Company: ARAI
Filing Date: 2025-06-17
Form Type: S-1
Source: 0001641172-25-015428
Chunk: 50

Company: Arrive AI Inc.
Filing Date: 2025-06-17
Form: S-1
Chunk 50
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ays in reaching these targets may hinder AI/ML development and revenue growth.

Third-Party Reliance Risks: Dependence on third-party
and open-source models may limit control over key technologies and expose the company to licensing risks.

Product Development and Quality Control

Defects in our products or failures in quality control could impair our ability to sell our products and services or could result in product liability claims, litigation and other significant events involving substantial costs.

The detection of significant
defects in our products or failures in quality control procedures, including those of suppliers, carries several potential consequences.
These include delays in bringing products to market, decreased sales, and challenges in gaining market acceptance. Furthermore, such
issues may lead to the diversion of development resources and damage to our reputation, with potential regulatory restrictions. Rectifying
product defects can incur substantial costs, and identifying suitable remedies may prove difficult. Moreover, errors or defects could
result in financial damage to our customers, potentially leading to litigation. Product liability lawsuits, regardless of the outcome,
may entail significant time and expenses for defense.

Our technology may contain third-party open-source software components, third-party commercial software, and proprietary software that we develop in-house. Failure to comply with the terms of these underlying software licenses could restrict our ability to provide our offered products and services.

We plan to use a combination of software modules
licensed to us by third-party authors under “open source” licenses, third-party commercial software, and internally developed
code in our platform. Although open-source software provides flexibility and cost advantages, use and distribution of open-source software
may entail greater risks than use of third-party commercial software. Open-source licensors generally do not provide support, warranties,
indemnification, or other contractual protections regarding infringement claims or the quality of the code. In addition, the public availability
of such open-source code may make it easier for others to compromise our technology.

Some open-source licenses contain requirements
that we make available the source code for any modifications or derivative works we create using that open-source software, or that we
grant other licenses to our intellectual property. If we combine our proprietary code with open-source software in certain ways, we could,
under specific open-source licenses, be required to release the source code of our proprietary software to the public. Such disclosure
could allow competitors to develop similar offerings with less development effort or time, resulting in a potential loss of our competitive
advantages. Alternatively, to avoid the public release of the affected portions of our source code, we could