Company: ARAI
Filing Date: 2025-05-13
Form Type: S-1/A
Source: 0001641172-25-009841
Chunk: 78

Company: Arrive AI Inc.
Filing Date: 2025-05-13
Form: S-1/A
Chunk 78
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 royalty-free licenses may be granted to this company or its facilities for internal use. The SOW is subject to the terms of the parties’ agreement and Arrive’s General Terms and Conditions. An active Statement of Work (SOW) governs a temperature-controlled delivery pilot, testing two AP3 units for medical logistics. The units have been installed and integrated into the customer’s operational logistics system for messaging and status control, with production deliveries scheduled to begin no later than Q2 2025, contingent on the customer’s operational readiness. Our AP3 units are prepared to meet the customer’s requirements for secure, temperature-controlled receiving and storage of specialty pharmaceutical deliveries multiple times per day. The customer has agreed to an installation fee and a monthly recurring service fee tied to delivery volumes, with pricing terms remaining confidential at this stage. These initial pricing terms are a preliminary test of structure and direction for Arrive AI, not reflective of our final pricing model, and the customer’s success in ordering additional units will help validate pricing for future sales in similar markets. Management is optimistic that this pilot could lead to a successful and profitable customer relationship, though there is no assurance of such an outcome.

All SOWs are subject to NDAs, limiting disclosure of specific terms such as pricing and exact timelines. For AP3 installations and planned MaaS services in 2025, we are deploying units under pilot SOWs with no revenue-generating agreements yet in place; material terms for future MaaS agreements (e.g., subscription scope, service levels) will depend on pilot outcomes and are not yet defined. The Company does not have any MaaS service agreements with its customers.

Our first post-pilot MaaS production support is scheduled for deployment in early 2025, followed by full MaaS services in 2025. These services aim to transition pilot customers into full-time operational production. However, there is no assurance that these customers will choose to move beyond pilot testing. Additionally, while we plan to introduce operational platform fees and advanced AI/ML capabilities through AP4 and AP5 development and pilot programs, we have not yet engaged participants for these future pilot programs and have no guarantee of participation or success.

While there has been significant and encouraging interest in our 2025 prospect pipeline, including inquiries from assisted living communities and hospital chains, we do not yet know if any of these organizations will enter into agreements for our services.

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Arrive AI’s MaaS subscription model is designed to accelerate market adoption by reducing upfront costs and operational complexity, making implementation more