Company: ARAI
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0001641172-25-013826
Chunk: 55

Company: Arrive AI Inc.
Filing Date: 2025-06-05
Form: 10-Q
Item: Part II, Item 1
Chunk 55
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 there was no written or oral contract of employment. The potential stock issue was never completed. Any
partial vesting required a small purchase which never happened in Ohrn’s case, therefore Ohrn held no stock upon termination. Even
though plaintiff’s allegations amount to approximately $29 million in total damages, plaintiff’s allegations have no merit,
it is not possible at this time to ascertain an exact figure upon the outcome of this litigation through a court’s final decision,
or if any damages may be granted at all, in the opinion of the company’s management and litigation counsel, such allegations may
not proceed given the facts presented before the court, such as the breach of the plaintiff’s obligations under the agreement and
the termination of the agreement by the Company for cause.

An
initial Cease and Desist letter on Arrive AI’s trademark from Arrive Logistics was received July 19, 2023. An open, positive discussion
is ongoing between counsel.

 - 27 - 

Item
1A. Risk Factors

As
a smaller reporting company under Rule 12b-2 of the Exchange Act, the Company is not required to provide risk factors in this report.
For our current risk factors relating to our operations see the section entitled “Risk Factors” contained in our Registration
Statement on Form S-1 filed with the SEC on December 23, 2024, and amended Form S-1/A filed with the SEC on May 13, 2025.

Additional
risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our
business, financial condition or future results.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds

On
May 13th, 2025, the Company issued the following unregistered securities:

●3,000,000
                                            shares of common stock to an investor per the terms of the share purchase
                                            agreement, including 2,937,500 pre-delivery shares for gross proceeds of $587.50.

●10,950
                                            shares of common stock to a shareholder for the exercise of outstanding warrants, for gross
                                            proceeds of $52,012.50.

●408
                                            shares of common stock at $13.00 per share to five investors from a crowdfunding campaign,
                                            which ended on April 21, 2025, for gross proceeds of $5,304 before offering costs.

Item
3. Defaults Upon Senior Securities

None.

Item