Company: ARAI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023999
Chunk: 9

Company: Arrive AI Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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 and the amortization of a discount on the convertible debt of $192,000.

Other
working capital movements in the period resulted in a net cash outflow of $185,706, primarily due to an increase in prepaid expenses
of $141,431, accounts receivable of $89,075, and a reduction of accrued liabilities of $27,245. This outflow was partially offset by
 increases in accounts payable of $61,131 and the credit card payable of $9,943.

For
the six months ended June 30, 2024, operating cash flow was comprised of our net loss of $2,375,855, offset by non-cash items of stock-based compensation
expense of $605,615 and depreciation and amortization of $14,469. Working capital movements in the prior-year period resulted in net cash
inflows of $401,786 due to an increase in accounts payable of $344,817, accrued liabilities of $85,136 offset by outflows due to prepaid
expenses ($3,381) and the credit card payable ($24,786).

Investing
Activities

Net
cash used for investing activities was $47,827 for the six months ended June 30, 2025. This was due to an increase in fixed assets for
new Arrive Points placed into service or waiting final installation. No production Arrive Point units or other fixed assets were recorded
during the six months ended June 30, 2024.

Financing
Activities

Net
cash provided by financing activities was $4,325,499 for the six months ended June 30, 2025. On May 15, 2025, we closed the initial pre-paid purchase under the Streeterville Purchase Agreement, resulting in proceeds from the convertible note of $4,010,000. We received net proceeds of $444,360
from other sales of common stock and $573,895 from exercise of outstanding warrants, prior to the direct listing. These cash inflows
were offset by payments made on an outstanding note payable of $4,187 and payments for deferred offering costs of $698,570.

For
the six months ended June 30, 2024, net cash provided by financing activities was $1,197,328, which included $1,201,233 from sales of
common stock, offset by payments made on the notes payable of $3,905.

Item
3. Quantitative and Qualitative Disclosures About Market Risk

The