Company: ARAI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023999
Chunk: 7

Company: Arrive AI Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 7
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,608 from the same period
                                            in the prior year.

●Legal
                                            and professional service fees were $711,641, an increase of $459,140 from the same period
                                            in the prior year due to higher spend on legal fees related to the direct listing ($249,875),
                                            investor relations ($65,815), compensation consulting ($47,440), transfer agent ($26,589)
                                            and higher patent expenses ($27,540).

●Insurance
                                            expense was $74,631, an increase of $39,360 from the same period in the prior year, due to
                                            higher directors and officers insurance premiums.

Research
and Development expenses were $384,731 for the six months ended June 30, 2025, a decrease of $156,208 as compared to the same period
in the prior year. This is due to the timing of vendor engineering projects (lower by $387,864), offset by higher independent contractor
spend ($113,406) and one-time success bonuses for independent contractors ($118,250).

Marketing
expenses were $57,263 for the six months ended June 30, 2025, a decrease of $195,483 from the same period in the prior year. The decrease
is due to one-time expenses in the prior year period for television advertising ($200,000), offset by higher travel and miscellaneous
expenses in the current quarter.

Other
Income/Expenses:

    Six Months Ended June 30,  
    $  
    % 

    2025  
    2024  
    Change  
    Change 

    Other income 
    $60,066  
    $24,089  
    $35,977  
     149%
  
    Interest expense and bank charges 
     (195,389) 
     (2,017) 
     (193,372) 
     9,587 

    $(135,323) 
    $22,072  
    $(157,395) 
     (713)%

Other
income for the six months ended June 30, 2025 was $60,066. Income was recognized from payroll tax refunds earned under the federal R&D
tax credit program of $42,857, state tax refund from the EDGE credit of $16,915, and interest income of $294.

Interest
expense of $195,389 was comprised primarily of the amortization of the original issue