Company: ARAI
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0001641172-25-013826
Chunk: 15

Company: Arrive AI Inc.
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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Level
2: Inputs to the valuation methodology other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly, such as:

a.Quoted
                                            prices for similar assets or liabilities in active markets, 

b.Quoted
                                            prices for identical or similar assets or liabilities in inactive markets, 

c.Inputs
                                            other than quoted prices that are observable for the asset or liability, and

d.Inputs
                                            that are derived principally from or corroborated by observable market data by correlation
                                            or other means.

If
the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the
asset or liability.

Level
3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The
level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that
is significant to the fair value measurement in its entirety. The financial statements as of and for the three months ended March 31,
2025 and 2024, do not include any nonrecurring fair value measurements relating to assets or liabilities. The Company measures the warrants
using Level 3 unobservable inputs within the Black-Scholes pricing model, as described in Note 2. The Company used various key assumptions,
such as the fair value of the common stock, volatility, the risk-free interest rate, and expected term (remaining contractual term of
the warrants).

6. PROPERTY AND EQUIPMENT

Property
and equipment consist of the following:

SCHEDULE OF PROPERTY
AND EQUIPMENT

    March
    31, 2025 
    December
31, 2024

    Vehicle 
    $58,443  
    $58,443 
  
    Equipment 
     50,000  
     50,000 
  
    Construction
    in progress 
     40,987  
     38,155 

    Total
    property and equipment 
     149,430  
     146,598 
  
    Less:
    accumulated depreciation 
     (58,262) 
     (51,173)

    TOTAL
    PROPERTY AND EQUIPMENT, NET 
    $91,168  
    $95,425 

For
the three months ended March 31, 2025 and 2024, total depreciation expense was $7,089 and $