Company: ARAI
Filing Date: 2025-05-14
Form Type: DRS
Source: 0001641172-25-010170
Chunk: 173

Company: Arrive AI Inc.
Filing Date: 2025-05-14
Form: DRS
Chunk 173
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-----:|:----|:--------------------------------------------------|----:|:----|:--------------------------|----------:|
| 169,829       |     | $              | 0.80 |     |                                                   | 8.9 |     | $                         | 2,056,845 |

The following is a summary of the changes in nonvested share options (on a post-reverse split basis) as of December 31, 2024:

SCHEDULE OF NONVESTED SHARE OPTION

|                                             |     | Share Options |         |   |     | Weighted              
 Average               
 Grant Date Fair Value |       |
|:--------------------------------------------|:----|:--------------|--------:|:--|:----|:----------------------|------:|
| NONVESTED SHARE OPTIONS - DECEMBER 31, 2023 |     |               | 494,105 |   |     | $                     | 10.80 |
| Granted                                     |     |               |  45,565 |   |     |                       | 11.80 |
| Vested                                      |     |               | (86,665 | ) |     |                       | 10.89 |
| Cancelled                                   |     |               |    (130 | ) |     |                       | 10.30 |
| NONVESTED SHARE OPTIONS - DECEMBER 31, 2024 |     |               | 452,875 |   |     | $                     | 10.89 |

There were 45,565 options (on a post-reverse split basis) granted during the year ended December 31, 2024 and each option had an average grant date fair value of $11.80 per share (as adjusted for the 1-for-4 reverse split). As of December 31, 2024, there was $4,930,679 unrecognized compensation expense related to nonvested stock options to be recognized over the remaining vesting period. Total compensation expense related to stock options during the year ended December 31, 2024 was $978,234. No options were exercised during the year ended December 31, 2024.

15. RESEARCH AND DEVELOPMENT CREDITS

Under the Internal Revenue Service (IRS) Form 6765, the Company is eligible to claim a credit related to research and development expenses. The research credit is generally allowed for expenses paid or incurred for qualified research. Qualified research means research for which expenses may be treated as section 174 expenses.