Company: ARAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023457
Chunk: 63

Company: Arrive AI Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 63
---
 DEFERRED OFFERING COSTS

Pursuant
to ASC 340-10-S99-1, costs directly attributable to an offering of equity securities are deferred and would be charged against the gross
proceeds of the offering. Deferred offering costs consist of underwriting, legal, accounting, and other expenses incurred through the
balance sheet date that are directly related to the proposed public offering. The Company’s registration statement was declared
effective and the stock began trading on May 15, 2025. During the three months ended March 31, 2025, the Company issued 532,913 shares
of common stock in exchange for investment banking advisory services with a fair value of $6,927,869, which was recorded as deferred
offering costs. During the six months ended June 30, 2025, the Company recorded an additional $698,570 for filing and legal fees
related to the transaction. As of September 30, 2025, $1,741,750 of the deferred offering costs have been recorded as a reduction of
the proceeds, in proportion to the funds received from the offering, which were recognized in additional paid-in capital.

    - 19 -

ARRIVE
                                            AI INC. 

NOTES
                                            TO FINANCIAL STATEMENTS (Continued)

  10.
  PATENTS, NET

Patents
consist of the following:

SCHEDULE OF PATENTS 

    September
                                            30,
                                                                               2025  
    December
                                            31,
                                                                               2024 

    Patents 
    $274,700  
    $274,700 
  
    Less: accumulated amortization 
     (1,786) 
     (1,099)

    TOTAL PATENTS 
    $272,914  
    $273,601 

As
of September 30, 2025, six of the Company’s fifty-seven international patents were issued and began being amortized over twenty
years. As of September 30, 2024, five of the Company’s forty-four patents were approved by the countries in which the patent applications
were filed. Amortization expense was $235 and $688 and $234 and $577 for the three and nine months ended September 30, 2025 and 2024,
respectively.

  11.
  NOTE PAYABLE

Note
payable consists of the following:

SCHEDULE OF
NOTES PAYABLE  

    September