Company: ARAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023457
Chunk: 14

Company: Arrive AI Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 Services transferred at a point in time 
     2,175  
     3,675 

    TOTAL REVENUE 
    $7,450  
    $98,175 

The
Company did not generate revenue during the three and nine months ended September 30, 2024.

Various
economic factors affect the recognition of revenue and cash flows including availability of skilled labor and prompt payment by customers.
The Company did not generate revenue during the three or nine months ended September 30, 2024. As such, no comparative disaggregation
is presented for that period.

Contract
Balances

The
timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets),
and customer advances and deposits (contract liabilities) on the balance sheet. The Company may request advances or deposits from customers
before revenue is recognized, which results in contract liabilities. These contract liabilities are released as the performance obligations
are satisfied.

    - 10 -

ARRIVE
                                            AI INC. 

NOTES
                                            TO FINANCIAL STATEMENTS (Continued)

2.SIGNIFICANT
                                            ACCOUNTING POLICIES (Continued)

Contract
Balances (continued)

As
of September 30, 2025, there were no such liabilities or contract assets included within the balance sheet. The beginning and ending
contract balances were as follows:

SCHEDULE
OF CONTRACT ASSETS/LIABILITIES 

    September
    30, 2025  
    January
    1, 2025 

    Accounts receivable 
    $4,900  
    $    - 

Significant
Judgments and Estimates

There
are no significant judgments involved in the recognition of revenue from the services provided by the Company.

Equity
Financing

The
Company engages in equity financing transactions to obtain the funds necessary to continue operations and develop a commercially viable
drone delivery system. These equity financing transactions involve the issuance of common stock and may include equity warrants.

Equity
warrants are instruments that bestow upon the holder of the instrument the right to buy a particular stock at a predetermined price within
a stipulated time frame. Under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 480, the Company classified
the warrants as equity instruments.

Depending
on the terms and conditions of each equity financing transaction, the warrants are exercisable into additional common shares at an agreed