Company: ARAI
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0001641172-25-013826
Chunk: 23

Company: Arrive AI Inc.
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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and development (R&D) credit against the employer portion of Social Security payroll taxes, in accordance with IRS Form 6765.

As
of March 31, 2025, the Company had $206,174 of unused payroll tax credits These credits are being applied as an offset to the Company’s
payroll tax liability and are recognized as a reduction of payroll tax expense in the period the benefit is realized.

17. SUBSEQUENT EVENTS

During
the period April 1, 2025 through June 5, 2025 the Company issued 3,539 shares for $46,007 on a crowdfunding platform.

The
Company also issued 92,673
shares with a fair value of $1,204,749
in exchange for legal services related to the
initial public offering. This cost will be charged against the gross proceeds of the offering as a reduction of additional paid-in
capital.

On April 15, 2025, warrants to purchase 47,370
shares of common stock were exercised for proceeds of $225,008.

On May 13, 2025, warrants to purchase 10,950 shares of common stock were exercised for proceeds of $52,013.

On May 13, 2025, the Company’s S-1
Registration Statement was declared effective, registering 29,978,212 shares of our common stock representing one hundred percent (100%)
of the company’s currently issued and outstanding common stock.

On May 14, 2025, the Company filed a resale registration statement pursuant to a securities purchase agreement with
an investor, registering 8,125,779 shares of common stock.

On May 15, 2025, the Company’s common
stock began trading on the Nasdaq Global Market under the ticker “ARAI”.

On May 15,
2025, the Company closed a financing agreement with an investor. Per the terms of the agreement, the investor transferred $4,000,000
as the initial pre-paid advance. The Company issued 2,937,500 pre-delivery shares at par value, for proceeds of $587, and 62,500 shares with a
fair value of $812,500 to the investor.

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Item
2. Management’s Discussion and Analysis of Financial Conditions and Results of Operations

The following discussion
and analysis is intended as a review of significant factors affecting our financial condition and results of operations for the periods
indicated. The discussion should be read