Company: ARAI
Filing Date: 2025-01-27
Form Type: S-1/A
Source: 0001493152-25-003660
Chunk: 172

Company: Arrive AI Inc.
Filing Date: 2025-01-27
Form: S-1/A
Chunk 172
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 on the grant date, which was determined by using the Black-Scholes model, was $10.80 (as adjusted for the 1-for-4 reverse split). For the year ended December 31, 2023, total compensation expense was $776,998. As of December 31, 2023, total unvested units and the related unrecognized compensation expense was 120,084 (on a post-reverse split basis) and $1,294,997, respectively.

The same officer was also issued an additional 192,136 (on a post-reverse split basis) incentive stock option units, subject to both time and performance vesting criteria. The fair market value of these stock option units on the grant date, which was determined by using the Black-Scholes model, was $10.80 (as adjusted for the 1-for-4 reverse split). As of December 31, 2023, none of these units have vested, therefore the total unvested units and the related unrecognized compensation expense was 192,136 (on a post-reverse split basis) and $2,071,995, respectively.

During 2023, nine other employees were issued 185,059 (on a post-reverse split basis) stock option units, subject to a time-based or time and performance-based vesting schedule. As of December 31, 2023, none of these units have vested, and the total related unrecognized compensation expense was $2,008,255.

Stock-based compensation expense for employees and non-employees was $1,730,953 and $446,364 for the years ended December 31, 2023 and 2022, respectively. All transactions for employees and non-employees are described above.

11. WARRANTS

The warrants are exercisable at any time until the fourth anniversary of the date of the individual agreement. The fair market value, on the date of grant, for each of the warrants issued below, was determined based on the methodologies described in Notes 2 and 4. The warrants (on a post-reverse split basis) covert on a 4 to 1 per share basis.

| BALANCE, JANUARY 1, 2022 
 Issued                   |     | Number                  
 of Warrants Outstanding | 510,000 
 142,857 |     | Weighted               
 Average Exercise Price | 2.38 
 2.38 |     | Number                  
 of Warrants Exercisable | 510,