Company: ARAI
Filing Date: 2025-07-15
Form Type: S-1/A
Source: 0001641172-25-019572
Chunk: 81

Company: Arrive AI Inc.
Filing Date: 2025-07-15
Form: S-1/A
Chunk 81
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improving the secure return of undeliverable medications, and assessing customer satisfaction and operational efficiencies. The PoC also
seeks to identify future automation opportunities, such as integrating autonomous delivery robots (ADR) and drone delivery with Arrive’s
MaaS solution. Arrive will provide temporary installation of Arrive Bank units and cloud-based software solutions and API. Arrive will
own all intellectual property created during the PoC, though non-exclusive, royalty-free licenses may be granted to this company or its
facilities for internal use. The SOW is subject to the terms of the parties’ agreement and Arrive’s General Terms and Conditions.
An active Statement of Work (SOW) governs a temperature-controlled delivery pilot, testing two AP3 units for medical logistics. The units
have been installed and integrated into the customer’s operational logistics system for messaging and status control, with production
deliveries scheduled to begin no later than Q2 2025, contingent on the customer’s operational readiness. Our AP3 units are prepared
to meet the customer’s requirements for secure, temperature-controlled receiving and storage of specialty pharmaceutical deliveries
multiple times per day. The customer has agreed to an installation fee and a monthly recurring service fee tied to delivery volumes,
with pricing terms remaining confidential at this stage. These initial pricing terms are a preliminary test of structure and direction
for Arrive AI, not reflective of our final pricing model, and the customer’s success in ordering additional units will help validate
pricing for future sales in similar markets. Management is optimistic that this pilot could lead to a successful and profitable customer
relationship, though there is no assurance of such an outcome.

All SOWs are subject to NDAs, limiting disclosure
of specific terms such as pricing and exact timelines. For AP3 installations and planned MaaS services in 2025, we are deploying units
under pilot SOWs with no revenue-generating agreements yet in place; material terms for future MaaS agreements (e.g., subscription scope,
service levels) will depend on pilot outcomes and are not yet defined. The Company currently has two service agreements in place for
deployed units.

Our first production units were deployed in Q2
2025. These initial deployments enable our customers to implement automated delivery services in pilot environments with the aim to transition
into full-time operational production with additional units. However, there is no assurance that these customers will choose to move
beyond pilot testing. Additionally, while we plan to introduce operational platform fees and advanced AI