Company: ARAI
Filing Date: 2025-05-14
Form Type: DRS
Source: 0001641172-25-010170
Chunk: 7

Company: Arrive AI Inc.
Filing Date: 2025-05-14
Form: DRS
Chunk 7
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 O’Toole and amended in December 2024 and March 2025, whereby Mr. O’Toole granted Arrive rights to use, sell, manufacture and otherwise commercialize certain technologies relating to secured drone delivery ALM mailboxes in exchange for license fees. Such technologies helped jumpstart our business operations and will continue to play such a critical role in our growth that we became heavily reliant on the right to use them. Please see a more detailed description of the terms of such agreement under “Certain Relationships and Related Person Transactions—Exclusive Patent License Agreement” and the risks related to our reliance on such agreement under “Risk Factors—Risks Related to our Business and Future Commercial Operations – Regulations and Compliance—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” and “Risk Factors—Risks Related to our Business and Future Commercial Operations – Regulations and Compliance—If we materially breach the Exclusive Patent License Agreement and fail to cure such breach timely and to Mr. O’Toole’s satisfaction, such license agreement may transition to a non-exclusive license agreement which will allow Mr. O’Toole to seek other and/or additional licensees for exploitation of similar technology, in such an event, and if the company is not able to find other sources for the use of similar technology to support its future business operations, in such a case, our future business operations may be adversely affected or even essentially terminated, in such event investors may potentially lose a portion or even the entire amount of their investment. Implications of being a Controlled Company Our founder and Chief Executive Officer, Daniel S. O’Toole, beneficially owns approximately 78% of the voting power of our outstanding voting securities and we are and will continue to be a “controlled company” within the meaning of the listing rules of The Nasdaq Stock Market LLC. As long as our principal shareholder owns at least 50% of the voting power of our Company, we will be a “controlled company” as defined under Nasdaq Listing Rules. As a controlled company, we are permitted to rely on certain exemptions from Nasdaq’s corporate governance rules, including:

| ● | an                                                                                                                                   
 exemption from the rule that a majority of our board of directors must be independent directors;                                     |
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 exemption from the rule that the compensation of our chief executive officer must be determined or recommended solely by independent 
 directors; and                                                                                                                       |
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 exemption from the