Company: ARAI
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0001641172-25-013826
Chunk: 18

Company: Arrive AI Inc.
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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2024. Bruush failed to remedy several
deficiencies cited by Nasdaq in a timely manner, and was officially de-listed from the Nasdaq exchange on or about June 28, 2024. As
a direct consequence of the delisting of Bruush shares, the merger was terminated. The terms of the merger included a termination fee
of $250,000 in the event either party caused the termination. The Company assessed the collection of the termination fee as not probable,
thus a receivable has not been recorded.

On
March 21, 2025, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with an
investor. Under the Securities Purchase Agreement, the investor agrees to purchase an amount of up to $40,000,000
in pre-paid purchases of the Company’s common stock, $0.0002
par value per share. The original principal amount is a $4,330,000
pre-paid purchase with a $4,000,000
initial purchase price and $320,000
original issue discount. In addition, the Company agrees to pay $10,000
to cover the investor’s transaction expenses, along with 62,500
shares of common stock issued as a commitment fee at closing.

     - 17 - 

ARRIVE
                                            AI INC. 

(FORMERLY
ARRIVE TECHNOLOGY INC.)

NOTES
TO FINANCIAL STATEMENTS (Continued)

11.COMMITMENTS
                                            AND CONTINGENCIES (Continued)

Lease
Obligation

Effective
April 1, 2024, the Company expanded its leased office space. The new term is nine months, and thereafter a month-to-month lease which
can be canceled with a 90-day written notice and agreement to suitable terms by both parties. Under this lease, base rent is $3,600 per
month. The Company is required to pay insurance, listing the property owner as an additional insured, and normal maintenance costs for
certain of this leased property. Additionally, the Company rents a warehouse from an officer and shareholder for $2,250 per month on
a month-to-month basis.

Under
FASB ASU No. 2016-02, Topic 842, Leases, allows companies to elect certain policies for short-term leases. To qualify as a short-term
lease, a lease must have an initial term of 12 months or less and not include renewal options or a purchase