Company: ARAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023457
Chunk: 81

Company: Arrive AI Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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548,879  
     15,706  
     3 
  
    Sales and marketing 
     164,793  
     281,160  
     (116,367) 
     (41)

    $8,281,262  
    $3,225,920  
    $5,055,342  
     157%

Our
nine months ended September 30, 2025 results reflect continued investment in product development and marketing activities. General and
administrative expenses include one-time costs related to the direct listing and financing transaction.

General
and administrative expenses increased by $5,156,003 for the nine months ended September 30, 2025, as compared to the nine months ended
September 30, 2024. Primary components of general and administrative expenses were:

    ●
    Salaries
    and benefits in total increased by $4,359,704 from the prior year period. This was impacted by $1,866,531 one-time success bonuses
    paid upon completion of the public listing in May 2025.

- 31 -

    ●
    Excluding
    the one-time bonus costs, base salaries for the period were $730,687, an increase of $208,822 from the same period in the prior year
    due to new hiring in product development, engineering and sales and marketing. As of September 30, 2025, the Company had 33 full-time
    salaried employees, compared with 8 in the same period last year.

    ●
    Stock-based
    compensation for the period was $3,134,655, an increase of $2,254,535 from the same period in the prior year.

    ●
    Legal
    and professional service fees were $950,017, an increase of $549,239 from the same period in the prior year due to higher spend on
    legal fees related to the direct listing ($260,383), investor relations ($106,298), compensation consulting ($77,140), patent expenses
    ($54,745), and higher transfer agent fees ($19,869).

    ●
    Insurance
    expense was $147,052, an increase of $93,835 from the same period in the prior year, due to higher directors and officers insurance
    premiums.

Research
and Development expenses were $564,585 for the nine months ended September 30, 2025, an increase of