Company: ARAI
Filing Date: 2025-06-17
Form Type: S-1
Source: 0001641172-25-015428
Chunk: 69

Company: Arrive AI Inc.
Filing Date: 2025-06-17
Form: S-1
Chunk 69
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 or be successful in our commercialization and plans.

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Factors Affecting our Business and Results of Operations

This section includes a summary of our historical
results of operations, followed by detailed comparisons of our results for the three months ended March 31, 2025 and 2024. We have derived
this data from our financial statements included elsewhere in this prospectus.

The Company’s auditor has completed a review
of its interim March 31, 2025 and 2024 financial performance in accordance with the standards of the PCAOB. The Company has not started
commercial operations but has incurred expenses in connection with corporate and administrative matters, development of its products
and services and applications for patents. These expenses include cash and stock-based compensation for services rendered, legal and
audit fees, and development hardware. As a result, the Company reported a net loss in all reporting periods. An analysis of the Company’s
operating performance for the three-month periods ended March 31, 2025 and 2024, together with the Company’s income statement summarizing
income and expense items are presented below.

Recent Developments

Effectiveness of S-1 Registration Statement

On May 13, 2025, the Company’s S-1 Registration
Statement was declared effective, registering 29,978,212 shares of our common stock representing one hundred percent (100%) of the company’s
currently issued and outstanding common stock.

Initial Trading on Nasdaq Global Market

On May 15, 2025, the Company’s common stock
began trading on the Nasdaq Global Market under the ticker “ARAI”.

Closing of Equity Line of Credit

On May 15, 2025, the Company closed a financing
agreement with an investor. Per the terms of the agreement, the investor transferred $4,000,000 as the initial pre-paid advance. Shares
to be issued under the share purchase agreement are included on a resale registration statement filed with the SEC.

New Independent Board Member

On June 2, 2025, the Company named Laurie Tucker
as a new independent member of the Board of Directors. Ms. Tucker will serve an initial three-year term and also be the Chairperson of
the Compensation Committee.

Results of Operations

Comparison of the Three Months Ended March 31, 2025, and March 31, 2024

|                                               |     | Three Months Ended 
          March 31, |            |   |     |      |          |