Item 5. Other Information
Item
5. Other Information
On August 11, 2025, the Company entered into a Pre-Paid Purchase No. 2 with Streeterville (the “Pre-Paid Purchase
No. 2”) pursuant to the Streeterville Purchase Agreement dated March 21, 2025. Under the Pre-Paid Purchase No. 2, the Investor paid
$4,000,000 to the Company, representing the purchase price for an unsecured promissory note with an original principal balance of $4,320,000,
which included a $320,000 original issue discount. The instrument bears interest at 8% per annum, compounded daily, and permits the Investor,
at its discretion, to apply amounts outstanding toward the purchase of shares of common shares of the Company (“Purchase Shares”)
at the lesser of (i) the initial listing reference price on the Company’s common stock on the Nasdaq Global Market, or (ii) 90%
of the lowest VWAP over the ten trading days prior to a purchase notice (but not below a $0.25 floor). The issuance of Purchase Shares
is subject to a 9.99% beneficial ownership limitation and must be free-trading under an effective registration statement or exemption.
The Company may prepay amounts at 115% of the principal being repaid with five trading days’ notice, subject to restrictions, and
is obligated to make monthly $550,000 cash repayments (plus accrued interest) upon certain “trigger” events, including sustained
price declines below the floor price of $0.25 per share or the share issuance nearing the threshold above which shareholders’ approval
is required under the exchange rules. Streeterville may accelerate the Company’s obligation to pay, with default interest at 15%
and all outstanding balance becoming immediately due and payable in cash, upon the occurrence of certain events of default include nonpayment,
insolvency, covenant breaches, and certain corporate transactions. The Company closed this Pre-Paid Purchase No. 2 on August 11, 2025, and
received $4,000,000 in proceeds. The foregoing description of the Pre-Paid Purchase No. 2 is not complete
and is qualified in its entirety by reference to the text of such document, which is filed as an exhibit to this quarterly report on Form
10-Q.
Maxim Group LLC (“Maxim”) acted as placement
agent for the Pre-Paid Purchase No. 2 and will receive a cash fee equal to 6.0% of the gross proceeds received by us in connection with
this transaction. Maxim will also receive a cash fee equal to 6.0% of the gross proceeds from any future pre-paid purchases made pursuant
to the Streeterville Purchase Agreement.
Item
6. Exhibits
The
following exhibits are filed as part of this Report.
EXHIBIT
INDEX
Exhibit
No.
Description
4.1
2023 Equity Incentive Plan (incorporated by reference to Exhibit 4.1 to our registration statement on Form S-8 filed on June 13, 2025)
10.1
Securities Purchase Agreement between Arrive AI Inc. and Streeterville Capital LLC (incorporated by reference to Exhibit 10.11 to our registration statement on Form S-1 filed on June 17, 2025)
10.2*
Pre-Paid Purchase No. 2, dated August 11, 2025, by and between Arrive AI Inc. and Streeterville Capital LLC
31.1*
Section 302 Certification of Chief Executive Officer
31.2*
Section 302 Certification of Chief Financial Officer
32.1*
Section 906 Certifications of Chief Executive Officer
32.2*
Section 906 Certifications of Chief Financial Officer
101 INS**
INSTANCE DOCUMENT
101 SCH**
SCHEMA DOCUMENT
101 CAL**
CALCULATION LINKBASE DOCUMENT
101 LAB**
LABELS LINKBASE DOCUMENT
101 PRE**
PRESENTATION LINKBASE DOCUMENT
101 DEF**
DEFINITION LINKBASE DOCUMENT
104**
COVER PAGE INTERACTIVE DATA FILE - THE COVER PAGE XBRL
TAGS ARE EMBEDDED WITHIN THE INLINE XBRL DOCUMENT
*
Filed herewith
**
Submitted electronically
herewith. Attached as Exhibit 101 are the following materials from Quarterly Report on Form 10-Q for the quarter ended June 30, 2025,
formatted in Inline eXtensible Business Reporting Language (“iXBRL”): (i) the Condensed Consolidated Balance Sheets;
(ii) the Condensed Consolidated Statements of Operations; (iii) the Condensed Consolidated Statements of Equity; (iv) the Condensed
Consolidated Statements of Cash Flows; (v) notes to these Condensed Consolidated Financial Statements; and (vi) the Cover Page to
Quarterly Report on our Form 10-Q.
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
Date: April 15, 2026
ARRIVE AI INC.
/s/ Todd
Pepmeier
Todd Pepmeier
Chief Financial Officer
(On behalf of the Registrant and as principal financial
officer)
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.