Company: ARAI
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0001641172-25-013826
Chunk: 8

Company: Arrive AI Inc.
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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PMENT USEFUL LIFE 

    Useful
    Life

    Vehicle
    and Equipment
    3-5
    years

     - 8 - 

ARRIVE
AI INC. 

(FORMERLY
ARRIVE TECHNOLOGY INC.)

NOTES
TO FINANCIAL STATEMENTS (Continued)

2.SIGNIFICANT
                                            ACCOUNTING POLICIES (Continued)

Intangible
Assets – Patents

The
Company capitalizes external costs, such as filing fees, registration documentation, and attorney fees associated with the application
and issuance of patents. The Company expenses costs associated with maintaining and defending patents subsequent to issuance in the period
incurred. The Company amortizes capitalized patent costs for internally generated patents on a straight-line basis over 20 years or the
period in which the goods associated with the patent will be revenue-generating, which represents the estimated useful lives of the patents.
The estimated useful lives for internally generated patents are based on the assessment of the following factors: the integrated nature
of the patent portfolios being licensed (including the ability of the patent to generate viable goods and revenues), the overall makeup
of the patent portfolio over time, and the length of license agreements for such patents. The Company assesses the potential impairment
of all capitalized patent costs when events or changes in circumstances indicate that the carrying amount of the Company’s patent
portfolio may not be recoverable.

Impairment
of Long-Lived Assets

Intangibles
and other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
of any long-lived asset may not be fully recoverable. In the event that facts and circumstances indicate that the carrying amount of
any long-lived assets may be impaired, an evaluation of recoverability is performed. If an evaluation was required, the estimated future
undiscounted cash flows associated with the asset (or group of assets) would be compared to the assets’ (or group of assets’)
carrying amount to determine if a write-down to fair value is required on the basis of the assets’ associated undiscounted cash
flows.

The
Company has three types of long-lived assets: property and equipment, including a vehicle, aerial drones; construction-in-progress (CIP),
and intangible patent assets including those acquired by the acquisition of Airbox Technology in 2023. The vehicle and drone hexacopter
were evaluated for impairment, and no impairments were considered necessary as of March 31, 202