Company: ARAI
Filing Date: 2025-05-14
Form Type: DRS
Source: 0001641172-25-010170
Chunk: 88

Company: Arrive AI Inc.
Filing Date: 2025-05-14
Form: DRS
Chunk 88
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 alleged
failure to comply with applicable U.S. or foreign data protection laws, regulations, or other data protection standards may expose us
to litigation (including, in some instances, class action litigation), fines, sanctions, or other penalties, which could harm our reputation
and adversely affect our business, results of operations, and financial condition. This regulatory environment is increasingly challenging,
based on discretionary factors, and difficult to predict. Consequently, compliance with all applicable regulations in the various jurisdictions
in which we do business may present material obligations and risks to our business, including significantly expanded compliance burdens,
costs, and enforcement risks; require us to make extensive system or operational changes; or adversely affect the cost or attractiveness
of the services we offer. All of these evolving compliance and operational requirements, as well as the uncertain interpretation and
enforcement of laws, impose significant costs and regulatory risks that are likely to increase over time. Developing privacy legislation
within the U.S. may also create limitations or added requirements on the use and collection of personal data that our ML/AI models will
be built for.

The adoption of drones and autonomous robots for delivery has been gaining momentum in recent years due to the potential for increased efficiency, speed, and cost savings. However, the pace of adoption has been hindered by a variety of legal and regulatory barriers, including the Federal Aviation Administration’s (“FAA”) Beyond Visual Line of Sight (“BVLOS”) requirements. These regulations require operators to demonstrate that their drones can fly beyond the visual line of sight of the pilot or observer and still maintain safe operation. Meeting these requirements has been a significant challenge for many companies seeking to use drones for delivery and has slowed down the pace of adoption. Despite these challenges, many companies are investing heavily in developing and testing delivery drones and robots that can meet the FAA’s BVLOS requirements. As such, Arrive can expect continued progress in the adoption of drones and autonomous robots for delivery, albeit with careful consideration of legal and ethical implications, including compliance with BVLOS requirements.

Also, in our early market focus involving placing our products and providing services to medical facilities, we must also comply with the HIPAA if we handle PHI in the course of our commercial business operations. Please see “ Risk Factors—Risks Related to our Business and Future Commercial Operations – Regulations and Compliance—We will be subject to rapidly changing and increasingly stringent laws, regulations, industry standards, and other obligations relating to privacy, data protection, and data security. The restrictions and costs imposed by these requirements, or our actual