Company: ARAI
Filing Date: 2025-07-15
Form Type: S-1/A
Source: 0001641172-25-019572
Chunk: 32

Company: Arrive AI Inc.
Filing Date: 2025-07-15
Form: S-1/A
Chunk 32
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 (PHI) in the course of our commercial business operations. HIPAA imposes strict
requirements for the use, disclosure, and safeguarding of PHI, including specific administrative, physical, and technical safeguards
to protect the confidentiality, integrity, and availability of PHI. Failure to comply with HIPAA can result in severe penalties, including
substantial fines and even criminal charges. Therefore, we may need to take appropriate measures to ensure our HIPAA compliance and protect
the privacy and security of PHI in our possession. Any non-compliance with HIPAA could result in harm to our business once we start conducting
commercial operations and providing our services to our potential customers, including regulatory action, loss of customer trust, negative
publicity, and financial damage.

Finally, the services we plan to provide to our
potential customers involve the processing, storage, or transmission of their data, we may be required to comply with certain industry
standards and regulations, such as SOC 2 (Service Organization Controls 2). SOC 2 is a widely recognized auditing standard developed
by the American Institute of Certified Public Accountants (AICPA) that evaluates the effectiveness of a service provider’s controls
over the security, availability, processing integrity, confidentiality, and privacy of customers’ data. To maintain SOC 2 compliance,
we must undergo regular audits and assessments by independent auditors to demonstrate that our controls are designed and operating effectively
to achieve the desired outcomes. Any deficiencies identified during the audit could result in remediation requirements, reputational
damage, and potential impacts on our customers. Any non-compliance with SOC 2 could result in harm to our business, including regulatory
action, loss of customer trust, negative publicity, and financial damage.

Despite our best efforts, we may not be successful
in complying with the rapidly evolving privacy, data protection, and data security requirements discussed above. Any actual or perceived non-compliance with
such requirements could result in litigation and proceedings against us by governmental entities, passengers, or others, fines, civil
or criminal penalties, limited ability or inability to operate our business, offer services, or market our platform in certain jurisdictions,
negative publicity and harm to our brand and reputation. Such occurrences could have a material adverse effect on our business, financial
condition or results of operations once we start conducting business and providing our services to our potential customers.

Potential Risks Related to our Future Business and Commercial Operations - Intellectual Property

We may be forced to litigate to defend our intellectual property rights, or to defend against claims