Company: ARAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023457
Chunk: 19

Company: Arrive AI Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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topic “Disaggregation of Income Statement Expenses (ASC 220-40): Income Statement—Reporting
Comprehensive Income—Expense Disaggregation Disclosures”. The amendments require additional disclosure of the nature of expenses
included in the income statement. The amendments in this update are effective for public business entities for fiscal years, beginning
after December 15, 2026. Early adoption is permitted. The Company is currently assessing the impact of the adoption of this standard
on its financial statements.

  3.
  SEGMENT REPORTING

The
Company’s principal business is described in Note 1. The Company has determined that it operates in a 1single
operating and reportable segment. The Company’s Chief Financial Officer is designated as the chief operating decision maker (“CODM”).
The CODM evaluates the business as a whole and does not receive discrete financial information for separate business units. The CODM
is responsible for evaluating financial results and making resource allocation decisions.

Significant
Segment Expenses

The
Company considers the following as significant expenses in evaluating its segment performance:

●Research
                                            and Development: Includes costs related to materials and supplies, prototype hardware development,
                                            and third-party consulting costs.

●General
                                            and Administrative: Includes personnel costs, contractor expenses, and other overhead expenses.

●Legal
                                            and Professional Fees: Includes the cost of legal services to expand and maintain the Company’s
                                            patent portfolio, fees associated with various business transactions, and compliance with
                                            regulatory requirements.

Entity-Wide
Disclosures

●Geographic
                                            Revenue Information: For both the three and nine months ended September 30, 2025, 100% of
                                            the Company’s net sales were generated in the United States.

●Major
                                            Customers: The Company has one customer that accounted for 10% or more of total revenue.

The
Company did not generate revenue during the three and nine months ended September 30, 2024.

    - 15 -

ARRIVE
                                            AI INC. 

NOTES
                                            TO FINANCIAL STATEMENTS (Continued)

  4.
  GOING CONCERN

The
Company’s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction
of liabilities in the normal course of business. The financial statements do not include any adjustment relating to recoverability and
classification of recorded amounts of assets and liabilities that might be necessary if the Company is unable to continue as a going
concern.

The