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

Company: Arrive AI Inc.
Filing Date: 2025-05-14
Form: DRS
Chunk 14
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, 2023.

Although we have not yet started conducting operations, during the developing process of our products, we had a negative operating cash flow of $2.3 million in the fiscal year ended December 31, 2024, and $2.8 million for the year ended December 31, 2023. Our management team believes our company will have sufficient funds to meet operational needs as of the date of this prospectus to start conducting commercial operations, the company continues to successfully raise new capital through equity sales to accredited investors and an active crowdfunding campaign. In 2023, the Company raised $1,409,380 from crowdfunding (before offering costs) and $429,755 from Reg D sales. In 2024, the Company raised $2,097,297 from crowdfunding (before offering costs) and $825,000 from Reg D sales. As of December 31, 2024, the Company had $129,318 cash on hand to support an average cash burn rate of approximately $200,000 per month. However, to the extent that we have negative operating cash flow in future periods and upon starting commercial operations, we may need to allocate a portion of our cash reserves to fund such negative cash flow. Additionally, we may be required to raise additional funds through the issuance of equity or debt securities. There can be no assurance that we will be able to generate positive cash flow from our operations, that additional capital or other types of financing will be available when needed or that these financings will be on terms favorable to us.

We have not based our financial projections or valuation on actual commercial operations.

Our pre-operational stage precludes us from providing financial information based on actual commercial operations. Current financial projections are based on assumptions concerning future commercial operations that we believe are reasonable but may prove incorrect. Because actual conditions will differ from those assumptions, and the differences may be material, we cannot assure you that these projections will prove accurate and caution you against excessive reliance on them in deciding whether to invest in our equity securities. Any increase in our costs or decrease in our revenues after we commence operations could affect your ability to receive a return on your investment.

We are highly dependent on our management team, and the loss of our senior executive officers or other key employees could harm our ability to implement our strategies, impair our relationships with clients and adversely affect our business, results of operations and growth prospects.

Our success depends, to a large degree, on the skills of our management team and our ability to retain, recruit and motivate key