Company: ARAI
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0001641172-25-013826
Chunk: 20

Company: Arrive AI Inc.
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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.RELATED-PARTY
                                            TRANSACTIONS (Continued)

On
March 10, 2025, the Company entered into the second amendment to the Exclusive Patent License Agreement of May 26, 2020. The Second Amendment
extends the license to perpetuity, covering the full term and life of the patents, and cures in the event of default. The Second Amendment
also removes prior restrictions on the Company’s use, sale, or commercialization of the technology after termination, permitting
the sale of remaining inventory for up to 90 days post-termination, provided all required reports and payments are made under the Agreement.

13. STOCKHOLDERS’ EQUITY

Common
Stock

As
of April 30, 2020 (date of incorporation), the Company had 100,000,000 shares of common stock, with a par value of $0.0001, authorized
and available to issue for purposes of satisfying any future transactions. No other class of stock has been authorized or is available
for issuance.

Effective
September 15, 2021, the Company authorized a 2-for-1 stock split, with 200,000,000 shares authorized and available, with a par value
of $0.00005, to issue for purposes of satisfying any future transactions. Effective November 25, 2024, the Company authorized a 1-for-4
reverse stock split, with 200,000,000 shares authorized and available to issue for purposes of satisfying any future transactions. The
par value is now $0.0002.

For
the three months ended March 31, 2025, the Company issued 714,133 shares of common stock as follows:

a)11,692
                                            shares with accredited investors in exchange for cash of $152,000 at an average of $13.00
                                            per share. 7,692 of the shares were issued with warrants and deemed as equity, as described
                                            in Note 14.

b)250,000
                                            warrants exercised, for 62,500 shares in exchange for cash of $296,875.

c)22,154
                                            shares issued through a crowdfunding campaign with other investors in exchange for net cash
                                            of $268,753, at an average of $12.13 per share after offering costs.

d)84,874
                                                                                                                                                                                                       shares issued with employees or consultants via stock awards, recognized as compensation expense, fair valued at $13.00