What changed in this filing

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Item 1. Legal Proceedings

2025-08-14 compared with 2025-06-05 · 34 added, 30 removed, 21 unchanged (75% of the section changed)

1 unchanged sentence

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.

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:

(the “Company) 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:

Management, Inc.

9 unchanged sentences

The case was moved to Marion Superior Court No.

2 of the State of Indiana on March 15, 2023 CAUSE NO.

2 of the State of

Indiana on March 15, 2023 CAUSE NO.

49D02-2305-PL-020604.

Plaintiffs alleged breach of employment agreement;

breach of stock purchase agreement;

breach of fiduciary duties

and non-payment of salary, bonuses, and benefits.

Arrive terminated Ohrn/Byfield’s employment because of several misrepresentations

in connection with the financial stability by Ohrn, including bankruptcy and mortgage foreclosure.

breach of stock purchase

breach of fiduciary duties and non-payment of salary, bonuses, and benefits.

Arrive terminated Ohrn/Byfield’s employment

because of several misrepresentations in connection with the financial stability by Ohrn, including bankruptcy and mortgage foreclosure.

Indiana is an at-will employment state.

defenses and counterclaims were filed, discovery documents have been exchanged by the parties, but no further motions are pending.

trial dates or case management plan has been filed.

In May 2024, the court asked for a dismissal which prompted the plaintiff to request

some third-party documents.

Affirmative defenses and counterclaims were filed, discovery documents have been exchanged by

the parties, but no further motions are pending.

No trial dates or case management plan has been filed.

In May 2024, the court asked

for a dismissal which prompted the plaintiff to request some third-party documents.

No other motions are pending.

The settlement demand includes unpaid salary and stock awards.

engaged Taft Stettinius & Hollister LLP as its external counsel to represent the company in this matter.

The Company firmly believes

there is no unpaid salary since there was no written or oral contract of employment.

The settlement demand

includes unpaid salary and stock awards.

Arrive has engaged Taft Stettinius & Hollister LLP as its external counsel to represent

the company in this matter.

The Company firmly believes there is no unpaid salary since there was no written or oral contract of employment.

The potential stock issue was never completed.

partial vesting required a small purchase which never happened in Ohrn’s case, therefore Ohrn held no stock upon termination.

though plaintiff’s allegations amount to approximately $29 million in total damages, plaintiff’s allegations have no merit,

it is not possible at this time to ascertain an exact figure upon the outcome of this litigation through a court’s final decision,

or if any damages may be granted at all, in the opinion of the company’s management and litigation counsel, such allegations may

not proceed given the facts presented before the court, such as the breach of the plaintiff’s obligations under the agreement and

the termination of the agreement by the Company for cause.

Any partial vesting required a small purchase which never happened in Ohrn’s case,

therefore Ohrn held no stock upon termination.

Even though plaintiff’s allegations amount to approximately $29 million in total

damages, plaintiff’s allegations have no merit, it is not possible at this time to ascertain an exact figure upon the outcome of

this litigation through a court’s final decision, or if any damages may be granted at all, in the opinion of the company’s

management and litigation counsel, such allegations may not proceed given the facts presented before the court, such as the breach of

the plaintiff’s obligations under the agreement and the termination of the agreement by the Company for cause.

initial Cease and Desist letter on Arrive AI’s trademark from Arrive Logistics was received July 19, 2023.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Legal Proceedings