Company: ARAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023457
Chunk: 105

Company: Arrive AI Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 105
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 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 company in this matter. Although plaintiff’s allegations amount to approximately $29 million in total damages, it is not possible
at this time to ascertain an exact figure upon the outcome of this litigation through a court’s final decision, or if any damages
may be granted at all.

An
initial Cease and Desist letter on Arrive AI’s trademark from Arrive Logistics was received July 19, 2023. An open, positive discussion
is ongoing between counsel.

On
September 9, 2025, the Company was named as a defendant in Case No. 3:2025cv00721, pending in U.S. District Court for the Eastern District
of Virginia. Plaintiffs John Doan and Jami Town claim the Company is in breach of contract for loans made to AirBox Technologies (“AirBox”).
The loans were for $25,000 extended to AirBox before the Company purchased its assets in 2023. Damage claims and fees have increased
that amount to $45,082. The Company explicitly acquired only the assets of AirBox and therefore does not believe it is liable for any
of its previous liabilities. The Company has filed for removal from the claim. The plaintiffs have filed to have the case remanded back
to Virginia state court, where it was originally filed on August 13, 2025. Since this matter is still in its initial stages, the Company
is unable to