Company: ARAI
Filing Date: 2025-03-24
Form Type: S-1/A
Source: 0001641172-25-000350
Chunk: 107

Company: Arrive AI Inc.
Filing Date: 2025-03-24
Form: S-1/A
Chunk 107
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 most relevant ones being PubCo’s failure
to comply with the continuous listing requirements and qualifications of the Nasdaq Capital Market and maintain the requisite cash reserves
to consummate the transaction.

| 44 |

Human Capital Resources

As of December 31, 2024, Arrive had 7 full-time employees. The Company also has approximately 15 part-time contract employees.

Property

Our corporate headquarters is located at 12175 Visionary Way, Fishers, Indiana 46038.

Third Party Advisors

Advisory Agreement. On July 16, 2024, Arrive executed an advisory services agreement with Maxim Group LLC (“Maxim”) in connection with a go public transaction including a direct listing. Pursuant to the terms of the Advisory Agreement, upon Closing, Arrive agreed to compensate Maxim with a number of shares of Arrive, equal to that certain percentage from the aggregate value of the transaction as described in the Advisory Agreement. As of the date hereof, Maxim has been issued 532,913 of our shares, after giving effect to the Reverse Stock Split.

Legal Proceedings

From time to time, Arrive AI Inc. may
be subject to various claims, lawsuits and other legal and administrative proceedings arising in the ordinary course of business.
Defending such proceedings is costly and can impose a significant burden on management and employees. The results of any current or future
litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of
defense and settlement costs, diversion of management resources and other factors. Other than as set forth below, Arrive AI is
not presently a party to any litigation the outcome of which, if determined adversely to us, would in our estimation, have a Material
Adverse Effect on our business, operating results, cash flows or financial condition. The following is a summary of the Company’s
ongoing legal proceedings:

Byfield Management, Inc. and Ohrn II, Richard B v. Dronedek Corporation. This is an employment action, originally filed in the Hamilton County Court of the State of Indiana Hamilton Superior Court/File: 5 29 D05-2303-PL-002478. Orhn, working as Byfield Management, Inc., was the original chief financial officer of the Company under an oral agreement. The amount in dispute includes two years of salary and stock options. The Company terminated this executive contract for cause and the matter is currently being handled by external counsel Taft Stettinius & Holl