$ARAI

Arrive AI Inc.

CIK:0001818274|SEC Filings

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
REVENUE	$ 14,700	$ 90,725	$ 29,625	$ 90,725
OPERATING EXPENSES
General and administrative	4,048,851	3,474,059	8,258,917	5,369,038
Research and development	346,541	293,468	703,614	384,731
Sales and marketing	72,064	49,602	183,414	57,263
Total operating expenses	4,467,456	3,817,129	9,145,945	5,811,032
OTHER INCOME (EXPENSES)
Interest expense	(153,476)	(168,080)	(515,346)	(169,257)
Other income	150,878	43,151	328,668	60,066
Change in fair value of derivative liabilities	93,053	190,000	1,222,822	190,000
Accretion of debt discount	(128,946)	(27,738)	(379,915)	(27,738)
Loss on conversion of convertible notes payable	(9,696,797)		(12,042,410)
Realized gain (loss) on investments	(123,506)		322,818
Unrealized gain (loss) on investments	241,136		(260,976)
Loss on disposal of fixed assets	(5,974)		(5,974)
Total other income (expenses)	(9,623,632)	37,333	(11,330,313)	53,071
NET LOSS BEFORE TAXES	(14,076,388)	(3,689,071)	(20,446,633)	(5,667,236)
PROVISION (BENEFIT) FOR INCOME TAXES
NET LOSS	$ (14,076,388)	$ (3,689,071)	$ (20,446,633)	$ (5,667,236)
NET LOSS PER SHARE:
Basic	$ (0.28)	$ (0.12)	$ (0.47)	$ (0.18)
Diluted	$ (0.28)	$ (0.12)	$ (0.47)	$ (0.18)
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic	50,057,185	31,543,921	43,150,562	30,637,620
Diluted	50,057,185	31,543,921	43,150,562	30,637,620

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (20,446,633)	$ (5,667,236)
Adjustments to reconcile net loss to net cash used in operating activities
Stock-based compensation	1,846,078	2,032,723
Depreciation and amortization	121,553	17,118
Credit loss expense	300
Operating lease liability - non-cash adjustment	1,478
Change in fair value of derivative liabilities	(1,222,822)	(190,000)
Loss on conversion of convertible notes payable	12,042,410
Accretion of discount on convertible note payable	379,915	27,738
Accretion and immediate expensing of issuance costs on convertible note payable	133,927	165,869
Realized gain on investments	(322,818)
Unrealized loss on investments	260,976
Other non-cash item	16,515
Increase (decrease) in
Accounts receivable	(5,125)	(89,075)
Inventory	(29,378)
Prepaid expenses	(272,981)	(141,431)
Other current assets		971
Other assets	(235,624)
Accounts payable	65,618	61,131
Accrued expenses	1,408,768	(17,302)
Net cash used in operating activities	(6,257,843)	(3,799,494)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(439,688)	(47,827)
Proceeds from sales of investments	24,258,747
Purchase of investments	(26,299,029)
Net cash used in investing activities	(2,479,970)	(47,827)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of common stock, net		444,360
Taxes paid for shares withheld upon vesting of restricted stock units	(25,749)
Proceeds from the exercise of warrants, net		573,896
Proceeds from note payables	40,579
Repayments of note payables	(4,486)	(4,187)
Proceeds from issuance of convertible notes payable	10,000,000	4,000,000
Debt issuance costs	(400,000)
Deferred offering costs		(688,570)
Net cash provided by financing activities	9,610,344	4,325,499
NET INCREASE IN CASH AND CASH EQUIVALENTS	872,531	478,178
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	2,104,004	129,318
CASH AND CASH EQUIVALENTS, END OF PERIOD	2,976,535	607,496
Cash paid for:
Interest	4,310	1,939
Income taxes
SUPPLEMENTAL DISCLOSURE OF NONCASH INFORMATION
Common stock issued as payment of offering costs		6,927,869
Common stock issued in exchange for services	161,000	1,204,737
Common stock issued for conversion of convertible notes payable	20,807,755
Derivative liabilities reclassified as additional paid-in capital upon conversion of convertible notes payable	2,257,179
Deferred offering costs recognized as additional paid-in capital upon financing drawdown	2,174,671	871,882
Cashless exercise of stock options		$ 8,970

Condensed Balance Sheets - USD ($)	Jun. 30, 2026	Dec. 31, 2025
CURRENT ASSETS
Cash and cash equivalents	$ 2,976,535	$ 2,104,004
Investments at fair value	2,160,954
Accounts receivable, net of allowance	9,800	4,975
Inventory	29,378
Prepaid expenses	462,859	189,878
Other current assets	12,325	12,325
Total current assets	5,651,851	2,311,182
OTHER ASSETS
Property and equipment, net	817,337	514,684
Right of use assets - operating leases	1,926,885	2,117,284
Patents, net of accumulated amortization of $3,636 and $2,603	271,064	272,097
Deferred offering costs	3,475,514	5,650,185
Other assets	301,257	65,633
Total other assets	6,792,057	8,619,883
TOTAL ASSETS	12,443,908	10,931,065
CURRENT LIABILITIES
Accounts payable	249,611	183,993
Accrued expenses	1,669,322	538,234
Operating lease liability	424,215	392,950
Derivative liabilities	348,830	1,460,000
Convertible note payable, net of discount and debt issuance costs of $1,842,184, and $3,620,343, respectively	3,460,834	4,144,657
Note payable	15,088	9,140
Total current liabilities	6,167,900	6,728,974
LONG TERM LIABILITIES
Operating lease liability	1,504,887	1,725,073
Note payables, net of current portion	31,563	1,418
Total long term liabilities	1,536,450	1,726,491
Total liabilities	7,704,350	8,455,465
Commitments and Contingencies (See Note 16)
STOCKHOLDERS’ EQUITY
Common stock, $0.0002 par value, 200,000,000 authorized, 51,859,347 and 34,213,387 issued and outstanding at June 30, 2026 and December 31, 2025	10,371	6,841
Additional paid-in capital	53,949,594	31,215,698
Deferred compensation	(26,834)
Accumulated deficit	(49,193,573)	(28,746,939)
Total stockholders’ equity	4,739,558	2,475,600
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 12,443,908	$ 10,931,065