Company: ARAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023457
Chunk: 84

Company: Arrive AI Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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 increase (decrease) in cash 
    $687,397  
    $(33,679) 
    $721,076  
     (2,141)%

- 32 -

Operating
Activities

Net
cash used in operating activities was $5,048,431 for the nine months ended September 30, 2025, compared to $1,959,447 for the same period
in 2024. The increase in cash outflows of $3,088,984 was primarily due to our increased net loss.

For
the nine months ended September 30, 2025, our net loss of $8,904,672 was offset by non-cash items of stock-based compensation expense
of $3,134,655, depreciation and amortization expense of $31,048, the amortization of a discount on the convertible debt of $357,333 and
amortization of the $240,000 debt issuance costs.

Other
working capital movements in the period resulted in a net cash inflow of $185,706, primarily due to an increase in accrued liabilities
($125,842), accounts payable ($43,148), credit card payable ($4,938), and other current assets ($3,458). These inflows were offset by
an increase in prepaid expenses of $108,910, accounts receivable of $4,900.

For
the nine months ended September 30, 2024, operating cash flow used of $1,959,447 was comprised of our net loss of $3,199,606, offset
by non-cash items of stock-based compensation expense of $880,120 and depreciation and amortization of $21,792. Working capital movements
in the prior-year period resulted in net cash inflows of $338,247 due to an increase in accounts payable of $408,485, accrued liabilities
of $21,889 offset by outflows due to prepaid expenses ($63,407) and the credit card payable ($28,720).

Investing
Activities

Net
cash used for investing activities was $2,036,474 for the nine months ended September 30, 2025. This was due to an increase in fixed
assets for new Arrive Points placed into service or waiting final installation ($87,850). We also incurred a net cash outflow from sales
and purchases of short-term investments of $1,948,624. No fixed assets or other investing activities were recorded during the nine months