Company: ARAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023457
Chunk: 13

Company: Arrive AI Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 13
---
 vehicles, office equipment,
and aerial drones; construction-in-progress (CIP), and intangible patent assets including those acquired by the acquisition of Airbox
Technology in 2023. The vehicles and drone hexacopter were evaluated for impairment, and no impairments were considered necessary as
of September 30, 2025.

The
Company acquired three “Gen 3” (or “AP3”) Arrive Point units in December 2024, and four in April 2025. These
units are recorded as construction in progress until they are placed into service. Six units have been delivered to customer sites, four
of which have been placed into revenue service and are being depreciated on a straight-lined basis over two years. One unit not yet entered
into service was damaged beyond repair. An impairment loss of $10,541 was recognized as of September 30, 2025. No impairment loss on
these units was recognized as of September 30, 2024.

    - 9 -

ARRIVE
                                            AI INC. 

NOTES
                                            TO FINANCIAL STATEMENTS (Continued)

  2.
  SIGNIFICANT ACCOUNTING
  POLICIES (Continued)

Revenue
Recognition

The
Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. Revenue is derived from consulting
and implementation services provided to clients and recurring subscription services for access to the Arrive Point network. Revenue is
recognized over time as services are performed, based on the transfer of control to the customer. Contracts are typically short-term
in nature and do not contain significant variable consideration or multiple performance obligations.

Disaggregated
revenue as of the three and nine months ended September 30, 2025 is as follows:

SCHEDULE
OF DISAGGREGATED REVENUE

    Three
    Months  
    Nine
    Months 

    Ended
    September 30  
    Ended
    September 30 
  
    Revenue source 

    Consulting services 
    $-  
    $89,000 
  
    Installation services 
     2,175  
     3,675 
  
    Subscription fees 
     5,275  
     5,500 

    TOTAL REVENUE 
    $7,450  
    $98,175 
  
    Timing of Revenue Recognition 

    Services transferred over time 
    $5,275  
    $94,500