Company: ARAI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023999
Chunk: 18

Company: Arrive AI Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 3
Chunk 18
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 counsel to represent
the company in this matter. The Company firmly believes there is no unpaid salary since there was no written or oral contract of employment.
The potential stock issue was never completed. Any partial vesting required a small purchase which never happened in Ohrn’s case,
therefore Ohrn held no stock upon termination. Even though plaintiff’s allegations amount to approximately $29 million in total
damages, plaintiff’s allegations have no merit, 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, in the opinion of the company’s
management and litigation counsel, such allegations may not proceed given the facts presented before the court, such as the breach of
the plaintiff’s obligations under the agreement and the termination of the agreement by the Company for cause.

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.

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Item
1A. Risk Factors

As
a smaller reporting company under Rule 12b-2 of the Exchange Act, the Company is not required to provide risk factors in this report.
For our current risk factors relating to our operations see the section entitled “Risk Factors” contained in our Registration
Statement on Form S-1 filed with the SEC on December 23, 2024, and amended Form S-1/A filed with the SEC on May 13, 2025.

Additional
risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our
business, financial condition or future results.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item
3. Defaults Upon Senior Securities

None.

Item
4. Mine Safety Disclosures

Not
applicable.

- 31 -

Item
5. Other Information

On August 11, 2025, the Company entered into a Pre-Paid Purchase No. 2 with Streeterville (the “Pre-Paid Purchase
No. 2”) pursuant to the Streeterville Purchase Agreement dated March 21, 2025. Under the Pre-Paid Purchase No. 2, the Investor paid
$4,000,000 to the Company, representing the purchase price for an unsecured promissory note with an original principal balance of $4,320