Company: ARAI
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001641172-25-005394
Chunk: 86

Company: Arrive AI Inc.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 86
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, The terms for phase-2 have yet to be                                          
 established. We anticipate that the phase-2 terms, if and when they are established, will                                          
 include the nature of the customer’s pilot operations, specify the work to be performed                                            
 by both parties (SOW), and outline where our services will be used, which we anticipate to                                         
 be a large Assisted Living Community. The terms will also detail the services Arrive AI must                                       
 provide and they establish initial pricing. All terms are subject to change as both parties                                        
 gain insight into the actual economics, benefits, and sustainability of this initial pilot                                         
 engagement. The customer may cancel the engagement and terms at any time.                                                          |
| ○ | Development                                                                                                                        
 of AP5, our comprehensive “universal” solution supporting all drone and robotic delivery operations, with development starting     
 no sooner than 2025. At this time we have not engaged any customers or third-parties to participate in, or utilize, these advanced 
 capabilities that have yet to be introduced.                                                                                       |

Our path to profitability relies on achieving product-market fit, for the growing number of ALM automation operators and the businesses seeking to use ALM automation for delivery savings and improved customer experience. We will be able to meet their needs after the successful development and deployment of AP3, AP4, and AP5 (our 3 rd, 4 th, and 5 thgeneration of ALM Access Points), which will provide universal support for all autonomous delivery systems. Once AP5 is achieved, we can pursue broader market adoption beyond pilot programs to generate scalable and sustainable revenue growth. While we believe in our development plans, and are optimistic that we can continue to achieve them, there is no guarantee that we will achieve product market fit or be successful in our commercialization, development, or planning.

On December 5, 2023, the Company acquired certain assets of AirBox Technologies (“AirBox”), in an all-stock transaction. In addition to certain tangible assets, the acquisition includes AirBox’s patent portfolio, which Arrive believes will broaden the capabilities of its high-tech mailbox system designed for autonomous and conventional package delivery. In addition to acquiring the above mentioned assets, AirBox’s CEO Brandon Pargoe has joined the Arrive team in the role of Vice President of Product Operations, as an independent contractor. In consideration for the asset purchase, the Company issued 94,573 shares at a price of $11.08 per share, which was determined based on the average price