Company: ARAI
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001641172-25-005394
Chunk: 217

Company: Arrive AI Inc.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 217
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LOGY 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  |     | $    |  2,213,108 |   |     | $    |  832,417 |   |
| Deferred tax assets  
 valuation allowance  |     |      | (2,213,108 | ) |     |      | (832,417 | ) |
| NET DEFERRED FEDERAL 
 TAX ASSETS,          
 NET OF ALLOWANCE     |     | $    |          - |   |     | $    |        - |   |
| STATE                |     |      |            |   |     |      |          |   |
| Deferred tax assets  |     | $    |    504,101 |   |     | $    |  188,168 |   |
| Deferred tax assets  
 valuation allowance  |     |      |   (504,101 | ) |     |      | (188,168 | ) |
| NET DEFERRED STATE   
 TAX ASSETS,          
 NET OF ALLOWANCE     |     | $    |          - |   |     | $    |        - |   |

The income tax benefit consists of the following for the years ended December 31, 2023 and 2022:

|                     |     |   |       2023 |   |     |   |     2022 |   |
|:--------------------|:----|:--|-----------:|:--|:----|:--|---------:|:--|
| Federal             |     | $ |  1,380