Company: ARAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023457
Chunk: 65

Company: Arrive AI Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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 price and $640,000 original issue discount. In addition, the Company
paid $10,000 to cover Streeterville’s transaction expenses, along with 62,500 shares of common stock issued as a commitment fee
at closing, with a fair value of $812,500. The commitment fee was recorded as stock based compensation. A 6% fee on gross proceeds due
to the Company’s investment banker of $480,000 has been capitalized in the notes payable as issuance costs. The original issue
discount and issuance costs are amortized to interest expense using the effective method over a period of six months. In May 2025, Streeterville
purchased 2,937,500 shares of common stock, at par value, in exchange for $588. The Company has the right to repurchase these pre-delivery
shares at par value.

 SCHEDULE
OF CONVERTIBLE NOTE PAYABLE  

    September
                                            30,
                                                                               2025  
    December
                                            31,
                                                                               2024 
  
    March 21, 2025 issuance 
    $4,330,000  
    $- 
  
    August 11, 2025 issuance 
     4,320,000  
     - 
  
    Discount 
     (640,000) 
     - 
  
    Issuance costs 
     (480,000) 
     - 
  
    Amortization of discount and issuance costs 
     597,333  
     - 
  
    Conversion of note 
     (4,125,000) 
     - 
  
    TOTAL BALANCE 
    $4,002,333  
    $- 

During
the three months ended September 30, 2025, Streeterville converted $4,125,000 of the notes payable for 1,207,355 shares of common stock.
Upon conversion, the Company immediately expensed to interest expense the remaining unamortized discount and issuance costs relative
to the proportion of notes converted to total outstanding notes. During the three and nine months ended September 30, 2025 and 2024,
the Company recognized interest expense associated with the amortization of the discount and issuance costs of $405,333 and $597,333
and $0 and $0, respectively. During the three and nine months ended September 30, 2025, the Company also recognized interest expense
of $165,823