Company: ARAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023457
Chunk: 15

Company: Arrive AI Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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-upon
price, as defined in the Stock and Warrant Purchase Agreement (“the agreement”) prior to the expiration of the warrants as
stipulated by the terms of the transaction in the agreement.

The
shares eligible for issuance under the outstanding warrants were registered under the Securities Act of 1933 on July 28, 2025.

Treasury
Stock

In
September 2025, the Board of Directors authorized the Company to repurchase shares of common stock. The Company repurchased 19,700 shares
for $74,743 during the nine months ended September 30, 2025. The stock is held in Treasury and recorded using the cost method.

    - 11 -

ARRIVE
                                            AI INC. 

NOTES
                                            TO FINANCIAL STATEMENTS (Continued)

2.SIGNIFICANT
                                            ACCOUNTING POLICIES (Continued)

Loss
per share

The
Company follows FASB ASC 260, “Earnings per Share,” resulting in the presentation of basic and diluted earnings per
share. Because the Company reported a net loss for the three and nine months ended September 30, 2025 and 2024, common stock
equivalents, including stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and dilutive loss
per share were the same. See footnotes 16 and 17 for the details on these instruments.

Comprehensive
Loss

The
Company follows FASB ASC 220.10, “Reporting Comprehensive Income (Loss).” Comprehensive loss is a more inclusive financial
reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation
of net loss. Since the Company has no items of other comprehensive loss, comprehensive loss is equal to net loss.

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. During the three and nine months ended September 30, 2025, the Company recognized $0 and $7,626,439, respectively, in
deferred offering costs related to ongoing and anticipated capital raising activities. These costs primarily consisted of legal, advisory,
and other professional service fees incurred in connection with financing efforts.

During
the nine months ended September 30, 2025, the Company raised gross proceeds of $9,037,007, which included $