Company: ARAI
Filing Date: 2025-05-13
Form Type: S-1/A
Source: 0001641172-25-009841
Chunk: 79

Company: Arrive AI Inc.
Filing Date: 2025-05-13
Form: S-1/A
Chunk 79
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 accessible and affordable for customers. The subscription model eliminates the need for significant capital expenditures by offering a service-based approach where customers pay recurring fees for access to ALM infrastructure, ongoing support, and software updates. This model allows Arrive AI to scale efficiently while expanding and maintaining an increasingly large ALM mailbox network. Beginning in early 2025, we plan to launch MaaS services with pilot customers, transitioning into full production over time. Based on our internal projections and assuming sufficient deployment and utilization rates (a minimum of 200 deployed and actively utilized at three or more deliveries per day), we estimate that in 18 months of operational data collection, by 2026 we will likely have obtained the critical deployments mass and utilization rates needed to improve our initial AI and ML models. These enhanced models are expected to deliver improved customer experiences by optimizing delivery routes, predicting maintenance needs, and generating actionable insights for operational improvements. However, these outcomes depend on meeting deployment scale and utilization targets, and there is no guarantee that such adoption or data accumulation will occur as projected.

On January 24, 2023, we entered into a Design Engineering Services Agreement with HUSH Aerospace, LLC (“HUSH”), engaging HUSH to modify and integrate HUSH 1400X8 drones with our smart receptacles. HUSH agreed to provide two custom drones, integrating our branding, API connectivity, and an ultra-precision landing system. We agreed to pay HUSH an aggregate of $150,000 in exchange for the products and services the latter agreed to provide, payable in three equal installments with the first $50,000 paid for Hush’s work to commence, the second payable when the first drone is delivered and the third payable when the second drone is delivered. This agreement can be either terminated for convenience by either party with 30 days’ written notice, or for cause for the non-defaulting party when the defaulting party fails to timely correct non-performance upon notice. We agreed to pay HUSH for the services the latter provided up through the termination date. A copy of the Design Engineering Services Agreement is filed as Exhibit 10.3.

On October 20, 2021, we entered into a Memorandum of Understanding with Helium Systems Inc. (“Helium”), outlining a commercial partnership to integrate Helium’s LoRaWAN network into our smart receptacles for improved connectivity and monitoring. We agreed to deploy Helium network coverage and sensors in our receptacles, beginning with a pilot deployment in Indianapolis, IN. The agreement provides for ongoing technical collaboration