Company: ARAI
Filing Date: 2025-07-15
Form Type: S-1/A
Source: 0001641172-25-019572
Chunk: 58

Company: Arrive AI Inc.
Filing Date: 2025-07-15
Form: S-1/A
Chunk 58
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 the company’s intellectual property and model development.
Losing these individuals could significantly impact the company’s competitive advantage.

Risks Related to our Management and Control Persons

We are a “controlled company” within the meaning of the Nasdaq Stock Market Rules because our insiders beneficially own more than 50% of the voting power of our outstanding voting securities.

Our founder and Chief Executive
Officer, Daniel S. O’Toole, together with certain management officers collectively beneficially own approximately 75% of
the voting power of our outstanding voting securities and we are therefore a “controlled company” within the meaning of the
listing rules of The Nasdaq Stock Market LLC. We may rely on certain exemptions from corporate governance rules, including an exemption
from the rule that a majority of our board of directors must be independent directors. Although we currently do not intend to rely on
the “controlled company” exemption under the Nasdaq listing rules, we could elect to rely on this exemption in the future.
In the event that we elect to rely on the “controlled company” exemption, a majority of the members of our board of directors
might not be independent directors, and our nominating and corporate governance and compensation committees might not consist entirely
of independent directors. Our status as a controlled company could cause our shares of common stock to be less attractive to certain
investors or otherwise harm our trading price. As a result, you would not have the same protection afforded to shareholders of companies
that are subject to these corporate governance requirements. Additionally, investors may be prevented from effecting matters involving
our Company, including:

| ● | the composition of our Board and, through it, any determination with                               
 respect to our business direction and policies, including the appointment and removal of officers; |
| ● | any determination with respect to mergers or other business combinations;                          |
| ● | our acquisition or disposition of assets; and                                                      |
| ● | our corporate financing activities.                                                                |

Furthermore, this concentration of voting power
could have the effect of delaying, deterring, or preventing a change of control or other business combination that might otherwise be
beneficial to our stockholders. This significant concentration of share ownership may also adversely affect the trading price of our
common stock because investors may perceive disadvantages in owning stock in a Company that is controlled by a small number of stockholders.
Although our Company does not intend to utilize the controlled company exemptions to the Nasdaq corporate governance listing
standards, if we are eligible to utilize the controlled company exemptions