Company: ARAI
Filing Date: 2025-03-24
Form Type: S-1/A
Source: 0001641172-25-000350
Chunk: 33

Company: Arrive AI Inc.
Filing Date: 2025-03-24
Form: S-1/A
Chunk 33
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. The amendment also provides that Mr. O’Toole may terminate the agreement if the Company materially defaults on its obligations under the agreement, and such default is not timely cured by the Company. In the event of such termination, we would not be able to use licensed intellectual property and provide our planned services, which would adversely affect our future revenue and operations.

If we materially breach the Exclusive Patent License Agreement and fail to cure such breach timely and to Mr. O’Toole’s satisfaction, such license agreement will transition to a non-exclusive license agreement, and our business operation may be adversely affected or even essentially terminated.

As discussed above, we heavily rely on the
patents Mr. O’Toole licensed us to use under the Exclusive Patent License Agreement, as amended in December 2024 and March
2025. In the event that we are sixty (60) days late in any payment after it becomes due, or materially default in
performing any of the other terms under the Exclusive Patent License Agreement otherwise, Mr. O’Toole has the right to give us
a notice of such default and to ultimately transition to a non-exclusive license agreement if we fail to cure such default
within sixty (60) days after such notice to Mr. O’Toole’s satisfaction. In the event that Mr. O’Toole
terminates the Exclusive Patent License Agreement, our business would be adversely affected and we may essentially terminate some or
all of our operations if that occurs, investors could potentially lose a portion of or even the entire amount of their investment in
our Company. In the second amendment executed on March 10, 2025, Mr. O’Toole also agreed that the Company could
engage in the use, sale or other commercialization of the technologies otherwise licensed to us and we could sell related products
with other technology agreements, provided however, the sale of remaining Mr. O’Toole’s-based inventory sold by Arrive
AI may continue for up to 90 days post-termination of the O’Toole’s technology-based products.

Once we start conducting our planned commercial operations, maintainingthe integrity of our computer systems and protecting confidential information and personal identifying information may become increasingly costly

Any cybersecurity incidents could disrupt business operations, result in the loss of critical and confidential information, and adversely impact our reputation and results of operations.Global cybersecurity threats and incidents can range from uncoordinated individual attempts that gain unauthorized access to information technology systems, both internally and externally, to sophisticated and targeted measures, known