Company: ARAI
Filing Date: 2025-03-24
Form Type: S-1/A
Source: 0001641172-25-000350
Chunk: 183

Company: Arrive AI Inc.
Filing Date: 2025-03-24
Form: S-1/A
Chunk 183
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 Equity Incentive Plan (the Plan) on April 27, 2023, under which shares of common stock became available for issuance not to exceed 1,500,000 (on a post-reverse split basis). The Stock Plan is designed to attract, retain, and motivate key employees. Currently, the fair value is recognized as an expense over the vesting period of the award. Option awards are generally granted with an exercise price equal to the fair market value, as adjusted for the 1-for-4 reverse split, of the Company’s stock at the date of grant, vest over a five-year period, and expire after ten years. There are certain situations that may accelerate the vesting or termination of all outstanding options, such as a change in control. As of December 31, 2024, 885,296 shares (on a post-reverse split basis) were available for grant. The compensation expenses related to incentive units is included in general and administrative expenses with a corresponding increased to additional paid-in-capital.

The assumptions used to calculate the fair value of options (on a post-reverse split basis) granted during the year ended December 31, 2024 are as follows:

| Weighted-average volatility |     | 95.00 | % |
| Risk-free rate              |     |  3.81 | % |
| Dividend yield              |     |  0.00 | % |
| Expected term years         |     |    10 |   |

The following is an analysis of options to purchase shares of the Company’s stock issued and outstanding (on a post-reverse split basis) as of December 31, 2024:

|                                 |     | Share Options |         |   |     | Weighted       
 Average        
 Exercise Price |      |
|:--------------------------------|:----|:--------------|--------:|:--|:----|:---------------|-----:|
| OUTSTANDING – DECEMBER 31, 2023 |     |               | 569,331 |   |     | $              | 0.80 |
| Granted                         |     |               |  45,565 |   |     |                | 0.76 |
| Cancelled                       |     |               |    (192 | ) |     |                | 0.76 |
| OUTSTANDING – DECEMBER 31, 2024 |     |               | 614,704 |   |     | $              | 0.80 |