Company: ARAI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023999
Chunk: 5

Company: Arrive AI Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 5
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 due to higher spend on legal fees related to the direct listing ($249,875),
                                            investor relations ($65,815), consulting services ($47,440), transfer agent fees ($18,769)
                                            and patent expenses ($15,131).

●Insurance
                                            expense was $54,495, an increase of $38,251 from the same period in the prior year, due to
                                            higher directors and officers insurance premiums.

- 26 -

Research
and Development expenses were $293,468 for the three months ended June 30, 2025, a decrease of $159,070 as compared to the same period
in the prior year. This is due to the timing of vendor engineering projects (lower by $345,845), offset by higher independent contractor
spend ($68,525) and one-time success bonuses for independent contractors ($118,250).

Marketing
expenses were $49,602 for the three months ended June 30, 2025, a decrease of $176,687 from the same period in the prior year. The decrease
is due to one-time expenses in the prior year period for television advertising ($200,000), offset by higher travel and miscellaneous
expenses in the current quarter.

Other
Income/Expenses:

    Three Months Ended June 30,  
    $  
    % 

    2025  
    2024  
    Change  
    Change 

    Other income 
    $43,151  
    $24,089  
    $19,062  
     79%
  
    Interest expense and bank charges 
     (194,212) 
     (1,053) 
     (193,159) 
     18,344 

    $(151,061) 
    $23,036  
    $(174,097) 
     (756)%

Other
income for the three months ended June 30, 2025 was $43,151. Income was recognized from payroll tax refunds earned under the federal
R&D tax credit program of $42,857, and interest income of $294.

Interest
expense of $194,212 was comprised primarily of the amortization of the original issue discount on the Streeterville convertible note
($192,000), other miscellaneous interest ($1,617) and bank charges ($595).

During
the three months ended June 30, 2024, we recognized income from the Indiana EDGE tax credit of $24