Company: ARAI
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0001641172-25-013826
Chunk: 46

Company: Arrive AI Inc.
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 3
Chunk 46
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PART
II — OTHER INFORMATION

Item
1. Legal Proceedings

From
time to time, Arrive AI Inc. may be subject to various claims, lawsuits and other legal and administrative proceedings arising in the
ordinary course of business. Defending such proceedings is costly and can impose a significant burden on management and employees. The
results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an
adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. Other than as set
forth below, Arrive AI is not presently a party to any litigation the outcome of which, if determined adversely to us, would in our estimation,
have a Material Adverse Effect on our business, operating results, cash flows 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. 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. 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 demand includes unpaid salary and stock awards. Arrive has
engaged Taft Stettinius & Hollister LLP as its external counsel to represent the