Company: ARAI
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001641172-25-005394
Chunk: 9

Company: Arrive AI Inc.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 9
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 materially breach the Exclusive Patent License Agreement and fail to cure such breach timely and to Mr. O’Toole’s satisfaction, such license agreement may transition to a non-exclusive license agreement which will allow Mr. O’Toole to seek other and/or additional licensees for exploitation of similar technology, in such an event, and if the company is not able to find other sources for the use of similar technology to support its future business operations, in such a case, our future business operations may be adversely affected or even essentially terminated, in such event investors may potentially lose a portion or even the entire amount of their investment. Implications of being a Controlled Company Upon completion of the Direct Listing, our founder and Chief Executive Officer, Daniel S. O’Toole, will beneficially own approximately 78% of the voting power of our outstanding voting securities and we will be a “controlled company” within the meaning of the listing rules of The Nasdaq Stock Market LLC. As long as our principal shareholder owns at least 50% of the voting power of our Company, we will be a “controlled company” as defined under Nasdaq Listing Rules. As a controlled company, we are permitted to rely on certain exemptions from Nasdaq’s corporate governance rules, including:

| ● | an                                                                                                                                   
 exemption from the rule that a majority of our board of directors must be independent directors;                                     |
| ● | an                                                                                                                                   
 exemption from the rule that the compensation of our chief executive officer must be determined or recommended solely by independent 
 directors; and                                                                                                                       |
| ● | an                                                                                                                                   
 exemption from the rule that our director nominees must be selected or recommended solely by independent directors.                  |

Although we currently do not intend to rely on the “controlled company” exemption under the Nasdaq listing rules, we could elect to rely on this exemption in the future. As a result, you may not in the future have the same protection afforded to shareholders of companies that are subject to these corporate governance requirements. Implications of Being an Emerging Growth Company and a Smaller Reporting Company As a company with less than $1.235 billion of revenue during our last fiscal year, we qualify as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. We may remain an emerging growth company for up to five years from the date of the closing of our public offering, or until such earlier time as we have more than $1.235 billion in annual revenue, the market value