Company: ARAI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023999
Chunk: 19

Company: Arrive AI Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 3
Chunk 19
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,000,
which included a $320,000 original issue discount. The instrument bears interest at 8% per annum, compounded daily, and permits the Investor,
at its discretion, to apply amounts outstanding toward the purchase of shares of common shares of the Company (“Purchase Shares”)
at the lesser of (i) the initial listing reference price on the Company’s common stock on the Nasdaq Global Market, or (ii) 90%
of the lowest VWAP over the ten trading days prior to a purchase notice (but not below a $0.25 floor). The issuance of Purchase Shares
is subject to a 9.99% beneficial ownership limitation and must be free-trading under an effective registration statement or exemption.
The Company may prepay amounts at 115% of the principal being repaid with five trading days’ notice, subject to restrictions, and
is obligated to make monthly $550,000 cash repayments (plus accrued interest) upon certain “trigger” events, including sustained
price declines below the floor price of $0.25 per share or the share issuance nearing the threshold above which shareholders’ approval
is required under the exchange rules. Streeterville may accelerate the Company’s obligation to pay, with default interest at 15%
and all outstanding balance becoming immediately due and payable in cash, upon the occurrence of certain events of default include nonpayment,
insolvency, covenant breaches, and certain corporate transactions. The Company closed this Pre-Paid Purchase No. 2 on August 11, 2025, and
received $4,000,000 in proceeds. The foregoing description of the Pre-Paid Purchase No. 2 is not complete
and is qualified in its entirety by reference to the text of such document, which is filed as an exhibit to this quarterly report on Form
10-Q.

Maxim Group LLC (“Maxim”) acted as placement
agent for the Pre-Paid Purchase No. 2 and will receive a cash fee equal to 6.0% of the gross proceeds received by us in connection with
this transaction. Maxim will also receive a cash fee equal to 6.0% of the gross proceeds from any future pre-paid purchases made pursuant
to the Streeterville Purchase Agreement.

Item
6. Exhibits

The
following exhibits are filed as part of this Report.

EXHIBIT
INDEX

    Exhibit
    No.
     
    Description
  
    4.1
     
    2023 Equity Incentive Plan (incorporated