Arrive AI Inc. Debt Disclosure
NOTE 11 - NOTE PAYABLE
Note payable consists of the following:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Vehicle note payable for $40,248 with monthly installment payments of $799, including interest at 6.99% per annum. The loan is collateralized by the respective vehicle and is due in February 2027. | $ | 10,558 | $ | 19,082 | ||||
| Less current portion | (9,140 | ) | (8,524 | ) | ||||
| LONG-TERM PORTION | $ | 1,418 | $ | 10,558 | ||||
ARRIVE AI INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2025 AND 2024
At December 31, 2025 aggregate future principal payments on the note payable are as follows:
| 2026 | $ | 9,140 | ||
| 2027 | 1,418 | |||
| TOTAL | $ | 10,558 |
Interest expense related to this note payable for the years ended December 31, 2025 and 2024, was $1,064 and $1,635, respectively.
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.