v3.25.2
EQUITY INCENTIVE PLAN
 6 Months Ended
Jun. 30, 2025
Equity Incentive Plan  
EQUITY INCENTIVE PLAN

 

16.EQUITY INCENTIVE PLAN

 

The Company created the 2023 Equity Incentive Plan (the Plan) on April 27, 2023, under which shares of common stock became available for issuance not to exceed 1,500,000. The Stock Plan is designed to attract, retain, and motivate key employees. Currently, the fair value is recognized as an expense over the vesting period of the award. Option awards are generally granted with an exercise price equal to the fair market value of the Company’s stock at the date of grant, vest over a four-year period, and expire after ten years. There are certain situations that may accelerate the vesting or termination of all outstanding options, such as a change in control. As of June 30, 2025, 886,799 shares were available for grant. The compensation expenses related to incentive units is included in general and administrative expenses with a corresponding increased to additional paid-in-capital.

 

The following table summarizes the options outstanding for the six months ended June 30, 2025:

 

   Share
Options
Outstanding		   Weighted
Average
Exercise
Price		   Weighted
Average
Grant Date
Fair Value		   Weighted
Average
Remaining Contractual
 Term (years)		   Aggregate
Intrinsic Value		 
                     
BALANCE, DECEMBER 31, 2024   614,704   $0.80   $10.88    8.87   $7,322,656 
                          
Exercised   (1,094)   0.76    10.30    -    - 
Canceled/Expired   (1,503)   0.76    11.26    -    - 
                          
BALANCE, JUNE 30, 2025   612,107   $0.80   $10.88    8.38   $6,661,152 
                          
EXERCISABLE, JUNE 30, 2025   205,213   $0.80   $10.86    8.37   $2,232,276 

 

The following table summarizes the nonvested share options for the six months ended June 30, 2025:

 

   Nonvested
Share
Options		   Weighted
Average
Exercise
Price		   Weighted
Average
Grant Date
Fair Value		   Weighted
Average
Remaining
Contractual
Term (years)		   Aggregate
Intrinsic Value		 
                     
BALANCE, DECEMBER 31, 2024   452,875   $0.80   $10.89    8.88   $5,396,007 
                          
Vested   (44,821)   0.79    10.93    8.41    488,000 
Canceled/Expired   (1,160)   0.76    11.36    -    - 
                          
BALANCE, JUNE 30, 2025   406,894   $0.80   $10.88    8.38   $4,428,876 

 

 

ARRIVE AI INC.

NOTES TO FINANCIAL STATEMENTS (Continued)

 

 

 

16.EQUITY INCENTIVE PLAN (Continued)

 

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying share options and the closing stock price of $11.68 for the Company’s common shares on June 30, 2025 and the closing stock price of $12.71 for the Company’s common shares on December 31, 2024.

 

There were no options granted during the six months ended June 30, 2025. As of June 30, 2025, there was $4,427,738 unrecognized compensation expense related to nonvested stock options to be recognized over the remaining vesting period. Total compensation expense related to stock options during the three and six months ended June 30, 2025 and June 30, 2024 was $244,883 and $489,766 and $246,612 and $462,282, respectively. During the six months ended June 30, 2025 there were 1,094 options exercised in a cashless exchange for 690 shares.