Company: ARAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023457
Chunk: 82

Company: Arrive AI Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 82
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 $15,706 as compared to the same period
in the prior year. This is primarily due to the timing of vendor engineering projects (lower by $258,861), offset by higher independent
contractor spend ($159,342) and one-time success bonuses for independent contractors ($118,250).

Marketing
expenses were $164,793 for the nine months ended September 30, 2025, a decrease of $116,367 from the same period in the prior year. The
decrease is due to one-time expenses in the prior year period for television advertising ($200,000), offset by higher travel, meals and
entertainment expenses ($63,017), and other marketing expenses ($20,616).

Other
Income/Expenses:

    Nine Months Ended
                                                                                September 30,  
    $  
    % 

    2025  
    2024  
    Change  
    Change 

    Other income 
    $83,454  
    $29,523  
    $53,931  
     183%
  
    Interest expense and bank charges 
     (775,410) 
     (3,209) 
     (772,201) 
     24,064 
  
    Realized gain (loss) on investments 
     46,491  
     -  
     46,491  
     NM 
  
    Unrealized gain (loss) on investments 
     (76,120) 
     -  
     (76,120) 
     NM 

    $(721,585) 
    $26,314  
    $(747,899) 
     (2,842)%

Other
Income of $83,454 for the nine months ended September 30, 2025 was recognized from payroll tax refunds earned under the federal R&D
tax credit program of $61,637, state tax refund from the EDGE credit of $16,915, and interest income of $4,902.

Interest
expense of $775,410 for the nine months ended September 30, 2025 was comprised primarily of investment banking charges resulting from
the issuance of the convertible note ($240,000), the amortization of the original issue discount ($357,333), and accrued interest on
the note ($165,832). Interest accrued on a right to use asset was $4,405, and other miscellaneous interest and bank fees was