Company: ARAI
Filing Date: 2025-06-17
Form Type: S-1
Source: 0001641172-25-015428
Chunk: 111

Company: Arrive AI Inc.
Filing Date: 2025-06-17
Form: S-1
Chunk 111
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 or financial condition. The following is a summary of the Company’s ongoing legal proceedings:

Byfield Management, Inc. and Ohrn II, Richard
B v. Dronedek Corporation. This is an employment action, originally filed in the Hamilton County Court of the State of Indiana Hamilton
Superior Court/File: 5 29 D05-2303-PL-002478. Orhn, working as Byfield Management, Inc., was the original chief financial officer of
the Company under an oral agreement. The amount in dispute includes two years of salary and stock options. The Company terminated this
executive contract for cause and the matter is currently being handled by external counsel Taft Stettinius & Hollister LLP. The case
was moved to Marion Superior Court No. 2 of the State of Indiana on March 15, 2023 CAUSE NO. 49D02-2305-PL-020604. Plaintiffs alleged
breach of employment agreement; breach of stock purchase agreement; breach of fiduciary duties and non-payment of salary, bonuses, and
benefits. Arrive terminated Ohrn/Byfield’s employment because of several misrepresentations in connection with the financial stability
by Ohrn, including bankruptcy and mortgage foreclosure. The termination of Ohrn was completed after several attempts and opportunities
to have a discussion as to the concerns. Ohrn failed to respond. Further to his financial lack of stability, Ohrn also failed to pay
any amounts owed under the stock purchase agreement. Indiana is an at-will employment state. Affirmative defenses and counterclaims were
filed, discovery documents have been exchanged by the parties but no further motions are pending. No trial dates or case management plan
has been filed. In May, 2024, the court asked for a dismissal which prompted the plaintiff to request some third-party documents. No
other motions are pending. The settlement demands, include unpaid salary and stock awards. Arrive has engaged Taft Stettinius & Hollister
LLP as its external counsel to represent the company in this matter. The Company firmly believes there is no unpaid salary since 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