Corporate GovernanceApr 14, 2026, 04:37 PM
Arrive AI Declares Non-Reliance on Q2, Q3 2025 Financials
AI Summary
Arrive AI Inc. announced that investors should no longer rely on its previously issued financial statements for the quarters ended September 30, 2025, and June 30, 2025. This decision follows the discovery of a potential accounting error related to the embedded derivative feature of Convertible Notes with Streeterville Capital, LLC. While the error has a non-cash impact, it affects reported net income, balance sheet presentation, and footnote disclosures. The company intends to restate these quarterly reports as soon as practicable, having already remediated the error in its 2025 Annual Report on Form 10-K.
Key Highlights
- Arrive AI Inc. declared non-reliance on Q2 and Q3 2025 financial statements.
- Accounting error identified in Convertible Notes' embedded derivative feature (ASC 815-40).
- Error has non-cash impact, affecting net income, balance sheet, and disclosures.
- Company will restate Q2 and Q3 2025 Quarterly Reports on Form 10-Q.
- Error has been remediated in the 2025 Annual Report on Form 10-K.