Company: ARAI
Filing Date: 2025-06-17
Form Type: S-1
Source: 0001641172-25-015428
Chunk: 72

Company: Arrive AI Inc.
Filing Date: 2025-06-17
Form: S-1
Chunk 72
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The increase in accrued liabilities was due to an increase of deferred salaries and wages of $113,716 in the period and deferral of licensing
fee payments of $20,000.

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In the prior-year period, changes in net operating
assets and liabilities resulted in a net inflow of $60,409. This was primarily driven by an increase in accrued liabilities ($87,676)
and prepaid expenses ($4,377), offset by reductions in accounts payable ($3,554), and credit card payable ($28,090).

Non-cash adjustments to reconcile net loss to
cash used in operating activities for the current period included depreciation and amortization of $7,391, compared to $7,255 for the
prior year period.

Investing Activities

Net cash used for investing activities was $2,832
in the period. This was due to an increase in construction in progress for final installation costs related to an Arrive Point asset
deployed to a customer location.

Financing Activities

Net cash provided by financing activities was
$715,553 in the period. This was due to new equity issuances and conversion of outstanding warrants. Funds raised through a crowdfunding
campaign included new gross equity investment ($288,002), a net release of funds from prior crowdfunding issuances ($40,219), offset
by funding costs associated with the campaign ($59,468), resulting in new funds from crowdfunding of $268,753.

The Company also issued new shares to accredited
investors for net proceeds of $152,000, and to an existing investor in exchange for a warrant conversion, resulting in net proceeds of
$296,875. Payments made on an outstanding note for the company cargo van totalled $2,075 in the period.

Inflation

Although our operations are influenced by general
economic conditions, we do not believe that inflation had a material effect on our results of operations during the three months ended
March 31, 2025.

Critical Accounting Policies and Estimates

The discussion and analysis of our financial
condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles
generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that
affect the amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an
on-going basis, we evaluate our estimates based on historical experience and various other assumptions that are believed to be reasonable
under the circumstances