Company: ARAI
Filing Date: 2025-05-14
Form Type: DRS
Source: 0001641172-25-010170
Chunk: 57

Company: Arrive AI Inc.
Filing Date: 2025-05-14
Form: DRS
Chunk 57
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 even more pronounced in the trading market for our common stock shortly following the listing of our common stock on Nasdaq as a result of the supply and demand forces described above. In the past, stockholders have instituted securities class action litigation following periods of market volatility. If we were to become involved in securities litigation, it could subject us to substantial costs, divert resources and the attention of management from our business and harm our business, results of operations and financial condition.

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

As a public company, we are 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.

There can be no assurance that the Company will be able to comply with the continued listing standards of Nasdaq.

Following our direct listing, if the Company fails to satisfy the continued listing requirements of Nasdaq, such as the corporate governance requirements or the minimum share price requirement, Nasdaq may take steps to delist the Company’s securities. Such a delisting would likely have a negative effect on the price of the securities and would impair stockholders’ ability to sell or purchase the securities when they wish to do so. In the event of a del