Company: ARAI
Filing Date: 2025-06-17
Form Type: S-1
Source: 0001641172-25-015428
Chunk: 23

Company: Arrive AI Inc.
Filing Date: 2025-06-17
Form: S-1
Chunk 23
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If we raise additional funds through collaborations, strategic alliances or marketing, distribution or licensing arrangements with third
parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates,
or grant licenses on terms that are not favorable to us.

Pursuant to the Streeterville Purchase Agreement
and the form of Pre-Paid Purchase, Streeterville has the discretion on whether to receive repayment of the Pre-Paid Purchases in cash
or Purchase Shares. If Streeterville elects to receive Purchase Shares in lieu of cash, we would normally issue a certain number of shares
of common stock calculated on the basis of the initial listing reference price of our common stock on Nasdaq. However, if certain
events were to occur and assuming Streeterville elected to receive Purchase Shares as repayment of the Pre-Paid Purchases anyway,
for example, if our market capitalization went below certain amount or if we fail to pay any principal, interest, fees, charges,
or any other amount when due and payable under any Pre-Paid Purchases, we may have to issue a significantly larger number of Purchase
Shares based on a market price-based formula whose floor is $0.25 per share, which is much lower than the price at the time of the
effectiveness of this registration statement. Such issuances could result in substantial dilution to the interests of other holders
of its shares of our common stock. Please see “Selling Stockholders” for more detailed discussion on the pricing mechanism
of the Purchase Shares issuable under the Pre-Paid Purchases.

This registration statement registers an aggregate
of up to 8,000,000 shares of common stock that have been or may be issued to Streeterville under the Streeterville Purchase Agreement
and the Pre-Paid Purchases, but this does not represent the full amount of shares of common stock that could be issued and sold
to Streeterville under the Streeterville Purchase Agreement. As a result of the above factors, it is possible that we may need to issue
and sell more than the number of shares that we initially expects to issue to Streeterville under Streeterville Purchase Agreement in
order to receive aggregate gross proceeds equal to Streeterville’s $40 million total aggregate purchase commitment under the Streeterville
Purchase Agreement, which could cause additional substantial dilution to holders of our common stock.

We may be exposed to the effects of changing energy prices, and interruptions in supplies of this commodity.

We will not own nor
operate the drones used by third parties