Company: ARAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023457
Chunk: 67

Company: Arrive AI Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 67
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 lessors, and parties to other transactions with the Company, with respect to certain
matters.

The
Company has agreed, under certain conditions, to hold these third parties harmless against specified losses, such as those arising from
a breach of representations or covenants, other third-party claims that the Company’s products, when used for their intended purposes,
infringe the intellectual property rights of such other third parties, or other claims made against certain parties. It is not possible
to determine the maximum potential amount of liability under these indemnification obligations due to the Company’s limited history
of prior indemnification claims and the unique facts and circumstances that are likely to be involved in each particular claim.

  14.
  RELATED-PARTY TRANSACTIONS

On
May 26, 2020, the Company entered into a three year agreement with a stockholder of the Company for the use of a patent. Beginning June
1, 2020, the Company began paying the stockholder a monthly license fee of $10,000. Once revenue from sales, rentals, and leases begins,
the Company is required to pay $25.00 per unit sold. If the Company does not sell 400 units per month (or $10,000), the original fixed
$10,000 is paid. Accordingly, for the three and nine months ended September 30, 2025 and 2024, the Company recorded licensing fee costs
in the amount of $30,000 and $90,000 each period, respectively.

    - 22 -

ARRIVE
                                            AI INC. 

NOTES
                                            TO FINANCIAL STATEMENTS (Continued)

  14.
  RELATED-PARTY TRANSACTIONS
  (Continued)

On
March 10, 2025, the Company entered into the second amendment to the Exclusive Patent License Agreement of May 26, 2020. The Second Amendment
extends the license to perpetuity, covering the full term and life of the patents, and cures in the event of default. The Second Amendment
also removes prior restrictions on the Company’s use, sale, or commercialization of the technology after termination, permitting
the sale of remaining inventory for up to 90 days post-termination, provided all required reports and payments are made under the Agreement.

  15.
  STOCKHOLDERS’ EQUITY

Common
Stock

As
of April 30, 2020 (date of incorporation), the Company had 100,