Company: ARAI
Filing Date: 2025-06-17
Form Type: S-1
Source: 0001641172-25-015428
Chunk: 37

Company: Arrive AI Inc.
Filing Date: 2025-06-17
Form: S-1
Chunk 37
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 by employee misconduct or employee error. We and third-party service providers may experience these types of internal and
external threats and incidents, which can result in the misappropriation and unavailability of critical data and confidential or proprietary
information (our own and that of third parties, including personally identifiable information) and the disruption of business operations.
Depending on their nature and scope, these incidents could potentially also result in the destruction or corruption of such data and
information. The potential consequences of a material cybersecurity incident include reputational damage, litigation with third parties,
diminution in the value of the services we provide to our customers, and increased cybersecurity protection and remediation costs, which
in turn could adversely affect our competitiveness and results of operations. Developments in the laws and regulations governing the
handling and transmission of personal identifying information in the United States may require us to devote more resources
to protecting such information, which could in turn adversely affect our results of operations and financial condition.

Once we start conducting our planned commercial operations, losses or unauthorized access to or releases of confidential information, including personal information, could subject the Company to significant reputational, financial, legal and operational consequences.

The Company’s
business intends to use and store confidential information, including personal information, with respect to the Company’s customers
and employees. The Company intends to devote significant resources to network and data security, including through the use of encryption
and other security measures intended to protect its systems and data. But these measures cannot provide absolute security, and losses
or unauthorized access to or releases of confidential information occur and could materially adversely affect the Company’s business,
reputation, results of operations and financial condition. The Company’s business also intends to share confidential information
with suppliers and other third parties. The Company may rely on global suppliers that are also exposed to ransomware and other malicious
attacks that can disrupt business operations. Although the Company intends to take steps to secure confidential information that is provided
to or accessible by third parties working on the Company’s behalf, such measures may not always be effective and losses or unauthorized
access to or releases of confidential information occur. Such incidents and other malicious attacks could materially adversely affect
the Company’s business, reputation, results of operations and financial condition.

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Once we start conducting commercial operations, any material disruption in our information systems could adversely affect our business.

We may rely on information technology networks
and systems to operate and manage our business. Our information technology networks and systems will process, transmit and store personal
and financial information