
Term: The expected term of the Company’s warrants represents the period that the warrants are expected to be outstanding (typically,
to expiration). The Company used the time remaining to the expiration of the warrants (contractual expiration) to compute the expected
term, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns
and post-vesting employment termination behavior.

     - 10 - 

ARRIVE
AI INC. 

(FORMERLY
ARRIVE TECHNOLOGY INC.)

NOTES
TO FINANCIAL STATEMENTS (Continued)

2.SIGNIFICANT
                                            ACCOUNTING POLICIES (Continued)

Equity
Financing (continued)

Risk-Free
Interest Rate: The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero-coupon issues
with a term that is equal to the warrants’ expected terms at the grant date.

Dividend
Yield: The Company has not declared or paid dividends to date and does not anticipate declaring dividends. As such, the dividend
yield has been estimated to be zero.

The
warrants have not been registered under the U.S. Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder,
or qualified under any state or foreign securities laws and may not be offered for sale, sold, pledged, hypothecated, or otherwise transferred
or assigned unless (i) a registration statement covering such shares is effective under the act and is qualified under applicable
state and foreign law or (ii) the transaction is exempt from the registration and prospectus delivery requirements under the act
and the qualification requirements under applicable state and foreign law and, if the corporation requests, an opinion satisfactory to
the corporation to such effect has been rendered by counsel. The Company registered with the Security and Exchange Commission (SEC) on
July 16, 2021, however, is not yet traded on the public market.

Loss
per share

Basic
loss per share is computed by dividing