Company: ARAI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023999
Chunk: 8

Company: Arrive AI Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 8
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 discount on the Streeterville convertible note
($192,000), other miscellaneous interest ($1,939) and bank charges ($1,450).

During
the six months ended June 30, 2024, we recognized income from the Indiana EDGE tax credit of $24,089 and no federal R&D tax refunds.
Interest expense for the prior-year period was $2,017.

Liquidity
and Capital Resources

Our
primary sources of liquidity are cash on hand, and the Streeterville Purchase Agreement. As of June 30, 2025,
our cash was $607,496. This represents an increase of $478,178 from $129,318 on hand at the end of the prior fiscal year. Proceeds from
the sales of common stock and the convertible note were used to fund general operating expenses, including salaries, professional services
and research and development expenses. Cash flow was also impacted by significant one-off expenditures related to the public listing,
as described in the discussion of operating expenses.

Cash
Flow and Liquidity

    Six Months Ended June 30,  
    $  
    % 

    2025  
    2024  
    Change  
    Change 

    Net cash provided by (used in): 

    Operating activities 
    $(3,799,494) 
    $(1,353,985) 
    $(2,445,509) 
     (181)%
  
    Investing activities 
     (47,827) 
     -  
     (47,827) 
     - 
  
    Financing activities 
     4,325,499  
     1,197,328  
     3,128,171  
     261 
  
    Net increase (decrease) in cash 
    $478,178  
    $(156,657) 
    $634,835  
     (405)%

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Operating
Activities

Net
cash used in operating activities was $3,799,494 for the six months ended June 30, 2025, compared to $1,353,985 for the same period in
2024. The increase in cash outflows of $2,445,509 was primarily due to our net loss of $6,668,129, offset by non-cash items of stock-based compensation expense of $2,845,223, depreciation
and amortization expense of $17,118