Company: ARAI
Filing Date: 2025-07-15
Form Type: S-1/A
Source: 0001641172-25-019572
Chunk: 200

Company: Arrive AI Inc.
Filing Date: 2025-07-15
Form: S-1/A
Chunk 200
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:----|:--------------|--------:|:--|:----|:----------------------|------:|
| NONVESTED SHARE OPTIONS - DECEMBER 31, 2023 |     |               | 494,105 |   |     | $                     | 10.80 |
| Granted                                     |     |               |  45,565 |   |     |                       | 11.80 |
| Vested                                      |     |               | (86,665 | ) |     |                       | 10.89 |
| Cancelled                                   |     |               |    (130 | ) |     |                       | 10.30 |
| NONVESTED SHARE OPTIONS - DECEMBER 31, 2024 |     |               | 452,875 |   |     | $                     | 10.89 |

There were 45,565options (on a post-reverse split basis) granted during the year ended December 31, 2024 and each option had an average grant date fair value of $ 11.80per share (as adjusted for the 1-for-4 reverse split). As of December 31, 2024, there was $ 4,930,679unrecognized compensation expense related to nonvested stock options to be recognized over the remaining vesting period. Total compensation expense related to stock options during the year ended December 31, 2024 was $ 978,234. No options were exercised during the year ended December 31, 2024.

15. RESEARCH AND DEVELOPMENT CREDITS

RESEARCH AND DEVELOPMENT TAX 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. This research must be undertaken for discovering information that is technological in nature, and its application must be intended for use in developing a new or improved business component of the taxpayer. The payroll tax credit election is an annual election made by a qualified small business specifying the amount of research credit, not to exceed $ 250,000, that may be used against the employer portion of social security liability. The credit is the smallest of

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ARRIVE AI INC.

(FORMERLY ARRIVE TECHNOLOGY INC.)

NOTES TO FINANCIAL STATEMENTS (Continued)

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