Company: ARAI
Filing Date: 2025-05-13
Form Type: S-1/A
Source: 0001641172-25-009841
Chunk: 34

Company: Arrive AI Inc.
Filing Date: 2025-05-13
Form: S-1/A
Chunk 34
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. Failure to adequately maintain and enhance protection over our proprietary techniques and processes, as well as over our unregistered intellectual property, including policies, procedures and training manuals, could have a material adverse effect on our business, financial condition or results of operations, if any such cost or additional expense related to finding a viable solution to protect our intellectual property is high and our expected income is not sufficient to cover such potential cost or expense. Our patent license agreement in connection with the intellectual property owned by our chief executive officer, Mr. O’Toole, was recently amended by the Company and Mr. O’Toole. The amendment contains the extension of the term of the patent license agreement from seven years to perpetuity of the full life of the licensed intellectual properties. The amendment also provides that Mr. O’Toole may terminate the agreement if the Company materially defaults on its obligations under the agreement, and such default is not timely cured by the Company. In the event of such termination, we would not be able to use licensed intellectual property and provide our planned services, which would adversely affect our future revenue and operations.

If we materially breach the Exclusive Patent License Agreement and fail to cure such breach timely and to Mr. O’Toole’s satisfaction, such license agreement will transition to a non-exclusive license agreement, and our business operation may be adversely affected or even essentially terminated.

As discussed above, we heavily rely on the
patents Mr. O’Toole licensed us to use under the Exclusive Patent License Agreement, as amended in December 2024 and March
2025. In the event that we are sixty (60) days late in any payment after it becomes due, or materially default in
performing any of the other terms under the Exclusive Patent License Agreement otherwise, Mr. O’Toole has the right to give us
a notice of such default and to ultimately transition to a non-exclusive license agreement if we fail to cure such default
within sixty (60) days after such notice to Mr. O’Toole’s satisfaction. In the event that Mr. O’Toole
terminates the Exclusive Patent License Agreement, our business would be adversely affected and we may essentially terminate some or
all of our operations if that occurs, investors could potentially lose a portion of or even the entire amount of their investment in
our Company. In the second amendment executed on March 10, 2025, Mr. O’Toole also agreed that the Company could
engage in the use, sale or other commercialization of the