Company: ARAI
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0001641172-25-013826
Chunk: 39

Company: Arrive AI Inc.
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 2
Chunk 39
---
 Stock-based compensation in the period increased by $1,101,633 compared to the same period in 2024, while the
net loss was $1,061,412 higher compared to the prior year period, resulting in a net operating cash flow improvement of $40,221.

Changes
in net operating assets and liabilities resulted in a net inflow of $75,858 in the period. This was primarily driven by increases in
accrued liabilities ($133,468), prepaid expenses ($7,081), other current assets ($1,412), and credit card payable ($159), offset by a
reduction of accounts payable of $66,262. The increase in accrued liabilities was due to an increase of deferred salaries and wages of
$113,716 in the period and deferral of licensing fee payments of $20,000.

In
the prior-year period, changes in net operating assets and liabilities resulted in a net inflow of $60,409. This was primarily driven
by an increase in accrued liabilities ($87,676) and prepaid expenses ($4,377), offset by reductions in accounts payable ($3,554), and
credit card payable ($28,090).

Non-cash
adjustments to reconcile net loss to cash used in operating activities for the current period included depreciation and amortization
of $7,391, compared to $7,255 for the prior year period.

Investing
Activities

Net
cash used for investing activities was $2,832 in the period. This was due to an increase in construction in progress for final installation
costs related to an Arrive Point asset deployed to a customer location.

Financing
Activities

Net
cash provided by financing activities was $715,553 in the period. This was due to new equity issuances and conversion of outstanding
warrants. Funds raised through a crowdfunding campaign included new gross equity investment ($288,002), a net release of funds from prior
crowdfunding issuances ($40,219), offset by funding costs associated with the campaign ($59,468), resulting in new funds from crowdfunding
of $268,753.

The
Company also issued new shares to accredited investors for net proceeds of $152,000, and to an existing investor in exchange for a warrant
conversion, resulting in net proceeds of $296,875. Payments made on an outstanding note for the company cargo van totalled $2,075 in the
period.

Item
3. Quantitative and Qualitative Disclosures About Market Risk