Company: ARAI
Filing Date: 2025-01-27
Form Type: S-1/A
Source: 0001493152-25-003660
Chunk: 77

Company: Arrive AI Inc.
Filing Date: 2025-01-27
Form: S-1/A
Chunk 77
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 medical logistics operations. The agreement is confidential, and terms cannot be                 
 disclosed at this time. The terms do allow for the possibility of going beyond the initial       
 pilot to production deployments of our AP3 units and MaaS, but we have not reached that point    
 yet, and the terms of both the pilot and potential production remain confidential until the      
 customer chooses to promote the activity and terms.                                              |

All active partners and customers have executed non-disclosure agreements (NDAs), and we plan to offer non-NDA MaaS in 2025 to enable the public disclosure of customer names. While we are installing AP3 units for pilots and plan to provide MaaS services in 2025, we do not yet have agreements in place for such services under compensation terms, and there is no guarantee that pilot participants will subscribe to MaaS.

Our first post-pilot MaaS production support is scheduled for deployment in Q4 2024, followed by full MaaS services in Q1 2025. These services aim to transition pilot customers into full-time operational production. 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/ML capabilities through AP4 and AP5 development and pilot programs, we have not yet engaged participants for these future pilot programs and have no guarantee of participation or success.

While there has been significant and encouraging interest in our 2025 prospect pipeline, including inquiries from assisted living communities and hospital chains, we do not yet know if any of these organizations will enter into agreements for our services.

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Arrive AI’s MaaS subscription model is designed to accelerate market adoption by reducing upfront costs and operational complexity, making implementation more accessible and affordable for customers. The subscription model eliminates the need for significant capital expenditures by offering a service-based approach where customers pay recurring fees for access to ALM infrastructure, ongoing support, and software updates. This model allows Arrive AI to scale efficiently while expanding and maintaining an increasingly large ALM mailbox network. Beginning in early 2025, we plan to launch MaaS services with pilot customers, transitioning into full production over time. Based on our internal projections and assuming sufficient deployment and utilization rates (a minimum of 200 deployed and actively utilized at three or more deliveries per day), we estimate that in 18 months of operational data collection, by 2026 we will likely have obtained the critical deployments mass and utilization rates needed to improve our initial AI and ML models. These enhanced models are expected