Company: ARAI
Filing Date: 2025-07-15
Form Type: S-1/A
Source: 0001641172-25-019572
Chunk: 195

Company: Arrive AI Inc.
Filing Date: 2025-07-15
Form: S-1/A
Chunk 195
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Stock-Based Compensation - Employees and Non-Employees

Substantially all stock-based compensation, on the date of grant, is fully vested. In certain instances, there may be performance or service requirements in order to vest. As of December 31, 2024, all stock issued as stock-based compensation were fully vested, except for the individuals discussed below. As there are no other classes of stock, all awards are in exchange for common stock.

In October 2023, an officer of the Company was issued 192,136 non-qualified stock option units (on a post-reverse split basis), with 60,043 units (on a post-reverse split basis) vesting immediately, and 12,008 units (on a post-reverse split basis) vesting quarterly commencing from December 1, 2023, with the remaining units vesting on June 1, 2026.The fair market value of these stock option units on the grant date, which was determined by using the Black-Scholes model, was $ 10.784(as adjusted for the 1-for-4 reverse split). As of

| F-21 |

ARRIVE AI INC.

(FORMERLY ARRIVE TECHNOLOGY INC.)

NOTES TO FINANCIAL STATEMENTS (Continued)

| 12. | STOCKHOLDERS’      
 EQUITY (Continued) |

Stock-Based Compensation - Employees and Non-Employees (Continued)

December 31, 2024, total unvested units are 72,051units (on a post-reverse split basis) with related unrecognized compensation expense of $ 776,998.

The same officer was also issued an additional 192,136incentive stock option units (on a post-reverse split basis), subject to both time and performance vesting criteria. The fair market value of these stock option units on the grant date, which was determined by using the Black-Scholes model, was $ 10.784(as adjusted for the 1-for-4 reverse split). As of December 31, 2024, none of these units have vested, therefore the total unvested units and the related unrecognized compensation expense was 192,136(on a post-reverse split basis) and $ 2,071,995, respectively.

At December 31, 2024, twelve other employees were issued 230,432stock option units (on a post-reverse split basis), subject to a time-based or time and performance-based