Company: ARAI
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0001641172-25-013826
Chunk: 38

Company: Arrive AI Inc.
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 2
Chunk 38
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the cash runway.

Rent
expense was higher by $4,400 compared to the prior year period. In April 2024, the Company moved to a new, larger office space resulting
in higher monthly rent expense.

Taxes
and license expense was lower by $13,542 in the period, due mainly to lower payroll taxes. The Company deferred certain salaries and
wages in the period, including the associated payroll taxes, to extend liquidity prior to closing the direct listing. These payroll taxes
were accrued in salaries and wages.

All
other general and administrative expenses, in total, were lower by $23,082 due to reduced discretionary spend in all areas.

Liquidity
and Capital Resources

Our
primary source of liquidity is cash on hand. As of March 31, 2025, our cash totalled $295,368. This represents an increase of $166,050
from the $129,318 on hand at the end of the prior fiscal year. This increase was primarily attributable to net proceeds received from
the sales of stock totalling $717,628. These proceeds were used to fund general operating expenses, including salaries, professional services
and research and development expenses.

Cash
Flow and Liquidity

    Three Months Ended
 March 31,  
    $  
    % 

    2025  
    2024  
    Change  
    Change 

    Net cash provided by (used in): 

    Operating activities 
    $(546,671) 
    $(602,477) 
    $55,806  
     9%
  
    Investing activities 
     (2,832) 
     -  
     (2,832) 
     - 
  
    Financing activities 
     715,553  
     772,423  
     (56,870) 
     (7)
  
    Net increase (decrease) in cash 
    $166,050  
    $169,946  
    $(3,896) 
     (2)%

 - 25 - 

Operating
Activities

Net
cash used in operating activities was $546,671 for the three months ended March 31, 2025, compared to $602,477 for the same period in
2024. The decrease in cash outflows was primarily due to higher use of stock-based compensation in lieu of cash payments to employees,
contractors and advisors.