ARAI · Arrive AI Inc.

Arrive AI Inc. disclosed two significant developments in this 8-K filing. First, the company identified a potential accounting error related to the convertible note issued under the Securities Purchase Agreement with Streeterville Capital, LLC. Specifically, the conversion feature contains an embedded derivative under ASC 815-40 that was not properly valued. This error affects the previously issued financial statements for the quarters ended June 30, 2025 and September 30, 2025, which the company has determined should no longer be relied upon. While the restatement has a non-cash impact, it will affect reported net income, balance sheet presentation, and footnote disclosures. The company has engaged a third-party valuation firm and intends to restate these financial statements by amending its quarterly reports. Second, the company strengthened its board with the appointment of Michael Fitz, a T-Mobile executive with over three decades of telecommunications and enterprise technology experience. His background in 5G, IoT, and partner ecosystems aligns with Arrive AI's autonomous delivery network strategy. The appointment, coupled with the financial restatement, represents both governance enhancement and financial control remediation efforts by the company.