Company: ARAI
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001641172-25-005394
Chunk: 180

Company: Arrive AI Inc.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 180
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, at an average of $11.80 per share (as adjusted for the 1-for-4        
 reverse split).                                                                                 |

| h) | 94,573                                                                                          
 shares issued as consideration for an asset purchase agreement with AirBox executed on December 
 5, 2023, based on the average price per stock of $11.08 (as adjusted for the 1-for-4 reverse    
 split) issued to investors for cash in 2023, for a total consideration of $1,047,863.           |

| i) | Cancelled                                                                                     
 1,125,000 shares issued to a founding member on April 30, 2020, which were issued at $0.00096 
 per share (as adjusted for the 1-for-4 reverse split).                                        |

Treasury Stock

The Company recognizes treasury stock based on the amount paid to repurchase its shares and is recorded as a reduction of stockholders’ equity on the balance sheets. As treasury stock is not considered outstanding for share count purposes, it is excluded from average common shares outstanding for basic and diluted earnings per share. As of December 31, 2024 and 2023, the Company had 2,500,000 shares (on a post-reverse split basis) in treasury with a cost of $500.

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-22 |

ARRIVE AI