Company: ARAI
Filing Date: 2025-07-15
Form Type: S-1/A
Source: 0001641172-25-019572
Chunk: 34

Company: Arrive AI Inc.
Filing Date: 2025-07-15
Form: S-1/A
Chunk 34
---
attacks or technological malfunctions affecting us
or our service providers can result in, among other things, financial losses, the inability to process transactions, the unauthorized
release of confidential or proprietary information and reputational risk. As cybersecurity threats continue to evolve, we may be required
to use additional resources to continue to modify or enhance protective measures or to investigate security vulnerabilities, which could
have a material adverse effect on our business, financial condition or results of operations.

We may become reliant on our intellectual property; failure to protect our intellectual property could negatively affect our business, financial condition or results of operations.

Our success will depend in part on our ability
to use and develop new technologies that are accepted by the market in which we plan to operate. We may be vulnerable to competitors
who develop competing technology, whether independently or as a result of acquiring access to the proprietary products and trade secrets
of acquired businesses. In addition, effective future patent, copyright and trade secret protection may be unavailable or limited in
the U.S. Our patents are usually protected for a term of twenty years, but in the event we fail to adequately maintain them, for example,
a late payment of the maintenance fees due, we can face surcharges or even suspension of those patents. Failure to adequately maintain
and enhance protection over our proprietary techniques and processes, as well as over our unregistered intellectual property, including
policies, procedures and training manuals, could have a material adverse effect on our business, financial condition or results of operations,
if any such cost or additional expense related to finding a viable solution to protect our intellectual property is high and our expected
income is not sufficient to cover such potential cost or expense. Our patent license agreement in connection with the intellectual property
owned by our chief executive officer, Mr. O’Toole, was recently amended by the Company and Mr. O’Toole. The amendment contains
the extension of the term of the patent license agreement from seven years to perpetuity of the full life of the licensed intellectual
properties. The amendment also provides that Mr. O’Toole may terminate the agreement if the Company materially defaults on its
obligations under the agreement, and such default is not timely cured by the Company. In the event of such termination, we would not
be able to use licensed intellectual property and provide our planned services, which would adversely affect our future revenue and operations.

If we materially breach the Exclusive Patent License Agreement and fail to cure such breach timely and to Mr. O’Toole’s satisfaction,