Company: ARAI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023457
Chunk: 123

Company: Arrive AI Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 123
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 to approximately $29 million in total damages, it is not possible
at this time to ascertain an exact figure upon the outcome of this litigation through a court’s final decision, or if any damages
may be granted at all.

An
initial Cease and Desist letter on Arrive AI’s trademark from Arrive Logistics was received July 19, 2023. An open, positive discussion
is ongoing between counsel.

On
September 9, 2025, the Company was named as a defendant in Case No. 3:2025cv00721, pending in U.S. District Court for the Eastern District
of Virginia. Plaintiffs John Doan and Jami Town claim the Company is in breach of contract for loans made to AirBox Technologies (“AirBox”).
The loans were for $25,000 extended to AirBox before the Company purchased its assets in 2023. Damage claims and fees have increased
that amount to $45,082. The Company explicitly acquired only the assets of AirBox and therefore does not believe it is liable for any
of its previous liabilities. The Company has filed for removal from the claim. The plaintiffs have filed to have the case remanded back
to Virginia state court, where it was originally filed on August 13, 2025. Since this matter is still in its initial stages, the Company
is unable to predict the outcome at this time.

On
October 2, 2025, the Company was the plaintiff in a lawsuit Case No. 1:2025cv02026 filed in federal court in the Southern District of
Indiana for misappropriation of US federal and Indiana trade secrets. The defendants are former consultants, Myron Wright, an individual,
and Wright Flyer Consulting Group Inc., a Kentucky corporation. The Company is seeking compensatory and punitive damages, attorney fees
and costs as well as permanent injunctive relief against the defendants requiring the immediate cessation of all transactions utilizing
the Company’s Trade Secrets and return of materials constituting the Trade Secrets. Taft, Stettinius & Hollister, LLP is representing
the Company in the matter.

- 34 -

Item
1A. Risk Factors

As
a smaller reporting company under Rule 12b-2 of the Exchange Act, the Company is not required to provide risk factors in this report.
For our current risk factors relating to our operations see the section entitled “Risk Factors” contained in our Registration
Statement on Form S-1 filed with the SEC on