Company: ARAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023457
Chunk: 53

Company: Arrive AI Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 53
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 the information available, no allowances for credit losses has been
recorded as the Company believes the balance is fully collectable.

Property
and Equipment

The
property and equipment is recorded at cost. The Company’s policy is to depreciate the cost of the property and equipment using
the straight-line method over the estimated useful life of the asset. The costs of maintenance and repairs are charged to expense when
incurred (none noted in the current or prior year as it relates to vehicles). The useful life of the property and equipment for purposes
of computing depreciation is:

SCHEDULE
OF PROPERTY AND EQUIPMENT USEFUL LIFE 

    Useful
    Life

    Vehicles
    and Equipment
    2-5
    years

    - 8 -

ARRIVE
AI 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