Company: ARAI
Filing Date: 2025-05-14
Form Type: DRS
Source: 0001641172-25-010170
Chunk: 71

Company: Arrive AI Inc.
Filing Date: 2025-05-14
Form: DRS
Chunk 71
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 subject to NDAs, limiting disclosure of specific terms such as pricing and exact timelines. For AP3 installations and planned MaaS services in 2025, we are deploying units under pilot SOWs with no revenue-generating agreements yet in place; material terms for future MaaS agreements (e.g., subscription scope, service levels) will depend on pilot outcomes and are not yet defined. The Company does not have any MaaS service agreements with its customers.

Our first post-pilot MaaS production support is scheduled for deployment in early 2025, followed by full MaaS services in 2025. These services aim to transition pilot customers into full-time operational production. However, there is no assurance that these customers will choose to move beyond pilot testing. Additionally, while we plan to introduce operational platform fees and advanced AI/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.

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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. Beginning in early 2025, we plan to launch MaaS services with pilot customers, transitioning into full production over time. 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 H