Company: ARAI
Filing Date: 2025-01-27
Form Type: S-1/A
Source: 0001493152-25-003660
Chunk: 165

Company: Arrive AI Inc.
Filing Date: 2025-01-27
Form: S-1/A
Chunk 165
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3. There was no amortization expense for the year ended December 31, 2022.

7. NOTE PAYABLE

Note payable consists of the following:

|                                                                                                                                     |     |   |   2023 |   |     |   |   2022 |   |
|:------------------------------------------------------------------------------------------------------------------------------------|:----|:--|-------:|:--|:----|:--|-------:|:--|
| Vehicle                                                                                                                             
 note payable entered into during 2022 for $40,248 with monthly installment payments of $799, including interest at 6.99% per annum. 
 The loan is collateralized by the respective vehicle and is due in February 2027.                                                   |     | $ | 27,036 |   |     | $ | 33,688 |   |
| Less current portion                                                                                                                |     |   | (7,950 | ) |     |   | (7,415 | ) |
| LONG-TERM PORTION                                                                                                                   |     | $ | 19,086 |   |     | $ | 26,273 |   |

7. NOTE PAYABLE (Continued)

The balance of the above debt matures as follows:

| Year Ended December 31, 
 2024                    |     | Amount |  7,950 |
|:------------------------|:----|:-------|-------:|
| 2025                    |     |        |  8,524 |
| 2026                    |     |        |  9,140 |
| 2027                    |     |        |  1,422 |
| TOTAL                   |     | $      | 27,036 |

Interest expense related to this note payable for the years ended December 31, 2023 and 2022, was $2,937 and $1,571, respectively.

8. COMMITMENTS AND CONTINGENCIES

Lease Obligation

Effective April 17, 2023, the Company expanded its leased office space. The initial term was six months, and thereafter a month-to-month lease which can be canceled with a 30-day written notice and agreement to suitable terms by both parties. Under this lease, base rent is $1,600 per month.

The Company is required to pay insurance, listing the property owner as an additional insured, and normal maintenance costs for certain of this leased property.

As discussed in Note 2, FASB, under ASU No. 2016-02,