Company: ARAI
Filing Date: 2025-03-24
Form Type: S-1/A
Source: 0001641172-25-000350
Chunk: 63

Company: Arrive AI Inc.
Filing Date: 2025-03-24
Form: S-1/A
Chunk 63
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 | a decreased ability to                                                                                                 
 issue additional securities or obtain additional financing in the future.                                              |

The National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale of certain securities, which are referred to as “covered securities.” Because we expect that our common stock will be listed on Nasdaq Global Market, our common stock will qualify as covered securities under the statute. Although the states are preempted from regulating the sale of our securities, the federal statute does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding of fraudulent activity, then the states can regulate or bar the sale of covered securities in a particular case. If we cannot be listed on Nasdaq Global Market or any other national securities exchange, our securities would not qualify as covered securities under the statute and we would be subject to regulation in each state in which we offer our securities.

If we cannot meet the continued listing requirements of Nasdaq, Nasdaq may delist our securities.

As a public company, we will be subject to the
reporting requirements and the rules and regulations of the applicable listing standards of Nasdaq. If we fail to maintain compliance
with the continued listing standards of Nasdaq, our securities may be delisted, which could negatively affect the market price and liquidity
of our securities. In such a case, we may seek to regain compliance by implementing a number of available options. If in the future our
securities are delisted from Nasdaq, we could face significant material adverse consequences, including: limited availability of market
quotations for our securities; reduced liquidity for our shares; a determination that our shares are “penny stock,” which
will require brokers trading in our shares to adhere to more stringent rules and possibly result in a reduced level of trading activity
in the secondary trading market for our shares; a limited amount of news and analyst coverage; and decreased ability to issue additional
securities or obtain additional financing in the future. In addition, as long as our shares are listed on Nasdaq, U.S. federal law prevents
or preempts the states from regulating their sale, although the law does allow the states to investigate companies if there is a suspicion
of fraud and, if there is a finding of fraudulent activity, then the states can regulate or bar their sale. If we were no longer listed
on Nasdaq, we would be subject to regulations in each state in which we offer our shares.