Company: ARAI
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0001641172-25-013826
Chunk: 7

Company: Arrive AI Inc.
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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the “Reverse Stock Split”). The Reverse Stock Split
reduced the total number of issued and outstanding shares of Common Stock, including shares held by the Company as treasury shares. All
share amounts have been retroactively adjusted for the Reverse Stock Split, unless stated otherwise.

     - 7 - 

ARRIVE
AI INC. 

(FORMERLY
ARRIVE TECHNOLOGY INC.)

NOTES
TO FINANCIAL STATEMENTS (Continued)

2.SIGNIFICANT
                                            ACCOUNTING POLICIES (Continued)

Use
of Estimates

The
preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates. Management evaluates its estimates and assumptions on
an ongoing basis using historical experience and other factors, including the current economic environment and makes adjustments when
facts and circumstances dictate. These estimates are based on information available as of the date of the financial statements; therefore,
actual results could differ from those estimates.

Cash

Cash
is defined as currency on hand and on-demand deposits. Cash equivalents are unrestricted highly liquid cash investments purchased with
a maturity of three (3) months or less. There were no cash equivalents at March 31, 2025 and December 31, 2024.

Concentration
of Credit Risk

The
Company maintains its cash balances at one financial institution. The account is insured by the Federal Deposit Insurance Corporation
(FDIC) up to a specified limit. The Company’s balances at the financial institutions periodically exceed federally insured limits.
At March 31, 2025 and December 31, 2024, the Company’s uninsured cash balances totaled approximately $45,000 and $0, respectively.

Management
believes that the Company is not exposed to any significant risk concerning its cash balances. To date, the Company has not recognized
any losses caused by uninsured balances.

Property
and Equipment

The
property and equipment is recorded at cost. The Company’s policy is to depreciate the cost of the property and equipment using
the straight-line method over the estimated useful life of the asset. The costs of maintenance and repairs are charged to expense when
incurred (none noted in the current or prior year as it relates to the vehicle). The useful life of the property and equipment for purposes
of computing depreciation is:

SCHEDULE
OF PROPERTY AND EQUI