Company: ARAI
Filing Date: 2025-06-17
Form Type: S-1
Source: 0001641172-25-015428
Chunk: 188

Company: Arrive AI Inc.
Filing Date: 2025-06-17
Form: S-1
Chunk 188
---
 AI INC.

(FORMERLY ARRIVE TECHNOLOGY INC.)

NOTES TO FINANCIAL STATEMENTS (Continued)

16. RESEARCH AND DEVELOPMENT TAX CREDITS

The Company qualifies as a small business under Internal Revenue Code Section 41(h) and has elected to apply a portion of its federal research 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 $ 206,174of 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 3,539shares for $ 46,007on a crowdfunding platform.

The Company also issued 92,673shares with a fair value of $ 1,204,749in 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 47,370shares 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