Company: ARAI
Filing Date: 2025-06-05
Form Type: 10-Q
Source: 0001641172-25-013826
Chunk: 35

Company: Arrive AI Inc.
Filing Date: 2025-06-05
Form: 10-Q
Item: Part I, Item 2
Chunk 35
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 generated by machine learning and artificial intelligence (“ML” and “AI”).
Machine learning facilitates our systems’ ability to learn and improve from experience using data patterns, while artificial intelligence
encompasses broader capabilities and models to simulate human intelligence and decision-making. We plan to use both technologies distinctly:

a.
Machine learning: Primarily deployed in our fourth and fifth generation Access Points (“AP4” and “AP5” units)
for local IoT (Internet of Things) data processing, edge computing (inferencing) for environment and transactional models, and interactions
models for drones and robots.

b.
Artificial intelligence: Used more broadly to analyze and derive insights from our network’s transactional and environmental data
through complex AI models, but we will also leverage foundational AI models like ChatGPT or LAMA for device-based human interactions.

3.
Operational platform fees. Our network of Access Points, the supporting software and AI plus ML, collectively create a platform that
is intended to provide valuable services and insights to all stakeholders in the ALM ecosystem. For example, our automated delivery marketplace
(“ADM”) will use a Google-AdSense-like market to help prioritize and optimize high-demand access schedules and space availability
for our access point network. This platform will provide a broad array of critical functions for the ALM ecosystem including arrival/departure
scheduling, space optimization, smart delivery notifications, micro weather conditions, local restrictions, transactional status updates,
and automation issues/obstacles. These advanced capabilities will be introduced in our AP5 development and pilot program currently in
development.

We
differentiate ourselves through a comprehensive, integrated solution:

● Universal
Compatibility: Our multi-generational Arrive Points (AP3, AP4, AP5) are being developed for universal support of all drone and
robotic delivery systems, overcoming a major hurdle for widespread ALM adoption.

● End-to-End
Solution: We combine advanced hardware with a powerful software platform and AI/ML capabilities, offering a complete ecosystem for
automated exchange.

● Early
Market Penetration: We have already secured pilot programs with significant customers, including a specialty pharmaceutical delivery
company, demonstrating early validation and learning opportunities for sustainable economics.

 - 23 - 

Recent
Developments

Effectiveness
of S-1 Registration Statement

On
May 13, 2025, the Company’s S-1 Registration Statement was declared effective, registering 29,978,212 shares of our common stock
representing one hundred