Company: ARAI
Filing Date: 2025-01-27
Form Type: S-1/A
Source: 0001493152-25-003660
Chunk: 176

Company: Arrive AI Inc.
Filing Date: 2025-01-27
Form: S-1/A
Chunk 176
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72,051 | ) |     |                       | 10.80 |
| NONVESTED SHARE           
 OPTIONS -                 
 DECEMBER 31, 2023         |     |         | 497,280 |   |     | $                     | 10.80 |

The weighted average grant date fair value of stock options issued during the year ended December 31, 2023 was $10.80 per share (as adjusted for the 1-for-4 reverse split). As of December 31, 2023, there was $5,375,246 unrecognized compensation expense related to nonvested stock options to be recognized over the remaining vesting period. No options were exercised during the year ended December 31, 2023.

13. RESEARCH AND DEVELOPMENT CREDITS

Under the Internal Revenue Service (IRS) Form 6765, the Company is eligible to claim a credit related to research and development expenses. The research credit is generally allowed for expenses paid or incurred for qualified research. Qualified research means research for which expenses may be treated as section 174 expenses. This research must be undertaken for discovering information that is technological in nature, and its application must be intended for use in developing a new or improved business component of the taxpayer. The payroll tax credit election is an annual election made by a qualified small business specifying the amount of research credit, not to exceed $250,000, that may be

| F-25 |

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

(FORMERLY DRONEDEK CORPORATION)

NOTES TO FINANCIAL STATEMENTS (Continued)</div>

13. RESEARCH AND DEVELOPMENT CREDITS (Continued)

used against the employer portion of social security liability. The credit is the smallest of the current year’s research credit, an elected amount not to exceed $250,000, or the general business credit carryforward for the tax year. For the years ended December 31, 2023 and 2022, the Company had available R&D credits totaling $77,193.

14. INCOME TAXES

The net deferred tax amounts in the accompanying balance sheet include the following components:

| FEDERAL              |     | 2023 |            |   |     | 2022 |          |   |
|:---------------------|:----|:-----|-----------:|:--|:----|:-----|---------:|:--|
| Deferred tax assets  |     | $    |  2,213