Company: ARAI
Filing Date: 2025-06-17
Form Type: S-1
Source: 0001641172-25-015428
Chunk: 36

Company: Arrive AI Inc.
Filing Date: 2025-06-17
Form: S-1
Chunk 36
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 heavily rely on the patents
Mr. O’Toole licensed us to use under the Exclusive Patent License Agreement, as amended in December 2024 and March 2025. In the
event that we are sixty (60) days late in any payment after it becomes due, or materially default in performing any of the other terms
under the Exclusive Patent License Agreement otherwise, Mr. O’Toole has the right to give us a notice of such default and to ultimately
transition to a non-exclusive license agreement if we fail to cure such default within sixty (60) days after such notice to Mr. O’Toole’s
satisfaction. In the event that Mr. O’Toole terminates the Exclusive Patent License Agreement, our business would be adversely
affected and we may essentially terminate some or all of our operations if that occurs, investors could potentially lose a portion of
or even the entire amount of their investment in our Company. In the second amendment executed on March 10, 2025, Mr. O’Toole also
agreed that the Company could engage in the use, sale or other commercialization of the technologies otherwise licensed to us and we
could sell related products with other technology agreements, provided however, the sale of remaining Mr. O’Toole’s-based
inventory sold by Arrive AI may continue for up to 90 days post-termination of the O’Toole’s technology-based products.

Once we start conducting our planned commercial operations, maintaining the integrity of our computer systems and protecting confidential information and personal identifying information may become increasingly costly

Any cybersecurity incidents
could disrupt business operations, result in the loss of critical and confidential information, and adversely impact our reputation and
results of operations. Global cybersecurity threats and incidents can range from uncoordinated individual attempts that gain unauthorized
access to information technology systems, both internally and externally, to sophisticated and targeted measures, known as advanced persistent
threats, directed at us and our affiliated agents. In the ordinary course of our business, we intend to collect and store sensitive data,
including our proprietary business information and intellectual property, and personally identifiable information (PII) of our customers.
Additionally, we may rely on third-party providers, including cloud storage solution providers. The secure processing, maintenance and
transmission of this information are critical to our operations and with respect to information collected and stored by our third-party
service providers, we may be reliant upon their security procedures. Our systems and the confidential information on them may also be
compromised