| STOCKHOLDERS’ EQUITY |
Common Stock
As of April 30, 2020 (date of incorporation),
the Company had 100,000,000 shares of common stock, with a par value of $0.0001, authorized and available to issue for purposes of satisfying
any future transactions. No other class of stock has been authorized or is available for issuance.
Effective September 15, 2021, the Company
authorized a 2-for-1 stock split, with 200,000,000 shares authorized and available, with a par value of $0.00005, to issue for purposes
of satisfying any future transactions. Effective November 25, 2024, the Company authorized a 1-for-4 reverse stock split, with 200,000,000
shares authorized and available to issue for purposes of satisfying any future transactions. The par value is now $0.0002.
During the six months ended June 30,
2025, the Company issued 3,902,480 shares of common stock as follows:
| a) | 11,692 shares with accredited investors in exchange for cash of $152,000 at an average share price of
$13.00 per share. 7,692 of the shares were issued with warrants and deemed as equity, as described in Note 15. |
| b) | 2,937,500 shares with an accredited investor in exchange for cash of $588. The shares were issued at par
value, subject to the securities purchase agreement, dated March 21, 2025, by and between Streeterville Capital, LLC and the Company (the “Streeterville Purchase
Agreement”), as described in Note 11. |
| c) | 120,820 warrants exercised, for 120,820 shares in exchange for cash of $573,895. |
| d) | 25,693 shares issued through a crowdfunding campaign with other investors in exchange for net cash of
$291,773, at an average share price of $11.36 per share after offering costs. |
ARRIVE AI INC.
NOTES TO FINANCIAL STATEMENTS (Continued)
| 14. | STOCKHOLDERS’ EQUITY (Continued) |
Common Stock (Continued)
| e) | 147,374 shares issued to employees and consultants, recognized as compensation expense, fair valued at
$13.00 per share, for a total fair value of $1,915,862, based on the price per stock issued to investors for cash during the period January
1, 2025 to May 15, 2025. |
| f) | 33,815 shares issued in June 2025 to employees or consultants via stock awards, recognized as compensation
expense, for a total of $439,595, fair valued based on the Company’s closing stock price on the day the shares were issued. |
| g) | 532,913 shares issued to a consultant via stock awards, recognized as deferred offering costs, fair valued
at $13.00 per share, for a total of $6,927,869, based on the price per stock issued to investors for cash. |
| h) | 92,673 shares issued with a consultant as settlement of legal expenses incurred in prior periods, fair
valued at $13.00 per share, for a total of $1,204,737, based on the price per stock issued to investors for cash. |
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