Company: ARAI
Filing Date: 2025-06-17
Form Type: S-1
Source: 0001641172-25-015428
Chunk: 70

Company: Arrive AI Inc.
Filing Date: 2025-06-17
Form: S-1
Chunk 70
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| NET LOSS                                      |     |                  $ | (1,978,165 | ) |     |    $ | (916,753 | ) |     | $      | (1,061,412 | ) |     |        |   116 | % |

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Key Components of Our Results of Operations

Our first quarter results reflect continued investment
in our products and services. Operating expenses were higher than the same period in 2024, due mainly to higher compensation expenses
in the quarter.

Salaries and wages were higher by $1,085,536
(218%) compared to the same period in 2024. Base wages were lower by $16,097 (6%) due to fluctuations in the full-time workforce. Stock-based
compensation increased $1,101,633, as the Company used equity instead of cash as compensation for services.

Legal and professional fees were higher by $25,285
(14%) due mainly to increased filing and maintenance fees associated with its patent portfolio.

Office supplies and software expenses were lower
by $4,587 as the Company continued to manage discretionary spending in the quarter to extend the cash runway.

Rent expense was higher by $4,400 compared to
the prior year period. In April 2024, the Company moved to a new, larger office space resulting in higher monthly rent expense.

Taxes and license expense was lower by $13,542
in the period, due mainly to lower payroll taxes. The Company deferred certain salaries and wages in the period, including the associated
payroll taxes, to extend liquidity prior to closing the direct listing. These payroll taxes were accrued in salaries and wages.

All other general and administrative expenses,
in total, were lower by $23,082 due to reduced discretionary spend in all areas.

Liquidity and Capital Resources

Our primary source of liquidity is cash on hand.
As of March 31, 2025, our cash totalled $295,368. This represents an increase of $166,050 from the $129,318 on hand at the end of the
prior fiscal year. This increase was primarily attributable to net proceeds received from the sales of stock totalling $717,628. These
proceeds were used to fund general operating expenses, including salaries, professional services and research and development expenses.

Cash Flow and Liquidity

|                                 |     | Three Months Ended 
          March 31, |          |   |     |      |          |   |