Company: ARAI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023999
Chunk: 3

Company: Arrive AI Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 3
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 the Company’s
board of directors on April 27, 2023, and approved by Daniel S. O’Toole, the Company’s majority shareholder, on April 27,
2023.

Issuance
of Shares Under the Equity Incentive Plan

From
June 19, 2025 through July 18, 2025, we issued 36,079 fully vested shares under the 2023 Plan to employees, directors,
and consultants. A total of 25,932 shares were issued to independent Directors, 4,111 shares were issued to employees, and 6,036 shares
were issued to advisors and consultants.

Effectiveness
of S-1 Registration Statement

On
July 28, 2025, our resale registration statement was declared effective by the SEC registering up to 8,125,779 shares of common stock
for resale by selling shareholders. This includes 8,000,000 shares under the Streeterville Purchase Agreement, 114,421 shares
issuable upon exercise of outstanding warrants (6,680 of which have since expired), and 11,358 shares issued after the effectiveness of our registration statement on Form S-1 in connection with our direct listing.

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Results
of Operations

Comparison
of the Three Months Ended June 30, 2025, and June 30, 2024

Revenues:

    Three Months Ended June 30,  
    $  
    %  

    2025  
    2024  
    Change  
    Change  

    Consulting services 
    $89,000  
    $-  
    $89,000  
     NM%

    Installation 
     1,500  
     -  
     1,500  
     NM  

    Subscription 
     225  
     -  
     225  
     NM  

    $90,725  
    $-  
    $90,725  
     NM%

During
the three months ended June 30, 2025, we recognized total revenues of $90,725. Of this, $89,000 was for design and consulting services,
$1,500 for installation fees, and $725 for monthly subscriptions. Consulting services, and installation fees are typically project-based
and non-recurring in nature. Subscription services are recurring and paid either up-front or monthly for an annual term. We anticipate