Company: ARAI
Filing Date: 2025-07-15
Form Type: S-1/A
Source: 0001641172-25-019572
Chunk: 57

Company: Arrive AI Inc.
Filing Date: 2025-07-15
Form: S-1/A
Chunk 57
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 harm our reputation and result in financial penalty and legal liabilities, which would reduce our revenue and have a material adverse effect on our business, financial condition and results of operations.

Our business operations will be reliant on our
IT Systems and any interruption may impair our ability to provide our services to our customers. In addition to potential disruptions
to our IT Systems from cyber-attacks and cybersecurity incidents, we may also face potential disruptions resulting from equipment failures,
shutdowns, power outages, human errors and other events, including disruptions experienced by service providers and other third parties.
We may also experience disruptions during the implementation, upgrade or subsequent operation of our IT Systems, including supporting
the legacy systems of acquired companies. Moreover, as we transition to new systems, our ability to timely mitigate, manage and patch
vulnerabilities related to legacy systems and related legacy third-party technologies could impact security as well as our day-to-day
operations. As a result, upgrades to our IT Systems may be expensive undertakings, may not be successful and/or could be abandoned. Additionally,
if such upgraded IT Systems fail to operate or are unable to support our growth, our business operations could be severely disrupted,
and we could be required to make significant additional expenditures to remedy any such failure. We could also encounter threats to our
physical security, including our facilities and personnel, and threats from workplace violence, civil unrest, terrorism, or similar acts,
any of which could disrupt our IT Systems and business. Our business, and the business of our suppliers, subcontractors, service providers
and customers, could be disrupted by public health crises, such as pandemics and epidemics, and governmental, business and individual
actions taken in response, damaging weather or other acts of nature, or other events outside our control. The impact of any such disruptions
is difficult to predict, but could lead to operational delays and detrimental impacts on our operations, diversion of management’s
attention and resources or loss of business. Any of these developments could have a material and adverse effect on our business, financial
condition and results of operations.

We may face a shortage in talent or professionals with the appropriate experience and training in AI technology

AI companies face intense competition for skilled
data scientists, machine learning engineers, and AI researchers. A shortage of qualified talent could hinder our product development,
delay innovation, or raise our labor costs significantly. We may also be dependent on key AI researchers, as many AI companies, we are
highly dependent on the expertise of a few key individuals who are critical to