Company: ARAI
Filing Date: 2025-05-13
Form Type: S-1/A
Source: 0001641172-25-009841
Chunk: 71

Company: Arrive AI Inc.
Filing Date: 2025-05-13
Form: S-1/A
Chunk 71
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 ($16,265) due to increased premiums for Directors and Officers insurance.

Rent increased by 62% ($25,290) due to the Company’s move to a new, larger office space in the second quarter of 2024.

Expenses for Travel, Meals and Entertainment collectively were lower by 26% ($26,853) due to less employee travel in the period.

Depreciation expense increased by 116% ($15,197) due to a full year depreciation on the drone hexacopter acquired from Airbox in late 2023, as well as amortization of the Company’s issued international patents.

Shipping and freight expense increased by 122% ($14,972) due to the increased quantity of finished units shipping from an international supplier.

Net other income and expense for the period was $20,948, of which the State of Indiana EDGE tax credit refund was $24,089 and grant income from Massachusetts Department of Transportation was $10,000. This income was offset by a one-time legal expense ($18,500) to settle an outstanding lawsuit from 2020.

Liquidity and Capital Resources

December 31,2024, Compared to December 31, 2023

As of December 31, 2024, the Company had cash of $129,318 compared to $325,472 as of December 31, 2023. Since its inception, the Company has incurred net losses and funded its operations primarily through the issuance of equities. As of December 31, 2024, the Company had a total stockholders’ deficit of $(983,175) compared to $(477,766) as of December 31, 2023.

The Company has incurred recurring losses from operations, and as of December 31, 2024, had an accumulated deficit of $15,920,555 (2023: $11,382,654) and a working capital of $(1,343,143) (2023: ($743,666)). The Company’s continued existence is dependent upon its ability to continue to execute its operating plan and to obtain additional debt or equity financing. The Company has developed plans to raise funds and continues to pursue sources of funding that management believes, if successful, would be sufficient to support the Company’s operation. During the period ended December 31, 2024, the Company raised $2,643,626 (net of offering costs) through Common Stock issuances. The Company has also raised $1,696,810 in