Company: ARAI
Filing Date: 2025-03-24
Form Type: S-1/A
Source: 0001641172-25-000350
Chunk: 217

Company: Arrive AI Inc.
Filing Date: 2025-03-24
Form: S-1/A
Chunk 217
---
 of the statutory tax rate to the Company’s effective tax rates as of December 31, 2023 and 2022 is as follows:

|                              |     | 2023 |       |    |     | 2022 |       |    |
| Statutory federal income tax 
 rate                         |     |      |  21.0 | %  |     |      |  21.0 | %  |
| State taxes                  |     |      |   5.0 | %  |     |      |   5.0 | %  |
| Change in valuation          
 allowance                    |     |      | (26.0 | %) |     |      | (26.0 | %) |
| INCOME TAX BENEFIT           |     |      |   0.0 | %  |     |      |   0.0 | %  |

Economic Development for a Growing Economy (EDGE) Tax Credit

The EDGE Tax Credit (the Credit) provides an incentive to businesses to support job creation, capital investment and to improve the standard of living for Indiana residents. The refundable corporate income tax credit is calculated as a percentage (not to exceed 100%) of the expected increased tax withholdings generated from new job creation. The credit certification is phased in annually for up to ten years based on the employment ramp-up outlined by the business.

As identified in Note 1, the Company is not expected to have taxable income within the next operating year from the date these financial statements are issued, therefore, the Credit is classified as a long-term asset to be used against future Indiana taxable income. For the years ended December 31, 2023 and 2022, the Company was eligible for the Credit in the amount of $17,073 and $14,924, respectively. For the years ended December 31, 2023 and 2022, the Company recorded a valuation allowance against the available Credit as State taxable income is not expected.

| F-57 |

<div align='center'>ARRIVE TECHNOLOGY INC.

(FORMERLY DRONEDEK CORPORATION)

NOTES TO FINANCIAL STATEMENTS (Continued)</div>

15. ASSET ACQUISITION

On December 5, 2023, the Company acquired certain assets of AirBox Technologies (“AirBox”), in an all-stock transaction. In addition to certain tangible assets, the acquisition includes AirBox’s patent portfolio, which Arrive believes will broaden the capabilities of its high