Key Highlights

  • ARAI reported Q2 2026 Revenue of US$14,700 versus US$90,725 a year earlier.
  • Net loss was US$14,076,388, or US$0.28 per share, versus US$3,689,071, or US$0.12.
  • A US$9,696,797 loss on conversion of convertible notes was recorded in the quarter.
  • Cash and cash equivalents were US$2,976,535 at June 30, 2026.

ARAI filed its Quarterly Report on August 13, 2026, for the quarter ended June 30, 2026. Revenue was US$14,700, from monthly subscriptions to the Arrive Point network, versus US$90,725 a year earlier, which comprised US$89,000 of design and consulting services, US$1,500 of installation fees and US$225 of monthly subscriptions. For the six months, revenue was US$29,625 versus US$90,725.

General and administrative expenses were US$4,048,851 versus US$3,474,059. The company said salaries and benefits in total decreased by US$144,794, with Bonus expense down US$1,865,131 because of a large one-time bonus in 2025 tied to its direct listing, and base salaries up US$1,497,896 to US$1,665,023 because of new hiring in product development.

Operating Expenses, Other Items and Net Loss

Research and development expenses were US$346,541 versus US$293,468, and sales and Marketing expenses were US$72,064 versus US$49,602. Total operating expenses were US$4,467,456 versus US$3,817,129. The company said operating expenses reflect growing Investment in team size for product development, engineering and marketing.

Other income (expenses) included interest expense of US$(153,476), other income of US$150,878, a US$93,053 change in Fair Value of derivative liabilities, accretion of Debt discount of US$(128,946), a loss on conversion of convertible notes payable of US$(9,696,797), a realized loss on investments of US$(123,506) and an unrealized gain on investments of US$241,136. Total other income (expenses) was US$(9,623,632) versus US$37,333. Net loss was US$(14,076,388), or US$(0.28) per share, versus US$(3,689,071), or US$(0.12), on weighted average shares of 50,057,185 versus 31,543,921. For the six months, loss per share was US$(0.47) versus US$(0.18).

Liquidity, Streeterville Facility and Going Concern Disclosure

At June 30, the company had cash and cash equivalents of approximately US$2,976,535 and short-term investments of approximately US$2,160,954. Its convertible note financing arrangement with Streeterville initially provided up to US$40,000,000 of gross borrowings, with US$19,000,000 of undrawn capacity remaining, subject to limits on total indebtedness, a minimum market Capitalization of US$100 million and a minimum Book Value of US$4 million at the time of a draw.

On June 11, 2026, the company entered an Equity Distribution Agreement with Maxim Group LLC for an at-the-market program of up to US$14,967,247. The company stated that its recurring operating losses and negative operating cash flows raise substantial doubt about its ability to continue as a going concern, and listed its plans as using existing cash, liquidating short-term investments, accessing capital under its shelf registration statement, and potentially drawing additional amounts under the Streeterville agreement.

Quarter in Review: Revenue Mix, Note Conversions and Funding Plans

ARAI's second quarter combined lower revenue and higher operating expenses with a US$9,696,797 loss on conversion of convertible notes, which accounted for most of total other expenses. The company said other expenses reflect activity under its convertible notes facility.