Company: ARAI
Filing Date: 2025-07-15
Form Type: S-1/A
Source: 0001641172-25-019572
Chunk: 82

Company: Arrive AI Inc.
Filing Date: 2025-07-15
Form: S-1/A
Chunk 82
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/ML capabilities through AP4
and AP5 development and pilot programs, we have not yet engaged participants for these future pilot programs and have no guarantee of
participation or success.

While there has been significant and encouraging
interest in our 2025 prospect pipeline, including inquiries from assisted living communities and hospital chains, we do not yet know
if any of these organizations will enter into agreements for our services.

| 33 |

Arrive AI’s MaaS subscription model is
designed to accelerate market adoption by reducing upfront costs and operational complexity, making implementation more accessible and
affordable for customers. The subscription model eliminates the need for significant capital expenditures by offering a service-based
approach where customers pay recurring fees for access to ALM infrastructure, ongoing support, and software updates. This model allows
Arrive AI to scale efficiently while expanding and maintaining an increasingly large ALM mailbox network. Based on our internal projections
and assuming sufficient deployment and utilization rates (a minimum of 200 deployed and actively utilized at three or more deliveries
per day), we estimate that in 18 months of operational data collection, by 2026 we will likely have obtained the critical deployments
mass and utilization rates needed to improve our initial AI and ML models. These enhanced models are expected to deliver improved customer
experiences by optimizing delivery routes, predicting maintenance needs, and generating actionable insights for operational improvements.
However, these outcomes depend on meeting deployment scale and utilization targets, and there is no guarantee that such adoption or data
accumulation will occur as projected.

On January 24, 2023, we entered into
a Design Engineering Services Agreement with HUSH Aerospace, LLC (“HUSH”), engaging HUSH to modify and integrate HUSH 1400X8
drones with our smart receptacles. HUSH agreed to provide two custom drones, integrating our branding, API connectivity, and an ultra-precision
landing system. We agreed to pay HUSH an aggregate of $150,000 in exchange for the products and services the latter agreed to provide,
payable in three equal installments with the first $50,000 paid for Hush’s work to commence, the second payable when the first
drone is delivered and the third payable when the second drone is delivered. This agreement can be either terminated for convenience
by either party with 30 days’ written notice, or for cause for the non-defaulting party when the defaulting party fails to timely
correct non-performance upon notice. We agreed to pay HUSH for the services