Company: ARAI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023999
Chunk: 4

Company: Arrive AI Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 4
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these revenue streams to continue in future quarters while we develop new revenue models for the autonomous delivery marketplace and
AI data insight monetization.

As
a development stage company, during the three months ended June 30, 2024, we had no revenues. Percentage change from the prior year period
is therefore not meaningful (“NM”).

Operating
Expenses:

    Three Months Ended June 30,  
    $  
    % 

    2025  
    2024  
    Change  
    Change 

    General and administrative 
    $4,286,558  
    $803,311  
    $3,483,247  
     434%
  
    Research and development 
     293,468  
     452,538  
     (159,070) 
     (35)
  
    Sales and marketing 
     49,602  
     226,289  
     (176,687) 
     (78)

    $4,629,628  
    $1,482,138  
    $3,147,490  
     212%

Our
second quarter results reflect continued investment in product development and marketing activities. This quarter’s general and
administrative expenses include one-time costs related to the direct listing and financing transaction.

General
and administrative expenses increased by $3,483,247 for the three months ended June 30, 2025, as compared to the three months ended June
30, 2024. Primary components of general and administrative expenses were:

●Salaries
                                            and benefits in total were $3,538,589, an increase of $2,935,372 from the prior year period.
                                            This was driven by $1,866,531 one-time success bonuses paid upon completion of the public
                                            listing in May 2025, and higher stock-based compensation in the period.

●Excluding
                                            the one-time bonus costs, base salaries for the period were $167,127, a reduction of $77,088
                                            from the same period in the prior year due to vacancies.

●Stock-based
                                            compensation for the period was $1,496,978, an increase of $1,137,977 from the same period
                                            in the prior year.

●Legal
                                            and professional service fees were $511,439, an increase of $433,855 from the same period
                                            in the prior year