Company: ARAI
Filing Date: 2025-07-15
Form Type: S-1/A
Source: 0001641172-25-019572
Chunk: 163

Company: Arrive AI Inc.
Filing Date: 2025-07-15
Form: S-1/A
Chunk 163
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 requisite holding period is satisfied, subject to certain limitations. U.S. holders should
consult their own tax advisors regarding the holding period and other requirements that must be satisfied in order to qualify for the
reduced tax rate on dividends or the dividends-received deduction.

Sale, Exchange or Other Taxable Disposition of Common Stock

A U.S. holder will generally
recognize capital gain or loss on the sale, exchange or other taxable disposition of our common stock. The amount of gain or loss will
equal the difference between the amount realized on the sale and such U.S. holder’s adjusted tax basis in such common stock. The
amount realized will include the amount of any cash and the fair market value of any other property received in exchange for such common
stock. A U.S. holder’s adjusted tax basis in its common stock will generally equal the U.S. holder’s acquisition cost or
purchase price, less any prior distributions treated as a return of capital. Gain or loss will be long-term capital gain or loss if the
U.S. holder has held the common stock for more than one year. Long-term capital gains of non-corporate U.S. holders are generally taxed
at preferential rates. The deductibility of capital losses is subject to certain limitations.

Information Reporting and Backup Withholding

In general, information reporting
requirements may apply to dividends paid to a U.S. holder and to the proceeds of the sale or other disposition of our common stock, unless
the U.S. holder is an exempt recipient. Backup withholding may apply to such payments if the U.S. holder fails to provide a taxpayer
identification number, a certification of exempt status or has been notified by the IRS that it is subject to backup withholding (and
such notification has not been withdrawn).

Any amounts withheld under
the backup withholding rules will be allowed as a refund or a credit against a U.S. holder’s U.S. federal income tax liability
provided the required information is timely furnished to the IRS.

Unearned Income Medicare Tax

A 3.8% Medicare contribution
tax will generally apply to all or some portion of the net investment income of a U.S. holder that is an individual with adjusted gross
income that exceeds a threshold amount ($200,000, or $250,000 if married filing jointly).

Consequences to Non-U.S. Holders

The following is a summary
of the U.S. federal income tax consequences that will apply to a non-U.S. holder of our securities. For purposes of