Company: ARAI
Filing Date: 2025-01-27
Form Type: S-1/A
Source: 0001493152-25-003660
Chunk: 71

Company: Arrive AI Inc.
Filing Date: 2025-01-27
Form: S-1/A
Chunk 71
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951) due to vesting of stock-based compensation, payments for services rendered and expansion of the management team. This is partially offset by a reduction in legal and professional fees of -43% (-$303,831) paid to consultants, advisors and service providers.

Research and development expense increased by 427% ($444,677). The Company was previously capitalizing certain expenses related to the development of its products. Beginning in the fourth quarter of 2023, such expenses have been recorded as expense in the period incurred.

Marketing expenses increased 20% ($37,890) due to the timing of advertising spend on video productions.

Taxes & licenses expense increased by 43% ($20,475) primarily due to payroll taxes on equity compensation.

Rent increased by 79% ($20,320) due to the Company’s move to a new office space in the second quarter of 2024.

Expenses for Travel, Meals and Entertainment
collectively were lower by 28% (-$22,024) due to less employee travel in the period.

Other income for the period was $29,523, of which the State of Indiana EDGE tax credit refund was $24,089.

For the year ended December 31, 2023, the Company’s
net loss increased from $2,388,614 to $7,321,134. General and administrative expenses for the year increased 208% ($4,964,782).

Salaries and wages increased by 119% ($1,416,676)
due to vesting of stock-based compensation and expansion of the management team.

Research and development increased by 156% ($292,593).
The Company was previously capitalizing certain expenses related to the development of its products. For 2023, such expenses have been
recorded as expense in the period incurred. An impairment expense ($827,060) was recorded in Q4 2023, to write-off the accumulated construction
in progress which had previously been capitalized.

Legal and professional fees increased by 384%
($1,305,931) due to one-time costs associated with merger activities and expenses related to patent filings.

An additional impairment expense ($997,863) was
recorded on the value of patents purchased in the acquisition of Airbox in Q4, 2023. As of December 31, 2023, the Company had not yet
integrated these patents into its product development roadmap, and could not determine an auditable fair value.

Other general and administrative expenses experienced