Company: ARAI
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0001641172-25-013826
Chunk: 11

Company: Arrive AI Inc.
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 net loss by weighted average number of shares of common stock outstanding during each period.
Diluted loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents
and potentially dilutive securities outstanding during the period. As the Company reported a net loss for the three months ended March
31, 2025, common stock equivalents were anti-dilutive.

As
of March 31, 2025 and 2024 the outstanding warrants and stock options are excluded from the calculation of weighted average dilutive
shares because their inclusion would have been anti-dilutive. Refer to Note 14 and Note 15 for additional information.

Offering
Costs

The
Company complies with the requirements of FASB ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A - Expenses
of Offering. For the three months ended March 31, 2025 and 2024, the Company recognized $59,468 and $84,027 of offering costs, respectively.
Accumulated offering costs were $637,102 and $431,667 as of March 31, 2025 and 2024, respectively. These offering costs consisted of
professional, regulatory, and other costs; all of which were charged to additional paid-in capital for all funding campaigns (crowdfunding,
seed series, StartEngine, PicMii, etc.) held by the Company.

     - 11 - 

ARRIVE
                                            AI INC. 

(FORMERLY
ARRIVE TECHNOLOGY INC.)

NOTES
TO FINANCIAL STATEMENTS (Continued)

2.SIGNIFICANT
                                            ACCOUNTING POLICIES (Continued)

Research
and Development

Research
and development (R&D) costs, that do not meet the criteria for capitalization are expensed as incurred. Research and development
expenses include fees paid to outside consultants for the Company’s proprietary technology. For the three months ended March 31,
2025 and 2024, the Company had R&D costs totaling $91,263 and $88,401, respectively.

Marketing
Expenses

The
Company uses various marketing methods to create brand awareness to promote and alert the public about future product and service offerings
to generate future capital or revenue when a viable product is created. The Company’s policy is to charge marketing costs to expenses
in the period they are incurred. Marketing expenses were $1,256 and $7,558 for