Item 1. Business
Item
1. Business
This
Annual Report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws that involve risks and
uncertainties. Actual results may differ materially from those expressed or implied by these forward-looking statements as a result of
various factors, including those described in “Risk Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations,” included in this report. Readers should carefully review this Annual Report on Form 10-K
in its entirety, including the financial statements and related notes. Unless the context otherwise requires, references to “Arrive
AI Inc.,” “Arrive,” the “Company,” “we,” “us,” and “our” refer to Arrive
AI Inc.
Corporate
History
We
were incorporated on April 30, 2020, in the State of Delaware under the name of Dronedek Corporation. The Company changed its name to
Arrive Technology Inc. on July 27, 2023. The Company changed its name to Arrive AI Inc. on September 27, 2024. We are an early-stage
technology company with a focus on designing and implementing a commercially viable smart mailbox and platform system for smart, secure,
and seamless exchange of packages, goods, supplies, food, and medications between people, through the use of robots and drones. We began
conducting commercial operations in 2025 and we had no revenues for prior fiscal years.
Arrive
executed an exclusive patent license agreement on May 26, 2020, with its CEO, Daniel O’Toole, which was amended in December 2024
and March 2025, whereby Mr. O’Toole granted Arrive rights to use, sell, manufacture and otherwise commercialize certain technologies
relating to secured drone delivery ALM mailboxes in exchange for license fees. Such technologies have helped jumpstart our business operations
and will continue to play such a critical role in our growth that we have become heavily reliant on the right to use them. Please see
a more detailed description of the terms of such agreement under “Certain Relationships and Related Party Transactions, and Director
Independence” and the risks related to our reliance on such agreement under “Risks Related to Intellectual Property and Related-Party
Arrangements - Our business depends on intellectual property licensed from our Chief Executive Officer” and “Risks Related
to Intellectual Property and Related-Party Arrangements - We engage in related-party transactions that may create conflicts of interest.”
Controlled
Company Status
The
Company ceased to be a “controlled company” within the meaning of the listing rules of The Nasdaq Stock Market LLC on or
around April 9, 2026, and is permitted to continue to rely on exemptions from certain Nasdaq corporate governance requirements within
a year following such date, including the requirement that a majority of the Board consist of independent directors and the requirement
that the compensation and nominating committees be composed entirely of independent directors. The Company currently relies on these
exemptions.
Notwithstanding
these exemptions, the Company maintains an Audit and Finance Committee composed entirely of independent directors in accordance with
applicable Nasdaq and SEC requirements.
Implications
of Being an Emerging Growth Company and a Smaller Reporting Company
As
a company with less than $1.235 billion of revenue during our last fiscal year, we qualify as an “emerging growth company”
as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. We may remain an emerging growth company for up to five
years from the date of the closing of our public offering, or until such earlier time as we have more than $1.235 billion in annual revenue,
the market value of our stock held by non-affiliates is more than $700 million as of the final day of our second fiscal quarter, in which
case we would cease to be an “emerging growth company” as of the following final day of our fiscal year, or we issue more
than $1 billion of non-convertible debt over a three-year period.
1
For
so long as we remain an emerging growth company, we are permitted and intend to rely on certain exemptions from various public company
reporting requirements, including not being required to include an attestation report on internal control over financial reporting issued
by our independent registered public accounting firm pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002, reduced disclosure
obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding
a nonbinding advisory vote on executive compensation and any golden parachute payments not previously approved. In addition, the JOBS
Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting
standards. This provision allows an emerging growth company to delay the adoption of some accounting standards until those standards
would otherwise apply to private companies. We have elected to take advantage of this extended transition period under the JOBS Act.
As a result, our operating results and financial statements may not be comparable to the operating results and financial statements of
other companies who have adopted the new or revised accounting standards.
We
are also a “smaller reporting company,” meaning that the market value of our stock held by non-affiliates is less than $700
million and our annual revenue was less than $100 million during our most recently completed fiscal year. We may continue to be a smaller
reporting company if either (i) the market value of our stock held by non-affiliates is less than $250 million measured on the last business
day of our second fiscal quarter or (ii) our annual revenue is less than $100 million during the most recently completed fiscal year
and the market value of our stock held by non-affiliates is less than $700 million measured on the last business day of our second fiscal
quarter. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions
from certain disclosure requirements that are available to smaller reporting companies. For so long as we remain a smaller reporting
company, we are permitted and intend to rely on exemptions from certain disclosures and other requirements that are applicable to other
public companies that are not smaller reporting companies, such as providing only two years of audited financial statements.
Glossary
of Terms and Abbreviations
The
following is a glossary of technical terms used in this annual report:
AP1
/ AP2 / AP3 / AP4 / AP5 / AP6 – Generations of Arrive Points
ADM
– Automated Delivery Marketplace
AI
– Artificial Intelligence
ALM
– Autonomous Last Mile
AMR
– Autonomous Mobile Robot
AUVS
– Aerial Unmanned Vehicle Systems
Arrive
Points™ – Branded term for our product
IoT
– Internet of Things
ML
– Machine Learning
MaaS
– Mailbox as a Service
PHI
– Protected Health Information
PII
– Personally Identifiable Information
UAV
/ UAVs – Unmanned Aerial Vehicles
Company
Overview
Arrive
AI is pioneering the essential infrastructure for the Autonomous Last Mile (“ALM”) era, where the future of last-mile logistics
is dominated by drones and robotic delivery systems. We are building a universal ALM network of Arrive Points™—smart lockers
and mini-cross-docks—that serve as secure, asynchronous exchange points connecting drones, robots, delivery providers, retailers,
and consumers.
Our
integrated ALM Platform combines a physical Arrive Point™ Network (delivered as Network-as-a-Service), an ALM Marketplace for dynamic
scheduling and transactional optimization and AI Services for data-driven insights and automation. This comprehensive ecosystem is designed
to overcome the key barriers to widespread ALM adoption—interoperability, security, efficiency, and network density—while
creating multiple scalable revenue streams.
2
We
believe, much like the original iPhone and App Store catalyzed the smartphone and mobile app revolutions, Arrive AI’s platform
provides the “Highest Common Denominator” infrastructure to support and accelerate rapid innovation across the entire automated
last-mile industry, serving medical, pharmaceutical, retail, e-commerce, and logistics stakeholders.
Our
patented, multi-generational Arrive Points (AP3, AP4, and upcoming AP5) deliver universal compatibility, robust chain-of-custody security,
temperature assistance where required, and seamless physical-digital synchronization. By eliminating manual intervention and technical
silos, we enable efficient, scalable, and fully autonomous delivery networks that preserve product integrity and unlock exceptional operational
efficiency.
ALM
Platform for Industry Innovation
Our integrated ALM Platform combines a physical Arrive Point™ Network, an ALM Marketplace, and AI Services to create
a comprehensive ecosystem designed to accelerate the adoption of drone and robotic delivery.
Our
ALM Platform is designed to drive future revenue through three complementary pillars:
1.
Arrive Point Network (Network-as-a-Service): This hardware-enabled network provides secure, asynchronous delivery and pickup points with
features such as temperature assistance and secure chain of custody. We plan to offer access to this network through monthly and annual
subscription fees, along with associated installation, support, maintenance, and infrastructure services. This turn-key Network-as-a-Service
model is expected to contribute significantly to our revenue as we deploy subsequent generations of Arrive Points.
2.
AI Services: Leveraging machine learning (ML) and artificial intelligence (AI), we intend to monetize the vast transactional and environmental
data generated by our network. ML will primarily power edge computing and local processing in our fourth- and fifth generation Arrive
Points (AP4 and AP5), while broader AI capabilities will derive actionable insights such as reverse logistics optimization, routing density
and arbitrage, and growth forecasting. We also plan to integrate foundational AI models for enhanced device-based human interactions.
3
3.
ALM Marketplace: Our software platform will enable dynamic pricing, management of “gate times,” and optimization of high-demand
space across the Arrive Point network, functioning similarly to a Google AdSense-like marketplace. This will facilitate critical ecosystem
functions including arrival/departure scheduling, space optimization, smart notifications, micro-weather data, local restrictions, transactional
updates, and automation issue resolution. Advanced marketplace capabilities are planned for introduction with our AP5 units.
We
differentiate ourselves through a comprehensive, integrated solution:
● Universal
Compatibility: Our multi-generational Arrive Points (AP3, AP4, AP5) are being developed to
support all major drone and robotic delivery systems, addressing a key barrier to widespread
ALM adoption.
● End-to-End
Solution: We combine advanced hardware, a robust software platform, and AI/ML capabilities
to deliver a complete ecosystem for automated last-mile exchange.
● Early
Market Validation: We have secured pilot programs with significant customers, including a
regional hospital and a specialty pharmaceutical delivery company, providing valuable learning
and validation as we refine our path to sustainable economics.
Five-Year
Public Plan
The
future of last-mile delivery belongs to drones and robots. Arrive AI is building the essential ALM network and platform to enable this
transformation. Our five-year plan targets deployment of 100,000 Arrive Points, achieving a revenue model of approximately 50% Network-as-a-Service
and 50% Marketplace & AI Services.
This
five-year plan outlines our phased approach from early market solutions and product development through pilot programs, strategic refinement,
production ramp, and ultimately network scalability. Our initial deployments focused on pilot validation and iterative learning. Revenue
is expected to accelerate as we scale installations and activate subscription, marketplace, and AI service models in line with the milestones
shown.
Key
phases include transitioning from early third generation (AP3) units toward fourth- and fifth generation (AP4 and AP5) hardware that
will fully enable marketplace transactional economics and advanced AI services. Our internal stretch goals reflect ambitious network
effects and rapid deployment potential as the ALM ecosystem matures.
This
plan is forward-looking and subject to change without notice based on market conditions, technological advancements, strategic partnerships,
and capital availability.
4
Competition
We
recognize emerging competition from:
●
Smart locker box and mailbox companies are also adapting to ALM trends and may pursue similar capabilities or business as Arrive AI
●
Automation providers, like drone and robotic companies and/or operators, are now also developing point solutions for last-mile delivery
handoffs and may pursue similar capabilities or business as Arrive AI
Our
strategy leverages our intellectual property and technological advantages developed in AP1, AP2, AP3, AP4 and soon to be AP5, to position
Arrive AI’s ALM MaaS solutions as the industry standard, anticipating that proprietary point-solutions will transition towards
our broader, full-featured, universal ALM network/platform because of cost, interoperability, and customer demand for universal vs. proprietary
solution lock-in.
This
business foundation, combined with our strategic product rollout and strong intellectual property portfolio, positions Arrive AI to lead
the transformation of ALM infrastructure and the formation of an ALM platform for the emerging ALM ecosystem, in the era that will most
certainly be transformed by last-mile autonomous logistics as projected by organizations like ARK Invest in their Annual Innovation Report
in the Autonomous Logistics sections.
Environmental
Regulation
Our
operations are subject to federal, state, and local environmental laws and regulations relating to, among other things, the handling
and disposal of materials and waste. We are primarily engaged in office-based functions and research and development activities and do
not conduct material manufacturing or industrial operations. Accordingly, we do not believe compliance with environmental laws and regulations
has had, or is expected to have, a material effect on our capital expenditures, results of operations, or competitive position.
We
generate limited quantities of electronic and office waste, which are managed in accordance with applicable laws, primarily through third-party
service providers. We are not aware of any pending or threatened environmental matters that we believe would have a material adverse
effect on our business, financial condition, or results of operations.
Government
Regulations
The
Postal Reorganization Act of 1970 created the U.S. Postal Service (“USPS) as an independent establishment of the executive branch
of the federal government. The Postal Accountability and Enhancement Act of 2006 amended the 1970 Act to give the re-named Postal Regulatory
Commission revised oversight authority over many aspects of the USPS, including postal rates, product offerings and service standards.
Once we begin our scaled operation and supply the market with Arrive’s ALM Mailboxes, a significant portion of our business will
be subject to regulation and oversight by the USPS, posts in other major markets, and the governmental bodies that regulate the postal
services themselves. These postal authorities have the power to regulate some of our current products and services and they sometimes
also must approve many of our new or future product and service offerings before we can bring them to market. If new or future product
and service offerings are not approved or there are significant conditions to approval, regulations on existing products or services
are changed, posts utilize their position in the market or their role as product regulator to limit competition in areas where the posts
themselves offer solutions, or if we fall out of compliance with the posts’ regulations, our financial performance could be adversely
affected.
5
There
has recently been heightened regulatory and enforcement focus relating to the collection, use, retention, transfer, and processing of
personal data in the U.S. (at both the state and federal level), including the California Privacy Rights Act, the Virginia Consumer Data
Protection Act, and other similar laws that have been or will be enacted by other jurisdictions. In addition, in the U.S., there has
been increased legislative and regulatory activity related to artificial intelligence and the risks and challenges artificial intelligence
poses, including the current U.S. presidential administration’s executive order to, among other things, establish artificial intelligence
safety and security. An actual or alleged failure to comply with applicable U.S. or foreign data protection laws, regulations, or other
data protection standards may expose us to litigation (including, in some instances, class action litigation), fines, sanctions, or other
penalties, which could harm our reputation and adversely affect our business, results of operations, and financial condition. This regulatory
environment is increasingly challenging, based on discretionary factors, and difficult to predict. Consequently, compliance with all
applicable regulations in the various jurisdictions in which we do business may present material obligations and risks to our business,
including significantly expanded compliance burdens, costs, and enforcement risks; require us to make extensive system or operational
changes; or adversely affect the cost or attractiveness of the services we offer. All of these evolving compliance and operational requirements,
as well as the uncertain interpretation and enforcement of laws, impose significant costs and regulatory risks that are likely to increase
over time. Developing privacy legislation within the U.S. may also create limitations or added requirements on the use and collection
of personal data that our ML/AI models will be built for.
The
adoption of drones and autonomous robots for delivery has been gaining momentum in recent years due to the potential for increased efficiency,
speed, and cost savings. However, the pace of adoption has been hindered by a variety of legal and regulatory barriers, including the
Federal Aviation Administration’s (“FAA”) Beyond Visual Line of Sight (“BVLOS”) requirements. These regulations
require operators to demonstrate that their drones can fly beyond the visual line of sight of the pilot or observer and still maintain
safe operation. Meeting these requirements has been a significant challenge for many companies seeking to use drones for delivery and
has slowed down the pace of adoption. Despite these challenges, many companies are investing heavily in developing and testing delivery
drones and robots that can meet the FAA’s BVLOS requirements. As such, Arrive can expect continued progress in the adoption of
drones and autonomous robots for delivery, albeit with careful consideration of legal and ethical implications, including compliance
with BVLOS requirements.
Also,
in our early market focus involving placing our products and providing services to medical facilities, we must also comply with the HIPAA
if we handle PHI in the course of our commercial business operations. Despite the need to comply with HIPAA, we are only a provider of
intelligent mailboxes and do not and will not manufacture, sell or transport medical or biological products or prescriptions, we are
not and will not be subject to any regulations in those areas, for example, the Federal Food, Drug, and Cosmetic Act of 1938 and the
Medical Device Amendments of 1976.
Regulations
Related to the Transportation of Pharmaceutical and Biomedical Products
Even
though we do not and will not manufacture, sell or transport medical or biological products or prescriptions, there are several regulations
related to the transportation of pharmaceutical and biomedical products and our potential third-party service providers may be subject
to such regulations, described further below.
Title
21 of the Code of Federal Regulations (CFR) regulates shipping, warehousing, distribution, and record keeping of pharmaceuticals. Because
of the sensitive nature of some pharmaceutical products, there are many federal, state, and local laws that dictate how to package and
transport the items. There are also several different federal agencies with oversight, including the Food and Drug Administration (“FDA”),
the FDA’s role is to protect the public’s health by ensuring that the items to be consumed are safe. Prescription drugs and
medical devices undergo rigorous screening and testing to ensure they work as the manufacturer claims. Within the context of pharmaceuticals,
this means information on the approved temperature range for shipping, warehousing, and distribution. In addition to the FDA’s
temperature control requirements, there are other requirements which include hygiene, security, and recordkeeping. The packaging procedures
of manufacturers and third-party transportation providers must ensure compliance with FDA’s temperature control requirements. When
transporting products that require temperatures outside the normal bounds, it usually requires a particular type of vehicle or trailer.
These vans and trucks are modified to allow temperature control while traveling. This helps ensure the products stay within the safe
temperature range. The modifications to the trailers and vehicles often include improved gaskets, seals, and partitions that allow the
transport of products in different temperature zones. The FDA also sets state licensing laws for pharmaceutical companies.
The
most relevant of the FDA requirements is the cold supply chain, which is crucial to many different industries. If products go outside
of their safe temperature range, it can lead to ineffective medications, vaccines, or devices. This is what makes compliance so crucial
in the medical community. For most products, storage and transportation are easy so long as the temperature range remains between 55-
and 77-degrees Fahrenheit, but once outside of that comfortable range, things start to become more challenging. Within the cold supply
chain, there are four different steps. The first stage is where the supply is from, such as the factory or plant. The second step is
the transportation stage. This stage can occur multiple times and is when the medical devices or medication are on the transport vehicle.
The third step, storage, is whenever the product is in a cold storage location before arriving at its final destination. This step also
has the possibility of happening more than once. The last step is arrival at the market when the products reach the buyers. This is the
stage where the items remain before being sold or administered. Our Company will not guarantee the temperature of any of these items
as this is a requirement applicable to manufacturers and transportation third parties in connection with their packaging procedures.
6
Transportation:
Transporting products that require temperatures outside the normal bounds usually requires a particular type of vehicle or trailer. These
vans and trucks are modified to allow temperature control while traveling. This helps ensure the products stay within the safe temperature
range. The modifications to the trailers and vehicles often include improved gaskets and seals. Some even have partitions that allow
the transport of products in different temperature zones.
Storage:
For storage purposes, one must ensure the warehouses will remain compliant with the temperature requirements. Some warehouses have a
backup generator in the event of power loss. This will make sure that temperature-sensitive products aren’t lost or damaged. Security,
another critical aspect of FDA regulation, is the requirement for who can be around the products while in transit. There are rules about
who can and is allowed in proximity to pharmaceuticals. Hygiene, like in restaurants, the FDA is responsible for overseeing the storage
conditions of products. Anywhere that the pharmaceuticals are stored must provide adequate cleaning, proper ventilation, and safe storage
practices to ensure nothing happens to the products. Recordkeeping, there is a requirement for accurate recordkeeping, which is a requirement
for anybody following the FDA-approved pharmaceutical shipping regulations. This work is crucial for products to arrive protected. Being
able to provide such documentation also ensures the responsible party pays the cost of any non-compliance problems, including any fines
or replacements.
Department
of Transportation (DOT): Several scenarios may include the involvement of the Department of Transportation in connection with the transport
of pharmaceutical products. This is often in connection with the transportation of hazardous materials. Any planned delivery route must
comply with all requirements for the transport of whatever item that has the hazardous materials label. Another government agency applicable
to pharmaceutical transportation is the Drug Enforcement Agency (“DEA”). This group gets involved because many different
medications double as controlled substances, thanks to the risk of generating addiction. These medications can be anything from painkilling
opiates to medicines that address other chronic illnesses. Whatever the individual medical product is, the DEA will be involved if there
is the possibility of theft.
These
regulations have a significant impact on the operations and responsibilities of third parties, such as those who have autonomous mobile
robots (“AMRs”) and drone operations, or those imposed on medical facilities regarding control and preservation of certain
medications considered perishable or which may need refrigeration. Although they are not directly applicable to our own business and
future operations, these regulations related to aviation, medical and biological operations are applicable to our partners by, for example,
increasing their compliance cost and financial burden, and may thereby be unwilling to transition to a smarter and more modern mailbox
provider like us. Our intended operations will comply with the specific requirements for each application as defined by the third parties
responsible for compliance.
Intellectual
Property
Arrive
AI’s intellectual property consists of patents, trademarks and trade secrets. Arrive AI’s trade secrets consist of research
and development and know-how, all of which we seek to protect, in part, by confidentiality agreements. To protect Arrive AI’s intellectual
property, Arrive relies on a combination of laws and regulations, as well as contractual restrictions. Federal trademark law protects
Arrive AI’s registered trademarks. Arrive also relies on the protection of laws regarding unregistered copyrights for certain content
Arrive creates, as well as trade secret laws to protect Arrive AI’s proprietary technology.
7
Trademarks
Arrive
has 3 registered trademarks, all of which are being used in commerce, 6 allowed, and 3 pending trademarks:
No.
Mark
Filed
Serial
No
Granted
Reg.
No
1
DRONEDEK
(words)
July
18, 2019
88522545
June
29, 2021
6399323
2
DRONEDEK
December
29, 2020
90426343
April
5, 2022
6689433
3
AIRBOX
Jan.
28, 2016
86890454
Nov.
07, 2017
5330373
4
MAAS
- MAILBOX AS A SERVICE
May
6, 2022
97399527
Allowed
June 20, 2023
5
THE
LAST INCH OF THE LAST MILE
May
6, 2022
97399520
Allowed
June 20, 2023
6
ARRIVE
June
20, 2022
97466319
Allowed
June 20, 2023
7
ARRIVAL
POINT
June
20, 2022
97466345
Allowed
June 20, 2023
8
ARRIVE
PAY
June
20, 2022
97466377
Allowed
June 20, 2023
9
ARRIVE
POINTS
June
20, 2022
97466382
Allowed
June 20, 2023
10
Arrive
- Beyond Delivered
Jan
7, 2024
98345734
Pending
11
Arrive
Technology
Jan
7, 2024
98345739
Pending
12
Arrive
Go
Jan
7, 2024
98345744
Pending
Arrive
has several other trademarks under consideration.
Patents
Arrive had nine (9) approved, registered, and issued United States patents as of December 31, 2025. Arrive AI has three (3) additional patent
applications in the examination process by the United States Patent and Trademark Office (“USPTO”). In addition, there
are seventy-seven (77) non-U.S. patent applications in process. Eight (8) National/non-US Patents have been issued (based on US
Patents 2, 4, and 5), five (5) more are allowed, and 65 are pending. Most of these first group of smart/ interactive boxes were
related to the original drone deliveries. From the Air Box acquisition, Arrive AI added four (4) of the granted US patents, one (1)
US patent pending applications, and one (1) international patent pending in the totals below. These additional business acquisitions
and technological developments are focused on receiving multiple packages and allowing multiple users. These foundational patents as
well as the newly acquired technology (listed below) consisted of more than 130 patent claims for tracking packages as well as for
collecting data from multiple shipping companies and the commercial and residential customers.
Patents and Patents Pending: DRONEDEK was initially granted the first US
Patent in 2017 with 2014 priority. A second was granted in 2019 with priority back to the original. A third was issued August 29, 2023,
in connection with the expanding floor and homeowners’ recess into ground. The fourth and fifth US patents were issued in 2025. One
was the Hot/Cold assist patent and the other represents a unit capable of trimode use – deliveries and shipments from a courier
(human), a drone, and/or an automated robot. Arrive also owns four (4) fully-issued US patents acquired through the purchase of Airbox assets in 2023. The
multi-user applications are starting to enter the National phase in twelve (12) other countries and the EU. Next generation AP4/5/6 (Arrive
Point) will soon be in the provisional stage. The seventy-seven (77) non-US patent applications include the expanding floor, hot/cold
assist, and multi-unit which are in national phases in 23 other countries at various levels of exam. Arrive has continued to bolster its
protected features and functions with additional patents which are currently pending (see table below).
Optional
features protected by the patents and applications include: a sensor-equipped, fully autonomous landing pad receptacle; a receptacle
for receiving or sending food, medicine, groceries, or parcels; a secure receptacle on a porch, roof, window, house, building, existing
edifice or mailbox post; interior temperature control (hot and cold holding section); a curved bottom to mitigate damage to the parcel
from abrupt drops; infrared, ultraviolet or ozone virus and bacteria prevention including anthrax and COVID; detection of explosive materials;
in-ground vaults for home owners association also known as “HOA” restrictions; mobility on trucks, boats and trailers; weather
monitoring station, traffic, human and pet movement with facial recognition cameras; powered by a solar panel and/or 110-volt electrical;
assist mechanism for robot/aerial unmanned vehicle systems (“AUVS”); and a charging station or battery exchange to the drones,
unmanned aerial vehicles (“UAVs”), and units capable of trimode use (Couriers, Unmanned Robots, and Drones).
8
International
Patents Pending: Patents pending are based on the PCT and World Intellectual Property Organization (“WIPO”). International
filings are focused on those global markets that provide the best commercial opportunity (the top 20 nations representing over 80% of
the global economy). National patents for various countries have been assessed and are being examined in various stages depending on
the country’s rules.
Trademarks:
DRONEDEK holds three US trademarks registered, an additional eleven are allowed and ready to show use or pending approval; other marks
for US and foreign applications are under consideration for protecting the brands with the transition to ARRIVE.
Licenses:
DRONEDEK has an exclusive license to all the patents described herein from the inventor and CEO of Arrive, Daniel S. O’Toole. The
details of the terms of use for these licenses are further described herein under the section Exclusive Patent License Agreement .
New patent applications emerging from the engineers and technicians with Arrive AI are protected by language and IP agreements in the
handbook and employee intake documents and hiring process.
DD - Original Development by Dronedek
AB
- Acquired from AirBox
COUNTRY
SERIAL
NO.
FILING
DATE
PATENT
or
Publication
NO.
TITLE
STATUS
ANTICIPATED
EXPIRATION DATE
DD1
U.S.
14/565,418
12/09/2014
9,840,340
Drone
Docking Station and Delivery System
Granted
in U.S. 12/12/2017
12/09/2034
DD2
U.S.
15/328,027
11/21/2015
10,457,421
Drone
Docking Station and Delivery System
Granted
in U.S. 10/29/2019
11/21/2035
DD3
U.S.
17233624
04/19/2021
11,738,883
Expanding
Floor/Accordion drone docking station
Granted
in U.S. 08/29/2023
04/19/2040
DD3A
International
22
countries plus the EU
PCT/US21/
27879
04/19/2021
WO
2021 -
216397
Expanding
Floor/Accordion drone docking station
Pending
Internationally
Ready
for National stage - 23 countries
04/19/2040
DD4
U.S.
17233635
04/19/2021
12,304,671
Hot
and Cold Section drone docking station Temperature Controlled Device
Granted
in U.S.
05/20/2025
04/19/2040
DD4A
International
22
countries plus the EU
PCT/US21/
27895
04/19/2021
WO2021
- 216407A1
Hot
and Cold Section drone docking station Temperature Controlled Device
Pending
Internationally
Ready
for National stage - 23 countries
04/19/2040
DD4B
U.S.
19/173,731
07/25/2023
US
2025-0325133
CIP
Hot and Cold Section Drone
Docking
Station Temperature Controlled Device
Pending
in U.S.
07/25/2043
DD5
U.S.
18208803
06/12/2023
12,591,840
CIP
Device and system for an autonomous mobile robot, drone, and/or courier to deliver, hold, protect, and return parcels for multi-users
in both residential and commercial applications
Pending
in U.S. as of 12/31/2025
06/12/2043
DD5A
International
12
countries plus the EU
PCT/US23/
25086
06/12/2023
WO2023244549A1
CIP
Device and system for an autonomous mobile robot, drone, and/or courier to deliver, hold, protect, and return parcels for multi-users
in both residential and commercial applications
Pending
Internationally
Ready
for National stage - 24 countries
06/12/2043
DD6
U.S.
18226016
07/25/2023
12,387,072
CIP
A Smart Mailbox receptacle
and
platform to ship packages
and
goods from a Trimodal system
that
includes a courier service, an
automated
vehicle
or
robot, and/or an unmanned drone
Granted
in US 08/12/2025
07/25/2043
9
AB1
U.S.
15018696
02/08/2016
US 10,210,475
Air Box - Systems, devices, and/or methods for managing drone deliveries
Granted in US
1/30/2019
02/08/2036
AB2
U.S.
16846280
04/11/2020
US 11,905,013
Air Box - Systems, Devices, and/or Methods for Managing Drone Tethering
Granted in US
02/20/2024
04/11/2040
AB3
U.S.
18/078,985
12/11/2022
12,369,736
Air Box CIP - Systems, Devices, and/or Methods for Managing Drone Deliveries
Granted in US 07/29/2025.
12/11/2042
AB4
U.S.
16/054,305
08/3/2018
US 11,556,887
Air Box -Systems, devices, and/or methods for managing drone deliveries.
Granted in U.S.
01/17/2023
08/03/2038
●
Anticipated
expiration is the terminology used since maintenance fees are required to be paid to assure the full amount of twenty years. Management is not aware of any circumstances that would prevent the timely
payment of the maintenance fees as they become due.
10
●
Maintenance
fees are payments to keep the patents active (alive). These payments are made to the patenting agency for that country or nation.
For example, in the U.S., the regulatory action and fees are made to the USPTO. For other countries, the payment of fees is commonly
paid to the patent regulatory office, specific for each country, where the patent application was originally examined, approved,
and issued.
●
The
regulatory maintenance fee (often called an annuity) is paid every year for most countries. However, for patents issued from the
USPTO, the maintenance fee for each of the issued patent is due at 3 to 3.5 years, then at 7 to 7.5 years, and finally 11 to 11.5
years, respectively, after the date of issue with no early payment options. In the event of a late payment, there is a “six-month
grace period” to reactivate a late, unintentional, missed payment of the fee, but a surcharge will be incurred during such
grace period at 3.5 to 4 years, 7.5 to 8 years, and 11.5 to 12 years, respectively, after the date of issue.
●
The
Company will be responsible for paying patent issue fee, maintenance fees, and annuity fees due on each patent granted, transferred,
or licensed to it.
Employees
and Human Capital Resources
As
of December 31, 2025, Arrive had 41 full-time employees. The Company also has approximately 10 part-time contract employees.
Available
Information
We
are a public company, and our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments
to such reports are filed with the SEC. We are subject to the informational requirements of the Exchange Act and file or furnish reports,
proxy statements, and other information with the Securities and Exchange Commission (the “SEC”). Such reports and other information
filed by us with the SEC will be available free of charge on our website at www.arriveai.com when such reports are available on the SEC’s
website. The SEC maintains a website that contains reports, proxy and information statements, and other information that issuers file
electronically with the SEC at www.sec.gov . Our website is www.arriveai.com , and we can be contacted at (463) 270-0092.
The
contents of the websites referred to above are not incorporated into this filing. Further, our references to the URLs for these websites
are intended to be inactive textual references only.